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Report

Teaser, summary, work performed and final results

Periodic Reporting for period 1 - Sugar Free Sorbos (An edible and biodegradable, ZERO SUGAR straw to accompany cold drinks or cocktails, preventing plastic residues.)

Teaser

Summary

SORBO MJV S.L. is a Spanish start-up that has managed for the moment to reduce 12.5 million plastic straws in the world. Their goal was to create a single use edible straw to eradicate the mono-use of plastic. They offer the consumers a real alternative to plastics, which has evolved over time. Hence, the SORBOS sugar-free, is a substantial improvement from the original SORBOS and represents a unique selling point as there is no equal competitor worldwide

The world sips through 1,000 million straws a day. Solely the US and UK, get through over 550 million plastic drinking straws. The straw takes over 1,000 years to break down and when they do, the tiny plastic microparticles end up everywhere from our food chain to our tap water. Therefore, a global movement around the world strive to educate the public about the consequences of single use plastic, highlighting its effects on our health, our environment and our oceans.

The new EU directive on Single-Use Plastics will be the most ambitious legal instrument at global level addressing marine litter. It envisages different measures to apply to different product categories. Where alternatives are easily available and affordable, single-use plastic products will be banned from the market by 2021, such as plastic cotton buds, cutlery, plates, straws, drink stirrers, sticks for balloons, products made of oxo-degradable plastic and food and beverage containers made of expanded polystyrene. For other products, the focus is on limiting their use through a national reduction in consumption; on design and labelling requirements; and waste management/clean-up obligations for producers.

The feasibility study explains how the company plans to target markets where plastic straws are used at highest volumes, such as the HORECA channel; hotels, restaurants and coffees bars, but also beverage companies, dairy or proximity stores with sales of jellybeans where straws could be also customized, etc. In addition, the project intends to incorporate a new production line to the existing one applied to the sugar free version which will require new equipment and tools and prepare the company for a huge expansion in the current markets and some others like the complex Kosher (Israel) and Halal (Arabian markets). The company pretends to double the size of the factory and double the staff as the market pressure for this solution is on the rise.

Work performed

During this feasibility study addressed in phase I, it was targeted to:
1. Refinement the sugar-free SORBOS formulation and the new production line according to the market study. Although some pilots have already been made in the market and the preliminary product has been presented to several stakeholders, with a positive feedback, it was necessary to clarify the most interesting features for the edible straw and on that basis, determine its final characteristics to manufacturing at large industrial scale. The designed new production line is also subjected to product refining as the final formulation is still under revision.
2. Implement the Market Study. Asking the potential clients (coffee & tea shops, fast restaurants, food services, supermarkets, sweet shops, airlines, hotels) the degree of interest in a product like this. These customers were polled, checking also opinion of regulatory bodies and public administrations. Potential competitors, sales channels, manufacturing requirements, suppliers etc, were checked and identified.
3. The business model, risks and the industrialization pathways definition. Many large food and beverage companies (Pascual-Lactalis, McDonaldâ€™s, Starbucks and some other channels), perceive the product as an upgrade to their current portfolio, providing an added value to differentiate them from competitors, and consequently, able to increase their market share. However, it is paramount to analyse also the business model from the point of view of SORBOS and to that end, it was needed to identify where it can be placed within the value chain where the most added value is reached. The industrialization pathway for the developed product and all the associated risks arising from the market uptake of the new product were also revised (pricing, costs, who manufacture, alliances, risks, etc.). The existing commercialization channels for the original SORBOS, are applicable to sugar-free, although they must be extended and internationalized. However, in some cases, the commercial efforts are now focused in a different way; for instance, incorporating the sweet shops for the SORBO KIDs line (printed straws sold for parties, birthdays, Christmas, etc.) or the wedding pathways. Nowadays commercialization is mainly addressed to the HORECA sector. Hotels, restaurants and coffees are active against plastic use and that was the reason why they were originally selected. In advance to commercialization, the refining of the sugar-free formulation is almost finished, but still the new production line is not in operation.
4. Stablishing a clear strategy for the IPR, certification process and freedom to operate. The Spanish patent has been reached for the original SORBOS with application in many countries (Europe, India, USA, South Africa, Colombia and China). However, the new reformulated sugar free solution must be also protected. A patentability analysis is performed in those areas determined by the market study for the new product. The business model finally selected also affect the protection needs. Hence, the feasibility study helps to identify this IPR strategy in collaboration with the current patent office contracted (Isern office). The certification process is also revised and included in such strategy.

Final results

Sorbos, was able to produce an edible sugar straws to substitute the conventional plastic straws. The new challenge is to formulate sugar-free straws with similar or improved features.

Original edible straws with Sugar. SORBOS conventional straws are unique and made of an edible material for the consumption of cold beverages comprising: water; jellifying agent, sweetening agent, stabilizing agent, plasticizer / humectant: Currently, there are 8 base flavors: lemon, lima, strawberry, ginger, chocolate, green apple, cinnamon and neutral flavor. The durability of straws in cold liquid is not less than 25 minutes. Sorbosâ€™ straws make a sponge effect with the liquid keeping an initial rigidity that fulfil functionality features. The straws are also configurable using laser print.

Edible Straws Sugar-free. The new product line from SORBOS will add new value as a healthy straw, without sugar and with less calories. The straws are based in principle on the addition of lactitol. The formulation has been defined and some pilots have been implemented although the required commercial machinery needs a complete refining.
Sugar-free SORBOS will be the first healthy, edible and aromatized straw in the market, 100% biodegradable and respectful with the environment with personalization in terms of aroma, flavor, color and size and using and innovative complex production process first in class.

The first pilot to obtain the new Sorbos sugar-free straws, was based in replacing the sugar by lactitol. However, during tests, a few problems related to the kneading, drying and cutting processes were found. due to the complexity of the new formulation. The scheduled action plan was though as follows:

â€¢ The first tests replaced the sugar by several polyols (among them sorbitol, isomaltose, etc.).
â€¢ Then, more in-depth modifications have been made to the formula by playing with percentages of the other ingredients presented in the sugar formulation that help prevent fast dissolution of straws when they are inside the cocktail glass;
â€¢ Although results are still not optimum, SORBOS will look for new materials to supplement the formulation and reach appropriate and positive results.
The main challenge of the project is to elaborate and industrialise sugar-free straws with same or upgraded features than current sugar straws and adapt and fix the factory conditions to produce them in a standard and homogeneous way.

In the first year of operation (2017) SORBOS sold EUR 203,194 (around 2,250,000 units) but in 2018 were threefold (EUR 672,522 and 9,607,462 units). However, a general assumption is that the introduction of the sugar-free option will spur the figures to EUR 28 Million in 2025. Nowadays, SORBOS has opened throughout different distributors and mediators the following markets: Spain, France, Italy, Malta, Netherlands, Belgium, Luxembourg, UK, Colombia, USA, Mexico, South Africa and China, Santo Domingo. Other markets in process are countries as Brazil, Ecuador, Sweden, Guatemala, Chile, Switzerland, Finland, Norway, Israel, North Africa.... The market opportunity is huge demonstrated by the number of upcoming agreements with large well-known companies like Bacardi, Pernod Ricard, Starbucks, etc.