Arcadia Biosciences Announces Collaboration with Corner Foods to Commercialize GoodWheat™ Technology
— Collaboration will focus on direct-to-consumer and traditional retail channels,
in key emerging markets including China and Israel —
DAVIS, Calif. (Aug. 6, 2020) – Arcadia Biosciences, Inc.® (Nasdaq: RKDA), a leader in science-based approaches to enhancing the quality and nutritional value of crops and food ingredients, today announced the execution of a term sheet to collaborate with Corner Foods, an affiliate of Corner Capital Group, designed to bring its GoodWheatTM portfolio of specialty wheat ingredients to China and Israel. Arcadia’s GoodWheat was developed to offer unique health and nutritional benefits, such as higher fiber, improved protein quality and reduced allergenic gluten. Consumer preferences strongly align with these benefits. GoodWheat ingredients reimagine the health benefits around traditional bakery items, pasta and other wheat-based food products as well as offer alternative starch solutions to the pharmaceutical industry.
“This collaboration with Corner Foods has the potential to open key international markets for products made with our GoodWheat ingredients,” said Matthew Plavan, president and CEO of Arcadia Biosciences. “We expect strong demand for healthy, ready-made products such as pastas and specialty baking mixes, and we have allocated significant GoodWheat inventories to support this growth initiative and leverage the international network of Corner Foods.”
Through Corner Foods, Arcadia’s GoodWheat ingredient-based food products will be introduced directly to consumers in China via popular e-commerce site TMall and cooking and lifestyle network Tastemade China. Together, these digital platforms reach an estimated eight million consumers in China per month.
“Tastemade is known for beautiful and engaging food, travel and lifestyle content that lets users explore cuisine from around the world through a mix of original content and user-submitted videos,” said Wayne Chen, CEO of Tastemade China. “We are excited to partner with Corner Foods to introduce viewers to Arcadia’s impressive portfolio of good-for-you wheat flours, pastas and baking mixes this fall.”
According to the research firm Mintel, China’s consumers in the post-COVID-19 environment are actively seeking a healthier lifestyle and prioritizing healthy snacks such as low-carb, low-sugar and fiber-added items. Additional research from McKinsey categorized about 49 percent of China’s population as middle-class-and-above urbanites and noted that 72 percent of these urbanites are actively seeking a healthier lifestyle, while 60 percent report always checking ingredient labels in foods.
Arcadia and Corner Foods also plan for introductions into food retail and foodservice markets in Israel, long known for food tech innovation focused on healthful ingredients. Israel is home to more than 50 agriculture and food technology start-ups. In 2018, annual investment in Israel’s food tech sector rose to $100 million, according to a report by Start Up Nation Central.
Arcadia and Corner Foods are expected to execute definitive agreements in due course.
About Arcadia Biosciences, Inc.
Arcadia Biosciences (Nasdaq: RKDA) is a leader in science-based approaches to enhancing the quality and nutritional value of crops and food ingredients. The company’s GoodHemp™ seed catalog delivers genetically superior hemp seeds, clones, transplants, flower and extracts, applying the company’s proprietary crop innovation technology, ArcaTech™, to an emerging crop. The company’s GoodWheat™ branded ingredients deliver health benefits to consumers and enable consumer packaged goods companies to differentiate their brands in the marketplace. Arcadia’s agricultural traits are being developed to enable farmers around the world to be more productive and minimize the impact of agriculture on the environment. For more information, visit www.arcadiabio.com.
About Corner Foods
Corner Foods is an affiliate of Corner Capital Group focused exclusively on providing products to retail and institutional customers in the consumer-packaged goods, healthcare and pet verticals, primarily in Asia and Israel. Corner Capital Group is a multinational investment management firm with offices in Asia, the United States and Israel. Corner Capital Group acts as a direct investor, trusted advisor and strategic partner to public and private companies globally, facilitating relationships, originating transformative opportunities, and executing investments across the capital structure. For more information, visit www.cornercapitalgroup.com.
About Tastemade China
Tastemade China is a subsidiary of Tastemade in China. It is a leading lifestyle video and live-show channel with millions of subscribers on top Chinese social media and e-commerce platforms, focusing on cross-border e-commerce operations.
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the execution of definitive agreements and the commercial success of the collaboration. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: Arcadia’s and its partners’ and affiliates’ ability to develop and sell commercial products including GoodWheat products, incorporating their traits, and complete the regulatory review process for such products; the negotiation and completion of definitive agreements with respect to the collaboration with Corner Foods; the demand for our GoodWheat products in China and Israel; Arcadia’s compliance with laws and regulations that impact Arcadia’s business, and changes to such laws and regulations; the potential impact of COVID-19 on our business; and the company’s future capital requirements and ability to satisfy its capital needs. Further information regarding these and other factors that could affect the company’s financial results is included in filings the company makes with the Securities and Exchange Commission from time to time, including the section entitled “Risk Factors” and additional information set forth in its Form 10-K for the year ended December 31, 2019 and other filings. These forward-looking statements speak only as of the date hereof, and Arcadia Biosciences, Inc. disclaims any obligation to update these forward-looking statements.
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