New Investment Opportunity: Sufresca
Natural edible coatings to keep fruits and vegetables fresh
- Natural, biodegradable, edible coating extends produce shelf life, reducing food loss, waste, use of plastic packaging; technology based on 15 years of Hebrew University research
- Applied in any packinghouse, follows market standards in pricing, application techniques and amount of coating required
- Applied using standard production line equipment; competitor Apeel Sciences valued at $2B, offers more expensive product, requires proprietary equipment, constant formulation adjustments, onsite team
- Trials with key produce distributors in Belgium, France, Germany, Israel, UK
- Sales to begin in 2023, projected revenue $540K
- $2M allocation at 20% discount in $5M SAFE with $20M cap
Dear Josb,
As much as a third of all fresh food and half of all fresh fruits and vegetables are lost or wasted, resulting in steep financial costs to suppliers, causing grave harm to the food supply and environment.
OurCrowd is reinvesting in Sufresca, an Israeli startup that has developed a novel, cost-effective, edible, natural, biodegradable coating for fruits and vegetables that is ultra thin, transparent, tasteless, odorless and virtually undetectable to consumers. The details that follow are based on information received from, and verified solely by, the company.
The Problem
More than $2.5T of food is wasted every year. The cost to suppliers and consumers is rising fast, as is the impact on the environment. Meanwhile, the planet faces growing food insecurity with more than 800 million undernourished people worldwide.
The Solution
Sufresca's coating is based on 15 years of research at the Hebrew University. It extends the shelf life of fruits and vegetables by up to several weeks, in cold, ambient and changing temperatures. The coating is made entirely of natural, biodegradable food additives.
Sufresca's simple coating requires no specialized application equipment or special training and can be applied by regular staff using standard and common vegetable washing or waxing lines found at most packing houses. There is no need for the onsite presence of Sufresca operatives, since the coating is compatible with existing equipment.
The coating increases revenues by reducing food losses and waste along the supply chain of fresh produce, enabling new market opportunities and offering superior produce in terms of lasting quality and freshness to retailers. The price is low enough that there is no impact on the retail price.
Environmental Benefits
The coating provides environmental benefits popular with consumers. Produce grown and transported hundreds or thousands of miles only to spoil before being eaten is a major source of carbon emissions. Additionally, consumers are increasingly aware of the environmental harm created by single-use plastic, and some governments are mandating a reduction in its use. France banned plastic packaging for most produce at the beginning of 2022.
Regulatory Status
The coating is composed of materials "Generally Recognized As Safe'' in the US and does not require FDA approval. Compliance with Russian and Mexican regulations has been ratified. EU compliance for fruits has been ratified, and compliance for vegetables is expected to be ratified next year.
The Traction
To date, Sufresca has shown that its formulation is effective for tomatoes, peppers, cucumbers, mangos and avocados.
The company has industrial trials with key produce distributors in Belgium, France, Germany, Israel, and the UK. First revenues are projected at $540K in 2023.
The Comparables
Apeel Sciences, a company with a similar, more complex product that requires its staff and proprietary specialized application equipment to be on site when it is applied, closed its most recent round at a $2B valuation.
The Round
OurCrowd has an allocation of up to $2M in this $5M SAFE at a 20% discount with a $20M cap.
Funds from this SAFE will be used to set up operational centers in Mexico and Spain, accelerate production capabilities, and scale up sales and marketing.
Meet the CEO
We're hosting a webinar/conference call on Thursday, March 3rd, at 7PM Israel / 12 Noon New York / 9AM San Francisco for investors to meet CEO Efrat Ferri and learn more about Sufresca.
Can't make the webinar? Register and we will send you a recording of the call.
The Sufresca Solution
Sufresca has developed a proprietary formulation that overcomes many of the shortcomings of existing edible coatings.
Sufresca's product enables optimal gas exchange between the coated fruit or vegetable and the environment by allowing controlled flow of gases through the solid lipid barrier (hydrophobic), thanks to its 'chaotic structure' that mimics that of the natural fruit cuticle and doesn't over-seal it, which could result in fermentation.
This technology is a breakthrough in the development of lipid-based coatings, as it provides all the functional and commercial benefits of natural lipids, while overcoming crucial issues such as the generation of off-flavors over time caused by anaerobic fermentation, brittleness, or impaired ripening. It contains only natural ingredients.
The product prolongs shelf life by several weeks, while maintaining the color, weight, and fresh appearance of fruits/vegetables. There is a basic, generic version of the substance, which may also be tweaked to meet the unique needs of different types of produce.
Next steps:
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