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Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


27. May 2021 | 10:55 CET

Oatly, The Very Good Food Company, Beyond Meat - Big profits with no end in sight!

  • Vegan
Photo credits: facebook.com/Oatly

It should be dawning on many of us by now that with increasing prosperity and a growing population, factory farming and meat consumption cannot continue indefinitely. But the vegetarian way of life is still too often ridiculed. However, it could be a partial solution to the challenges mentioned. From an investor's point of view, it is worth considering how much money can be made with vegetarian substitutes. Therefore, the following is a brief look at three publicly traded companies that are likely to appeal to even meat-eaters.

time to read: 5 minutes by Carsten Mainitz
ISIN: US67421J1088 , CA88340B1094 , US08862E1091


 

Author

Carsten Mainitz

The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

About the author


Oatly - IPO flushes approximately USD 1.4 billion into the cash box

The oat-based pioneer of vegan milk alternatives, Oatly AB, based in Malmö, Sweden, ventured onto the stock exchange floor last week. The Company chose the US NASDAQ as its trading venue, which, as it turned out, was certainly not a mistake. As a food manufacturer instead on the winning side of the worldwide Corona pandemic, the IPO met with a starved stock market environment.

Good stories are currently few and far between. In addition, people are becoming increasingly aware that factory farming is an issue that does not solve global distribution and nutrition problems, apart from the adverse effects on the climate, but exacerbates them. So Oatly is preaching to the choir. And so, the Company was able to place around 84.4 million of its share certificates with grateful investors at a price of USD 17 at the upper end of the price formation range. After the shares were able to gain a third at times, a plus of 19% was recorded at the end of the first trading day.

As a result, the market currently values Oatly at a price of over USD 13 billion, with sales in the past fiscal year of around USD 420 million. That is a proud sales multiple! Does this mean that Oatly is already considered too expensive? Well, the stock market is valuing the future. The Company serves a trend that is in high demand. Global sales in the dairy segment are currently around EUR 212 billion annually and are expected to grow to around EUR 246 billion by 2025.

It remains exciting to see how the established food companies will position themselves in this segment. So far, it has remained relatively quiet from this corner. When will Oatly's slice of the pie become too big for the Krafts, Nestlés and Unilevers of this world? Until then, however, the Oatly share is likely to take a strong push upwards. Whether it is a takeover target or a growth stock, the stock is full of opportunity.

The Very Good Food Company - The newcomer from Canada is pushing the envelope

A relatively new player in vegan nutritional alternatives is The Very Good Food Company from Vancouver, Canada. The name says it all: In contrast to manufacturers who use all kinds of chemical and biological processes to give their products the appearance of animal origin, the Company consistently relies on natural ingredients and production methods. As a result, the Company sets itself apart from competitors such as Beyond Meat or Impossible Foods and has also given the Company a solid reputation in the vegan community. In doing so, the Company produces meat substitutes under the brand "The Very Good Butchers" and vegetarian cheese alternatives under the brand "The Very Good Cheese Co."

Recently, the Company announced a new sales record: it sold products exceeding CAD 1 million for the first time in March. Yesterday, the Company published its Q1 figures. Revenues increased by a staggering 680% to CAD 2.7 million. eCommerce sales increased by 1,744% to CAD 2.2 million. The Company, which has so far distributed its goods through an online store, selected restaurants and more than 300 partner outlets, is expecting a further boost from the expansion of its distribution partnership with United Natural Foods, which is now set to tackle the USA after the Canadian market. The Company also plans to launch its online distribution in the UK in the third quarter and in the EU in the fourth quarter. To this end, it is currently working on expanding production, including in California. In April, a new production line was already implemented at the Company's home base in Vancouver.

All in all, the Canadians have turned on the turbo at the moment. For 2020, the Company reported a 364% increase in sales. We certainly like the story of the Very Good Food Company - "very good." Despite the now highly competitive market, the Company has found an interesting niche that offers enormous potential. The aversion to industrially processed food is certainly not represented by the mass of the population, which mainly values low prices, but that does not endanger the existence of other premium food manufacturers.

