Wide Open Agriculture Site Visit

We visited WOA headquarters and warehouse facility in Kewdale, WA.
The company has successfully produced high protein oat milk (HPOM) product with the addition of the company’s modified lupin protein (MLP). We see this as a significant development given typical oat milk formulas cannot compete with a dairy milks on protein.

• Perhaps more importantly, the addition of the MLP to OatUp is proof of concept en route to commercialisation of the MLP strategy and enables WOA to differentiate it’s product against competition.
• The company has committed to construction of a fully funded pilot MLP plant in its existing Kewdale facility and we expect first production midway through CY’22. Successful commercialisation though offtake/partnership agreements with major food ingredients companies remains the blue sky for WOA.  We highlight management are already in discussions with a number of global players.
• The roll out of OatUp to the East Coast and Internationally has been successful to date. The company is optimistic on its ability to penetrate further international markets during 2H’22, along with the addition of new product lines coming on line DecQ and 1HCY22 underpinning further growth.
• Currently stocked in >350 locations with line of site to 1,000. We estimate an individual location consuming ~10L/wk, however expect major distribution partner/s would materially increase this consumption rate.
• Short term, we see success in the OatUp roll out increasing the likelihood of building a local OatUp plant.
• Management clearly are delighted with news around the new high protein oat milk. They are very confident the lupin protein product will attract significant industry players given the highly desirable nutritional credentials.
• Further updates on the MLP project will be welcome, with the company highlighting it is currently in discussions with potential offtake partners and licencing agreements of the technology in ASEAN, EU and the US. 
• We continue to see significant value in WOA, underpinned by consistent growth by its Dirty Clean Foods brand, the growing success of the OatUp roll out (hopefully resulting in local production) and the enormous opportunity its modified lupin protein provides.