Corporate Update on Growth in Online Sales and in Retail Channels in the U.S.

Rhea-AI Summary

Else Nutrition Holdings (BABYF) has expanded its retail presence significantly, now selling its plant-based nutrition for toddlers in over 900 retail outlets, including major chains like Sprouts and Raley's. Online, the product is available on platforms like Amazon and iHerb, with sales doubling approximately every 3-4 months. The company has partnered with leading distributors like UNFI and KeHE, enhancing market penetration. A new product line for kids was launched recently, indicating ongoing product development and market growth.

Positive

• Expanded retail presence to over 900 outlets, with 600+ currently stocking the product.
• Online sales are experiencing over 20% month-over-month growth, doubling approximately every 3-4 months.
• Partnerships with major distributors UNFI and KeHE to improve supply chain and reach.
• Recently launched a new product line for kids aged 3 and over, indicating commitment to product innovation.

Negative

• None.

• Else Plant-Based Complete Nutrition for Toddlers is now listed on 900+ retail outlets and currently available for purchase in more than 600 retail outlets. Retail outlets includes Sprouts Farmers Market, Big-Y, Raley's, Natural Grocers, AFS, Haggen, PCC, Mother's Markets and dozens of independent stores.
• Else is available online on iHerb (US, Canada, and additional ~180 countries), Thrive Market, amazon.com and elsenutrition.com.
• Else is in discussions currently with additional retailers representing over 5000 outlets and with other popular online shopping platforms.

VANCOUVER, BC, June 23, 2021 /PRNewswire/ - ELSE NUTRITION HOLDINGS INC. (TSXV: BABY) (OTCQX: BABYF) (FSE: 0YL) ("Else" or the "Company") the plant-based baby, toddler and children nutrition company, is pleased to announce high market penetration and sales growth rates across online and retail channels:

US Product Launch:

Since February 2021, Else Plant-Based Complete Nutrition for Toddlers has been sold in Sprouts Farmers Markets (350 doors) and has expanded to several additional natural food and grocery retailers and independent stores, including Big-Y (71 large format grocery doors), Raley's (126 doors), Natural Grocers (159 doors) AFS (32 doors + 300 potential doors) and more. Else is currently listed in 900+ stores and on the shelves of 600+ of these with continuous rollout to the remaining. The UPSPW KPI (Units per Store per Week) is growing steadily at a month-over-month of an average of 35%.

Else onboarded two of the largest natural food distributors in North America, UNFI and KeHE Distributors, together they cover majority of the retail market in the US. To date, together they have opened 14 of their distribution centers to supply product to retail stores across the US.

Else with its retail brokers, and with the assistance of its distributors, are in discussions with many additional large, small and independent natural food, grocery and drug retail chains,  combined represent more than 5,000 retail stores.

Else introduced its first product online in August 2020 on www.elsenutrition.com and in late September on amazon.com. Initial online sales through these two channels indicate a good growth trajectory, with more than 20% month-over-month growth, which is expected to accelerate as more products are added to these channels. From the sales data to date, Else amazon.com monthly sales are doubling approximately every 3-4 months.

The Company plans to list products on additional leading online platforms in the coming months. Else is currently sold on the iHerb, an international online retail platform (US, Canada, 180 international markets) and on Thrive Markets, a leading US online platform that has 500,000+ subscribers.

Recently, June 2021, Else launched a new product line – First of its kind Plant-Based Whole foods Complete Nutrition for Kids, 3 years and older. The product is offered initially in vanilla and chocolate flavors, 16 oz powder cans, with plans for additional flavors in the future. This new product line offers a superior, plant-based, low sugar, delicious alternative to cow milk and soy-based products that are currently in the market.

In the second half of 2021 Else is planning to launch a series of plant-based complementary nutrition products for babies 6 months and older, in several flavors. Early in 2022 the Company plans to launch liquid RTD (Ready-To-Drink) versions of its Complete Nutrition for Kids products.

As additional SKUs are added Else's product range will continue to grow and are expected to further accelerate sales in all channels. These products (in different SKUs and minor variations) will be offered in the USA, Canada, Europe and in other potential markets.

International Product Launch Plans

The Company plans to offer regulatory compliant products for sales in Canada soon, starting online this summer and later in retail stores.

Having developed a line of products which comply with the European Directive, Else is making good progress towards a distribution agreement for France with H&H Group, a strategic investor in Else. Additionally, the Company is in discussions with H&H group for potential distribution of its product line into China via H&H cross-border China platform. International expansion includes plans to offer Else line of products in Europe beginning in Q1 of 2022.

