Blenheim-based New Zealand Extracts is the only company in the world to produce highly bioactive ingredients from locally grown fruits and berries using a unique water extraction process.
Their ingredients – in a highly concentrated and soluble powder form – add health functionality to a wide range of products, including dietary supplements, digestive health products, sports nutrition products, antioxidant products, immunity boosting and personal care products. They are used in a variety of products around the world, and NZ Extracts works with companies in Asia, Australia, Europe, New Zealand and North America.
The grape seed extract – their flagship product – has been proven to have anti-inflammatory properties which can reduce the risk of various diseases such as cancer and neurodegenerative diseases.
When the company was established 20 years ago, it was focused on utilising grape skins from wine production with approximately 80,000 tonnes going into the waste stream every vintage.
When Mike Turner was appointed as CEO of the business in 2013, it was struggling with finding research finance – each project was estimated to cost around $250,000. But research – discovering the key antioxidant components of their ingredients — was an integral part of their business model.
They partnered with Plant & Food and Callaghan Innovation to tap into their scientific and research expertise, and through that, the BPA became involved. The project was of particular interest to the BPA because of the waste stream maximisation, and the fact that the raw materials and manufacturing process were all locally sourced and based.
In November 2021, the first of two funding grants were awarded by the BPA. The first, for $149,000, was to help develop and enhance process design in support of the company’s clinical research into polyphenolic antioxidant levels and benefits.
Further funding of $196,000 in August 2022 was earmarked to allow all parties — Plant & Food, Callaghan Innovation and NZ Extracts — to quantify the scale-up of the new development process and to provide validation of the bioactivity findings that would hopefully lead to their publication in an internationally recognised scientific or medical journal.
The business was acquired by a Japanese partner in December 2021, and Mike has remained involved since that time, heading the Marlborough-based team of biotech professionals as they help develop the potentially lucrative science behind their unique products.
Their Japanese colleagues have been working with Kyoto University and the Cancer Society conducting parallel research into the level of functionality that will differentiate NZ Extracts’ products from competitors around the world. They are due to publish findings soon that will demonstrate its ability to help fight cancer through a form of immune therapy.
The new owners have invested a significant amount into its production operations in Blenheim. The site is now pharma capable with its own drain extraction and freeze-drying facility capable of processing large amounts of waste stream from raw materials into finished, dry functional extract powders suitable for use in supplements, pharmaceutical applications, food & beverage and personal care applications, all under the one roof.
“We can show the world that we have a product which is different, and which has unique features and functionality,” says Mike.
The current world price for grape seed extract is around USD$50 per kilo but when selling it with the backing of scientific research, Mike says its value will be considerably more. Worldwide demand is estimated to be at around 3,000 metric tons at USD $200 per kg for the right product that has proven capability and has been recognised by industry peers.
“New Zealand has the credibility worldwide in the style of products we’re manufacturing,” says Mike.
“At the end of the day, we’re a commercial business and we need to make money,” says Mike. “Our owners have invested a lot, and we need to get the products into the marketplace.
“All credit to the BPA for their willingness to support us, along with Plant & Food and Callaghan Innovation. We couldn’t have done it without them.”
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