Plant-Based Takes a Trip to the Metaverse? (Sector Roundup: Week 22)

Environmental Impacts of the Metaverse

As cool as I think the Metaverse is, I can’t help but feel like it’s the start of something bad. Did Ready Player One, Gamer, Virtual Deathmatch, and Sword Art Online not teach us anything? In all seriousness, I am not as concerned about a potential dystopian future with Mark Zuckerberg as our overlord as I am with the environmental impacts of the Metaverse as a whole. In some weird twist of fate, abandoning reality and going virtual will actually have a negative effect on our environment.

However, let me exercise my due diligence and talk about the Metaverse’s potential positives. If implemented on a large scale, the Metaverse will considerably minimize the need for human travel. This means less traffic, pollution, emissions, and fewer accidents as well. That being said, the Metaverse could potentially improve our current position when it comes to global warming.

Additionally, the Metaverse would enable large corporations to hold conferences virtually, thereby eliminating travel expenses and emissions. I can see it now. A virtual council of sinister corporate baddies in a dark lit room deciding on which McDonald’s toy to feature next. On a more serious note, the Metaverse has even found its way into the military.

For example, Optimus Systems, a developer and supplier of military training simulators, has expanded its entry into the global market with a Korean defense solution utilizing the company’s Metaverse technology. Dubbed DEIMOS, Optimus’ Metaverse-based military training system will create virtual environments for professional military training. This includes precision shooting, behavior, and observations training.

Now that we have talked about the positive, let’s talk about the potential negatives. For starters, the Metaverse will be heavily dependent on virtual reality (VR) and data centers. While data centers rely on artificial intelligence (AI), VR is heavily dependent on cloud services, both of which are resource-intensive. According to ECS, a UK-based digital transformation consultancy, training a single AI model may generate approximately 626,000 pounds of carbon dioxide (C02).

Similarly, a study conducted by Lancaster University suggests that if 30% of gamers were to shift to cloud gaming by 2030, this would result in a 30% rise in carbon emissions above current gaming. According to the study’s thesis, although gaming currently represents only 7% of global network demand, streamed games, such as the Metaverse, could rapidly change our network footprint. Don’t even get me started on the environmental impacts of non-fungible tokens (NFTs).

Speaking of the Metaverse and NFTs…

Simply Better Brands Corp.

$127.472M Market Capitalization

Simply Better Brands Corp. (SBBC.V) is an omnichannel platform with brands spanning across the plant-based, holistic wellness, and lifestyle consumer product categories. The Company is focused on leading innovation for Millennial and Gen Z consumers in these rapidly developing spaces. To date, Simply Better has expanded into high-growth consumer product categories including CBD products, plant-based food & beverage, pet care, and skincare industries.

With regards to the Company’s plant-based brands, Simply Better offers a selection of TRUWOMEN products like TRUBAR, nutrition bars that are made with all-natural ingredients like cassava flour and brown rice protein. Additionally, TRUWOMEN nutrition bars are dairy-free, soy-free, gluten-free, non-GMO, and free of sugar alcohols. I can get behind a company like TRUWOMEN. They have created an empowering brand for women and their products seem to be the real deal.

However, I do have some issues with Simply Better, which acquired Tru Brands Inc., otherwise known as TRUWOMEN, on August 19, 2021. For starters, Simply Better advertises itself as a company focused on “guiding the wellness transformation journey” of Millennials and Gen Z consumers. Keep in mind, Millennials and Gen Z consumers are the most likely to make purchase decisions based on personal, social, and environmental values.

In fact, according to a 2020 report by First Insight, 73% of Gen Z consumers surveyed were willing to pay more for sustainable products. Similarly, 75% of Millennials are eco-conscious to the point of changing their buying habits in favor of environmentally friendly products. Simply Better even acknowledges this in its Investor Presentation, yet the Company’s latest news seems to disregard Simply Better’s commitment to the “plant-based, natural, and clean ingredient space.”

Latest News

Most recently, on February 1, 2022, Simply Better announced its entry into the Metaverse in conjunction with the Company’s strategic partner, New Frontier. This partnership will enable Simply Better to rapidly develop its brand and shopping experiences in the omnichannel environment of VR, augmented reality (AR), tablet, and mobile. The Company’s initial entry into the Metaverse will include Simply Better’s PureKana Wellness, a hemp cannabidiol-based brand.

“You’re overreacting!” Yeah, maybe, but bear with me. According to Kathy Casey, Simply Better’s CEO, PureKana Wellness is just the tip of the iceberg when it comes to integrating the Company’s brands into the Metaverse. In the future, Simply Better intends to include a wellness spa parcel placement, NFTs, digital currency, and end-t0-end ‘shopability’ of its portfolio.

