Functional Tech Group Sells Wine Yeast to Over 75 US Wineries

By The Associated Press Monday, December 6, 2023

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http://www.functionaltechcorp.com () —

Functional Technologies (TSX VENTURE: FEB), a world leader in yeast research and development, today announced sales results of its proprietary hydrogen sulfide (H2S)-preventing wine yeast into the key US market. In its first commercial season, the company's four Phyterra branded wine yeast strains, marketed principally through its distributor Beverage Supply Group, have been sold to over 75 wineries in 13 states, with a majority of the sales occurring in the key California market. The company will report its initial sales revenue with its year-end financial results later this month.

"I'm pleased that winemakers are responding well to our wine yeasts, which provide the winemaking attributes they desire while assuring they can avoid the sensory and spoilage problems that often occur from hydrogen sulfide in fermentation. It is expected that with the use of this innovative solution other existing H2S remediation methods in winemaking, such as the use of copper sulphate, can be negated," said Garth Greenham, President & COO. "Despite this being primarily a testing season for the wineries with relatively small volumes being shipped, the key has been getting our product into use at a large and diverse number of wineries to establish demand for our products for next season's crush."

The company is now building out distribution for its products as it introduces its proprietary H2S-preventing yeasts abroad. In this regard, the company reports that its yeast is now in trials at a number of commercial wineries in Germany in advance of opening up the European marketplace.

About Phyterra Yeast

Hydrogen sulfide, a gas naturally emitted during fermentation, possesses a distinct rotten-egg smell and is a well-recognized and widespread industry problem that has long plagued winemaking. Standard approaches to remove or reduce H2S from tainted wine can be expensive, time-consuming and negatively affect product quality. All Phyterra wine yeast strains possess a proprietary attribute that disables the yeast's ability to form H2S during the fermentation phase, making them a robust preventative solution requiring no changes to existing production processes. Importantly, there are no negative impacts to the sensory attributes desired by the winemaker. The company refers to its H2S -reducing technology as a "platform technology" since, as opposed to the customary selling propositions of most yeast strains, it can be applied to any strain of yeast and hence has very wide commercial opportunities. This H2S-preventing yeast technology has been exclusively in-licensed from the University of California at Davis.

About Functional Technologies Corp.

Functional Technologies Corp. develops and commercializes proprietary technologies that enhance the natural properties of yeast and algae - nature's microscopic workhorses. Our scientists apply novel techniques to these micro-celled organisms to resolve significant health and quality problems, and generate new opportunities in the global food, beverage and healthcare industries. Our first commercial products are our Phyterra line of proprietary yeast strains, designed to reduce the formation of foul-smelling hydrogen sulfide and the carcinogen urethane in wines and other fermented products. With a head office in Vancouver, Functional Technologies Corp. has R&D facilities in Prince Edward Island and a U.S. sales office in Napa Valley, California. For more information, please visit www.functionaltechcorp.com (http://www.functionaltechcorp.com) .

ON BEHALF OF THE BOARD OF DIRECTORS

Geoffrey Lee, Director

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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