Boosh Plant-Based Brands (VEGI.C) Begins Selling to the Food Industry Service

Boosh Plant-Based Brands Inc.

 

  • $20.003M Market Capitalization

 

Boosh Plant-Based Brands Inc. (VEGI.C) is a plant-based food company offering high-quality, non-GMO, gluten-free, and nutritional comfort foods. The Company was built upon the desire to help health-conscious consumers meet their goals by providing convenient plant-based meals for people who found it challenging to prepare meals from scratch.

Boosh has developed six 100% plant-based, heat-and-serve bowls for one and entrees for two. Additionally, the Company has formed alliances with Beyond Meat Inc. and Buy BC, a province-wide marketing program characterized by marketing activities, retail partnerships, promotional activities, and events. As someone who can cook one, maybe two, meals from scratch, I have been relying on prepared meals for most of my life. Turns out I am not alone.

According to Grand View Research, the Global Ready Meals Market was valued at USD$159.15 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027. In particular, frozen and chilled meals held the largest revenue share of more than 50% in 2019 and are expected to maintain their lead over the forecast period.

Moreover, the average person in the United States (US) spent roughly $200 in 2018 on ready-to-eat (RTE) food products, representing a 3.5% increase over the amount spent year-over-year (YOY). Why? According to Statista, 45% of people said the reason they purchased RTE meals was that they did not have the time to cook at home, while 31% said that RTE meals were affordable for their lifestyles.

Unfortunately, consuming traditional RTE meals comes with a price, and I am not talking about retail value. A study published by the Internation Journal of Gastronomy and Food Science compared the energy, macronutrients, sugar, and salt content of RTE meals sold in leading supermarkets and grocery stores in Hungary. In particular, the study compared 177 RTE meals from leading supermarkets in Hungary with the nutritional guidelines published by the World Health Organization (WHO).

The study found that RTE meals tended to be high in fat, saturated fatty acids, protein, and sodium and low in energy and carbohydrates. On the contrary, Boosh offers convenient plant-based meals that are nutritionally balanced, low in sugar, sodium, and calories all at a competitive price point.

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On October 28, 2021, Boosh announced that it had begun its US expansion with the first shipment of 16,000 units to its US distribution warehouse. The shipment includes an equal portion of the Company’s six frozen entrees:

  • Hearty Shepherd’s Pie – casserole made with veggies, Beyond Meat®’s Beyond Beef® Crumbles, mushroom gravy, and topped with garlic mashed russet and sweet potatoes
  • Rustic Pot Pie – made with mushrooms, sweet potatoes, broccoli, peas, and corn drenched in mushroom gravy and topped with a gluten-free pastry crust
  • Mexican Fiesta Bowl – made with roasted butternut squash, peppers, black beans, and corn
  • Coconut Curry Cali – made with a combination of cauliflower and chickpeas with a creamy coconut curry sauce
  • Mac & Cheeze & Peas Bowl – made with creamy dairy-free Mozza and cream cheese, brown rice pasta, plus a hearty sprinkle of peas
  • Veggie Bolognese Bowl – made with tomato sauce, mushrooms, basil, brown rice pasta, and Beyond Meat®’s Beyond Beef® Crumbles

 

“As we have begun to send samples to our US food broker to distribute to key accounts in the US the feedback has been extremely positive. In fact, our first shipment to the US distribution center was anticipated to be 10,000 units, however, because of the high interest, we’ve increased it to 16,000 units,” states Founder and President Connie Marples.

Most recently, on November 5, 2021, Boosh announced that it had begun accepting orders from the foodservice industry. This sector includes, but is not limited to, providing meals to hotels, restaurants, bars, cafeterias, catering, airlines, and more. As a result, the Company has now increased its total revenue streams from four to five. In addition to the foodservice industry, Boosh has revenue streams related to:

  • Organic – Boosh experiences continual growth by selling to an increasing number of grocery stores. Currently, there are roughly 15,000 grocery stores in Canada and 42,000 in the US. Of these stores, Boosh is in approximately 400, of which 60% have recently onboarded and began selling the Company’s products in the past 9 months.
  • Acquisitions – focus on acquiring synergistic, unique, and private plant-based brands with strong management and the potential for significant upside. Boosh has acquired three companies since February 2021, including Vegan Canteen, Salt Spring Harvest, and Pulse Kitchen
  • Expansion into the US – Boosh has expanded into the US via two channels, including the retention of a natural food broker with extensive relationships throughout the US grocery industry, and commencing eCommerce activities on ShopVejii.com and its affiliates
  • eCommerce – Boosh commenced Canadian home delivery via ShopVejii.com in September 2021, and is working with its affiliates for a US launch

 

“The foodservice sector is not necessarily equipped to deal with plant-based menu requests with regards to specially sourced ingredients and cross-contamination. However, our Boosh products are high quality, ready-made, and easy for the foodservice sector to adopt,” commented Connie Marples.

Financials

According to the Company’s Q2 2021 Financial Results, the Company had cash of CAD$1,369,614 on June 30, 2021, compared to CAD$98,463 on March 31, 2021 (Q1 2021). In the same period, Boosh had total assets and total liabilities of CAD$2,580,817 and CAD$243,132. The Company’s total assets increased substantially from CAD$461,639 while its total liabilities were reduced to CAD$640,094. In total, Boosh reported an increased gross profit of CAD$10,109 and an increased net loss of CAD$995,245, for a total loss per share of $0.09. The Company’s net loss can largely be attributed to its operating expenses, which totaled CAD$948,799.

As of June 31, 2021, there were 15,979,376 common shares issued and outstanding. During the three months June 30, 2021, Boosh issued 474,750 units at a price of $0.20 per unit for gross proceeds of $94,950. Each unit consists of one common share and one warrant, where each warrant is exercisable into one common share at an exercise price of $1.00 until January 8, 2023. With this in mind, Boosh has done quite well for itself since its common shares began trading on the Canadian Securities Exchange (CSE) on May 26, 2021. Prior to listing its common shares on the CSE, Boosh completed an Initial Public Offering (IPO) of 5.57 million units, generating gross proceeds of CAD$2,875,000. Net proceeds from the offering are to be used to support the Company’s short-term business objectives.

Looking forward, Boosh is well-positioned to capitalize on the lucrative RTE meals market. It is also worth noting that the Company has a noticeable presence in the Food Service Market, which was valued at USD$3.1 trillion in 2018. Furthermore, this market is projected to reach USD$4.5 trillion by 2026, growing at a CAGR of 3.2% from 2019 to 2026. This market will mostly be driven by an increase in the Millennial working population coupled with a growing need for customized and newer food options.

Boosh’s share price opened at $1.16, up from a previous close of $1.15. The Company’s shares are up 6.09% and were trading at $1.22 as of 1:20 PM ET.

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