Ms. Hamutal Yitzhak reports

ELSE NUTRITION ENTERS THE CHINESE MARKET, VIA A SIGNED AGREEMENT WITH BAOZUN, A LEADING E-COMMERCE DISTRIBUTOR IN CHINA

Baozun, a leading e-commerce solutions provider in China, expects to start selling Else Nutrition Holdings Inc. products in China in Q3 of this year.

The global infant formula market in 2021 accounted for approximately $77-billion. The market is expected to grow and reach around $110-billion by 2026. China will remain the market leader with about 40 per cent of the global market share. China's infant formula market is projected to grow at a compound annual growth rate of 8 per cent, from $30-billion in 2021 to $40-billion by 2025.

With Baozun's e-commerce, end-to-end solutions, the company would have direct access to retail buyers in China, starting in Q3 2022, through a wide range of on-line shopping platforms such as Tmall, JD.com, Kuaishou, WeChat Mini programs and many others. With the recent distribution agreement signing, the company expects to start operating on China's cross-border e-commerce platforms soon.

"Selling our innovative plant-based clean pediatric nutrition products in China is a key milestone in the company's strategic plan to become a player in the global infant nutrition market. Following our recent growth in North America, we are on track for expansion globally. We are happy to help fulfill the increasing demand in China for a dairy- and soy-free pediatric nutrition alternative, especially considering the very high rate of lactose intolerant population in China of about 22.4 per cent, the additional suspected lactose intolerant population of about 25 per cent, and the proportion of infants and toddlers under two years who claim to experience allergic symptoms is as high as 40.9 per cent (3.7 million infants/toddlers).

"Another indicator of the need for plant-based alternatives is Chinese consumers' rising awareness of health and sustainability which has led to the increasing consumption of plant-based milk, especially among Gen Z and Gen Y consumers. The average annual growth rate of the Chinese plant-based milk industry is expected to remain above 20 per cent in the next few years, and the market size is expected to reach 300 billion yuan ($56.65-billion) by 2025," said Hamutal Yitzhak, the chief executive officer and co-founder of Else.

About Else Nutrition Holdings Inc.

Else Nutrition GH Ltd. is an Israel-based food and nutrition company focused on developing innovative, clean and plant-based food and nutrition products for infants, toddlers, children and adults. Its revolutionary, plant-based, non-soy formula is a clean-ingredient alternative to dairy-based formula. Else Nutrition (formerly INDI) won the 2017 best health and diet solutions award at the Global Food Innovation Summit in Milan. Else plant-based complete nutrition for toddlers was recently ranked as the No. 1 top seller in the baby and toddler formula category on Amazon. The company recently received the World Plant-Based Award for best dairy alternative product in New York at World Plant-Based Expo in late 2021. The holding company, Else Nutrition Holdings, is a publicly traded company, listed on the TSX Venture Exchange under the symbol BABY and quoted on the U.S. OTC Markets QX board under the symbol BABYF and on the Frankfurt Exchange under the symbol 0YL. Else's executives include leaders hailing from leading infant nutrition companies. Many of Else's advisory board members had past executive roles in companies such as Mead Johnson, Abbott Nutrition, Plum Organics and leading infant nutrition societies, and some of them currently serve in different roles in leading medical centres and academic institutes such as: Boston Children's Hospital, Pediatrics at Harvard Medical School, United States; Tel Aviv University, Schneider Children's Medical Center of Israel, Rambam Medical Center and Technion, Israel; and University Hospital Brussels, Belgium.

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