Kiwi created food processing technology

1st October, 2007

International sales for Kiwi created food processing technology

Months of hard work in the United States have paid off for Auckland company Fresh Appeal Ltd, with a US$700,000 deal signed for its innovative technology that keeps sliced apples and other produce fresh for extended periods.

Originally developed by scientists at HortResearch, the technology uses a unique, preservative-free process to wash sliced produce and, at the same time, kill any potential contaminants using ultraviolet light. The produce stays fresh and crisp, with no browning, for up to 14 days. The technology is marketed by Fresh Appeal Limited, jointly owned by HortResearch and technology development company, Logistics Solutions.

Fresh Appeal’s Chief Executive, Flemming H. Rasmussen, says the company’s world-leading solution is being licensed to an undisclosed food processor in the US to prepare fresh sliced apples for retail and food services sales.

“This is a significant market breakthrough for us. After identifying and quantifying the opportunity in the US earlier this year, we spent months getting to know the market and pitching our technology to potential clients.

“The deal gives us the foothold we need to roll-out our technology to a range of other clients and locations in the US,” says Mr Rasmussen.

The research and development underpinning Fresh Appeal’s technology received investment of NZ$170,000 from the Foundation for Research, Science and Technology, through its Technology for Business Growth (TBG) scheme.

Foundation Business Manager Stephen Flint says the deal secured by Fresh Appeal demonstrates New Zealand’s ability to marry leading edge science capability with commercial opportunities.

“One of New Zealand’s core strengths is in creating innovative, added value products for the global food industry. Fresh Appeal is doing just that and delivering a return to the New Zealand economy from its research and development investment.”

Apple slices processed with Fresh Appeal’s technology have been selling in New Zealand supermarkets for some time and are available in many schools, at service stations, selective cafes and food service providers. One of the company’s processing units is also used by a UK apple processor, but Mr Rasmussen says the US deal represents the company’s first significant move into the international market.

“This is the first deal where we have licensed our technology, rather than just supplying the manufacturing equipment. We will earn ongoing revenue through royalties for fruit processed and by supplying the naturally produced minerals and vitamins which act as anti-oxidant or anti-browning agents to keep the apples fresh.”

Fresh Appeal staff will be overseeing installation of the processing technology in the first quarter of 2008. The technology meets rigorous US Food and Drug Administration (FDA) food safety standards.

Produce going through the Fresh Appeal process is sliced before being treated in a unique, ultraviolet disinfection system. Ultraviolet light is also used to kill off food-borne pathogens like E.coli, salmonella and listeria and dipped in an anti-oxidant before being packaged.

While apples were Fresh Appeal’s first product, the natural disinfection technology is also being used on other fruit, such as oranges and grapes, and a range of vegetables including potatoes, pumpkin, carrots, cauliflower and broccoli.

Mr Rasmussen says while extended shelf life for fresh produce is attractive to the global food market, the technology’s real benefit is in food safety.

“In the USA in particular, there have been a number of food scares in recent years as a result of people eating, and in some cases dying from, fresh produce carrying harmful pathogens. Our technology is proven to destroy these nasties and has the potential to set new, international standards in applied safety and hygiene within the industry.”

In New Zealand, Fresh Appeal is continuing to research applications of its technology to new fruits and vegetables and businesses that can benefit from the efficiencies its solution offers.

“For example, we are working with a manufacturer of a perishable product with 4-5 days shelf life that currently runs its processing line three times a week to keep up with market demand. Because our solution offers a shelf life of up to 14 days for this specific product, they can do longer runs less often, thus driving their costs down and achieving economies of scale not previously possible.”

ENDS

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