Vejii Holdings (VEJI.C) Enters 3PL Agreement for Cold Storage in the US

Vejii Holdings Ltd. (VEJI.C) announced today that it has entered into a 3PL agreement with a cold storage service provider in San Diego, California.

“Customer satisfaction remains our number one priority as a company…We have listened to our customers, and website data to make this strategic decision. Not only will this improve customer experience, but it will also significantly reduce our carbon footprint which remains a priority to our company. The pandemic has changed buying behavior amongst consumers, this shift is something we are prepared to handle as we scale distribution across the nation,” said Kory Zelickson, CEO of Vejii.

A third-party logistics services agreement refers to a contract between a contracting party and a third-party logistics services provider (3PL). Who would have guessed? For context, 3PL businesses take, hold, and transport consumer goods but do not take ownership of those goods. Additionally, 3PLs provide a variety of services, some of which include warehousing, transportation, inventory management, and packaging, to name just a few.

With this in mind, Vejii’s latest agreement is intended to expand the Company’s distribution footprint. In doing so, this will allow products across Vejii’s offering to be stored even closer to one of the Company’s largest consumer bases. In fact, California birthed Beyond Meat and Impossible Foods, two companies widely recognized as pioneers of the plant-based industry. In total, California is home to more than 600 companies dedicated to alternative proteins.

Through Vejii’s latest partnership, the Company will be able to store and ship its full range of frozen, refrigerated, and dry products in its strategically located 3PL distribution center in San Diego. Having access to additional space will allow Vejii to further expand and onboard new brands as well improve service for its existing brands with added distribution capabilities.

“I am excited about having our first distribution partner in California, this will not only make it easier for us to onboard local brands, but will improve our overall operational efficiencies by getting products closer to our customers on the west coast, improving freight costs, shipping times, and overall customer satisfaction…We will now focus on finding a same-day delivery partner to help us service the San Diego area and beyond and will provide more updates on this as we move forward,” said Darren Gill President & COO of Vejii.

Additionally, Vejii’s latest agreement will enable the Company to further expand its Vejii Express program. Through Vejii Express, the Company offers guaranteed shipping within two business days across the U.S. for selected products including brands such as Beyond Meat, Gardein, Earth Balance, Yves, and more. This expansion will allow Vejii to capitalize on California’s lucrative plant-based market. According to Forbes, California was ranked as the second-best city for vegans and vegetarians in the U.S.

Overall, the U.S. Plant-Based Food Industry was valued at USD$5.6 billion in 2020. This market is expected to expand at a compound annual growth rate (CAGR) of 9.69%, reaching a value of USD$10.7 billion by 2027. Furthermore, in the last 15 years, the number of Americans following a plant-based diet has grown by nearly 9.6 million, representing a 300% increase, according to Vegan News. Let’s not forget that Vejii also has its foot in the Canadian Plant-Based Food Market, which is projected to expand at a CAGR of 8.60% between 2021 and 2028.

Vejii has established partnerships with a variety of companies, including Nabati Foods Global, NEXE Innovations, Plant Veda, and Boosh Foods, among others. Most recently, on December 2, 2021, Vejii announced that Franklin Farms’ line of plant-based meat products will be launching on ShopVejii.com in the U.S. this January. Franklin Farms, a division of Keystone Natural Holdings, is recognized for its expansive portfolio of plant-based protein options.

This includes plant-based burgers, seitan, tofu, tempeh, fusion tofu, and its newly launched chickpea tofu. Truth be told, I don’t like tofu. As is usually the case, my opinion is in the minority. According to Neilsen, tofu sales increased by an impressive 66.7% during the four-week period ending March 28, 2020, compared to the same period in 2019. In terms of cost, tofu is generally cheaper than plant-based meats. For example, one pound of Beyond Meat’s Beyond Beef retails for $8.47 on Walmart.ca. On the contrary, approximately 14 oz. of Fontaine Santé Extra Firm Plain Tofu retails for $2.97 on Walmart.ca.

Vejii has been on a roll lately and the Company shows no sign of stopping. With regards to Vejii’s latest 3PL agreement, the Company expects to complete technical integration and start shipping from its 3PL facility by the end of January 2022. If you’re interested in Vejii’s financials, check out the Company’s recently reported Q3 2021 Financial Results and Q4 Guidance here. Check out the video above for Equity Guru’s exclusive interview with Vejii’s CEO, Kory Zelickson!