RDC A-1 FLOOR PLAN 1"=10' PRELIMINARY BUILDING ENKI. RDC Architects DATE: 1/11/17 SCALE: SHEET: A R C H I T I T E C T S SNICE 1981 REVISIONS
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1 RDC A R C H I T I T E C T S SNICE 1981 BY REVISIONS, PROJECT DESCRIPTION: SHEET TITLE: PRELIMINARY ENKI BUILDING DRAWINGS PROVIDED BY: RDC Architects 3303 Emmert St Shoreview, MN DATE: 1/11/17 SCALE: FLOOR PLAN 1"=10' SHEET: A-1
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3 EXECUTIVE SUMMARY Zea10 s mission is to provide sustainable nutrition to serve the world s growing need for protein and fiber ingredients with pleasant tasting, nutritious and highly sustainable products. Our plan is to unlock the real value of brewers spent grain to produce these products. Brewers spent grain is a byproduct of brewing beer, which is typically discarded, used as fertilizer or sold at low cost as animal feed. Zea10 has developed a proprietary process to use this very cost effective ingredient to manufacture pleasant tasting, non-gmo protein and fiber ingredients in a highly sustainable manner with strong margins. Population Growth BACKGROUND Continued growth of the world s population and an expanding global middle class are putting significant pressure on traditional food sources. The global population is expected to increase by 38%, from 6.9 billion in 2010 to 9.6 billion in Studies indicate that agricultural production of conventional products will need to increase by over 50 percent to meet food demand in In addition, consumption patterns are changing and putting even more pressure on the world s food supply, particularly the ability to sustainably manage increased protein needs. The global middle class population is forecasted to increase by 25% or 750 million people in less than 8 years from 2012 to As people move up into the middle class, their diets change from basic staples to higher calorie foods and increased protein consumption. The UN forecasted a 22% increase in global meat consumption between 2010 and 2020 based on this trend. The situation creates not only an agricultural challenge but a sustainability one as well. Meat production already consumes 30% of the world s arable land produces 18% of the world s greenhouse gas emissions and is responsible for 15% of water depletion. Dramatic increases in meat production will seriously impact available natural resources and the environment. Alternative nutritious and sustainable foods are needed to support increasing needs. Healthy Food Initiatives Obesity rates are skyrocketing both in developed countries and developing countries. The 2013 Global Burden of Disease study estimates that 2.1 billon people, almost 30% of the world population, are now obese. Similarly diabetes rates have increased dramatically. It is now estimated in the US that 1 person in 3 born after the year 2000 will experience diabetes during their lifetime. Consumer awareness of diet issues is growing. In a recent Nielsen global survey, 49% of the respondents indicated they believe they are overweight and a similar percentage is trying to lose weight by making healthy food choices. As consumers around the globe search for better, healthier and smarter solutions that fit their lifestyle and specific needs the motivation for manufacturers and retailers to foster strategies for a healthier world is powerful. Plant-Based Protein and Fiber Solutions Major food manufacturers and ingredients producers globally are moving aggressively to source new and unique protein and fiber products to address these trends with plant-based solutions. 1
4 In the protein space, the global market for plant protein ingredients was $6.5 billion in 2013 and is growing at about 15% annually. Plant proteins offer an excellent alternative to meat proteins. They are more efficient to produce and more sustainable. Plant protein directly consumed is 2.5 to 5 times more efficient than the same amount of protein from dairy or beef respectively. Soy products currently dominate the market for plant proteins, but alternative sources are being sought. Soy production has grown from 211 to 270 million hectares in the last 4 years threatening biodiversity and generating vast amounts of carbon dioxide. Soy is an allergen. In addition, unfermented soy contains anti nutrients that can contribute digestive distress, phytates that block mineral absorption and phytoestrogen, which can interfere with normal estrogen function in the body. Dietary fiber, another plant-based ingredient, is an essential component a healthy diet. It contributes to regularity, reduces cholesterol levels, helps control blood sugar and aids in achieving healthy weight. The dietary fiber market was $2.3 billion in 2013 and is growing at a rate