In Kathy Casey’s words, “leveraging emerging technologies is a core strategy to drive awareness, acquire customers and strengthen loyalty to our brands.” It sure is, but I don’t think this is a strategy a brand like Simply Better or any environmentally conscious company, for that matter, should be adopting. Until the Metaverse, NFTs, and cryptocurrencies can achieve carbon neutrality, I will continue to be critical of companies supporting the virtual space.

Anyways. Simply Better also announced on January 20, 2022, the continued regional expansion of TRUBAR products at Costco, one of the world’s largest wholesale retailers. According to the Company’s press release, following a successful rotation, TRUBAR will return to the Southeast region of the United States (US), including the planned states of Florida, Georgia, North Carolina, South Carolina, Tennessee, Alabama, Mississippi, and Puerto Rico.

“The expanded buildings in Costco complement our broad distribution at other U.S.-based strategic retailers like Amazon, Whole Foods, Fresh Thyme, and Walgreens…As Costco is a shopper destination for snack bars, we are thrilled to see our offer outperforming the category,” said CEO at Simply Better Brands, Kathy Casey.

Simply Better’s share price opened at $4.70, down from a previous close of $5.00. The Company’s shares were down 2.00% and were trading at $4.90 at close on February 3, 2022.

Planet Based Foods Global Inc.

$16.90M Market Capitalization

Planet Based Foods Global Inc. (PBF.C), through its wholly-owned subsidiary in San Diego, California, Planet Based Foods, is a producer of sustainable plant-based meat substitutes. The Company is on a mission to build a better food system by offering hemp-formulated superfood products. To be more specific, Planet Based Foods’ superfood blend contains non-GMO hemp seed, brown rice, and pea protein. It is worth noting that hemp is one of the most sustainable and versatile crops in the world. Hemp requires less water, prevents soil erosion, reduces C02, is pest resistant, and is drought tolerant.

Planet Based Foods also has a neat little acronym, H.E.M.P, which stands for Honorable, Ethical, Moral, and Protein. The Company’s H.E.M.P food is made using sustainable ingredients that are packed with fiber, omegas 3-6-9, contain 21 grams of protein, and are 100% vegan. Similar to Actual Veggies, Planet Based Foods is not trying to mimic meat like most other meat substitute brands like Beyond Meat. Currently, the Company offers a selection of plant-based foods including burgers, crumble, and breakfast sausage patties.

Latest News

Most recently, on February 1, 2022, Planet Based Foods announced the launch of its debut frozen food line of soy-free, GMO-free, nutrient-dense plant-based protein products. This includes five new SKUs, namely The Original Hemp Burger, Green Chili Southwest Burger, Breakfast Sausage, Italian Crumble, and Original Crumble, all of which are now available for national shipping at the Company’s website.

“We see hemp as an untapped natural resource that delivers unmatched nutrition and sustainability benefits and is uniquely suited to thrive in the face of climate change. We believe deeply in the potential for our hemp-based products to play a role in addressing major food system challenges while delighting discerning values-driven customers,” said Braelyn Davis, CEO and co-founder, Planet Based Foods.

Previously, on January 27, 2022, Planet Based Foods announced that its vegan meat alternatives are now available at Stout Burgers & Beers, a neighborhood restaurant chain in Los Angeles, California. The Company’s Planet Based Burger is available at all four of Stout Burgers & Beers’ current locations in Hollywood, Studio City, Santa Monica, and Palm Springs, as well as through the Stout Food Truck covering Los Angeles and Orange county for special events.

In the coming months, Planet Based Foods intends to expand to two new locations in Ventura and USC Village where its plant-based burgers will be served. Over 800 plant-based burgers are sold per month across Stout Burgers & Beers’ current locations. With this in mind, since its debut, the Planet Based Burger has quickly secured its spot as the top-selling veggie burger. Looking forward, Stout Burgers & Beers intends to increase its number of locations to 1,200.

“As Stout Burgers & Beers continues to establish itself as a Los Angeles community fixture, we look forward to introducing our product to more and more diners and in turn increasing sales through this exciting collaboration,” commented Braelyn Davis.

In addition to Stout Burgers & Beers, Planet Based Foods announced on January 20, 2022, that it has entered into a collaboration agreement with Copper Mountain Resorts, a leading mountain ski resort operator. Following its collaboration with Planet Based Foods, Copper Mountain’s winter food menu will include the Company’s The Original Burger and Breakfast Sausage Patties. Since the first order placed in November 2021, Copper Mountain has purchased more than 150 cases of The Original Burger and Breakfast Sausage Patties, with re-orders still being processed.

Planet Based Foods’ share price opened at $.34, up from a previous close of $0.325. The Company’s shares were up 1.54% and were trading at $0.33 on February 3, 2022.

Feel Foods Ltd.

