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Tekcapital highlights Mexico has adopted sodium reduction guidelines 

07:54, 2nd April 2020
Vox Markets
RNS Newswire
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Tekcapital Plc (AIM: TEK)  FOLLOW has noted that the Mexican Ministries of Health issued a final rule (NOM-051) on 27 March 2020 that mandates a new front of package labeling (“FOPL”) system for all packaged foods. This FOPL is designed to warn consumers against products that exceed strict thresholds for sodium, caloric content, added sugar and saturated fats. 

Adoption of FOPL is a key market driver for Salarius, a portfolio Company of Tekcapital that is developing and manufacturing proprietary low sodium salt called MicroSalt®. Tekcapital owns 91.7% of the share capital of Salarius ltd. 

Under the new rule, salty snack brands will need to prominently add the warning “Excess Sodium” (“Exceso de Sodio”) if the product exceeds 350 milligrams of sodium per 100 grams of product. The implementation date for the FOPL warnings is 1st October 2020, with the more stringent nutritional threshold of >300mg starting 1st October 2023. 

Mexican snack manufacturers are now being challenged to reduce sodium levels without impacting the taste of their products. In the snack industry, where flavor is everything, manufacturers are faced with the potential of new warning labels decreasing their sales if they don’t reduce sodium, and if they do, it will also negatively impact sales due to a less savory product.  

MicroSalt®, an all-natural, proprietary salt made with micron-sized particles that dissolve in the mouth significantly faster than regular salt, delivers an increased sensation of saltiness with approximately 50% less sodium. In light of this new regulation, the directors believe that MicroSalt provides a solution to reduce sodium content without compromising flavor, compared to other sodium reduction methods which adversely affect taste. 

Victor Hugo Manzanilla, CEO of Salarius said, “We are excited to see the commitment of the Mexican government to inform consumers and make it easier to select healthier products. There is a serious need for full flavor, low-sodium solutions in the food industry, and MicroSalt® can help meet this challenge. Salarius is already in discussions with several leading snack manufacturers to serve the Mexican market.”  

Shares in Tekcapital were up 4% in early morning trading 

TEK price chart

Dr. Clifford Gross, Executive Chairman at Tekcapital, commented: “We are very glad to see the inspired action of the Mexican government to encourage sodium reduction in packaged foods. We believe this represents a significant opportunity for Salarius to access a large market for potential future sales of MicroSalt®.” 

Market & Health Information 

The Mexican snack food market is expected to register approximately $4 billion in sales in 2020 and is rapidly growing1

Hypertension (high blood pressure) is the number one cardiovascular risk factor and the world’s greatest risk factor for death and disability, according to the World Health Organization. People with hypertension are three times more likely to die from heart disease and four times more likely to die from stroke2. In Mexico, with a population of 126 million, there are 22.3 million hypertensive adults2

References  

  1. https://www.statista.com/statistics/863439/snacks-market-value-mexico/ 

  1. https://www.heighpubs.org/hjch/pdf/ach-aid1010.pdf 

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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