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Sperri builds investment momentum with US expansion plans

Hailed as Canada’s first organic and allergen-free plant-based meal replacement drink, food-as-medicine brand Sperri progresses its efforts to enter the US market.

Canadian drinks brand Sperri has moved closer to its business goals of new product innovation and expansion into the US market by announcing a new investment led by Nàdarra Ventures and supported by Invest Nova Scotia.

Designed to help consumers get and stay well, the duo’s meal replacement brand, Sperri, is an organic plant-based beverage, free from several allergens and containing 16 grammes of protein for a more complete plant protein. It also contains two grammes of fibre to help rebuild strength and digestive functions in recovering patients.

Health Canada defines and regulates the term ‘meal replacement’ under the Food and Drug Regulations. These regulations specify requirements relating to caloric content, specific ranges of 24 vitamins and minerals, fat content, protein content and quality, and a linoleic-to-linolenic fatty acid ratio.

Spotting a health-conscious meal replacement opportunity

The Halifax-based drinks company, Sperri, launched in 2019 with the mission to disrupt the food and beverage industry with its food-is-medicine philosophy. The brand’s co-founders, Gregg Curwin, President & CEO of Novagevity, and Dr Mary Lynch, physician and pain management specialist, partnered to provide a nutritional beverage that meets consumer demands for on-the-go, better-for-you products.

Co-founder Dr Lynch found that many of her patients included meal replacements in their diets to access the necessary nutrition levels. However, due to high levels of processed sugars, dairy, gluten and soy protein, they were unsatisfied with the available options on the market. Recognising a gap in nutritious and health-conscious meal replacement drinks, Dr Lynch teamed up with entrepreneur Gregg Curwin to create an alternative for the market.

The pair teamed up with gastroenterologists and dietitians to help develop Sperri and ensure individuals with gastrointestinal complications would tolerate it well. With the support of nutritionists and dietitians, the founders have formulated Sperri, backed by science and made with nutraceuticals, micronutrients and macronutrients that enhance health and maintain immunity.

Focusing on health and nutrition

“Our products are grounded in scientific research leading to effective medical nutrition, and the ethos of Sperri is to inspire change within our conventional healthcare systems,” said Gregg Curwin, co-founder of Sperri. “We are rooted in the belief that food is medicine and that not only Nova Scotians, but everyone throughout North America, needs that more than ever,” Curwin added.

Sperri comes in three flavour varieties: vanilla, chocolate and strawberry. All three varieties contain a blend of pea and hemp protein, which includes all nine essential amino acids. The brand chose these proteins due to hemp protein’s ability to offer beneficial nutritional properties and pea protein’s sensory qualities, appealing to consumers looking for healthy and tasty options. To date, Sperri is the only product in the Canadian meal replacement market that includes hemp protein.

Sitting within the medical nutrition market, the plant-based beverage aims to support shoppers who struggle to consume a balanced diet by offering an alternative organic product free from gluten, dairy, preservatives, and artificial ingredients. Sperri avoids common ingredients they state are present in other traditional meal replacement drinks, such as sugar, milk protein, soy protein, corn syrup, carrageenan and artificial flavours.

The meal replacement brand’s drinks also contain 100 mg of DHA in every serving, a type of Omega-3 fat that helps reduce inflammation. With 24 vitamins and minerals for nutritional value, the drink boasts an omega-6 to omega-3 ratio of 4:1.

Sperri’s product specifications state that each of its three varieties contains 20% protein, 50% carbohydrates, and 30% fat. They also each contain 1 calorie per millilitre. Along with their plant-based protein sources, the drinks contain carbohydrates that comprise organic tapioca maltodextrin, organic tapioca syrup and organic maple syrup and fats that include organic sunflower oil, organic hempseed oil, and organic algal DHA oil.

“Sperri products are designed to be accessible, affordable, and effective, ultimately becoming a major benefit to primary care treatment in a time of critical need to relieve pressure from our healthcare system,” said Curwin.

Targeting consumers with specific health or dietary needs

Suitable for consumers over the age of two, the brand states Sperri is suitable as the sole replacement for all meals for those over the age of 18. Sperri advises that people between the ages of two and 18 can consume Sperri as a meal, but it is not a replacement for all meals as the nutritional requirements differ for children compared to adults.

Sperri targets a wide range of audiences, including those with specific dietary needs. The brand says that consumers with allergies or intolerances, inflammatory bowel disease, irritable bowel syndrome, autoimmune disorders and issues with solid foods can benefit from the meal replacement drink.

The meal replacement drink is also suitable for vegetarians, vegans, and people with a sensitivity or allergy to common allergens, including eggs, milk, mustard, peanuts, crustaceans, fish, sesame seeds, soy, sulphites, tree nuts, and wheat. It uses 100% vegan plant products and contains no common allergens.

Sperri also states that its meal-replacement drinks are suitable for consumers with cardiovascular issues, oncology patients and those in palliative care, intensive care and post-surgery.

Gaining investment to pursue expansion

Canadian early-stage venture capital fund Nàdarra Ventures specialises in developing sustainable biotechnology in agriculture and food. It is the lead investor for Sperri’s launch into the US Market.

“This investment represents our focus on sustainable, natural product innovations that create industry-leading returns while generating measurable impacts on the health of our population and planet,” said Malcolm Fraser, Managing Partner of Nàdarra Ventures.

“We believe the combination of Novagevity’s experienced team with a track record of success and recent policy changes designed to leverage nutrition to address major health issues in our population create a strategic market opportunity for the company’s continued success,” added Fraser.

Invest Nova Scotia, Canada’s business development agency, supports Sperri’s expansion into the US Market. “Novagevity’s plant-based, ready-to-drink meal replacement is designed by health experts to promote recovery and wellbeing using natural ingredients and is free from all major allergens,” said Jennifer Fuccillo, Investment Principal, Invest Nova Scotia.

Sperri plans to use the investment funds to continue its efforts to expand into the US market. First, it will pursue this plan by launching directly to consumers through its new marketplace, Amazon US. Sperri did not specify how much investment it has received.