Protein Industries Canada backs CA$3.9 million project with AGT Foods and Sweet Nutrition to scale pulse-based ingredients

Protein Industries Canada has announced a new CA$3.9 million project with AGT Foods and Sweet Nutrition aimed at advancing pulse-based ingredients and scaling domestic food production using Canadian-grown crops.

• Protein Industries Canada supported a CA$3.9 million project with AGT Foods and Sweet Nutrition to develop next-generation pulse-based ingredients and food products.
• The initiative focused on improving functionality of pulse proteins, starches and fibres while expanding manufacturing capacity in Regina and Saskatoon.
• The project aimed to bring new cereals, baking mixes and high-protein snacks made from Canadian pulses to market.

The initiative brought together ingredient innovation and finished product development, with a focus on peas, lentils and faba beans. The companies reported that improved pulse ingredients would be used across a range of consumer products, including cereals, baking mixes and high-protein snacks.

A total of CA$3.9 million (US$4.2 million) was invested in the project, with Protein Industries Canada contributing CA$1.4 million (US$1.5 million) and the remainder funded by industry partners.

The project aimed to enhance the functionality of pulse-derived proteins, starches and fibres, while also increasing production efficiency and throughput. This included the application of new processing and post-fractionation techniques such as heat-moisture treatment, blending and extrusion to improve ingredient consistency and performance.

Tyler Groeneveld, CEO of Protein Industries Canada, said the collaboration reflected a broader push to link ingredient innovation with real-world food applications. “This project is a strong example of how food production and value-added agriculture can unlock new markets for Canadian crops and create new economic value for Canada,” said Groeneveld. “By improving the functionality of pulse-based ingredients and connecting them directly to consumer products, these Canadian companies are creating affordable, nutritious food options while strengthening Canada’s food security.”

The work was also expected to support operational expansion at both partner companies. AGT Foods planned to increase efficiency at its Regina-based extrusion facility, while Sweet Nutrition aimed to expand and automate its baking and packaging operations in Saskatoon to support a wider product portfolio, including single-serve, high-protein formats.

Murad Al-Katib, President & CEO of AGT Foods, said the collaboration combined large-scale ingredient expertise with product innovation. “The trends driving consumer demand for ‘better for you’ retail food products, with enhanced protein and dietary fibre that taste great and are affordable, will result in significant innovation and growth opportunities in the category. Combining AGT’s knowledge and expertise in pulse ingredients, food product formulation and production at scale with the entrepreneurial drive of nimble companies like Sweet Nutrition is definitely a recipe for success. We see great opportunities for manufacturing packaged foods and retail products of ‘better for you’ sweet and savoury baked goods, cereals and snacks made with pulse ingredients.”

Casey Parker, Co-founder, President & CEO of Sweet Nutrition, said the partnership would support scaling efforts and product expansion. “Protein Munchables are an all-new snack line by Sweet Nutrition that is built on the idea that high-protein snacks should taste great without compromise. This partnership with AGT Foods gives us access to the next generation of Canadian pulse ingredients, and the investment from Protein Industries Canada is helping us scale our production in Saskatoon to meet growing demand. With this project, we're expanding our manufacturing capabilities and broadening our product lineup to bring more delicious, nutritious options to Canadian consumers. We're proud to be part of a project that keeps the value of Canadian crops right here in Canada.”

The announcement formed part of Protein Industries Canada’s broader strategy to grow the country’s plant-based food, feed and ingredient sector into a $25 billion industry. The organization, one of Canada’s Global Innovation Clusters, has been supporting projects that aim to retain more value within domestic supply chains by linking crop production with ingredient processing and finished food manufacturing.

The project also aligned with wider government efforts to strengthen Canada’s agri-food sector and supply chain resilience.

Mélanie Joly, Minister of Industry, said the initiative would support domestic processing and job creation. “This project will strengthen Canada’s ability to transform homegrown pulses into nutritious, affordable foods for Canadian families, while creating new opportunities for farmers and processors.”

Heath MacDonald, Minister of Agriculture and Agri-Food, added that supporting ingredient and processing innovation was key to building long-term capacity. “Canada’s pulse sector is a strong driver of our agri-food economy, and projects like this demonstrate how innovation can turn Canadian-grown crops into high-value food products. By supporting companies as they develop new ingredients and processing methods, we’re strengthening our food supply chain and helping deliver high-quality, affordable food to families across Canada.”