For us, the share, which is currently consolidating at a price increase of around 200% after a brilliant rally after the stock market start, definitely belongs in the portfolio. A market capitalization of around CAD 450 million is justifiable given the robust growth and the valuation of the competitors.

Beyond Meat - The meat substitute pioneer

The manufacturer of vegan burgers can already be seen as a veteran of vegan products on the stock exchange floor. After a terrific start on the stock market in 2019, the Company had to struggle enormously from 2020 with the Corona-related decline in demand from restaurants - these made up the majority of the group's clientele. In addition, strong competitors are increasingly getting involved in the market. The IPO of one of its most important competitors, Impossible Foods, is probably imminent. It has not yet been decided whether this Company, which is valued at around USD 10 billion, will go public in the form of a traditional IPO or via SPAC.

But the established food manufacturers, such as Unilever, are not idle in this area either. The latter recently announced that it will invest around USD 1 billion in the next five to seven years to build up its meat substitutes and vegan milk alternatives division. Yet the Company already has some experience with this. The Group's Ben&Jerry brand added vegan ice cream to its range back in 2016, and the well-known Magnum brand followed suit in 2018, initially in Sweden and Finland and then also in the UK. The Company is also very active in the area of meat substitutes. For example, Unilever plans to expand its "The Vegetarian Butcher" brand, which it acquired in 2018, to become the world's largest supplier of vegetarian meat substitutes. Whether this will succeed remains to be seen.

Currently, Beyond Meat is still seen as one of the top dogs in this business segment, for which sales of up to USD 450 billion p.a. are forecast by 2040. The IPO of Oatly last week gave the Beyond Meat share a slight boost: The stock gained around 10% in the wake of the IPO. And the first analysts see further upside potential. Bernstein recently increased its price target to a total of USD 130.


Author

Carsten Mainitz

The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

24. June 2021 | 15:38 CET | by André Will-Laudien

Coca-Cola, Beyond Meat, The Very Good Food Company - Green Food, Blue Planet!

  • Vegan

To eat vegan or live consciously, let's say, is a decision that more and more people are making for themselves. According to estimates, there are between 700,000 and 1.3 million vegans living in Germany alone. In addition, there is a steadily growing number of so-called flexitarians who do not yet feel that they belong to be veganism; however, their food plan contains a heavily reduced amount of animal products. Even insects are included in the discussion of veganism so that vegans also do not (should not) consume honey from bees. Political and social change is progressing, and people's daily habits are changing accordingly. We look at the approaches of modern food producers.

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28. April 2021 | 07:00 CET | by Nico Popp

Nestlé, Kraft Heinz, The Very Good Food Company: Conservative investments - rethought

  • Vegan

As the Allensbach Market and Advertising Media Analysis (AWA) showed last year, 24.75 million people in Germany alone are interested in healthy eating and healthy lifestyles - and the trend is rising. Young people, in particular, are increasingly drawn to veganism. Even if it is scientifically disputed to what extent meat consumption is associated with poorer health, the ethical advantages are obvious. Where no animal was processed, no animal had to be fattened, kept and slaughtered. Established food companies and innovative newcomers are vying for customers in the food market. We present three shares.

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15. April 2021 | 10:40 CET | by André Will-Laudien

The Very Good Food Company, Unilever, Kraft Heinz Company - People always eat!

  • Vegan

Vegan food is becoming increasingly popular. On the one hand, public opinion is increasingly directed against unethical animal husbandry. On the other, we as consumers are becoming aware that traditional livestock farming is a factor in global warming. After all, the production of one kilo of Argentine steak requires 5,000-15,000 liters of water. The figure comes from the WWF study "Water footprint of Germany." Added to this is the methane production of livestock farming, not to mention all the other problems of factory farming. Currently, about 1.5 billion animals are kept worldwide. However these numbers are calculated, they are all mind-boggling statistics compared to the little meat on our plates. In short, not only since Greta Thunberg, a trend towards more sustainable nutrition, animal welfare and ultimately less meat consumption and the use of plant-based meat substitutes has become established. The topic is omnipresent!

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