NewTree Fruit Company, the Traverse City-based, a world-leading technology company in sugar reduction, announced that demand for its patented De-Sugared™ juice for use in a broad variety of consumer products has increased exponentially as it enters 2024. The company plans to build two additional facilities in the next two years. It is also looking to enter licensing agreements with key food and beverage companies, both domestically and in international markets, to handle the accelerating demand.
Chad Anderson, co-founder, shared that NTFC is currently in the process of raising capital to increase its capacity and augment its business development and marketing efforts. He plans to supply the existing 2024 demand out of the Traverse City facility. Anderson offered, “NTFC has only recently pivoted from being a research and development company. Now we’re solely focused on commercialization and expanding our footprint in the sugar reduction space utilizing our globally patented De-Sugaring™ technology.”
“Recent commitments from current and new customers have accelerated the already planned expansion of our production facility. Two existing brands increased their orders nearly tenfold, while new clients have placed orders for $1.5MM in revenue for 2024. This does not include additional potential volume from business development currently in our pipeline.”
The global food market size is $7.2T with a projected 4-year CAGR of 6.3%. This will place the market at $9.2T by 2027. Sugar, both natural and added, is present in well over 50% of the supply chain. Since the early 2000’s there has been a growing awareness of the detrimental effects of sugar based on scientific evidence known since the 1950’s. This dramatic increase in the consumption of sugar in recent years has manifested itself in obesity, diabetes, and a decrease in both quality of life and lifespan. The result has been an increased focus and effort by brands and food manufacturers to reduce the overall amount of sugar in their offerings and ultimately consumed by the population.
Stephen Horgan of InterContinental Beverage Capital, an advisor and partner to NewTree, said “We are seeing a remarkable surge in interest in our technology as a unique and nutritious solution to the increasing expectation and demand for sugar reduction in consumer products worldwide.” The vast majority of sugar-reduced beverages available to consumers achieve lower sugar through dilution with water and as a result, offer significantly less or no nutritional value. NewTree’s De-Sugared™ juice concentrate ingredients offer full nutrient density with zero sugar, lower calories, and fewer carbohydrates. We are seeing that this is very appealing to the fast-growing adolescent, health, fitness, and longevity-focused segments.”
