Demand soars for Kinnikinnick products in U.S. & Canada

Edmonton, Alberta – An Edmonton company (and AVAC Ltd. client) is racing to meet the demand for its gluten- and dairy-free products. Kinnikinnick Foods Inc.’s hyper-growth spurt follows a May 1 agreement with U.S.-based Tree of Life/Gourmet Award Foods to distribute Kinnikinnick’s products from coast to coast.

“Historically, our growth is about 60 to 80 per cent annually, but this year we expect to at least double that,” says Jerry Bigam, CEO, Kinnikinnick Foods Inc. Driving demand is Kinnikinnick’s new gluten-free, dairy-free white sandwich bread. The bread was developed for autistic children, based on research conducted with scientists in the U.S. that discovered a link between diet and behaviour in autistic children. In all, Kinnikinnick produces 40 products – including bread, bagels, donuts, muffins, buns and cake mixes – that use rice, tapioca and pea starches instead of traditional wheat flour.

Kinnikinnick customers often have a gluten-intolerant condition called Celiac disease, are children with autism or, more recently, have diabetes. The secret to Kinnikinnick’s success, say Bigam is that its products taste good. “In general, it’s difficult to make gluten-free food palatable. Our products don’t fall apart, aren’t too dense and don’t taste like the bottom of a pizza box.” Bigam notes an increasing part of Kinnikinnick’s business comes from people seeking alternative foods, as opposed to people with specific health conditions.

Earlier this year, Kinnikinnick doubled the size of its production facility to 30,000 square feet, but Bigam says “we could literally double the size of our facility again.” Kinnikinnick is planning for another expansion within the year.

Part of the company’s fundamental philosophy is to continually develop new and better products by substantially investing in research and development. AVAC Ltd. has been a valuable partner in that process, and was instrumental in working with Kinnikinnick to develop new products to meet some of the emerging markets. AVAC Ltd (www.avacltd.com), an Alberta-based not-for-profit corporation which manages a risk capital fund, has to date invested $222,000 in the company’s new product development efforts.

Kinnikinnick’s initial success was through its e-business operation which has become one of the largest such e-business specialty food companies in North America. Kinnikinnick’s on-line retail business currently has 25,000 customers and delivers electronic orders the next day. Kinnikinnick also has a storefront retail outlet in Edmonton.

Kinnikinnick Foods Inc. began operations in 1991 at the Farmer’s Market in Edmonton. Its first retail location followed the next year. In the space of 13 years, Kinnikinnick has grown from a small home-based operation to one that can meet the demands of a growing North American market.

AVAC Ltd. is an Alberta-based not-for-profit, private company that invests in innovative ideas that add value to agricultural commodities. AVAC’s mission is to help accelerate the growth of agrivalue in Alberta. Created in 1997, to date AVAC has committed $29.7 million to agrivalue initiatives.

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