Else Nutrition
Else Nutrition Else Nutrition

With a growing shortage of baby products and a desperate need for toxic-free products, Else Nutrition Holdings Inc. (TSE: BABY) is reshaping the industry and filling a market gap with its plant-based and heavy-metal-free baby food products.

An increasing shortage of baby formula

The pandemic’s supply chain problems have severely impacted every industry, including the baby formula market. Baby food products are also in short supply due to the closure of Abbott’s central production facility in Michigan, which has caused widespread panic among parents. Following an investigation into possible contamination in Abbott’s baby products, the products were recalled from shelves, and the company closed its largest formula manufacturing plant. According to Datasembly, a data analytics firm, baby formula supply shortages increased to 40% last week from 11% in November 2021, although the FDA claims to be working with American manufacturers to increase output and streamline paperwork to allow more imports. Moreover, recent consumer reports have revealed that 50 well-known infant nutrition products contain high levels of heavy metals, adding to the pressure.

Tailwinds for Else Nutrition

Else Nutrition, an Israel-baed food and nutrition company, develops innovative clean labeled plant-based food and nutrition that produces all-natural, dairy-free, soy-free, and healthy food and nutrition products for infants, toddlers, children, and adults. With the rise in cases of dairy intolerance in babies, there is a greater demand for organic and clean-labeled infant nutrition products. The company’s products are 100% natural and plant-based, made from almonds, buckwheat, and tapioca. They are free of hormones, antibiotics, gluten, and other hazardous ingredients, allowing them to get a first-mover advantage in this market.

The company is a strong player in the plant-based infant formula and pediatric nutrition markets, with the opportunity for significant investment in innovation. With the federal Supplemental Nutrition Assistance Program (SNAP) support, Else’s products can now reach low-income families who can benefit from the cleanest, purest, and most complete nutrition available.

The company recently announced that Amazon would accept Electronic Benefits Transfer (EBT) purchases of Else Nutrition products, allowing SNAP users to buy food with SNAP benefits in all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands, and Guam. This step will undoubtedly increase brand awareness and revenue growth for the company, but it will also provide Else Nutrition with a way to address the current supply shortages. The growing acceptance of the company’s products among parents and government approval indicates that the company is prepared to take over existing manufacturers that remain ignorant of toxic metals in their products.

The use of the cleanest ingredients and the most stringent processing methods to ensure purity has resulted in the company pushing the industry toward safer and better newborn nutrition solutions. The company’s commitment to addressing heavy metals issues by developing a safe line of newborn nutrition products earned it the Clean Label Project Purity Award for its Super Cereal for Babies. Else Nutrition is the first and only baby cereal product in the United States to receive this award, testing for over 400 impurities, heavy metals, and toxins such as arsenic and lead cadmium.

Else Nutrition is constantly expanding growth channels and generated $4.7 million in revenue for 2021, a year-over-year increase of 219% fueled by strong product performance in online and retail channels. On May 12, the company announced that its novel Plant-Based Complete Nutrition for Toddlers & Kids will be listed at Lassens Natural Food & Vitamins stores and available at all 11 retail outlets later this month. Lassens is a family company that offers fresh, local, healthy, and 100% organic products. This collaboration will take Else Nutrition’s products in front of a consumer cohort that is very likely to purchase these products. This is good news for the company, and it would be reasonable to assume that this partnership will help Else Nutrition report stellar revenue growth in the coming years.

The Bottom Line

Else Nutrition is poised to become an industry leader in the baby nutrition market with its rapid expansion into new markets. The company has made steady progress in the last few months, becoming Amazon’s #1 bestselling baby and infant formula product and winning numerous awards for its clean and safe plant-based baby products. Now the company is emerging as one that could solve the shortage of baby food products experienced today. The company has a long runway for growth as newly formed partnerships will add new revenue streams in the coming years.