Author: nosh.com
Item Type: BENEXIA IN THE NEWS

The chia seed is a nutritional powerhouse, and global chia producer Benexia believes there are manyfood and drink applications that it can fuel. The company is using its proprietary chia ingredients to expand its CPG brand, Seeds of Wellness, with the launch of plant-based milk this fall and growingdistribution for its line of chia pastas and chia oil.

Founded in 2005, Santiago, Chile-based Benexia is one of the world’s leading chia producers, accordingto the company, and is known for creating chia-based powders and extracts for use in supplements,food and beverages. The company owns and sources its chia directly from a Bolivia-based farmers’collective, allowing a truly “!eld to fork” model, CEO Sandra Gillot said.

Seeds of Wellness subsequently debuted in the U.S. in early 2019 with its pastas and oils, along with chiaseeds, powders and supplements, but the company has a “huge vision” to “create a new chia category,” Gillot said, exploring areas (like beverages) that have not yet widely utilized the ingredient.

Creating its own CPG line came about after Benexia’s 20 to 25 clients — which include large strategics such as Nestle — weren’t quite ready for these innovations or required more proof of concept, Gillot explained.

“We were really pioneering the chia ingredients’ area [into] brand new ingredients that the food industrydidn’t know how to use,” Gillot said. “Sometimes there’s a little bit of fear to launch new concepts, and[companies] are slow to do it because they don’t know how the market will react.”

The products are currently made at copackers around the world, with the pasta produced in Colombiaand the milk in Chile and Europe. As its U.S. retail presence grows, the company hopes to eventually addproduction in the U.S.

Despite the company’s global origins, for now, 80% of the brand’s focus is on a U.S. market expansion,and Bas Ruijten, Seeds of Wellness’ commercial director, said that for this market having a “completeportfolio” became necessary. Moving forward, the company expects the pastas, oils and milks tocomprise 65% of the brand’s sales.

“The more products you add to the portfolio, it adds value and brings newness to the market and makesit so much more attractive for retailers to take you on board,” he said.

Seeds of Wellness will launch three alternative milks, with an MSRP of $4.49, into retail this fall. The restof the line, including the pasta (MSRP of $4.49) and the oil (MSRP of $11.99), is sold in some Albertsonsand Price Chopper locations, as well as other retailers. The pandemic delayed the brand’s retailexpansion by about two months, with already committed retailers pushing back resets to July. In total,the brand will be in 750 doors by mid-summer, with a direct-to-consumer platform coming online laterin 2020 as well.

The company is particularly excited about the new shelf-stable milk offering, which combines finelymilled chia powder with water and salt to create a beverage that has a low carbon footprint. But what
stands out is the beverage’s smooth texture, contrary to other gritty or ‘slimy’ chia beverages. Consumers, especially children, often struggle with the texture of chia seeds, Gillot said.

That texture also can prove to be tricky when formulating food and beverage products and thus limits
innovations. But the milk, Gillot said, will demonstrate Benexia’s skill at creating an appealing product —
serving as a business development tool for new clients. The company is still exploring if it will sell or
license the food and beverage technology directly to brands or instead pursue co-branding
opportunities.

Gillot added that the nutritional content warrants a higher price tag: the products are high in protein,
fiber and omega-3s and also easy to digest. But she doesn’t see price as a deterrent, adding that the
COVID-19 pandemic is making consumers view food as “more relevant for us and our health.”

“A new ingredient needs a lot more effort, but the public is ready to have more nutrition in their diets,”
she said. “I think we need to keep developing together with customers; we’re not in a hurry [and] need
to keep following their pace.”

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