Periodic Reporting for period 1 - OSMOFOOD (Eco-innovative high efficient process for the concentration of fruit juice using forward osmosis.)
Reporting period: 2017-06-01 to 2017-10-31
OsmoFOOD applies forward osmosis for the processing of different types of liquid foods. Its innovation is that it is a non-aggressive method that uses specific draw solutions to remove water from the original liquid, preserves the organoleptic properties and reduces water and energy consumption up to 15% and 40%-95% respectively, when compared to thermal common methods (evaporation). With this action, LEF Ingenieros plans to expand its activity to the food processing sector. After the project, we will provide the wine, fruit, diary and processed vegetables industries with a new method to obtain high-quality end-products with 30% lower CAPEX and up to 85% OPEX.
During this Feasibility Study, we checked the interest of the industry and the expectations of future clients through personal interviews. With their feedback, we updated our market analysis, technical plan and business strategy for the application of our technology to the concentration of fruit juices but also wine, fruit, diary and vegetables. To assure OsmoFOOD suitability for the wine sector, we performed tests in our prototype with successful results. Then we defined the tasks needed to adjust our technology for the 4 sectors, and its validation for the wine processing at industrial scale. We confirmed our freedom to operate and defined the strategy to protect our technology. We also closed agreements with end users for each sector that will give us samples and feedback during the project and will become our first clients. We redefined our business model, to work closely with them as product partners. We have check the financial feasibility of the project for the new business model, which fulfils our expectations.
Trends show an increasing demand for healthier, innovative and environment aware products at affordable prices. OsmoFOOD will allow our clients to react to that demand with premium products such as low alcohol wine and high-quality fruit juice and purees. Dairy and vegetable processers will benefit from tastier and easier to transport by-products to be used directly or in other processes (powder & concentrated milk, concentrated tomato). OsmoFOOD offers a method that consumes less energy and water water and preserves the original properties of the product. After 5 years in the market, we expect €15.5 million of cumulative revenues mainly though sales of OsmoFOOD technology (63%) and royalties over sales of products (36%). This will allow us to have 12 people dedicated to this new business in 5 years.