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Summary
- Many emerging companies have developed innovative technologies to develop plant-based food products.
- A Canadian wellness company has skyrocketed by about 728 per cent since its debut on the TSX.
- Another British Columbia-based company is up 181 per cent up in comparison to the 52-week low.
In the past few years, investors have been opting for socially conscious investment options amid an increased focus on sustainability.
As a result, many emerging companies have developed innovative technologies to develop plant-based products. Some have even begun partnering with mainstream restaurants and retail companies to meet the public demand for these products.
There aren’t many publicly-traded plant-based food manufacturers at the moment. However, let’s look at two such stocks that could bring long-term benefits in future.
GURU Organic Energy Corp. (TSX:GURU)
The Canadian wellness company is involved in making and selling organic and plant-based energy drinks. GURU Organic has been in the business since 1999, although it became a publicly listed company only in November 2020.
GURU stock has emerged as one of the leading vegan stocks listed on the Toronto Stock Exchange (TSX). It has skyrocketed by about 728 per cent since its debut. In the last one month, GURU shares surged by four per cent to outperform the TSX 300 Composite Index's growth of 2.3 per cent.
In June this year, PepsiCo Beverages Canada said that it has signed a national distribution agreement for GURU's energy drinks. Partnering with PepsiCo could boost GURU's growth prospects by accelerating sales and distribution plans.
GURU recorded a 74 per cent increase in sales in the second quarter of fiscal 2021, where its revenues increased to C$ 7.1 million. In Q2 2021, its gross profit increased to C$ 4.4 million from C$ 2.4 million in Q2 2020.
Also Read: Impossible Foods IPO: How to buy the vegan company’s stock?
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The Very Good Food Company Inc. (TSXV:VERY)
British Columbia-based Very Good Food Company is a food technology firm engaged in the development, production and distribution of plant-based meat and alternative products like vegan cheese.
Also Read: Beyond Meat (BYND) & SunOpta (SOY): Stocks To Tap The Future of Food
Since the beginning of this year, VERY stock has declined by 50 per cent. However, it seems to have picked investor attention as it surged by four per cent in the past week.
VERY stock is also up by 181 per cent from its 52-week low of C$ 1.11 per share (August 20, 2020).
The company has been expanding in the North American market. It announced on Tuesday, August 10, that its products have been available in more than 750 stores in North America.
In Q1 2021, The Very Good Food Company recorded a year-over-year (YoY) increase of 680 per cent in its revenues.
Bottomline
Plant-based meat stocks have been garnering attention as the vegan food industry is expected to grow in the coming years amid increased mainstream acceptance.
A Research and Markets report has predicted that the plant-based food market could register a worldwide compound annual growth rate of 12.3 per cent between 2020 to 2026.
As the North American market is huge, companies involved in the development of plant-based food products might expand in the future. If that happens, such stocks could likely expand along with the company’s growth.
