Power Leaves Corp has signed an agreement to sell 2,500 litres of its coca extract product at $100 per litre to an unnamed Canadian client. After the 2,500 are sold in the first 12 months, a minimum of 6,250 litres will be sold in the second year.
The agreement was announced on Wednesday and amounts to a revenue of US$250,000 in the first year, surpassing the company’s 2023 sales projections for its coca extract.
“This agreement not only validates the market demand and excitement for our coca products, but it also ensures that Power Leaves remains on track to meet its revenue projections for 2023 and beyond,” Power Leaves CEO Pat McCutcheon said in a statement.
The agreement grants the customer exclusive rights to Power Leaves’ coca extract for the Canadian market in the product categories of coffee products, gum products and sparkling water products.
To maintain these exclusivity rights, the customer has committed to purchasing a minimum of 625 liters per quarter in the first year, and a minimum of 6,250 liters per quarter in the second year.
“The market clearly understands the potential of this ingredient, and savvy operators are looking to secure exclusivity for their territory and product categories, McCutcheon added.
“The committed purchase amount under this agreement, along with our other Essence and DeCarb products, ensures that the Canadian market will be a significant growth driver for Power Leaves.”
The company says its coca extract is high in protein, vitamins and nutrients and has multiple known health benefits including providing gastrointestinal relief, increases in energy and appetite suppression.
Founded in 2019, Power Leaves has been working to develop legal supply chains for coca leaf extract. Through an agreement with an indigenous community in Colombia, the company established the first legal source for decocainized coca extract in the country, providing this coca extract to food and beverage companies.
As the global food and beverage industry experiences rising demand for natural and nutritious products, PLC’s coca extract products offer a new “hero” ingredient that is immediately recognizable and makes products stand out.
As a real food ingredient, PLC’s coca extract can be listed as “natural flavors” or directly as “coca extract”, increasing the positive health perception of a product.
Power Leaves was founded in 2019 to develop legal supply chains for coca leaf extract. Through an agreement with an indigenous community in Colombia, Power Leaves established the first legal source for decocainized coca extract in the country. It provides this coca extract to food and beverage companies.
Coca leaf used by Coca-Cola and wine
The potency of coca for beverage flavoring has been recognized since the 19th century. A prime example of this is Vin Mariani, a wine that was infused with coca extract.
This beverage gained immense popularity due to its invigorating and restorative properties, until legal restrictions on the coca leaf led to its prohibition.
In more recent times, Coca-Cola has utilized coca extract to create its renowned and proprietary flavor that has captivated taste buds worldwide. The initial versions of the beverage even contained cocaine, which was eventually completely eliminated, mirroring the process used by Power Leaves Corp for their extracts.
The coca leaf contains several alkaloids, but the primary psychoactive compound is cocaine. Cocaine is a powerful stimulant that affects the central nervous system. It works by inhibiting the reuptake of certain neurotransmitters in the brain, particularly dopamine, which leads to increased levels of these neurotransmitters. This results in a sense of euphoria, increased energy, and heightened alertness.