Freedom Foods Group Ltd (ASX: FNP) has given an update about its nutritional ingredients business platform.
Freedom Foods is a food company that was started in 1986 with a focus on making nutritious and healthier food and beverages. It started with products in soy, rice milks and breakfast drinks. Some of its brands include Freedom, Milk Lab, Crafted Blends, Messy Monkeys, Australia’s Own, So Natural, and Goodness.
Freedom Foods News
Freedom has updated the market about the progress of its ‘Nutritional Ingredients Business Platform’.
The food business has entered into a long term supply agreement for Lactoferrin with a major global pharmaceutical company, although additional details are confidential for now.
Lactoferrin is a naturally occuring iron-binding protein found in milk that is known for its anti-microbial, anti-inflammatory and immunological properties according to Freedom Foods. It’s used globally in a range of consumer health and nutritional food products including medicinal products and infant formula.
Pleasingly for Freedom Foods, the deal will use a significant component of current and planned capacity at the company’s nutritional ingredients facility in Shepparton, Victoria.
Freedom Foods boasted that its nutritional ingredients capability is experiencing strong consumer demand and has commitments for the sale of all available capacity in FY20 for native whey protein isolate, micellar casein and Lactoferrin. Pricing has been achieved at or above business plan assumptions.
Freedom Foods Growth Plans
The recent $130 million capital raising was well supported and it’s going to use that cash to accelerate its growth including increased capacity for native whey protein isolate, micellar casein and Lactoferrin, which should lead to increased capacity in FY21 and FY22.
Freedom Foods said it is also well progressed on commercialising a number of the above-mentioned ingredients into initial applications under its own brands including in ‘Performance’ and ‘Adult Nutrition’ as well as consumer applications for Lactoferrin.
This is all pleasing news from Freedom Foods, although it would have been nice to have seen some numbers in the update.
Freedom Foods has an exciting future, but it also has an expensive valuation to match, so I think I would rather consider the growth shares in the free report below instead.
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