Europe’s bountiful plant-based garden (Sector Roundup: Week 27)

A Sea of Startups

Vevolution Annual Highlights — Source: Vevolution

The plant-based sector has become diluted. Don’t get me wrong, I am still an advocate for plant-based, however, investing in the market is where things get tricky. Every new plant-based startup claims to be the next best thing without bringing anything new or innovative to the table. As a result, we are left with an oversaturated and highly competitive market, especially in North America.

In November 2020, Vevolution, the world’s No. 1 network and investment marketplace for plant-based innovators, launched its marketplace connecting startups and investors. In 2021, almost 300 fundraising rounds were added to Vevolution, with 21 startups securing partial or full funding for their investment rounds. This includes BetterMilk, DeNova Dairy, and Grounded Foods Co., among others.

Of the 256 vegan startups listed on Vevolution’s website offering plant-based proteins, 79 originate from either Canada or the United States (US). In total, of the 1175 vegan startups listed on Vevolution, 362 originate from North America. With this in mind, most alternative protein innovations and investments occur in North America and Europe. Yes, Europe too.

European Domination

In fact, 352 vegan startups listed on Vevolution are from the United Kingdom (UK). According to Research and Markets, geographically, Europe was estimated to command the largest share of the global plant-based food market in 2020. Keep in mind, the European plant-based food market is occupied by major players, including Nestle SA, Hain Celestial, and Danone SA, to name just a few, which explains a lot, however, Europe’s plant-based market is also driven by its consumers.

According to the European Vegetarian Union, as of 2017, 10% of German consumers, or 7.8 million people, were vegetarians, and 1.1%, or 900,000 people, identified as vegans. Comparatively, a 2018 Gallup poll revealed that just 5% of US adults considered themselves to be vegetarian. Among US adults aged 55 and older, a smaller proportion of 2% said they adhered to a vegetarian diet.

Heura Foods (Private)

Heura Foods (Private), in particular, has been making waves in Europe, claiming to be the fastest-growing plant-based company in Europe. Normally, I wouldn’t cover a private company. however, I am intrigued to know what sets Heura apart. Founded in 2017, Heura was created as a social mission-turned-business intended to empower people to pursue more sustainable, healthy, and nutritious food systems. Sounds like par for the course.

In addition to offering 100% plant-based products made using super legumes, Heura is 100% Mediterranean. The Company uses high-quality ingredients like olive oil, which have a clean label and a high nutritional value. While the concept of Mediterranean plant-based is interesting, nothing is really jumping out at me here. Even so, Heura’s products are sold in more than 20 countries, demonstrating the Company’s apparent popularity.

Latest News

On April 14, 2022, Heura raised more than €4 million within just 12 hours during its latest fundraising round. That’s equivalent to roughly USD$4,324,760 or CAD$5,454,061. This represents the Company’s second Equity for Good Rebels crowdfunding campaign. For context, Equity for Good Rebels refers to Heura’s fundraising campaigns. Following the conclusion of Heura’s first fundraising campaign, the Company raised €3.98 million within 16 hours, via 2,778 “Good Rebels.”

In particular, 2021 was a transformative year for Heura, with the Company’s sales doubling along with its points of sale (POS) growing by 333%. Financials aside, Heura also claims to have saved the liters of water equivalent of 100,655,687 baths, the C02 equivalent of 59,033,858 kilometers driven by car, and the lives of approximately 728,122 animals.

Heura Graphic — Heura founders Marc Coloma (left) and Bernat Añaños (right)

Referring back to Heura’s latest fundraising campaign, the Company intends to use its latest funds to build the Heura Lab 2.0, create new and innovative technologies, and boost its product development and distribution. In the near future, Heura expects to design up to 10 new products this year, on top of the Company’s already expansive offering of plant-based foods, including plant-based chicken, beef, and pork alternatives.

