INVEST IN EXTRACTA
Extracta: Australia's first Zero-Waste | Edible Surplus processing plants.
Extracta products foster positive change through Sustainable Nutrition, a value that has gained significance among both governments and consumers.
 |
INVESTING IN THE CIRCULAR ECONOMY
Extracta repurposes unused food and agricultural surplus, upcycling it into ingredients for the rapidly growing food, nutraceutical, and cosmetic industries. These raw materials, which would otherwise be wasted, are transformed into high-value, high-margin products at a low cost. The demand for Extracta's products and the pathway to market are already established in both Australia and the USA.
By providing competitively priced Australian-made ingredients, alongside sustainably sourced options compared to imported alternatives, we enhance our customers' competitive advantage in their respective markets
THE PROBLEMS
- The demand for Australian Made ingredients outstrips supply.
- There are very few ingredient suppliers in Australia for the food and Functional food market – emerging consumer trend requiring evidence their foods have proven health benefits.
- Insufficient (close to nil) ingredient suppliers provide sustainable products – this is also a fast growing consumer need.
- Extracta reduces waste, including reducing greenhouse gas emissions.
- Extracta products are Made in Australia and from 100% sustainable sources.
- All products have demand and established paths to market.
- Extracta business model minimises production costs.
ENVIRONMENTALLY AWARE PRODUCTION
There is increasing demand from Australian manufacturers for these products, and a strong preference for local, reliable producers like Extracta.
LOW VOLUME - HIGH MARGIN
Extracta faces minimal direct competition due to its business model, which focuses on high-margin and superior quality products.
Pectin production has not occurred in Australia for many years, primarily due to competitive pricing from imported options. However, Extracta possesses the expertise and technology to manufacture it cost-effectively within Australia.
By revitalising a lost manufacturing sector, Extracta has secured substantial government grant funding.
There are very few manufacturers in Australia catering to the high-quality food and food-as-medicine markets. For instance, Extracta's first customer, MediKane, currently imports sugarcane from Japan, as there are no quality competitive suppliers in Australia. Nonetheless, Extracta has demonstrated its ability to deliver top-notch ingredients.
Objectives
The objectives of this project are to:
- Deliver shareholder returns by effectively utilising waste streams that have been overlooked by others.
- Minimise the generation and disposal of food waste at the primary production and processing stages, extending these benefits to agricultural businesses across Australia.
- Establish a processing plant with the capacity to convert thousands of tonnes of fruit pomace, surplus fruits, and vegetables into innovative food products and ingredients annually.
- Develop a circular economy business model and service for Australian growers, providing a viable alternative to conventional waste disposal and recycling methods.
- Create sustainable products for businesses and consumers that adhere to circular economy principles, with an emphasis on waste reduction and the maximisation of material lifecycles.
- Foster the creation of new long-term employment opportunities based on a circular economy framework.
The project will be implemented in stages to facilitate proof of concept, commercial scaling, and full operational capacity.
OUTCOMES AND IMPACT
- The first facility was built in cooperation with Queensland University of Technology and funded by a Fight Food Waste CRC grant.
- There are now 5 products on the market, with more in prototyping stage. Extracta also created several new product lines to be used in other customers products.
- New product lines are currently undergoing testing and are in the research, and development (R&D) phase at Maquarie University.
- The Extracta process has successfully extended the life of fruit skins and seeds from a few days to 365 days, with a goal of providing a shelf life of up to 2 years.
- Businesses are excited about the Extracta process and have expressed interest in being involved and using the product.
WHATS NEXT?
- Extracta has created a circular solution to food waste and will continue to build awareness of its innovation and work with food companies and consumers on long and short-term options to increase exposure.
- Extracta has a 3-year plan to expand its current feedstock lines, with a goal to be incorporated into a further 10 products
- There is a dedicated salesperson to drive sales and manage customer engagement. Extracta will continue to promote and attend events to drive awareness of its products, services and solutions.
- Extracta’s sales manager will be in the USA in October to commence the process of establishing US Offtake-agreements and Distributor contracts.
Raising US$2.5M
This is a Seed Round only open to Sophisticated Investors. For strategic investments, a board seat may be offered.
 |
Investor Returns
Extracta has been built with the intention of exiting in 2 – 3 years. We are open to IPO and will prepare for that with advice from financial partners, but recently many IPO’s have not delivered for shareholders, so A Trade Sale is on the agenda.
Rationale: Extracta delivers high margins (raw materials are ‘cheap’ for us and the operating model is low cost and proven) so we can compete with all competitors. Our USP’s are the envy of many ingredient suppliers and our technology base is still improving with the help of government funding.
The target Exit Buyers are:
- Ingredient suppliers – we have relationships with the majors
- Contract packers – we have some relationships and will develop more
- Global food companies – Everyone in the food industry has networks here