Canada-based Borealis Foods has a particular mission, one that not many other CPGs bank on — to make “highly nutritious meals at an affordable price.”
Reza Soltanzadeh, a doctor, came up with the idea to launch Borealis Foods when he was traveling in India. Soltanzadeh was with Borealis Chairman Barthelemy Helg and humanitarian charity Médecins Sans Frontières, and he saw a dire need to tackle malnutrition, especially among the poor.
The startup officially launched in 2019 and just celebrated its listing on NASDAQ Feb. 8. With an early investment from celebrity chef and restaurateur Gordon Ramsay, it is poised to expand the distribution of its high-protein Chef Woo and Ramen Express brands from the U.S., Canada and Mexico into Europe. The company also has plans to launch into nutritious snacks.
With lots planned ahead, Borealis Foods believes that its growth will be rapid, as the team sets out to do something that — to co-founders Soltanzadeh and Helg’s knowledge — no food tech company has before.
“There are a lot of food companies out there who have fabulous science and they are bringing alternative options to people at a higher price point, which is great — that’s not a bad thing, but that’s not our mission,” said Soltanzadeh in an interview with Food Dive.
“Our mission is to have meals that bring protein to people who cannot afford it and do not have access to it — we are affordability-focused,” he said.
Along with being more affordable than other offerings in the space, which according to Soltanzadeh and Helg means being accessible to the lowest-income demographics of a community, Borealis’s products are plant-based, high in protein and shelf-stable.
Its first product, Chef Woo’s complete protein Ramen Noodles, has 20 grams of plant-based protein with ingredients like legumes and grains, and is made with organic ramen while being a good source of iron, the company said. The ramen also comes in a variety of unique flavors like Roasted Chicken, Sweet Chili Togarashi, Spicy Tequila Lime, Braised Beef and Thai Lemongrass.
Why ramen?
Borealis had its sights set on breaking big into a market, and ramen is the most widely consumed packaged food on the market. It’s also shelf-stable, convenient for consumers and has one of the highest turnover rates for retailers. The ramen category has limited product differentiation, low retail profit margins, and little to no new product development, the company said.
“We don’t have to reinvent the wheel,” said Soltanzadeh, “though the product is a staple in many consumers’ diets already, Borealis’ product is very unique to its technology.”
According to Soltanzadeh and Helg, a complete protein is defined as one that has all nine essential amino acids. Borealis figured out a way to source protein from different ingredients — like legumes and grains — that are combined to make a noodle. “This is quite challenging especially to keep the experience of a noodle, so that consumers will actually enjoy it and then we also have to be able to mass produce it,” they said.
The strategic decision to go public
“We do not know of another large company on the market that is looking to mass produce affordable, healthy food,” said Soltanzadeh.
Borealis Foods officially went public on Feb. 8 and had a ceremonial bell ringing on Feb. 15.
“We expect our company’s growth to be quite rapid,” said Soltanzadeh on the strategic decision, and the company believes having access to capital will be a key facilitator to growth in the coming months.
Being a relatively young company, Borealis believes that its path to success lies in the fact that its ramen is fundamentally a different product than other Japanese ramen items.
“The difference between us and companies like Beyond Meat and Impossible Foods is that neither of those companies offer consumers something really different. They may use different ingredients but once you put ketchup or mustard on it, it all tastes the same,” said Soltanzadeh. “For us, our ramen has different attributes, calories, protein levels, processes of manufacturing, so for consumers when they pick up our product, they enjoy the same experience but it is very different on the nutritional front.”
Being able to offer consumers the same experience of food with significantly different attributes is what sets Borealis apart, the company said.
“The definition of healthy food is being able to eat food, digest it in a few hours and it won’t make you sleepy or tired. It’s also good for you,” said Helg and Soltanzadeh. “That’s what we have created at Borealis.”
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