So, why is Heura so successful? Honestly, I don’t have a concrete answer. Looking at the Company’s progress in the last year, Heura has been whisked away by a strong tailwind. From launching three new products, including Nuggets, Sausage, and Chorizo, to entering the Mexican market via Walmart, Heura has achieved significant milestones and shows no signs of slowing down.

Beyond Meat Inc.

$2.761B Market Capitalization

Beyond Meat Inc. (BYND.Q) is an industry leader in plant-based protein, offering a portfolio of products made from simple ingredients without GMOs, bioengineered ingredients, hormones, antibiotics, or cholesterol. Beyond Meat Inc. and Impossible Foods Inc. were pioneers of the plant-based sector, ushering in an era of sustainable, ethically sourced, delicious meat alternatives.

Beyond Meat has also done its part to lower the environmental impact associated with the production of the Company’s Beyond Burger. According to a study published by the Center for Sustainable Systems, the production of the Beyond Burger generates 90% less greenhouse gas emissions, requires 46% less energy, has >99% less impact on water scarcity, and 93% less impact on land use than a ¼ pound of U.S. beef.

Latest News

On April 12, 2022, Beyond Meat announced that it has significantly increased the availability of its Beyond Chicken Tenders at leading retail outlets across the country, including supermarkets, pharmacies, and club stores. I, too, make sure to pick up plant-based chicken tendies when I go to the pharmacy. More specifically, the Company’s Beyond Chicken Tenders are now available at select Albertsons, CVS, Sprouts, and Whole Foods Market stores nationwide.

“Building on the positive momentum of our recent chicken launches, we’re excited to significantly expand the availability of our Beyond Chicken Tenders by showing up in more places for our consumers – from their favorite supermarket or drugstore to large warehouse clubs,” said Deanna Jurgens, Chief Growth Officer, Beyond Meat.

Additionally, Beyond Meat’s Beyond Chicken Tenders will be expanding into all Kroger banners throughout April. The Company’s Beyond Chicken Tenders first made their debut in retail in 2021 via outlets like Walmart, Jewel-Osco, Safeway, Harris Teeter, Giant Food, and ShopRite, following a successful launch in restaurants across the US. The Company has also launched a series of poultry innovations via limited-time offers at restaurant chains across North America, such as A&W, KFC, and Panda Express.

Beyond Chicken Tenders:

50% less saturated fat than the leading brand of traditional breaded chicken nuggets
no antibiotics, hormoes, or cholesterol
GMO-free
14 grams of protein

It is worth noting that Beyond Meat has established itself as the leading plant-based meat brand in the refrigerated category in retail and across total food service. On May 13, 2021, the Company’s Beyond Chicken Tenders were awarded the prestigious 2021 RABI Food and Beverage award, representing Beyond Meat’s 5th straight FABI win. Paired with the Company’s latest expansion to more than 8,000 outlets, Beyond Chicken Tenders will undoubtedly bolster Beyond Meat’s sales.

Beyond Meat’s share price opened at $44.70 today, down from a previous close of $45.02. The Company’s shares were down -4.51% and were trading at $42.99 as of 12:31 PM ET.

Komo Plant Based Foods Inc.

$6.255M Market Capitalization

Komo Plant-Based Foods Inc. (YUM.C) is a premium plant-based food company committed to developing, manufacturing, and distributing a variety of plant-based refrigerated and frozen meals. In addition to being vegan, the Company’s products are made using wholesome ingredients and contain no preservatives. With this in mind, Komo’s mission is to “make plant-based meals a staple on every dinner table.”

The Company launched its e-Commerce direct-to-consumer platform and flagship products in March 2021. Shortly after, Komo announced that it had begun trading on the CSE under the ticker YUM on June 8, 2021. Komo intends to capitalize on the growing plant-based market through its offering of meat alternative products, including plant-based frozen meals, including Lasagna, Chick’n Pot Pie, and Shepherd’s Pie.

