• Australia Strategically Selected as Beachhead for Commercial Expansion of Else Products Across the Asia Pacific Region
  
• Amazon First to Carry Else’s New ‘Follow-On’ Formula (6-12m) for Infants and ‘Toddler Drink’ (12-36m) in Australia

ELSE NUTRITION HOLDINGS INC. (BABY) (BABYF) (0YL.F) (“Else” or the “Company”) is proud to announce the official commercial launch of its first-in-class ‘Follow-On’ formula for infants ages 6-12 months in Australia. The commercial launch of the Follow-On formula for infants in Australia is a significant milestone as it marks the first country, along with New Zealand, in which the Company’s new infant formula is eligible for sale. In addition, the Company announces the launch of its Toddler Drink for toddlers ages 12-36 months in Australia.

The Australian market was strategically selected due to its location in the Asia-Pacific region as a kickoff for a planned expansion of the Company’s entire product line across the region. According to Research and Markets, the Asia Pacific (APAC) baby, infant and toddler food market is expected to grow from an estimated market size of US$50 billion in 2021 to over US$75 billion in 2028.

Both products are now available on Amazon in Australia, and plans are in place to roll them out through other online retailers and brick-and-mortar retail locations. These products that use innovative plant-based ingredients were produced by Else’s partner production site in Europe, adhering to stringent quality standards.

Else’s plant-based formula, which received the Clean Label Project Purity Award, addresses an unmet need in the infant formula market, which according to Fortune Business Insights, is projected to grow from $71.83 billion in 2023 to $141.70 billion by 2030.

Else’s infant formula meets strict regulatory and nutritional standards based on human-milk nutritional gold standards, which all infant formula must meet, including ratio standards for amino acids, fatty acids, and macronutrients, setting a new bar for quality in the infant nutrition sector. Else's plant-based infant formula also addresses consumer concerns about processed ingredients, major allergens, and potential residues found in standard dairy-based formulas.

In contrast, current core ingredients in standard infant formulas are ultra-processed, often leading to undesired symptoms. Current dairy formulas, which represent approximately 95% of the market, have shown certain side effects in many infants and their main ingredients are major allergens, with additional concerns related to antibiotics, hormones and other undesired materials, as well as animal welfare and environmental considerations. Moreover, these dairy formula ingredients cannot stay in their whole form due to the need to use fractionated ingredients in order to meet the desired nutritional composition, and they must use highly processed derivatives. Furthermore, soy protein formulas, which account for about 5% of the market, frequently generate similar side effects and contain high levels of phytoestrogens as well as GMOs. Similar to dairy formulas, soy protein formulas cannot stay in their whole form as they require fractionated ingredients in order to meet the required nutritional values. The protein must be isolated and chemically processed with solvents, and the fats and carbohydrates are also considered ultra-processed foods.

Else’s infant formula is free of antibiotics, hormones, pesticides, GMOs, and heavy metals – all of which are an increasing concern among parents. The core ingredients, almonds, buckwheat, and tapioca, have a ~65% lower carbon footprint and require zero chemical processing, keeping proteins intact. The Company’s infant formula is meticulously crafted to support infants aged 6-12 months as they transition to solid foods, ensuring they receive essential nutrients for optimal growth and development.

Hamutal Yitzhak, CEO and Co-Founder of Else Nutrition, stated, “We are extremely proud to officially launch our infant formula and our toddler drink in Australia, serving as a beachhead for the planned global expansion of our range of breakthrough products.

This first-in-class infant product is designed to provide infants with a more nutritious, healthier, and safer alternative.”

“We selected Australia after a meticulous evaluation of the regulatory framework and were deemed in compliance. Australia is widely recognized for its rigorous health and other regulatory standards. In addition, Australia is strategically located in the Asia Pacific region, which we envision will be an ideal market from which to expand our other line of products across the region. The Asia Pacific region represents an extremely large addressable market, desiring safe and high-quality Western products, especially in the children’s health and nutrition categories. Our strategic focus is on establishing partnerships in this region to support our expansion efforts.”

“We are delighted to work with Amazon in Australia and look forward to expanding our footprint through additional retail and online distribution channels, as we have demonstrated in North America. We are on a mission to revolutionize infant and toddler nutrition by providing products that meet the needs of families seeking clean-label alternatives based on dairy and soy-free, whole-plant, minimally processed ingredients,” concluded Ms. Yitzhak.

For more information and updates on availability, visit www.elsenutrition.au.

About Else Nutrition Holdings Inc.

Else Nutrition Holdings Inc. (TSX: BABY, OTCQX: BABYF, FSE: 0YL) is a food and nutrition company in the international expansion stage 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 formulas. Since launching its Plant-Based Complete Nutrition for Toddlers, made of whole foods, almonds, buckwheat, and tapioca, the brand has received thousands of powerful testimonials and reviews from parents, gained national retailer support, and achieved rapid sales growth.

Awards and Recognition:

• "2017 Best Health and Diet Solutions" award at Milan's Global Food Innovation Summit
• #1 Best Seller on Amazon in the Fall of 2020 in the New Baby & Toddler Formula Category
• “Best Dairy Alternative” Award 2021 at World Plant-Based Expo
• Nexty Award Finalist at Expo West 2022 in the Plant-Based lifestyle category
• During September 2022, Else Super Cereal reached the #1 Best Seller in Baby Cereal across all brands on Amazon

Investor Relations Contact:

Alexandra Schilt
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