The Rise of Vegan Stocks: Very Good Food Company (VERY:CNX) & Modern Meat (NASDAQ:BYND)

Summary

• Plant-based protein developers and vegan producers are attracting investors’ attention amid COVID times.
• The plant-based meat market is estimated to grow to US$ 30.92 billion by 2026, according to a study by Reports and Data.
• The Very Good Food Company (VERY: CNX) and Modern Meat (MEAT: CNX) are two upcoming plant-based food producers are gaining prominence recently.

Veganism is not just a fad anymore. For years, this was a lifestyle choice for some, an ethical choice for others. But with the COVID pandemic disrupting almost every aspect of daily lives, more people are embracing plant-based foods. The reasons range from health causes to climate change and animal welfare. This shift in food consumption behavior is also reflecting on the stock markets. Plant-based protein developers and vegan producers are attracting investors’ attention. Modern Meat (MEAT: CNX) and The Very Good Food Company (VERY: CNX) are two such upcoming plant-based food producers that have been active in the Canadian markets and gaining prominence in the past few months.

Let us take peek into these two stocks and their recent performances.

The Very Good Food Company (VERY: CNX)

This emerging plant-based food technology company debuted on the Canadian Securities Exchange in June this year. Since then, the stock has grown by a whopping 1500+ per cent. In the last three months alone, the stock has advanced by 387+ per cent.

The Very Good Food Company aims to grab a share of the global plant-based meat market that is estimated to grow at a CAGR of 14.8 per cent to US$ 30.92 billion by 2026, according to a recent study by Reports and Data.

Amid COVID, the firm’s e-commerce and wholesale business witnessed rapid growth. Its revenue in the third quarter 2020 grew by 322 per cent year-over-year to C$ 1.39 million. However, net loss widened to C$ 4.49 million in Q3 from C$ 1 million in the prior-year quarter.

The Very Good Food develops and sells a variety of plant-based meat and vegan food alternatives to bacon, pepperoni, steak etc. Its products are sold in nearly 275 retail outlets including small stores and national retail chains such as Whole Foods Markets, IGA, Choices Markets and Fresh St. Market.

The firm’s current market capitalization is C$ 646 million. Owners hold a 34 per cent stake in the company.

The company recently announced the appointment of Ana Silva as the president.

The Very Good Food is currently in expansion mode and enhancing production capacity with two proposed facilities in Rupert, Vancouver, British Columbia and Patterson, California. It is also developing a Research and Development facility in Mount Pleasant, Victoria.

The stock is currently trading at C$ 7.6 apiece. Its 10-day average stock volume is approximately 1.07 million.

Modern Meat (MEAT: CNX)

Riding on the rising popularity of vegan food and plant-based alternatives, Modern Meat stock has gained over 270 per cent since its debut on the stock market in July.

The Vancouver-based company’s current market cap is C$ 133 million. The stock is currently trading at C$ 4.73 a pop. Its current price-to-book ratio is 410.35 and price-to-cash flow ratio is 4.8, as per data on the TMX portal.

Modern Meat recently announced a co-packing agreement for up to US$25 million with California-based Real Vision Foods to launch its plant-based meat alternative products in the US market.

It also acquired snack brands from US-based JDW Distributors such as Sun® Popped Potato Crisps and Sunflower Chips and Sunsations® Fruit Jellies.