Nandi Proteins led consortium wins UK grant

RNS Number : 6059O

Frontier IP Group plc

31 January 2019

 

31 January 2019

Frontier IP Group Plc

("Frontier IP" or the "Group")

Portfolio news - Nandi Proteins-led consortium wins joint Coeliac UK and Innovate UK grant to improve the quality of gluten-free bread

·     £250,000 project to create new ingredients to improve the taste and texture of gluten-free bread using Nandi Proteins' patented technology wins £180,697 grant from Coeliac UK and Innovate UK, the UK's innovation agency

·     Strong industrial involvement: commercial partners in consortium are Genius Foods, Agrii, part of Origin Enterprises plc, and AB Mauri, a subsidiary of FTSE 100 group Associated British Foods plc ("AB Foods"); academic partner is Heriot-Watt University

·     Gluten replacements will be derived from faba beans, oats and rapeseed by-products. All crops are grown in the UK and are underused by the food industry

Frontier IP, a specialist in commmercialising university intellectual property, today announces that a consortium led by portfolio company Nandi Proteins ("Nandi" or the "Company") has won funding for Coeliac UK (the "Charity) and Innovate UK to develop gluten replacements for  use in bread from faba beans, oats and rapeseed by-products. Frontier IP holds a 20.7 per cent stake in the Company.

The Charity and Innovate UK are supporting the £250,000 project with a £180,697 grant as part of a strategy to encourage manufacturers to extend their gluten-free product ranges. Consortium members include two food companies, gluten-free specialist Genius Foods and global ingredients business AB Mauri, part of FTSE 100 group AB Foods, and a major UK agronomy firm Agrii, a subsidiary of agri-services group Origin Enterprises. Heriot-Watt University, Edinburgh, will provide food science research facilities.

The project will see Heriot-Watt spin out Nandi use its patented processing technology (see below for an explanation) to create protein concentrates from natural raw materials supplied by Agrii. These materials include faba beans, a naked oat variety with a high protein content and rapeseed press cake (the residual seed material left once oil has been extracted) currently used as animal feed. Genius Foods and AB Mauri will then test the ingredients, adapt their bread formulations, and assess commercial feasibility.

Gluten, a protein found in wheat flour, is the main reason for bread dough's strength and elasticity. However, people with coeliac disease, a lifelong autoimmune condition, must have a gluten-free diet.  Replacements are hard to find. Many industrial gluten-free bread formulations use additives such as xanthan gum to improve structure and result in loaves with poor taste, inferior texture and lower protein content.

It is estimated that one per cent of the UK population is gluten intolerant and 15 per cent of households are looking to remove gluten from their diets.

Nandi's technology is also being used to develop novel ingredients to replace a range of other additives, fat and sugar in processed foods.

Coeliac UK chief executive Sarah Sleet said: "Coeliac UK is a world leader on coeliac disease, supporting research that makes a real-world impact. The research on innovative gluten-free ingredients will keep the UK ahead in the food industry's expansion into gluten free."

Dr Kath Mackay, Director of Ageing Society, Health and Nutrition at Innovate UK, said: "Stimulating innovation in our food and health sectors are crucial components of the government's industrial strategy. By working with Coeliac UK, we will be able to offer funding that results in improved quality of life for people with this condition and support and stimulate our vibrant health care and food technology sectors."

Frontier IP chief executive officer Neil Crabb said: "This grant from the UK's leading charity dedicated to helping people who need to live without gluten and the involvement of three major industry partners represents very strong validation for Nandi's novel technology.  We look forward to the day when sufferers of the disease or those simply looking to avoid gluten can enjoy a high-quality loaf of bread.

"However, replacing gluten is only one of many potential applications for the technology. Others include replacing a wide range of additives, sugar and fat in a whole host of processed foods, from cakes to meats. We are pushing on with development."

ENQUIRIES

Frontier IP Group Plc	T: 0131 240 1251
Neil Crabb, Chief Executive Andrew Johnson, Communications & Investor Relations Company website: www.frontierip.co.uk	M: 07464 546 025
Allenby Capital Limited (Nominated Adviser and Broker)	T: 0203 328 5656
Nick Athanas / Nicholas Chambers (Corporate Finance) Amrit Nahal (Equity Sales)

Nandi: the science 

Nandi's patented technology is based on the knowledge that the functional properties of proteins change when they unfold (denature). Controlled denaturation can be used to deliberately change and control the protein functionality as an ingredient. The Company is focused on two protein types:

·     globular proteins, where the molecules are folded into a spherical shape, found in vegetables and dairy; and 

·     spiral proteins, where long chains of molecules form spirals or helices. They are found in meat.

