OBSERVATIONS FROM THE LAB: FRIED FOODS ARE HERE TO STAY
Beyond Oil's unique frying oil filtering solution extends usability and provides a concrete value proposition and return on investment for fast food outlets as they race to meet consumer demand for fried meals while addressing cost challenges and changing consumer tastes.
North America has approximately 770,000 food service and drinking establishments [1], with many of these establishments having one or more commercial fryers installed, making them ideal candidates for deploying superior cooking oil filtration methods. In addition, annual sales of global commercial deep fryers is expected to reach 52,000 units by 2024 [2].
Demand for cooking oil and the need to filter and clean cooking oil for healthier use in frying foods is being driven by the tremendous demand for fried foods, while at the same time the health risks of fried food are well documented [3] and necessitate cleaner frying oil.
The global cooking oil market will experience a CAGR of 4.7% from 2021 to 2028, driven in part by fast food service operator demand [4].
The number of fried foods on restaurant menus in the United States increased by 5% in the first three quarters of last year [5].
The demand for fried chicken sandwiches has sparked a restaurant arms race [6], and the rate at which consumers add fries to their orders in the US has increased to 24% [7].
Meanwhile, fast food chains have had to cope with rising costs associated with cooking oil and a general shift in consumer preference towards more reasonably priced takeout [8]. Frying oil prices have risen and can be a volatile input cost to manage when running a quick service restaurant.
For more on the dynamics impacting various edible oil prices, see this Marketplace article: Oil prices surge — vegetable oil, that is.
CLIENT SPOTLIGHT: BEYOND OIL
Enter Beyond Oil (CSE:BOIL), a food-tech firm with a proprietary, green and cost-effective technology designed to extend the life of frying oil while preserving the oil’s quality and nutritional value. Beyond Oil’s product reduces soluble impurities formed during the frying process that cause damaging free fatty acids (“FFA”) and Total Polar Materials (“TPM”), undesirable odors, off-flavors, and off-colors. The product is simple to integrate into existing daily filtration processes.
Beyond Oil works with oil and food industry leaders to incorporate its products into their operations, producing savings by extending oil life up to 1000%.
Beyond Oil's product is a proprietary filter powder for use in commercial and industrial fryers.
Disruptions in the global agri-commodity supply chain that have significantly increased the price of frying oil expand Beyond Oil's value proposition.
Beyond Oil received clearance from the US Food & Drug Administration and Health Canada to sell its product in the United States and Canada.
TEJA Food Group in Canada and the US has completed product testing, leading to a purchase order for 2,000 kg of Beyond Oil's product for select Canadian restaurants. TEJA connects approximately 20,000 restaurants, food service, and retail businesses in Canada and the U.S.
Recently, the company announced the launch of a strategic partnership with Fandango Collection & Recycling Ltd., a leading player in total oil treatment field in the Israeli market.
Beyond Oil has plans to expand sales in North America and build a global distribution network.
For a copy of their latest investor presentation, click here.
Connect with us at happyinvestors@irlabs.ca to learn more about Beyond Oil.
Resources:
US Bureau of Labor & Statistics, Workplace Trends, Number of Establishments in Private Industry, 3Q2021 & Summary Canadian Industry Statistics for Food Services & Drinking Places for 2021
Commercial Deep Fryer Market - Global Outlook and Forecast 2019-2024 – Arizton advisory & intelligence – April 2019
Trans fat is double trouble for heart health – Mayo Clinic
Fortune Business Insights - North America Vegetable Oils Market Size, Share and Global Trend By Type
Mintel Menu Insights
I'll Have Fries With That – WSJ – 8th May 2022
Lamb Weston Holdings Inc. – Management Comment
Americans Are Gobbling Up Takeout Food. Restaurants Bet That Won’t Change – WSJ – 28th Jan 2023
IR Labs Inc. ("irlabs" or "we" or "us") is an investor relations firm; we are not advisors or broker-dealers. irlabs is not registered or regulated by a securities commission or similar regulatory body. This information (or any communications you may have with representatives of irlabs in the future) does not constitute an offer to sell or a solicitation of an offer to buy any securities. This information is not a recommendation or endorsement to buy or sell any securities and does not contain investment advice. This information may contain information regarding issuers we represent ("Clients"). Clients pay us monthly cash retainers as well as other securities in exchange for investor relations services. Where permitted by securities laws, we may own and trade our Clients' stocks and options. If you would like more details regarding irlabs’ contracts with its Clients or a listing of the securities in the capital of the Clients held or controlled by irlabs, send an email to happyinvestors@irlabs.ca.
Although the information contained in this information was obtained from sources we considered to be reliable, we cannot guarantee that it is accurate or complete. The information provided may contain forward-looking statements and involve a number of risks and uncertainties that are different for each Client. We recommend you review an issuer's documents filed with the Securities and Exchange Commission (SEC) or with SEDAR at www.sedar.com, that you independently investigate and fully understand all risks before investing and that you engage a registered advisor and broker-dealer to assist you with an investment.