Tuesday , 27 October 2020

The Very Good Food Company Is Butchering Beans, Not Animals

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!

The Marketplace

  • 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

Its Origins

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

Management Commentary

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.”

Stock Performance

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.

munKNEE should be in everybody’s inbox and MONEY in everybody’s wallet!

If you want more articles like the one above sign up in the top right hand corner of this page and receive our FREE bi-weekly newsletter (see sample here).

 munKNEE.com – ” The internet’s most unique site for financial articles! Here’s why

Why spend time surfing the internet looking for informative and well-written articles on the health of the economies of the U.S., Canada and Europe; the development and implications of the world’s financial crisis and the various investment opportunities that present themselves related to commodities (gold and silver in particular) and the stock market when we do it for you. We assess hundreds of articles every day, identify the best and then post edited excerpts of them to provide you with a fast and easy read.

Scroll to very bottom of page & add your comments on this article. We want to share what you have to say!

 munKNEE.com has joined eResearch.com to provide you with individual company research articles and specific stock recommendations in addition to munKNEE’s more general informative articles on the economy, the markets, and gold, silver and cannabis investing.
Check out eResearch. If you like what you see then…


Leave a Reply

Your email address will not be published. Required fields are marked *