The Very Good Food Company Inc. (CSE:VERY.CA; OTC:VRYYF), based in Canada (Victora, B.C.), is an emerging plant-based technology company focused on developing, producing, and distributing plant-based meat alternatives and describes itself as a company that is “butchering beans, not animals.” Very Good Food Company (i.e. VGFC) went public in June of 2020 at C$0.25/share and is currently trading around C$1.70.
Written by Lorimer Wilson, Managing Editor of munKNEE.com – Your KEY To Making Money!
- According to Barclays, the alternative food industry is expected to reach $140 billion over the next decade, which would account for 10% of the global meat industry and,
- according toBIS Research, the plant-based food and beverage alternatives market is expected to reach $80.43 billion by 2024, with a CAGR of 13.82% from 2019 to 2024.
While the plant-based protein industry has received high levels of attention due to consistency of products, lower production costs, and benefits in environmental sustainability it has, however, struggles due to undesirable flavors and sub-par nutritional values
VGFC started off as a small shop serving its local community in 2016, opened the first plant-based butchery in 2017 called the “Very Good Butchers” and has since been growing rapidly.
Its Sales Model
VGFC generates revenues through 200+ retailer and restaurant customers, an eCommerce store (see here) with 700+ active subscribers for its monthly subscription plan, and a wholesale program with 100+ active customers. Its business is currently concentrated in Western Canada but has plans to expand its retail presence to Central/Eastern Canada later this year, into the U.S. early next year and into Europe and Asia after that. To meet the expected demand they are scaling up production capabilities with the opening of a second processing facility in B.C. which should be operational by the end of 2020 and the rental of a strategically located California production facility.
Its Latest 2020 Financials – Q2
- Revenue: C$1.1 million (an increase of 395% year over year)
- Gross Profit Margin: 42% (outperforming the gross margin of competitor and industry giant Beyond Meat’s 30%
- Net Loss: C$(1.65 million)
- Net Loss/Share: C$(0.03)
- Cash Balance: C$3,508,826
Said CEO Mitchell Scott:
“We were extremely pleased with our financial performance this quarter, with revenue growth and gross margins both producing industry leading results. With a very healthy balance sheet and quickly growing demand for our products, we are in a position of strength as we charge forward with our international expansion. Over the coming quarters, investors can expect to see significant progress on our next phase of growth, as we transition to becoming a much larger company with global ambitions.”
As mentioned in the opening paragraph, Very Good Food Company went public in June of 2020 at C$0.25/share and is currently trading around C$1.73.
Editor’s Note: Some of the information used in the above article was sourced from an article by Jay Yi. The views, conclusions and any recommendations offered in the article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.
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