Canada’s Premier Vegan Company Levels Up
Very Good Food Co. Displays Multi-Faceted Growth StrategiesCanada’s premier plant-based company has established their foothold within the territory of Bezos’ eCommerce behemoth, Amazon. In 2019, Amazon’s Canadian-based third-party vendors have grossed US$2,000,000,000 in Amazon online storefronts. There are over 3,000,000,000 products sold annually by over 30,000 businesses with Amazon stores, from which range from tiny, independent vendors to plant-based public companies. The Very Good Food Company is going to be fully accessible to U.S. customers via Amazon by the end of June. The star offering is their proven and popular Butcher Boxes which include a number of their best sellers, including:
- Very Good Pepperoni,
- The Very British Banger,
- The Very Good Stuffer,
- Taco Stuff’er.
“We are quickly executing on our North American expansion strategy and expect 2021 to be a banner year for our brands. We are building our Company based on customer demand, and customers want plant-based alternatives from a trusted eCommerce source,” said Mitchell Scott, Co-founder & CEO of The Very Good Food Company. “Being on the Amazon platform affords us the opportunity to boost sales growth by leveraging strong data analytics that allows us to test and validate new products, and thus better understand our customers’ needs. We are obsessed with our customers and value their feedback and are excited to get our products into more homes.”…
A Very Good Diversification
No, it doesn’t stop there. On the heels of Very’s launch into a US$2 trillion eCommerce channel, backed by America’s largest health food whole distributor, the bean butchers have tapped into the Food Service Industry.FreshPrep is Vancouver’s premier meal kit service company. They take sustainable-minded packaging to the next level with their signature Zero Waste Kit. This kit, at no additional cost to the consumer, eliminates 100% of the single-use plastic and silicon aspects of food and meal packaging.
“Single-use plastic is a well-known and pervasive problem in the food industry. As interest in meal kits continues to surge, we wanted to be leaders in innovating to minimize packaging waste,” said Fresh Prep co-founder and COO Husein Rahemtulla. “Since day one, we’ve experimented with innovative ways to make sustainability more accessible to our customers. We explored options such as mason jars and other packaging, but quickly realized that if we wanted to create a sustainable solution at a large scale, developing a reusable packaging solution that meets the needs of convenience and sustainability would be the best approach.”Very’s arsenal of innovative plant-based food products will all be chopped up and dished out in many of FreshPrep’s extensive menus of recipes and meal kits. One big selling point for the average person adapting to a plant-based food diet is taking exciting new ways to put together ingredients and laying them all out for the consumer. Plant-based meal kits are a proven gateway for people to reduce their environmental footprint and switch to a cruelty-free diet. When a diversified line of high-quality, cleverly branded, minimally processed products starts popping up on FreshPrep offerings, consumers are going to be excited, and Very is going to see an effective new arm of revenue and awareness.
“We have witnessed record growth and demand over the past several quarters for our expanding line of plant-based products,” said CEO Mitchell Scott. “Our team is focused on building upon this success by making our delicious and nutritious products more widely accessible to those rethinking their food choices. Fresh Prep shares our commitment to human health and the environment, and we are honored to be part of their creative meal preparations that go above and beyond traditional meal delivery services.”The global meal kit delivery services market clocked in a value of US$10,260,000,000 in 2020, and at a compounded annual growth rate (CAGR) of 13.3%, that number is expected to nearly triple by 2028. Millennials are showing an increasing preference for homemade meals which proved to be a major factor contributing to the market’s growth.
A Hefty Pile of Non-Dilutive CapitalAs you may know, months back, Very secured a C$70,000,000 credit facility to ensure that capital is readily accessible to fund their rapid expansion efforts. As you may not have known, Very recently secured another CS70,000,000 credit facility to ensure that even more capital is readily accessible to fund their even further rapidly expanding activities. This is the second time Very has pulled off this impressive shareholder-friendly access to capital. A proper balance of equity and debt financing is key to maintaining shareholder value, and a favorable weighted average cost of capital (WACC).
“Hey, let’s raise a bunch of money in equity financing, acquire more facilities, and prove we are a real company with formidable cash flow, which not only increases our valuation for our shareholders greatly, but also proves to be a strategic weapon in backing well over C$100,000,000 in lending power,” said Edge Investments, in a first-person personification of The Very Good Food Co. “We then use this massive access to capital, avoid diluting our shareholders, and grow the company further to provide them even more value.”Couldn’t have said it better ourselves, thanks Edge. The agreement terms for the loan involves a favorable 9.95% annual interest rate on only the unpaid amount of advanced money. Capital not used will not cost Very any interest, as they can use any amount of the C$70,000,000 at any time. This unique scaling opportunity is valid for 2 years, and the company has the chance to add 12 months on mutually agreed upon terms and conditions. The deal also saw Very grant 225,000 warrants to the lender, with a strike price of $5.62/share, exercisable in 4 months from the date they were issued. The lender has up to 5 years to exercise these. Do the terms above confuse you a little? Get a refresher from our Options 101 piece.
“The closing of this Credit Facility is a key milestone and a testament of our ability to access favorable financing while diversifying our capital structure and we are very pleased to have the Waygar Capital team as a partner as we execute on our growth strategy”, said Mitchell Scott, CEO. “This Credit Facility provides us with funding to establish our operations in the US and will be used, in part, for the build-out of our California facility. We are pleased that Waygar Capital believes and supports our Company’s mission, products and strategy to want to be part of our future success.”
Disclaimer: The Very Good Food Co. is a communications client of Edge Investments, and we own shares in the company. … …
More Fresh Content
Edge Editorial Team2021-05-31T13:13:38-07:00
Edge Editorial Team2021-05-27T12:47:29-07:00
Edge Editorial Team2021-05-18T17:24:06-07:00
Prince Khaled And Matthew Kenney Champion Plant-Based Cuisine At Culture Festival
Markets & Investing2 days ago
Vegan Investing in Canada: The Complete Guide
Public Companies11 hours ago
Meat Alternative Stocks to Invest In (2021)
Public Companies14 hours ago
Green and Ethical Companies to Invest In: 2021 Public Stocks
Public Companies2 days ago
Miyoko’s Creamery Is Giving Away 1,000 Free Vegan Pizzas. Here Is Where to Get One.
Public Companies1 day ago
Woody Harrelson And Owen Wilson Invest In Plant-Based Meat, And More Vegan Celebrity News
Public Companies1 day ago
Pablo Escobar-Imported Hippos Recognized As Legal Persons In US Court First For Animals
Markets & Investing2 days ago
The Ultimate Guide to Vegan Nut Butters
Plant-Based1 day ago
Vegan JUST Egg Is on a Roll: Expands to Europe, Canada, and Costco
Private Companies1 day ago
Boris Johnson Pressed On ‘Glaring Omission’ Over Meat Consumption In Net-Zero Plans
Plant-Based1 day ago