$2.217M Market Capitalization

Feel Foods Ltd. (FEEL.C) is an agri-food holdings company focused on developing innovative products and technologies in the foodservice industry. This includes the Company’s wholly-owned Be Good Plant-Based Foods Ltd. (“Be Good”), a food company dedicated to designing, developing, producing, licensing, distributing, and selling a variety of plant-based meat and other food alternatives.

Feel Foods acquired Be Good on March 31, 2021, by issuing 22,050,000 common shares of the Company at a fair value of $7,166,250. Some of Be Good’s products include plant-based chicken, pork, and beef products. Ultimately, Feel Foods is on a mission to provide a unique offering of plant-based food products intended to make it easy for carnivores, flexitarians, and vegans alike to incorporate less meat into their diets.

Latest News

Most recently, on January 31, 2022, Feel Foods announced that its Be Good plant-based chicken products will be available in the Tri-Cities area of British Columbia (BC) via SkipTheDishes. In case you were wondering, the Tri-Cities area is composed of Coquitlam, Port Coquitlam, and Port Moody, along with the two villages of Anmore and Belcarra in BC. If you enjoy food, then you have likely heard of SkipTheDishes, a leading online food delivery service.

Being a SkipTheDishes patron, I boast “Gold” status. What does that get me? Nothing. In order to get anything out of SkipTheDishes’ rewards system, you would have to order food delivery multiple times a week. Personally, I think the system is flawed at best, but I digress. In total, SkipTheDishes boasts more than 30,000 restaurant partners in Montreal, Mississauga, and Toronto, to name just a few cities in Canada. Looking forward, SkipTheDishes intends to continue its expansion across North America.

“This is a significant development for us as the market opportunity is now increasing exponentially with this kind of exposure, combined with the public’s growing preference for plant-based foods,” said Feel Foods CEO, David Greenway.

With this in mind, Food Foods’ wholly-owned subsidiary, Be Good Plant Based Foods is not supplying its chicken strips to ready-to-eat food delivery clients listed on the SkipTheDishes app. In addition to listing Be Good plant-based chicken with SkipTheDishes, Feel Foods’ Black Sheep Vegan Cheeze products are now available directly from the Company’s e-commerce site and in over 70 grocery and food services locations throughout BC.

Furthermore, on January 30, 2022, Feel Foods announced the appointment of Bryce Clark as Director and Chief Financial Officier, replacing Natasha Sever, effective immediately. Mr. Clark is the principal of Bryce A. Clark & Associates Ltd., a CPA firm in Vancouver BC engaged in public accounting. Additionally, Mr. Clark is a member of the Chartered Professional Accountants Association and brings more than 20 years of board experience in both private and public companies.

Feel Foods’ share price opened at $0.03, down from a previous close of $0.035. The Company’s shares were trading at $0.035 at close on February 3, 2022.

Vejii Holdings Ltd.

Vejii Holdings Ltd. (VEJI.C) is a North American, online plant-based, sustainable products marketplace, headquartered in Kelowna, BC. Vejii operates its online marketplace ShopVejii.com in both Canada and the US, along with VeganEssentials.com, an online vegan grocer. The Company is committed to providing its customers with easy access to thousands of plant-based and sustainable living products from hundreds of vendors through a centralized, online shopping experience.

By leveraging logistics infrastructure and distribution network technology integrations, Vejii is able to support its vendors and improve customer experience. Furthermore, Vejii utilizes technology to connect buyers with the products and brands they want. To be more specific, the Company uses the data gathered from its marketplace to inform every aspect of Vejii’s business, including expansion plans and investments.

Latest News

Most recently, on February 3, 2022, Vejii announced that through its wholly-owned subsidiary VEDGEco USA Inc., the Company has launched its improved subscription-based buying functionality for restaurants and independent grocers across North America. Following Vejii’s acquisition of VEDGEco on January 6, 2022, the percentage of orders using the Company’s automatic rendering functionality on the platform has continually increased.

“There is clear demand from our B2B clients, as they are not only seeking access to a wide range of exceptional plant-based products but also that they are leveraging tools like our new auto-reorder functionality to ensure that they can count on consistent, quality service every time,” said Kory Zelickson, CEO of Vejii.

VEDGEco’s platform makes it possible for restaurants and grocers to automatically re-order the products they want and need. In doing so, Vejii’s business-t0-business (B2B) customers are able to ensure on-time delivery to customers. With this in mind, in January alone, Vejii reported that approximately 25% of its repeat B2B orders were placed using the Company’s subscription service for purchasing.

Additionally, on January 26, 2022, Vejii announced that it has started integrating the teams and operations of Veg Essentials LLC (“Vegan Essentials”) and VEDGEco USA Inc. Additionally, based on the Company’s 2022 business plans, Vejii anticipates annual revenues of CAD$10 million to CAD$12 million and expects gross margins for the consolidated business to be between 35 to 40%. For more details related to Vejii’s corporate update, check out this article!