In both cases, chemical bonds along the length of, and between different portions of, the protein molecule keep the proteins in their shapes. 

Applying heat breaks the weak bonds allowing the proteins to unfold. The structure of the protein that was previously 'inside' the folded protein is now exposed. This allows it to interact with its surroundings -- for example by binding onto water molecules --   enhancing functionality such as solubility and emulsifying ability.

The unfolded structure also allows for new chemical bonds to form between one protein to another. The result is that individual protein molecules can become joined together to create a network which will change functional properties such as thickening and gelation abilities.    

These denaturation processes are already widely used in food ingredient processing and cooking.  For example, an egg white consists of globular proteins suspended in water. When you fry the egg, the proteins unfold and create a mesh, which traps the water molecules. The egg white solidifies. The challenge is in controlling the process precisely. Cook the egg for too long, too many protein bonds form, the net's mesh becomes too tight, and the white becomes rubbery.

By controlling the heat applied and monitoring the unfolding process extremely precisely, Nandi can precisely create protein functionality that allows it to replace the functionality of fat and additive molecules such as emulsifiers.

Nandi is capable of producing modified proteins from both globular proteins (present in a wide range of naturally-occurring foodstuffs, including whey, potato, soy and peas, as well as eggs) and spiral proteins present in meat (Nandi is specifically exploring the modification of collagen proteins).

Nandi achieves control of the unfolding process by using chemistry and light-based systems to measure in real time a range of key variables as heat is applied to proteins in solution. This allows the Company to maximise their functional properties, such as emulsification, solubility, acid stability, foaming, water binding and gelation.

The company's technology includes proprietary sensor systems which can be used across existing manufacturing processes to control the variables and create functional proteins.

About Frontier IP

Frontier IP unites science and industry by proactively identifying strong intellectual property and accelerating its development through a range of commercialisation services. A critical part of the Group's work is involving relevant industry partners at an early stage of development to ensure technology works and meets real world needs and demands before significant funding is sought.  

The Group looks to build and grow a portfolio of equity stakes and licence income by taking an active involvement in spin-out companies in return for providing hands-on support.

About Coeliac UK

Coeliac UK is the national charity for people who need to live without gluten, whether due to coeliac disease or another medical condition requiring a gluten free diet.

Coeliac UK has already committed over £2 million to research projects since 2005 including ground breaking discoveries such as identifying genes associated with coeliac disease and other autoimmune conditions related to gluten. And, has also funded research towards a vaccine to restore immune tolerance to eating gluten.

Coeliac UK, which celebrated its 50th Anniversary in 2018, has partnered with Innovate UK to offer researchers and businesses a share of the funding for three priority themes, with grants ranging from £50k to £250k to help fuel innovation in food and health sectors.

Coeliac disease is a serious illness where the body's immune system reacts to gluten found in food, making the body attack itself. For more information see www.coeliac.org.uk

About Innovate UK

Innovate UK is the UK's innovation agency. It works with people, companies and partner organisations to find and drive the science and technology innovations that will grow the UK economy. For further information visit www.innovateuk.gov.uk 

About Genius Foods

Genius is the UK's leading gluten-free lifestyle brand, with a No .1 position in gluten-free bakery.

The Company produces a wide range of high quality fresh breads, cakes, pastries, crumpets and pancakes. The brand caters to coeliac and health-conscious customers alike, disrupting a market traditionally dominated by long-life products.

Genius was founded in 2009 by chef and physiologist Lucinda Bruce-Gardyne, after her son was diagnosed with coeliac disease. Today, the business is headquartered in Edinburgh and is chaired by prominent coeliac, Sir Bill Gammell (Founder of Cairn Energy), with dedicated R&D and manufacturing facilities in Scunthorpe and Bathgate.

Since Verlinvest's initial investment in March 2014, the Company has grown rapidly in the UK through all major grocers and developed a strong and growing presence in France, Germany, Benelux and other international markets.

About Origin Enterprises plc

Origin Enterprises plc is a focused Agri-Services group providing specialist On-Farm Agronomy Services, Digital Agricultural Services and the supply of crop technologies and inputs.  The Group has leading market positions in Ireland, the United Kingdom, Belgium, Poland, Romania, Ukraine and Brazil.  Origin is listed on the ESM and AIM markets of the Irish and London Stock Exchanges.

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