The license involves long-term royalty rates, global market rights, and use of EnWave’s nutraDRIED trademark on retail packaging. Vancouver-based EnWave currently is leasing Hormel Foods a large pilot-scale nutraREV production unit, expected to be fully operational in the summer of 2013, to test products.
Based on successful test efforts to date, Hormel Foods and EnWave have agreed on general commercial equipment designs and financial terms with plans to place a commercial-scale equipment order. The equipment is expected to be in place and operational by the first half of 2014.
According to Tim Durance, chair and CEO of EnWave, the Hormel Foods partnership is a step that could lead to a broad range of opportunities for his firm.
"The planned product launch by Hormel Foods represents another important market segment opportunity for our REV technology," he said. "We believe that the marketing and distribution scale of Hormel Foods will enable these new products to have a very good chance for long-term commercial success on a global basis."
Quality and integrity
Scott Aakre, vice president of corporate innovation and new product development for Hormel Foods, said the quality and integrity that the REV technology is capable of creating was a big selling point.
"EnWave's REV technology has allowed Hormel Foods to create a number of unique products that deliver great flavor and retain high nutritional value," he said.
EnWave has licensed its REV technology to a number of different firms in the Americas. It signed its first customer, Milne Fruit Products, in 2011; it also has entered into various research and collaboration projects with Nestle, Kellogg’s, Grupo Bimbo, Ocean Spray and other noted brands.