Nepra Foods Inc. announced the first partnership with a national bread company to deliver the first products to contain Nepra's proprietary allergen-free and vegan egg replacement. This novel product not only removes the last remaining allergen (i.e. eggs) and animal product from the ingredient label, it also represents the first shelf-stable gluten-free bread with an ambient (i.e. non-refrigerated) shelf life of 28 days. The Company has partnered with a national gluten-free bakery whose products will be initially distributed through KrogerTM, PublixTM, and MeijerTM representing over 2,600 retail locations across the country.

The initial formulation will be used in white and multigrain breads, subsequently expanding to other gluten-free product offerings, with Nepra supplying the ingredients and formulation. The Company retains ownership of the proprietary formulation which provides the ability to license or partner with other leading bakeries. In 2022, US egg prices were up 530% driven largely by avian-specific diseases and rising input costs.

Powdered eggs are a critical ingredient to both conventional and gluten-free bakeries, with Nepra's formulations offering a 50% reduction in costs (vs. conventional eggs) or over a 20% savings in final product costs. Nepra's proprietary egg replacement formulations provide for vegan, non-allergenic, direct substitute at a fraction of the cost of conventional eggs with pricing and supply stability.

The Company has developed an entire line of egg replacement formulations to replace the use of conventional eggs in products ranging from baked goods to condiments and sauces. The Company has focused on the gluten-free bakery industry for its first commercial applications given management's extensive network and expertise within the product vertical. The specific formulation developed by Nepra's Research & Development team for this first commercial partnership is a gluten-free bread that is nearly indistinguishable from its wheat-based counterpart and has a 28-day ambient shelf life and reduced carbohydrate profile.

The increased shelf-life will enable bakeries to move their products from the costly and hard-to-come-by freezer sets to the center-store shelf and bakery aisles. Not only does this result in savings for product storage and transportation, but the center-store shelf placement also moves gluten-free bread closer to being a supplementary good to typical wheat-based bread.