Holista CollTech’s (ASX: HCT) has shouldered into the global billion-dollar noodle market after its subsidiary Holista Foods inked an agreement to supply North America’s leading noodle supplier Wing’s Food Products with its patented low glycaemic index noodle mix.
The memorandum of understanding has an initial three-year term with Holista CollTech anticipating the agreement will bring in about US$6 million in sales revenue for the 2018 financial year.
Holista CollTech anticipates this will increase to US$12 million in the 2019 financial year and US$25 million in 2020.
The patented mix contains okra, lentils, barley and fenugreek which according to Holista CollTech, are all natural and contain zero artificial ingredients or preservatives.
Additionally, the formula has a 38 GI reading from independent testing, which is below the global average of 60.
According to Holista CollTech, the reading reveals the rate in which carbohydrate foods raise blood sugar levels, with the lower the score, the healthier the food.
The formula has been successful in bread and muffins and Holista Foods is currently working on developing its mix for pasta and pancakes.
Holista CollTech claims the mix is easily prepared and is not discernible from standard wheat products.
Through this initial agreement, Wing’s is seeking to address obesity and diabetes-related health issues associated with high sugar content foods.
The US Centre for Disease Control and Prevention reported that more than 100 million adult Americans suffer from diabetes or pre-diabetes.
“Wing’s is proud to be the first major noodle manufacturer in the world to launch a dedicated low-GI noodle,” Wing’s president Neal Lee said.
“We are confident our partnership with Holista will be well-received in North America – if not globally,” he added.
Meanwhile, Holista Food chief executive officer Nadja Piatka said the North American market was “sizeable” and “significant” and the collaboration with Wing’s could kick off a global trend for a healthier version of instant noodles without compromising taste and texture.
Holista CollTech chairman and chief executive officer Dr Rajen Manicka said the company was also targeting leading Asian noodle markets for its mix including China and Indonesia.
Grand View Research valued the global pasta and noodle market at US$59.6 billion in 2016, with the US noodle market worth about US$270 million.
When used to make noodles, Holista Food’s mix makes an 85-gram serving that comprises 11g of protein, 3g of fibre and zero sugar.
The market reacted positively to the news, with Holista CollTech’s shares rocketing more than 55% to sit at A$0.12 in mid-afternoon trade.