Modern Plant-Based Foods (MEAT.C) announced today that its subsidiary, Modern Seafood, has entered into an agreement with Cascadia Seaweed Corp. to develop and create a variety of plant-based products incorporating cultivated seaweed with the Company’s proprietary recipes.
“Changing to a plant-based diet ranks high on the list of solutions for addressing climate change and Cascadia’s ocean cultivated seaweed requires no fresh water, fertilizers, pesticides, or arable land to grow. Cascadia recently made a strategic shift to focus on food production and consumer packaged goods and we are extremely proud that they tapped Modern Meat to partner with them on the creation of three product lines, making good use of a plentiful and local natural resource,” stated Tara Haddad, Founder of Modern Plant-Based Foods.
Having only just recently covered Cascadia Seaweed Corp. (“Cascadia”), I certainly wasn’t expecting to write about the company again so soon. As much as I would love to go off on another seaweed tangent, I highly encourage our readers to check out our previous article covering Billy Goat Brand’s investment into Cascadia. Instead, let me tell you all about why you should give a damn about seaweed, even if you’d rather eat sand. For starters, according to Markets and Research, the seaweed cultivation market size was estimated at USD$16.7 billion in 2020 and is projected to reach USD$30.2 billion by 2025. Equally as impressive, this market is expected to expand at a compound annual growth rate (CAGR) of 12.6% between now and 2025. Furthermore, the World Bank predicts that seaweed farming has the potential to add 10% to the world’s supply of food. Currently, Asia dominates the seaweed cultivation market, however, Cascadia is looking to harvest its share of value in BC, Canada.
Cascadia is a vertically integrated company with the vision of becoming the largest provider of ocean cultivated seaweed in North America. As mentioned in our previous article, the Pacific Northwest is revered as a goldilocks zone for growing seaweed due to its optical climate, temperatures, minimal industrial activity, and absence of pollutants. With this in mind, Cascadia is located in some prime real estate, with multiple tenures ranging from 1-10 hectares in size. In the future, the company hopes to cultivate seaweed on even larger tenures, roughly 50-100 hectares in size. By 2025, the Company aims to have at least 500 hectares under cultivation. In terms of sustainability, Cascadia is certainly doing its part. Adding to the company’s list of achievements, including recognition from Time Magazine and Douglas Magazine, as well as receiving the Vancouver Island’s Best Ocean Products of the Year Award, Cascadia was recently awarded the BC Food and Beverage Innovation Award on September 24, 2020. So, why is this important for Modern Plant-Based Foods?
Modern Plant-Based Foods Inc.
- $56.947M Market Capitalization
Modern Plant-Based Foods (MEAT.C) is a food company based in Vancouver, Canada, offering a wide range of plant-based food products and services including meat alternatives, homemade style soups, vegan cheeses, sauces, and candies. As someone with an insatiable sweet tooth, Modern Plant-Based Foods is already speaking my language. Currently, the Company has two retail stores located in Vancouver offering a smoothie bar and health products with a focus on plant-based. The Company has several brands under its name including KitsKitchen, Modern Meat, Modern Wellness, Snacks from the Sun, and its most recent development, Modern Seafood. On September 11, 2021, Modern Plant-Based Foods announced the launch of Modern Seafood, a division focused on the research, development, production, and manufacturing of plant-based seafood alternatives. Keep in mind, according to Fact.MR, the global plant-based seafood market is projected to surge at a CAGR of approximately 28% from 2021 t0 2031, reaching a valuation of USD$1.3 billion by 2031. Concerns related to the environment, global fish stocks, and health issues associated with excessive meat consumption are expected to be key accelerators for the growth of the plant-based seafood market.
“We are thrilled to be working with Modern Meat to bring the most sustainably produced foods to market under our CPG food brand Kove Ocean Foods. Our planet needs us right now and some of the most impactful choices come from us as individuals with regards to the foods that are on our plates and in our cupboards. Kove’s mission is to deliver the tastiest and most delicious food products made with the world’s most sustainable crop, seaweed! Our vision aligns perfectly with Modern Meat’s mission to change the way food is produced and consumed for the benefit of animals, the protection of our environment, and the health of our people.” – Desiree Dupuis, VP Sales and Marketing, Cascadia Seaweed.
More specifically, Modern Seafood will seek out collaborations with existing seafood companies interested in the development of quality seafood alternatives. That being said, the early bird gets the worm, and it looks like that bird is Cascadia. As previously mentioned, Modern Seafood will be working with Cascadia to develop and create a variety of plant-based products incorporating seaweed with Modern Meat’s proprietary recipes, including the Company’s popular Modern ‘Crabless’ Cakes. Crafted with vegetables, fresh herbs, and lemon, Modern Meat’s crab-less cakes are intended to be “almost indistinguishable from the real thing.” In addition to the Company’s crab-less cakes, the research and development phase is currently underway with iterations of a Beach Burger, Fish Cake, and Chorizo Breakfast Sausage Patty, which will all incorporate ocean cultivated Sugar Kelp. Production of these products is expected to begin in Spring 2022.
Financials
According to Modern Plant-Based Foods’ Interim Financial Statements for the three and nine months ended May 31, 2021, and 2020, the Company had a cash position of CAD$470,914, down from CAD$2,973,591 on August 31, 2021. The Company’s total assets and total liabilities increased to CAD$S,752,234 and CAD$1,547,649, respectively. Modern Plant-Based Foods reported revenue of CAD$718,034 on May 31, 2021, compared to CAD$24,019 year-over-year (YOY). In total, the Company’s achieved CAD$173,151 in gross profits and reported a net loss of CAD$861,863. With this in mind, the Company’s increased expenses can be attributed to significantly higher operating expenses and increased cash flows used in investing activities. On May 31, 2021, Modern Plant-Based Foods had total operating expenses of CAD$1,034,932 and had used CAD$105,960 in investing activities, including the acquisition of Modern Meat Inc. and KitsKitchen Health Foods Inc. Most recently, on April 9, 2021, the Company issues 400,000 share purchase warrants valued at CAD$458,106 where each warrant will entitle the holder to acquire one common share of the Company exercisable at a price of CAD$3.00 per warrant, with an expiry of two years from the date of issuance.
Modern Plant-Based Foods’ share price opened at $1.96, up from a previous close of $1.80. The Company’s shares are up 5.56% and were trading at $1.90 as of 1:01 PM ET.
