Hemp investment to boost global presence

16-Apr-2009 - Last updated on 20-Apr-2009 at 07:04 GMT

Manitoba Harvest Hemp Foods & Oils has received undisclosed funding from fellow Canadian biotech-focused investment form, Avrio Ventures, which the rapidly growing company says will allow it to “accomplish its five year plan”.

The funding, which represents more than 50 percent of Manitoba Harvest’s annual turnover, will be funneled into developing international markets, increasing research and development programs, new product development as well as public education.

Going abroad

President and co-founder, Mike Fata, said the investment came at a time the company was focusing on developing overseas markets for the omega-3 and protein-rich oil after devoting its first decade of life to the North American market.

The company has beefed up its multinational presence by attending trade fairs in Europe and Asia and has four European and two Japanese distributors. The company, which has recorded 50 per cent annual growth since its inception in 1998 recently shipped its first container of hemp oil to the UK.

“This investment will allow us to pursue overseas markets and continue to invest in science, education, marketing and product innovation,” Fata told NutraIngredients-USA. “Avrio Ventures are an ideal partner because they are well-versed in biosciences so this deal brings not only dollars but expertise.”

“This investment will allow us to introduce hemp to a larger mainstream audience.”

He said hemp oil sold at between $4-$8 per liter, depending on the concentration and variety, including organic versions.

The company may also benefit from a Canadian government initiative that would see $150m channeled into the hemp, canola and flax industries to fund clinical trials and other work.

“This is significant for the industry because most evidence of its benefits so far has been anecdotal,” Fata said. Manitoba Harvest had completed two clinical studies that are being prepared for peer-review.

Manitoba Harvest, which is one of two major hemp suppliers in Canada along with Hemp Oil Canada, has its own consumer line of organic hemp milk called Hemp Bliss.

Hemp education

Hemp cannot legally be grown in some countries because some versions are psychoactive and classed as narcotics. But industrial hemp grown for nutritional purposes does not have psychoactive properties.

However, consumer confusion remains to some extent, as exemplified by the actor, Woody Harrelson, who has promoted hemp as a material that can be used to make foods, clothing, and more, but has also advocated decriminalizing cannabis and thereby muddying the difference between the two in the minds of some consumers.

According to research by the natural products market information company SPINS, from 2007 to 2008 sales of hemp milk grew 162 percent, shelled hemp seed rose 44 percent and hemp protein powders increased 21 percent.

Avrio Ventures managing partner, Jim Taylor, said in a statement: “Manitoba Harvest … is well positioned to extend its leadership in the natural functional foods and nutraceutical industries and our action today further validates the growth and innovation opportunities available in the sector.”