Tru Shrimp

Tru Shrimp Companies, Inc. is an aquaculture startup based in Balaton, Minnesota, that focuses on indoor shrimp farming and related products. The company utilizes a proprietary shallow-water indoor aquaculture technology platform to produce shrimp under controlled conditions. Tru Shrimp's production method allows for growing shrimp free from pollution, disease, preserving chemicals, and antibiotics, resulting in a high-quality product.

In addition to shrimp production, Tru Shrimp has diversified its revenue streams to include two other key products. The company produces chitosan, a biopolymer derived from shrimp exoskeletons, which has applications in the biomedical, pharmaceutical, and cosmetic industries. Tru Shrimp has become FDA-registered to sell chitosan for medical applications. The company also produces a high-protein, low-fat pet food ingredient made from shrimp processing byproducts.

Tru Shrimp operates a pilot production facility in Balaton, Minnesota, which can produce about 45,000 pounds of unprocessed shrimp annually. The company has plans to construct a larger commercial facility called Madison Bay Harbor in Madison, South Dakota, with an estimated cost of USD 150 million as of September 2023. This facility is projected to produce approximately 1.6 million pounds of shrimp, 4,700 kilograms of chitosan, and 600,000 pounds of pet food ingredient annually.

The company's business model includes three primary revenue streams: shrimp sales, chitosan production, and pet food ingredients. Tru Shrimp estimates that chitosan could become its largest revenue driver, potentially accounting for up to 60% of the company's revenues. As of August 2022, the company was producing 100 kilograms of chitosan annually at its Balaton facility.

Key customers and partnerships

Tru Shrimp has established partnerships and customer relationships across its various product lines. For its shrimp products, the company has been selling to Kowalski's Markets, a chain of high-end supermarkets in Minneapolis and St. Paul.

In August 2023, Tru Shrimp appointed Hawkins, Inc. as the exclusive distributor for its Tru Chitosan products in the US pharmaceutical and medical device industries. This partnership is expected to expand the reach of Tru Shrimp's chitosan products in these high-value markets.

The company has also secured commitments for its pet food ingredient product, with expectations that the output from the planned Madison Bay Harbor facility will be fully sold upon completion. Additionally, Tru Shrimp has reported having a letter of intent from a customer that will purchase 20% of the chitosan produced at the South Dakota facility once it becomes operational.