Milne Fruit Products has launched full-scale production of commercial dried-fruit products, using technology licensed from Vancouver's EnWave Corp. (TSX-V:ENW).
EnWave long ago licensed its drying technology to Richmond blueberry seller Cal San Enterprises and generated a few hundred dollars annually in royalties.
Cal San recently expanded its sales of those dried blueberries and is set to pay EnWave five-figure revenue this year, EnWave director of marketing, Brent Charleton told Business in Vancouver Tuesday.
He expects Milne to similarly pay EnWave "tens of thousands" of dollars in revenue this year.
"The machine Milne has is capable of producing up to $600,000 per year in royalty revenue per year for EnWave," he said. "We would hope [to get tens of thousands of dollars in royalties this year] unless they completely flunk out. There's a 99% chance that the royalty revenue is going to be well over that."
Milne is one of Enwave's smaller partners.
Enwave signed its fifth major pact with a multinational in June 2011, giving Kellogg Co. (NYSE:K) exclusive rights to use Enwave's system for 12 months to produce cereals and cereal bars.
Previous EnWave partnerships with multinationals include:
- a December 2010 deal with Grimmway Farms, the world's largest grower, producer and shipper of carrots;
- an October 2010 agreement with Latin America's Grupo Bimbo, the world's largest baking company, which bought fresh bread divisions in the past year from George Weston Ltd. and Sara Lee Corp.;
- a July 2010 agreement with Swiss food manufacturer Nestlé S.A.; and
- a May 2009 deal with the Danish food giant Danisco, which Dupont (NYSE:DD) bought in June 2011 for US$6.3 billion.
EnWave and Danisco ended their research and development collaboration in November.
