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Frozen Fried Eggs: Industrial process for the manufacture of frozen fried eggs

Periodic Reporting for period 1 - FFEs (Frozen Fried Eggs: Industrial process for the manufacture of frozen fried eggs)

Reporting period: 2019-12-01 to 2020-04-30

Egg is a natural food considered as one of the most complete in nutrients that exist and it provides the most affordable protein on the market. It is an environmentally sustainable product and its consumption does not generate religious, cultural, temporary or other conflicts.
Challenge: There is an upward trend in the consumption of frozen food, prepared and / or precooked, based on healthy food, flexibility in shelf life, versatility of the product offered and saving time in the kitchen. Frozen foods have a longer expiration date, without altering their nutritional properties, eliminate the risk of bacteria generation along the supply chain and lower the final price in the market. Changes in the way of life and consumption habits have driven a 38% growth in the frozen food market in the last decade. At present, almost all European households have frozen foods in their usual diet and they represent 6% of their shopping basket. In catering and restaurants business sector, it ranks 5th in highest expenditure products, after meat, fish, charcuterie / cheese and bread (many of these also supplied as frozen product).
In the collectivity channel, consumption of fried egg is practically inexistent due to the higher processing cost and the absence of the product in a frozen version, what we are able to solve.
Innovation Foods has developed a process for the manufacture of high quality frozen fried egg, patented world-wide. It is a natural product without any additives or salt.
Among the most relevant strengths of our Frozen Fried Eggs (FFEs), we can find:
Easy storage, hygiene and cleaning, improving different processes like storage (longer periods and less space), food safety (bacteria elimination) or distribution (allows longer distances).
Cost reduction and stock control. Since products are frozen right after production, operation is easier to plan and carry out, with a more continuous process. Also, frozen products are not subject to “on demand” stock policy, leading to a better stock control and minimizing costs.
Reduced price. We can compete with fresh products providing our extra advantages.
Process is patented and we will lead the market along next years, so we will design distribution from our plants or to license other agents in different continents.

Main short term objectives include:

• Study the current production process in order to include improvements and make adjustments to increase production capacity.
• Increase production capacity
• Study commercial opportunities for different countries
• Consolidation of other countries with current partners
• Business figures validation
• IPR Protection issues
• Public commercial actions like fairs and events
We have advanced in IPR protection with different patents and protection extension worldwide.
Also, we reached fully functional operation in our new plant in Albentosa and improved production performance and supply chain aspects.
About commercial actions, we have managed to reach different advances along last months, reaching agreements with great customers (complementing our big deal to BURGER KING) which are summarized as follows:
• DUNKING DONUTS : DD counts on over 13,000 stores at global level, with 3,000 stores in Europe.. We will start our collaboration in Spain.
• GRUPO AREAS works in airports and railways or highways facilities. They count on 348 million customers per year, 1928 stores and they invoice almost € 2 billion/year. We will start in Spain and France stores (Spain is their initial and main market with 523 stores).
• Catalonian Regional Government penitentiary facilities: We started serving them in December (2019) with FFEs sales. At this moment, we are increasing our contract with omelettes. This agreement means a new niche for our business development, proving our opportunities to increase our scope.
• SERUNION : They represent the greatest collective catering group in Spain (and top 10 in Europe) with 20,700 jobs and almost €500 million revenues per year in Spain-Portugal market, where we have started providing the with FFEs.
• KFC FRANCE : Although agreements are not closed yet, they have tried our products samples in actual stores. The Project is expected to mean a great commercial agreement, serving 250 stores in France.
• BURGER KING UK: We are in negotiations stage, replicating our continental Europe model.
• MCDONALDS: Negotiations started in the end of February, after a meeting demand from their representatives. Samples were sent on March the 12th, tight before COVID confinement. We intend to meet them again and launch an initial contract in 2020.
• Other potential customers we are negotiating with include MERCADONA (Spanish supermarkets leader), CARL JR (starting business in October, etc.).
We count on different socio-economic impact factors like:
Improving global population eggs consumption with the capacity to store and transport them. Eggs nutritional benefits have already been described.
Fixation of the population in the rural environment as a consequence of the implantation in a strongly depressed zone, as we will in Teruel Province (demographic desert with lower density than Lapland).
Improving animal welfare in our suppliers’ facilities, requiring them top welfare levels.

Also, we have increased the performance of our Frozen Fried Eggs (FFEs) production Patented process and increased its protection worldwide.
Finally, we have reached protection for a new processes for Refrigerated Fried Eggs (RFEs) production