Consumers are increasingly showing interest in functional foods and beverages that provide additional benefits to their health beyond physical nutrition. In particular, consumers are showing more interest in foods and beverages that boost their immunity. Factors such as the aging population and the recent global health crisis have increased consumer demand for these products. The last few years, especially, have seen an increase in the demand for functional foods and beverages, a trend that experts predict will continue to grow at a CAGR of 7.06% by 2026 in North America. With these forecasts in mind, companies such as Pure Extracts Technologies (CSE:PULL) (OTC:PRXTF) (XFRA: A2QJAJ), PepsiCo (NASDAQ:PEP), Keurig Dr. Pepper Inc. (NASDAQ:KDP), General Mills (NYSE:GIS), and Red Light Holland (CSE:TRIP) (OTC:TRUFF) are making a name for themselves in this developing market.
Pure Extracts Orders First Shipment of Functional Mushrooms
Pure Extracts Technologies Corp. (CSE:PULL) (OTC:PRXTF) (XFRA: A2QJAJ) is a plant-based extraction company with a state-of-the-art facility located in British Columbia. In November 2020, the Company released its roadmap for the processing of functional mushrooms, setting a target to have the first products in the market in the first quarter of 2021. The Company has made significant steps since the announcement, including registration with the Natural and Non-prescription Health Products Directorate.
Towards its goals of launching new products, Pure Extracts announced on March 16 that it ordered its first shipment of functional mushrooms through its fully owned subsidiary Pure Mushrooms Corp.
Through Pure Mushrooms Corp., Pure Extracts plans to enter the mushroom extraction sector. Pure Mushrooms has already developed three premium functional formulations – Reishi, Maitake, and Lion’s Mane – which are available in safe and convenient vegan capsules. The sales of its Reishi and Maitake formulations are expected to commence in April, while those of the Lion’s Mane formulation are expected to commence in June through the Company’s e-commerce store. According to Pure Extracts, each formulation may be able to generate up to $15,000 in gross sales per month.
Reishi mushrooms have been used for centuries in Eastern medicine to provide immune support and antioxidants, to increase energy and resistance to stress, and to nourish the heart. Maitake mushrooms have also been a staple in Japanese and Chinese cultures as both a supplement and food. These cultures use Maitake mushrooms to combat stress, support the immune system, and provide antioxidants that are beneficial to the heart and brain.
Commenting about the order, Ben Nikolaevsky, CEO of Pure Extracts, remarked, “We are excited to be ordering the first Pure Mushrooms products to launch our direct-to-consumer online store. The functional mushroom wellness market is experiencing robust sales as many consumers are trying to boost their immune systems in the light of the COVID-19 pandemic. As we build-out our mushroom extraction facility, we plan to bring more products to the market.”
Food and Beverage Companies Using Innovative Products to Capitalize on the Expanding Market
PepsiCo (NASDAQ:PEP) has made steps to increase its footprint in the rapidly expanding functional beverage market with the recent launch of its Bubly Bounce line of energizing functional drinks. Unlike the regular line of Bubly, Bubly Bounce is a flavored sparkling water drink with 35 mg of caffeine added. Bubly Bounce lacks the sweeteners normally found in carbonated soft drinks and comes in a variety of flavors, including mango passion fruit, triple berry, citrus cherry, blueberry pomegranate, and blood orange grapefruit.
In 2020, Keurig Dr. Pepper Inc. (NASDAQ:KDP), a leading beverage company in North America, took a minority stake in the daily nutrition shakes brand Don’t Quit from celebrity fitness trainer Jake Steinfeld. These shakes target the adult nutrition market and contain 26 essential vitamins and minerals, as well as 10 g of protein. Unlike other products in this market, the Don’t Quit shakes are free of artificial flavors, sweeteners, soy, and also corn.
General Mills (NYSE:GIS) owns probiotic yogurt brand Yoplait, which, in addition to its probiotics, is an excellent source of calcium and a good source of vitamin D. The probiotic yogurt market is gaining in popularity among both adults and children, with experts expecting it to continue growing at a CAGR of 6.3% through to 2031. Probiotic yogurt can help to increase one’s digestive health.
Red Light Holland (CSE:TRIP) (OTC:TRUFF) entered a non-binding letter of intent with Halo Labs Inc. to create a joint venture with plans to become a licensed psilocybin manufacturer. The joint venture would then supply the products to licensed service centers in Oregon. “Clearly we are very excited with the recent results of Oregon Measure 109 where progressive Oregonians have voted in favor of becoming the first state in the US, to allow the use of psilocybin, for therapeutic use. We take pride at Red Light Holland in our self-regulated responsible adult use psilocybin legal product (iMicrodose packs in the Netherlands), which we feel could become a model for the development of the Oregon regulated market to potentially treat chronic mental health issues like anxiety, depression, and addiction,” said Todd Shapiro, Red Light Holland’s CEO and Director.
As consumer demand increases, companies such as Pure Extracts are leveraging innovations in product launching to take advantage of the rapidly expanding functional food and beverage market.
For more information on Pure Extracts Technologies Corp., click here.
Featured image: DepositPhotos © ra2studio
