Mr. Craig Goodwin reports

NATURALLY SPLENDID TO ENGAGE ALBERTA'S FOOD PROCESSING DEVELOPMENT CENTRE FOR HEMPOMEGA(TM) FORTIFIED PET FOOD

Naturally Splendid Enterprises Ltd. has commenced a working relationship with the Alberta Food Processing Development Centre to determine the efficacy and nutritional benefits of using the company's exclusive HempOmega plant-based omega supplement, to fortify commercial pet foods.

Naturally Splendid plans to conduct research and product development at the food science and technology centre located in Brooks, Alta. The centre will develop optimized pet food formulations and processing capabilities followed up with nutritional and performance testing at an approved lab. The goal of this study is to develop pet superfoods fortified with HempOmega in order to provide optimum nutrition for pets and participate in this multibillion-dollar market.

Naturally Splendid chief executive officer Craig Goodwin states: "The concept of commercializing HempOmega in the pet food sector is very exciting. Initially HempOmega was considered for only human consumption but the development of omega-enriched pet food is a natural extension of this growing market segment. Longer-term potential exists for the inclusion of HempOmega in aquaculture, cosmetics, cosmeceuticals and nutraceuticals."

Mr. Goodwin continues: "Our exclusive marketing rights for this breakthrough omega technology extends North America wide. The opportunities are multiple and the applications expansive for these plant-based omega products. Opportunities range from omega-enriched dairy, dairy alternatives, beverages such as juices, smoothies and energy drinks, to breads and cereals, as well as a multitude of dry goods for human consumption. We are enthused with the statistically impelling information derived from the recent HempOmega study conducted at the University of Manitoba regarding feed for poultry (see NSP news released Sept. 4, 2014)."

Consumer demand for pet food, health and wellness products, grooming, and pet-related accessories is growing at a rate of 4 per cent annually according to Packaged Facts. The overall market in Canada for pet related items reached $6.6-billion in 2012 and is expected to grow to $8.3-billion by 2018. Pet food represents 30 per cent of that total as the Canadian population of cats and dogs is estimated at 9.5 million and five million, respectively. In the United States, domestic pets number 83.3 million dogs and 95.6 million cats in 2012.

Consumers spend an average of nearly $1,000 per year on their pets. Pet-related spending will continue to increase rapidly over the coming years, due in large part to the aging pet population, and owners seeking higher quality food for their pets. The new generation of pet owners is both willing and able to pay top dollar for premium products. They are concerned about their pets' health and welfare. Recent and emerging trends in the market include: a focus on nutrition, an interest in low-calorie or light products; increased availability of nutraceutical products with supported health claims; and, gourmet and specialty pet foods and snacks.

The technology

Developed by Boreal, these proprietary omega formulations utilize both microencapsulation as well as liposomal formulation providing a more efficient delivery process to the human digestive system. Preliminary testing has confirmed that these products offer increased bioavailability and sustainability by encapsulating lipids and transforming the insoluble ingredients into a stable aqueous suspension. The suspended particles can then be used in a liquid state or converted into a fine, flour-like, dry powder ingredient. This procedure allows for multiple methods of product implementation: capsules, powders, baked goods, beverages and the rest, with precise control over formulation, dosage and uptake. This technology creates value-added ingredients and expands the market potential for oil-based substances which can prove challenging to handle, store and formulate.

Plant-based omega product distribution strategy

The marketing and distribution of HempOmega in particular and the companies suite of plant-based omega products, is multifaceted and can be categorized as follows:

1. As an ingredient in proprietary or private label products;
2. Provide plant based omegas as an ingredient to major brands to be added to existing and/or new product lines;
3. Collaborate with ingredient suppliers to market as stand-alone ingredients as well as co-develop ingredient formulations and solutions for their client base.

We seek Safe Harbor.