Disruption of the traditional food market, private investing, alternative food and a series of scandals. What do all these have in common? EatJust, more widely known as JUST, is the common denominator. So, should you want to invest in EatJust stock?
The good news is that Eat Just is No. 21 on CNBC’s Disruptor 50 companies, and it is the second time joining this list — back in 2015, it was in No. 24.
The key feature of all 50 companies in this list is that they have the potential to change our modern world, presenting business ideas in such diverse sectors as education, health and fintech.
The bad news is that in recent history there has been some troubling news. As reported on CNBC, “a series of scandals soon plagued the company and CEO Josh Tetrick, including concerns about the safety of its products and an alleged scheme to buy back jars of its JUST Mayo to inflate sales. (The company worked with the FDA to resolve the concerns, and Tetrick has admitted to the scheme’s existence but said it was for quality control.)”
Now, this is meant to be an introduction for investors to EatJust stock. But being a financial analyst and an equity research analyst, these financial shenanigans such as inflating sales are a red flag to me. Why? Because they distort the true financial position of the company. It’s something any potential investor needs to be aware of.
Now that you are aware of it, let’s move on to talk more about about EatJust, its business and its products.
EatJust Makes Plant-based Food Products With an Ambitious Vision
EatJust — formerly known as Hampton Creek — is a company that manufactures and markets plant-based food products. Its flagship product and the one that is now responsible for the core of revenue are plant-based scrambled eggs.
EatJust has the vision to build a food system that makes it easy for people to eat well.
JUST Egg can be used easily to make breakfast by either using a toaster or a microwave. It is made entirely from plants and is free of cholesterol. As for the environmental impact of it, it uses less water and carbon emissions than conventional eggs. The company has expanded to making a mayonnaise called JUST Mayo that’s egg-free and includes no artificial preservatives. In a nice marketing and business feature, the company offers several recipes on its website, to help customers be creative with cooking and showcase the numerous uses of its food products.
JUST products are sold in national and local grocery stores and to restaurants. EatJust was founded in December 2011 by CEO Josh Tetrick, and has its headquarters in San Francisco.
The Environmental Impact of EatJust Stock
As a company that focuses on healthy nutrition and disrupting the food market, EatJust has documented its environmental impact. A new 2020 Impact Report is available because “what you eat matters the most” according to EatJust.
Its mission to preserve the planet and provide high-quality, nutritious food for many generations to come is a vision with a lot of respect. Sustainability is a core value for the company, and it has real results. According to the latest data, the business activities of EatJust have saved about 7.5 million kgs of CO2 equivalent, 3,000 acres of land, and 1.9 billion gallons of water. Numbers that show the commitment to sustainability.
The Alternative Meat Market and the New Meat Product
EatJust plans to use its expertise in cellular agriculture to, with the help of strategic partnerships, develop cultured Wagyu beef using cells from Toriyama prized cows. These are a special breed of cows in Japan which are famous worldwide for the rich and unique taste of their meat.
EatJust is in the promising alternative meat market, where companies such as Beyond Meat (NASDAQ:BYND) and Impossible Foods operate.
A report from Mordor Intelligence argues that the global meat substitutes market will experience a compound annual growth rate of 7.9% for the years of 2020-2025, with the fastest-growing market being the Asia-Pacific.
Another report on Fortune Business Insights supports that “the global meat substitute market size was valued at USD 4.34 billion in 2018 and is projected to reach USD 8.15 billion by 2026, exhibiting a CAGR of 8.4% during the forecast period.”
For sure, the alternative meat market shows considerable growth prospects for at least five to six years.
How to Invest in EatJust Stock
There is not any public information available on how to invest in EatJust stock as of today. On EquityZen platform there is information about its funding history, which started in 2011. As of March 2020, it has reached $1.3 billion. EatJust has several notable investors already, some of them include BlackPine Private Equity Partners, Khosla Ventures and Founders Fund.
Once EatJust stock is available to support via private investment, it should be another interesting story to monitor. But make sure to add additional steps of due diligence due to its history.
As of this writing, Stavros Georgiadis did not hold a position in any of the securities.
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks
