A timely stock pick! With Veganism on the rise, Plant&Co captures this market
Plant&Co. Ltd. (CSE:VEGN | FSE:VGP | OTC Pink:VGANF) is a ground-breaking company making strides in the plant-based vegan space. Healthy eating goes hand in hand with healthy living, and plant-based foods are getting the long-overdue recognition they deserve. This trend has been gaining ground for the past couple of years and is set to explode exponentially in the coming years. Therefore, vegan related investments should make an intelligent choice in 2021.
A LONG-TERM MEGATREND
Prior to 2020, veganism was still in its infancy, but the global pandemic is undoubtedly accelerating growth. Bringing health and wellbeing under the spotlight is pushing consumers to take control of their mental and physical health. It’s now more important than ever that we take care of our bodies to fight infection and maintain longevity. At a time when health is at the core of everything, plant-based nutrition is rapidly increasing its appeal for several reasons. Along with health, animal welfare and the impact of industrial farming on the environment are all contributing factors to the shift in conscious diet choices. This is a trend Plant&Co recognises and wants to serve.
The Vegan Society has shown that Industrial farming at the current level is largely responsible for deforestation, soil erosion, pesticide problems, scarcity of water and the inefficiency of farming animals for meat. The fact is, farm animals consume much more protein than they produce, so they themselves are doing more harm than good in their life-cycle. The Vegan Society also confirms that the vegan diet is much more sustainable for the planet. That’s because it uses a third of the water and land that the western diet requires.
While these reasons are valid and affect everyone, meat eating remains a large part of our culture, particularly among older generations. The difference now is that Generation Y and Z are growing up with a completely fresh perspective of eating meat.
Widespread information means they’re educated on another level, making them aware of practices that previous generations were blind to. Such information includes animal cruelty associated with industrial farming, the destruction to the land, and the worry of chemicals and antibiotics entering our bodies.
All of this encourages these consumers to make conscious choices. Times are changing, and many more people hail the health benefits of following a plant-based diet. These people are raising their children in the same way, forever changing the diet of future generations.
With a multitude of fantastic recipes and ways to enjoy healthier food at home, this trend is very much just beginning. As younger generations are heard, the shift to plant-based eating will continue to thrive. This makes investing in this up-and-coming growth sector a financially savvy space to be.
WHY INVEST IN PLANT&CO?
In this very competitive marketplace, Plant&Co is differentiating as a leader of quality plant-derived products with very healthy margins. To ensure it can offer consumers high-quality products at competitive prices, it’s taking a no holds barred approach. This is what’s known as vertical integration. A winning strategy that involves cultivating, producing, selling and delivering the products direct to the consumer. Plant&Co is already doing this through a mixture of lucrative acquisitions and collaborative partnerships. This is taking place across both business to business and business to consumer strategies.
The rise of social media has given shared insight across cultures and generations. This easy access to recipes and delicious looking images of food opens a variety of possibilities up to consumers. It makes the idea of a sustainable diet that doesn’t contain meat a much more palatable prospect than it may have appeared just a few years ago.
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Aggressive M&A growth could bring untold wealth to investors
PLANT&CO BRAND (CSE:VEGN | FSE:VGP | OTC PINK:VGANF)
Plant&Co Brands is focused on harnessing this wave of rising interest by giving the customer exactly what they want. Positioned as an umbrella company in a similar vein to Johnson & Johnson. It’s focussed on harnessing an aggressive M&A strategy to secure a varied selection of prominent plant-based products that meet consumer health desires. To this end it’s launching a firmly established family of brands. By ushering in brands with instant recognition, sales and existing distribution contracts Plant&Co’s immediately positioned with a unique head start on others in the space.
Launching with popular Canadian cereal brand Holy Crap, and Canada’s first Plant-Based Butcher YamChops, it has several additional pillars of growth in the pipeline. There’s no doubt Plant&Co has big ambitions and drive to become a serious disruptor in this space. That’s why investors that get in early on this rare opportunity in the booming health and wellness sector could stand to be rewarded handsomely.
HEALTHY BODY, HAPPY MIND
The power in a plant-based diet is its ability to transform how you feel. Many converts have stuck with it after finding it replaces sluggishness with energy and clearing the mind. Some even maintain it has drastically improved their fight against chronic illness. To stick with it, a varied and interesting diet is necessary and that’s where Plant&Co are poised for greatness with their steadily increasing range of offerings.
Holy Crap cereal was founded in 2009 and rose to prominence on Canada’s Dragons’ Den. It’s made from 100% plant-based, organic ingredients and was ahead of its time in its appeal to health-conscious consumers dealing with food allergies and gluten intolerance. This has been well marketed and successfully sold from Amazon and several retail channels throughout Canada. It’s steadily building up a social presence on Instagram and other channels while Plant&Co intends to begin selling it throughout the US in the months ahead.