Marketing:
The Company continued to drive customer awareness, conversion, and sales  through:

• Leveraging key and targeted influencer partnerships including integrated programs with Alicia Silverstone (vegan mom and actor), Hilaria Baldwin (vegan mom and celebrity influencer) and Jade Roper Tolbert and Ali Fedotowsky, both known from ABC's hit show "The Bachelorette."
• Adding retail store influencer activities to support retail sales.
• Growing the Company's Instagram follower presence to over 12,000 highly engaged and dedicated brand followers.
• Major advertising on social channels, as well as the launch of streaming/connected TV campaign (over 5,000,000 impressions).

• Launched a dedicated Else branded storefront on Amazon.com.
• Major public relations outreach, including: a dedicated Instagram Live series featuring celebrity/nutritionist conversations about Plant-Based parenting, leading to over 560,000 unique impressions; branded partnerships with ECOS, environmentally safe cleaning products.
• Targeted online campaigns supporting the launch of Else Nutrition various retail stores.
• Test local TV advertising to add to the marketing mix where suitable.
• Launch a comprehensive Health Care Practitioner (HCP) marketing program.

Production:

The company completed its seventh commercial manufacturing run since July 2019 and successfully built inventory to service online and retail expansion in the U.S. market and beyond.

"In the last few months, we have improved our manufacturing process and product quality to consistently produce a high quality and easily dissolved tasty product," said Ms. Hamutal Yitzhak, CEO and Co-Founder of Else. "Our new kids products can be easily prepared in a cup or in a shaker with cold water, something both kids and parents love and appreciate." She added.

Medical Marketing and Scientific Affairs:

The Company is in the process of developing a medical marketing plan for health care professionals, building a U.S. medical sales & marketing team, along with a new website targeted towards the professional community.

The company is conducting several clinical studies to demonstrate scientifically that its line of products supports growth, are well tolerated by young children, as well as those children suffering from various health issues. The company is finalizing protocols for a growth study in healthy toddlers and for a hypo allergenicity study amongst toddlers with cow milk allergy.

About Else Nutrition Holdings Inc.

Else Nutrition GH Ltd. is an Israel-based food and nutrition company focused on developing innovative, clean and plant-based food and nutrition products for infants, toddlers, children, and adults. Its revolutionary, plant-based, non-soy, formula is a clean-ingredient alternative to dairy-based formula. Else Nutrition (formerly INDI) won the "2017 Best Health and Diet Solutions" award at the Global Food Innovation Summit in Milan. The holding company, Else Nutrition Holdings Inc., is a publicly traded company, listed as TSX Venture Exchange under the trading symbol BABY and is quoted on the US OTC Markets QX board under the trading symbol BABYF and on the Frankfurt Exchange under the symbol 0YL. Else's Executives includes leaders hailing from leading infant nutrition companies. Many of Else advisory board  members had past executive roles in companies such as Mead Johnson, Abbott Nutrition, Plum Organics and leading infant nutrition Societies,  and some of them currently serve in different roles in leading medical centers and academic institutes such as Boston Children's Hospital, Pediatrics at Harvard Medical School, USA, Tel Aviv University, Schneider Children's Medical Center of Israel, Rambam Medical Center and Technion, Israel and University Hospital Brussels, Belgium.

For more information, visit: elsenutrition.com or @elsenutrition on Facebook and Instagram.

TSX Venture Exchange

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "will" or similar expressions. Forward-looking statements in this press release include statements with respect to the anticipated dates for filing the Company's financial disclosure documents.  Such forward-looking statements reflect current estimates, beliefs and assumptions, which are based on management's perception of current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. No assurance can be given that the foregoing will prove to be correct. Forward-looking statements made in this press release assume, among others, the expectation that there will be no interruptions or supply chain failures as a result of COVID 19 and that the manufacturing, broker and supply logistic agreement with the Company do not terminate.  Actual results may differ from the estimates, beliefs and assumptions expressed or implied in the forward-looking statements.  Readers are cautioned not to place undue reliance on any forward-looking statements, which reflect management's expectations only as of the date of this press release. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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SOURCE Else Nutrition Holdings Inc.

FAQ

What recent retail developments has Else Nutrition (BABYF) announced?

Else Nutrition now offers its product in over 900 retail outlets, including major grocery chains.

How is Else Nutrition performing in online sales (BABYF)?

The company's online sales are growing at more than 20% month-over-month and are expected to double every 3-4 months.

Who are Else Nutrition's key distributors (BABYF)?

The company partnered with UNFI and KeHE, enhancing its distribution capabilities.

What new products has Else Nutrition (BABYF) launched recently?

Else launched a new line of plant-based nutrition for kids aged 3 and older.