Latest News

On April 12, 2022, Komo announced that its products are now carried in 4 out of 7 western Whole Foods Market locations. Keep in mind, Whole Foods is the largest American chain of supermarkets specializing in natural and organic foods, with more than 500 retail and non-retail locations in the US, Canada, and the UK. In Canada alone, Whole Foods has 14 retail locations, of which 7 are situated in BC and the remaining 7 in Ontario.

“Adding Whole Foods to our distribution network is a huge accomplishment for Komo and testament to the high quality of our products…We are so pleased with the growth in the number of retail stores that are selling Komo products,” said Komo CEO William White.

Let’s not forget that Whole Foods was also purchased by Amazon for USD$13.7 billion, demonstrating the chain’s value. With this in mind, Komo’s products are now listed at Whole Foods’ Cambie, North Burnaby, Victoria, and North Vancouver locations in BC. It is also worth mentioning that Komo has its own distribution network covering all provinces in Canada.

The Company’s network includes BBR Logistics, TransCold Distribution, and Nationwide Natural Foods. Furthermore, Komo has significantly expanded its production capacity following a co-manufacturint agreement late last year with a company located in Metro Vancouver. The Company estimates that this agreement will allow it to manufacture an additional 10,000 units per month.

In addition to Whole Foods, Komo’s products are available at select IGA, Fresh Market, and Choices Markets, as well as all Nesters Market locations, Fairyway Markets, and Nature’s Fare locations. Having expanded significantly within Canada, the Company now intends to expand its footprint in the US.

Komo’s share price opened at $0.07 today, down from a previous close of $0.075. The Company’s shares were down -6.67% and were trading at $0.07 as of 3:59 PM ET.

Nepra Foods Inc.

$10.681M Market Capitalization

Nepra Foods Inc. (NPRA.C) is a multi-category market leader in allergen-free and plant-based food ingredients and consumer products. The Company is credited for assisting several national brands to take products from concept to market with Nepra’s ingredients and plant-based expertise. In addition to selling its proprietary ingredients to other food producers, Nepra also manufactures its own plant-based foods for consumers.

Nepra’s products are high in protein and fiber, low in carbohydrates, and are packed with nutrients. Some of Nepra’s products include tortilla chips, pretzels, and dips as well as plant-based alternatives for meat, eggs, and dairy. Nepra has established a B2B portfolio with food producers across North America. Additionally, the Company recently established consumer distribution via D2C and traditional retailers.

Latest News

On April 14, 2022, Nepra announced the initial commercial production of its latest food innovations, PROPASTA frozen meals, in Centennial, Colorado. The Company’s latest product was officially launched at the Natural Foods Expo West in early March and is intended to highlight the nutritional and environmental benefits of hemp protein. As you probably could have guessed, Nepra’s PROPASTA line is made using hemp proteins.

“We couldn’t be happier with how Nepra is positioned to disrupt the plant-based food industry. There are many factors that need to come together to create an innovative product that is not only profitable and scalable but more importantly, consumers want to purchase. Our entire team has really outdone themselves with PROPASTA™ and initial customer feedback supports this,” said John Maculley, Chief Operating Officer of Nepra Foods.

Introduced on March 9, 2022, Nepra’s PROPASTA line of heat-and-eat plant-based meals are catered towards American flexitarians wanting to reduce their consumption of animal-based products. PROPASTA products, including Spaghetti and Meatballs, Ricotta Ravioli with Marinara, and Macaroni and Cheese, are made from the Company’s proprietary formulations of hemp hearts.

With this in mind, Nepra’s PROPASTA products are high in protein, rich in healthy fats, are easy to digest, non-GMO, and free from the top eight allergens. Looking forward, the Company intends to release a variety of gluten-free products, such as all-purpose baking mix, pancake mix, and pizza dough mix. However, if you’d like a taste of Nepra’s hemp innovation, the Company currently sells its Extra Virgin Hemp Oil.