Plant&Co acquired Holy Crap in a $7m all-share deal. It’s a hugely popular cereal breakfast that has many other usage occasions. It can be used as a salad topper and is a great compliment in many recipes.
With this tactical acquisition Plant&Co now hopes to achieve double its previous sales, aiming for a target range of $1.5m to $2.5m in 2021, with a 48% gross margin. Its strategy to achieve this includes introducing delicious new flavours, expanding its assortment of offerings and more.
More recently, Plant&Co was thrilled to announce its acquisition of YamChops, Canada’s famous and first Plant-Based Butcher. The outstanding aspect about this addition is its extensive selection of over 17 proprietary plant-based meats, chicken, pork, fish, and various other vegan style food products. Plant&Co can sell these now from both business-to-business (B2B) and business-to-consumer (B2C) revenue models. YamChops products are instantly recognisable having been successfully distributed for over 12 years. Plant&Co is excited to be selling over 30 YamChops SKUs. And they’re already available through popular food delivery platforms: Uber Eats, Skip the Dishes, Corner Shop and Ritual One.
Additionally, Plant&Co is working in collaboration with Italian cheese manufacturer Grande Cheese. Grande is the second biggest cheese producer in Canada with over 40 years experience. Meanwhile the owner of Grande Cheese, Marco Contardi, is operating in a corporate counsel capacity at Plant&Co, where he is also a shareholder. His connections and experience will be extremely valuable to the enterprise going forward.
The company is also in partnership with the University of Manitoba’s Faculty of Agricultural and Food Services and has developed hemp-based meat alternatives which combine proprietary Omega-3 super proteins with superior flavour.
Plant&Co raised just over C$4m last month which it believes will keep the company going for at least two years. Notable institutional investors have taken an interest and Plant&Co is optimistic that these relationships will strengthen with time.
While their identity can’t be disclosed at this moment, if certain M&A parameters are met there’s a high chance they will expand their holdings and look to become a greater partner with a much bigger stake.
UNDERVALUED SHARE PRICE
To put the power of its acquisition path in perspective, let’s consider the share price success of rival public companies. Back when The Very Good Butcher and Modern Meat had one or two brands under their belts their share prices floated around the $1 to $2 range.
With an established portfolio approaching 20 brands, Plant&Co is getting ready to hit the ground running. This little-known company has got its supply chain sorted, its delivery taken care of and marketing is already well underway. These are products that pretty much sell themselves because the demand for good nutritious food is so high.
Considering this, Plant&Co’s share price potential to surge is certainly believable. Currently sitting around C$0.78, it’s not inconceivable for this to be the perfect catalyst to propel it into the C$1.50 – C$1.75 range in Q1.
SOLID TEAM EXPERIENCE
Between them, the management team has extensive experience and knowledge in the sector. They’re well connected throughout the industry and full of enthusiasm for product launches and promotion.
CEO and founder of Plant&Co, Shawn Moniz has built up an enviable network within the health and wellness distribution channels.
Meanwhile, Donna Reddy is the President of Holy Crap Foods Inc. and comes with a wealth of relevant experience after several years as Marketing VP at GreenSpace Brands. Here she oversaw brand development, go to market strategy, innovation pipeline and design of nine brands in the food and beverage vertical including family favourites Love Child Organics and Kiju Organics.
Marco Contardi, is a director of Plant&Co and the owner of Grande Cheese Retail, a well respected supermarket established in 7 retail locations in Toronto. Grande Cheese Retail turns over more than C$80m a year, and is also in Costco.
Thanks to its aggressive acquisition strategy and first class networking advantage, Plant&Co now has plant-based products already in place with nation-wide distributors and retailers. These include Grande Cheese, United Natural Foods Inc (UNFI), Whole Foods, London Drugs, Organic Garage, Nature’s Emporium, Choices Markets, The Big Carrot, Natural Foods Ambrosia, and Natures Fare Markets.
With further plans to upscale these in short order, it’s perfectly positioned to rapidly grow and expand its 17 proprietary plant-based YamChops products to new and emerging markets. And it’s ambition doesn’t stop there, it’s not only on a mission to expand in Canada but to the explosive US markets. YamChops currently has B2B distribution to Sobey’s London, Pusateri’s, and Nature’s Emporium.
Some of these are massive companies and the largest distribution giants of retail and wholesale foods in all of canada. London Drugs for example operates over 80 stores employing more than 8000 staff. Meanwhile Sobey’s London has over 1,500 stores and UNFI is a publicly listed $1.6bn wholesaler with $20bn revenue.
With M&A targets in the pipeline, a strategy to increase the number of quality brands on board and revenue streams multiplying, Plant&Co looks to be going places. This could be one of the most exciting stock picks of 2021.
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