With plant-based products consuming the food industry these days, there has been ongoing conversations that the future will be solely focused around plant proteins. According to one study, by the year 2027, animal products will not be consumed as often and meat alternatives are expected to become the main source of protein. The plant-based food market is expected to grow at a CAGR of 11.9% from 2020 to 2027 to reach $74.2 billion by 2027. The plant-based meat market, specifically, will be worth $35.4 billion by 2027, according to Polaris Market Research. With plant-based lifestyles growing in popularity, the market for investment is becoming ripe for the picking, with companies such as Plant & Co. Brands Ltd. (CSE:VEGN) (OTCPK:VGANF) (FSE: VGP), Beyond Meat (NASDAQ:BYND), PlantX Life (CSE:VEGA) (OTCQB:PLTXF), Burcon Nutrascience Corporation (TSX:BU) (OTC:BUROF), and Tattooed Chef Inc. (NASDAQ:TTCF) looking to become leaders in the plant-based industry.
Plant & Co. (CSE:VEGN) (OTCPK:VGANF) (FSE: VGP) believes that 27% of Canadians plan to move to a plant-based lifestyle in the near future, mostly led by the millennial generation. Plant & Co is a vertically integrated health and wellness company looking to meet this growing demand by expanding on its two recently acquired brands, Holy Crap Brands and YamChops, both of which have been featured on Dragon’s Den. Holy Crap Brands offers four popular organic cereal products and has a large distribution network that includes well-known Canadian retailers like Whole Foods, Safeway, Save-On-Foods, and London Drugs. YamChops is Canada’s first plant-based butcher, with over 48 proprietary plant-based meats, chicken, pork, fish, and other products that are available at over 17 distribution retailers.
Since acquiring the two brands, Plant & Co. has reported record sales of Holy Crap Cereal Brands and a 95% increase in first-time buyers in H2 2020, finalized plans for the opening of a second YamChops location in Montreal, and begun cross marketing between the two in order to rapidly expand distribution.
“I see a great opportunity to cross market our two key brands, YamChops and Holy Crap breakfast cereal, to reach our growing market and drive sales,” said Plant & Co President Donna Reddy. “There is a natural complement between YamChops and Holy Crap and we are working to leverage the combined marketing presence and distribution network of both brands to offer healthy, high-quality plant-based products with superior customer service to a large and growing customer base.”
When it comes to expanding YamChops, Plant & Co. is taking a page out of Starbucks’ playbook by focusing on small and efficient butcher shops that allow for easy remodeling, efficient operations, lower costs, and rapid expansion. The company also plans to offer YamChops franchise opportunities across Canada and the US.
“The new location in Montreal is the first of many as we begin an aggressive expansion into Quebec, the rest of Canada and throughout North America,” Plant & Co CEO Shawn Moniz explained. “Our compact YamChop retail location design affords us the ability to expand into great locations at a fraction of the cost of other food outlets, fully supported by our robust e-commerce platform, which provides an easy and intuitive method of ordering online.”
Plant & Co. has also entered into a collaboration with the University of Manitoba to develop a proprietary hemp protein concentrate that will be used to create an all-natural hemp-based line of gluten-free, protein-rich food products. The company noted the potential health benefits from consuming hemp food, which include aiding in weight loss, boosting the immune system, and lowering blood pressure and cholesterol.
Beyond this, Plant & Co. has several projects in place, leading to an exciting year ahead.
Companies Gear Up for the Plant-Based Lifestyle
Beyond Meat (NASDAQ:BYND) is recognized as one of the fastest growing and revolutionary American companies in the world that offers plant-based meat products. Beyond Meat has formulated a technology that can produce the same taste and texture as animal-based meat products. However, their products provide the nutrients found in plants rather than the hormones and antibiotics that are often found in animal meats. Beyond Meat has reported “exponential growth” from 2017 to 2020, with 170% growth in 2018 and a 239% increase in 2019.
PlantX Life (CSE:VEGA) (OTCQB:PLTXF), recently noted as the digital face of the plant-based industry, has shared its rapidly growing revenue. In December 2020, PlantX Life achieved a gross revenue of C$1,029,833, which was a 60% increase from the month prior–a C$640,000 revenue reported for November 2020. By January 2021, PlantX Life reached its historical high for gross revenue, a record-breaking amount of C$1,089,502.
Tattooed Chef (NASDAQ:TTCF) wasn’t far behind in sharing the positive outcome of its financial results for 2020. With the momentum building around the plant-based industry, Tattooed Chef was able to report a 48% increase in revenue for Q4 2020 in comparison to Q4 2019.
Burcon Nutrascience (TSX:BU) (OTC:BUROF) marked its fiscal Q3 2021 financial results as a milestone for the company, after achieving several successes, including construction of its state-of-the-art protein production facility, and expanding its research and development capacity through the lease of a satellite laboratory space at the Richardson Centre For Functional Foods and Nutraceuticals.
With the future of the plant-based industry looking bright, companies like Plant & Co. Brands that have a solid plan for growth are looking to break out from the pack.
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Featured image: DepositPhotos © Olivier26
