BioHarvest Sciences Inc. (CSE:BHSC) is the first and only industrial-scale plant cell technology capable of producing the active plant ingredients without the necessity to grow the plant itself
SmallCapPower | April 21, 2021: BioHarvest Sciences Inc. (CSE:BHSC) harnesses disruptive plant cell technology to produce novel consumer products in highly lucrative markets. By executing on its focused sales and marketing initiatives on a bigger scale, the company is poised for growth that should grab investors’ attention.
What BioHarvest Sciences does:
BioHarvest Sciences is the first and only industrial-scale plant cell technology capable of producing the active plant ingredients without the necessity to grow the plant itself. It produces the desired compounds in their natural state to ensure the highest bio-availability, usability and efficacy while ridding the end product from any undesired elements.
The technology itself has application in many different verticals and has a $500 billion addressable market. The company harnesses the technology to pursue two verticals: namely in the superfruit nutraceutical market and in the lucrative cannabinoids market.
BioHarvest differentiates itself in efficacy and transparency that is backed by a scientific approach based on clinical trials, published in peer reviewed scientific journals. For instance, a VINIA product or capsule that contains 5 mg of the active ingredient (piceid resveratrol) is 88% soluble, meaning approximately 4.4 mg will enter the bloodstream. High levels of solubility are due to the unique natural structure of their Piceid resveratrol – their competitors’ products are far less effective with approximately 1 mg out of 500 mg being absorbed.
Targeting new markets for the superfruit nutraceutical vertical:
VINIA is the flagship product of the company’s superfruit nutraceutical vertical that was initially launched in Israel. The active ingredient in the product is resveratrol (found in wine). Based on scientific studies and research papers, the company can legally claim that their product VINIA supports heart health by improving blood flow and delivery of oxygen. The product also helps maintain healthy arteries and fuels antioxidant activity within your veins and arteries.
Though there are few competing products in the market that offer resveratrol products, VINIA has far superior efficacy levels, and is the only one with Piceid resveratrol from red grapes.
With the success of the product in their home market, the company will launch the product in the U.S. in a capsule form and aggressively push direct to consumers with their new ecommerce website. BioHarvest also has a dedicated U.S. sales and distribution team through their partnership with Batory foods, and a production facility that encapsulates VINIA in the U.S. The company feels the product is going to completely disrupt the dietary supplement market, which is a $40 billion industry in the U.S. alone. Almost 75% of U.S. households purchases a dietary supplement every single month.
BioHarvest Sciences CEO Ilan Sobel recently commented on the company’s entry into the U.S. market, stating:
“Entering the U.S., the world’s largest nutraceutical market, is a significant undertaking, and our transition from a largely Research & Development driven organization into a commercial machine has been transformative for our business. The disruptive marketing capabilities and Direct to Consumer business that we are developing in the United States will form the foundational pillars of all of our future product launches and will set the stage for our expansion into other markets. Our shareholder partners are excited about the revenue opportunities which exist in the U.S., for VINIA itself, and are also excited about the next phase of our revenue growth as we build the foundational relationships directly with our consumers and the ‘Pipes’ into their homes in order to provide in the near future a portfolio of differentiated health and wellness products for them to choose from.”
Achieving break-even:
On April 7, BioHarvest announced Q1 Israel sales results – sales orders of VINIA in Q1/2021 reached an all-time high of US$377,756, representing a 17% increase over Q4/2020 sales orders, and a 668% increase over Q1/2020. The total number of VINIA purchase orders in Q1/2021 also reached a new high of 2,190, an increase of 45% versus Q4/2020. Based on the demonstrated demand for VINIA, the company had previously increased its 2021 Israel sales order forecast by 100% to US$1.4 million as compared with its initial sales order forecast of US$700,000, driven largely by impressive D2C marketing tactics and their ecommerce website.
The company expects robust demand for the product when marketing of VINIA commences in the U.S. in early Q2 2021. In that regard, management is focused on creating adequate capacity to meet such demand using the new 20-ton facility that is scheduled to start production of VINIA in Q3 2021. The existing 2-ton facility will then be converted into cannabis production, with 2022 commercialization of cannabis.
From the above-mentioned efforts, BioHarvest is confident that they will achieve break-even for this vertical.
Future growth:
With a focus on disruption, the company will first direct its efforts to Florida and Georgia, as well as North and South Carolina. And eventually the rest of the country followed by expansion into Canada, Europe, and Japan.
Following the current launch of the capsules, BioHarvest is also gearing up to introduce VINIA snack bars in the U.S. by 2022.
This is an important development for BioHarvest as it introduces the company’s innovative and highly differentiated product into the multi-billion-dollar snack bar market. The product will initially be launched in Israel in Q2 2021, to be followed by a launch in the United States in early 2022.
According to A2Z Market Research, the U.S. snack bar market is estimated at US$10.6 billion for 2021 and is expected to grow at an impressive annual rate of 13%. As a result of these developments, the company is updating its 2021 sales order projections for Israel to between US$1.3 million and to US$1.5 million.
The above-mentioned developments with Bio Harvest Sciences seem extremely promising and are indicative of a company executing on its commercialization strategy.
To discover more about the company, please watch this video of our webinar with the company CEO Ilan Sobel.
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