of 13% annually. Global volume is expected to reach 465,000 metric tons by The Legacy and Opportunity of Barley Barely is a non-gmo ancient grain and has been a stable food source for over 10,000 years. It is a grain that was once so well known for strength that it was a staple of the Roman gladiator s diet. In fact they were known as the hordearii (Latin for barley-eaters ). Today barley is still a major food source, particularly in North African countries, and it is also well known for medicinal benefits when brewed as a tea in Asia. Barley ranks fourth in worldwide production with about 120 million acres planted every year. However barley s main legacy in food products is beer. 42 billion gallons of beer are brewed each year and barley is the major and often exclusive grain used. Brewing beer only utilizes a small portion of barley s value. To produce beer, sprouted barley is soaked in water at a brewery to release the sugar in the grain, which is then fermented to create beer. The remainder of the grain (called brewers spent grain) is discarded, used as fertilizer, or sold at low cost as animal feed. 31 million tons of brewers spent grains are produced each year. It is a tremendously wasted resource. The grains are free from contaminants such as hops, yeast or alcohol and are high in protein and fiber nutrients. The nutritional value of this material is sufficient to sustain 88 million people on a daily basis, generate billions in annual revenue and is available without utilizing one extra acre of agricultural land. Zea10 Products Zea10 has developed a proprietary process to unlock the real value of brewer s grains and produce healthy, nutritious protein and fiber ingredients. Using this abundant and very cost effective feedstock, we can provide pleasant tasting, non-gmo protein and fiber ingredients in a highly sustainable manner with strong margins and a competitive price. Our products share a common set of core benefits: Attractive Economics Pleasant taste Non GMO Solid nutritional profile Highly sustainable Spent brewer s grains as a feedstock source will provide a significant production cost advantage compared to competitive products. Another of the major strengths of our products is their pleasant taste. Taste testing of both our protein and fiber products has gone very well. Our protein product has a very neutral taste with a slight malty overtone that adds a hint of richness to baked goods and beverages such as almond milk. In all cases to date, a significant amount of our protein ingredient went unnoticed in testing compared to the unfortified 2
5 control. Our fiber product is an insoluble dietary fiber. It also has a very neutral taste and is comparable to other cereal fibers in texture. Another benefit of our products are that, unlike soy, they are not based on a Genetically Modified Organism (GMO). Zea10 products have a solid nutritional profile. The protein product is highly digestible and contains almost all the essential amino acids (amino acids which our bodies cannot make on their own). Our fiber product compares especially well with cellulose, a popular fiber which is derived from wood and lacks any nutrient value. Finally, all Zea10 products are highly sustainable. Because our feedstock is a byproduct of the brewing industry, our carbon footprint is extremely low. Zea10 Process Design The Zea10 process is unique and patent pending but utilizes commercially available equipment technology. Brewer s grains are received wet at the processing location. The grains are fed to a mill to reduce the particle size. The milled grains are sent to a heated extraction vessel where they are treated with a proprietary reaction mixture to produce the raw protein product. The grains are then separated, dried and milled to create a fiber ingredient. The raw protein product is filtered to produce a high protein concentrate. The solution then goes through a two-step drying process culminating in a high protein powder ingredient, which is packaged for distribution. A diagram of the production process is provided below. 3
6 Zea10 Victoria Facility The Zea10 Victoria facility will be used for corporate offices and R&D/pilot production. Initially, a subset of the full processing equipment will be in place, primarily the wet mill, extraction vessel and membrane system. At a future date a small spray dryer for the protein ingredient and small steam dryer for the fiber component may be added. In addition, the facility will include an analytical lab for characterization of the ingredients and an application lab for preparation of product samples such as high protein bars and drink mixes. A sketch of the facility space is included below. 4
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