Venture capital deal brings probiotics in from the cold
13 June, 2007
EnCoate, the 50/50 owned AgResearch and Ballance Agri-Nutrients Joint Venture Company, today announced it is close to
signing a multi-million dollar deal that will see an injection of venture capital money to finance the development of a
revolutionary line of probiotic formulations that will enhance food products.
Once the agreement is signed EnCoate will receive $6.3 million in investment from one of Australasia’s biggest life
sciences venture capital funds.
Probiotics are microbes that have beneficial health effects on humans and animals. However, current technology limits
their application to yoghurt and other milk products as they must be refrigerated.
EnCoate’s goal is to extend the shelf-life of probiotics to two years at room temperature and humidity with special
formulations. Current technology does not allow probiotics to be mixed with other ingredients, which considerably limits
the scope of their application. EnCoate has developed a technology that can stabilise these microbes so they can be used
to enhance foods such as breakfast cereals, infant milk-powders and dog-biscuits.
Bridgit Hawkins, Acting EnCoate CEO, says this opens a potentially huge global market for probiotic ingredients.
“Probiotics have been recognised for many years as giving significant health benefits. Until now consumers have been
strictly limited to a small range of products offering the benefits of probiotics.”
The technology was developed by a team of scientists at AgResearch’s Lincoln campus near Christchurch and led by Dr
Trevor Jackson of the Crown Research Institute’s Biocontrol, Biosecurity & Bioprocessing Section.
Bridgit Hawkins says the start-up phase of the business involved developing the science, looking at proof of concept,
looking for business opportunities and engaging with end users to ensure the technology was appropriate.
“This involved developing what is known as a biopolymer coating that had first been used in the production of biological
control agents in agriculture. The first commercial product to use this technology was for the control of grass grub. It
has been commercially available in the marketplace for some years.
“With the new probiotics opportunity, the business is now positioned ahead of its competition and is an attractive
investment proposition,” says Bridgit Hawkins.
“What’s more, EnCoate has potential beyond extending the shelf life of probiotics, with the core technology behind
EnCoate being the biopolymer, which has applications including in agricultural biology, food and seed coatings, and
vaccines.”
About EnCoate
EnCoate is a joint venture company between New Zealand’s leading fertiliser company, Ballance AgriNutrients Limited and
AgResearch Limited, New Zealand’s primary sector Crown Research Institute. EnCoate specialises in the development of
proprietary food-grade biopolymer technologies. These simple biopolymers have broad application in extending the
shelf-life of food and microbe-based agricultural and health products at up to ambient temperatures. Additional
technologies include fungal and bacterial products and delivery systems.
www.encoate.com
About Ballance Agri-Nutrients
Ballance Agri-Nutrients is New Zealand’s leading fertiliser specialist, with manufacturing plants located in Whangarei,
Mount Maunganui and Invercargill. In addition, the company owns the ammonia-urea manufacturing plant at Kapuni in
Taranaki, and Super Air, one of the country’s largest agricultural aviation companies.
Ballance is a 100-percent farmer-owned co-operative, with some 18,000 shareholders throughout New Zealand. It was
officially launched in 2001, bringing together a number of regional fertiliser co-operatives to become a truly national
company. The company places a strong emphasis on delivering value to its shareholders and on the use of a scientific
approach to plant nutrient management.
www.ballance.co.nz
About AgResearch Ltd
New Zealand’s largest Crown Research Institute, AgResearch comprises a number of renowned research centres but most
importantly it is made up of hundreds of individual scientists, technicians, their teams and support staff. Their work
targets the key issues faced by the pastoral and biotechnology sectors, and leads to innovative products and knowledge
that benefit all New Zealanders.
Through its mission, 2020 Science, AgResearch endeavours to keep the country prosperous to 2020 and beyond. The strategy
is underpinned by its five big ideas : to double the value of dairy production while halving the costs and impacts on
the environment; to double the value of meat and textile production while halving the costs and impacts on the
environment; reducing the risk of pests and diseases gaining a foot-hold in New Zealand and helping to manage those
already here; working with rural communities and agribusinesses to ensure they both remain sustainable for future
generations in a global environment; and making the most of opportunities beyond food and fibre.
www.agresearch.co.nz
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