I used to read headlines about the rise of veganism, and scoff at them.
As a big meat-eater who thoroughly enjoys steak dinners and In-N-Out burgers, I couldn’t possibly imagine a meat-free future devoid of such pleasures.
Until I started to see the vegan megatrend unfold right before my eyes.
In the past year alone, I have seen dozens of close friends go vegan and stay vegan. I’ve seen many celebrities — including star athletes like NBA superstar Kyrie Irving and Tennis legend Venus Williams — adopt vegan diets.
Yes, I’ve even made the plunge to trying plant-based meats myself — and guess what?
They’re pretty good.
Of course, I still eat my In-N-Out burgers. I still have steak dinners. But… I also mix in the occasional plant-based meat when I can (maybe once or twice a week).
For young consumers, this seems to be the norm. About 80% of Generation Z consumers go meatless once or twice a week.
And… because Generation Z consumers represent the future driving force of the U.S. economy… this “hybrid” model of vegan and animal meat consumption is the future — one wherein vegan meat could easily comprise ~20% of total meat consumption.
Seeing as the vegan meat market presently accounts for just 1% of the global meats market, the investment implication here is clear.
It’s time to buy vegan stocks, before young consumers spark a global explosion in the vegan meat market throughout the 2020s.
One emerging vegan meat stock represents a compelling and explosive investment opportunity in this space, and it could rise 10-fold in the coming years.
The “Bean Butcher” of the Future
We’ve covered a handful of small-cap vegan stocks to buy to play the vegan food megatrend.
But one which stands out in the pack is today’s pick: The Very Good Food Company (OTC:VRYYF).
The Very Good Food Company is an $80 million, relatively unknown Canadian vegan meat company that is absolutely killing it on Canada’s west coast right now — and which has expansion plans in place to hopefully replicate that success throughout the U.S. over the next few years.
If management successfully executes on those expansion plans, The Very Good Food Company stock could rise 10X over the next several years.
Here’s the story.
The Very Good Food Company started out in early 2016 with a chef selling his own plant-based meats at a local farmer’s market in British Columbia. The products were a major hit. By early 2017, that chef teamed up with a business executive to commercialize those products under The Very Good Butchers brand name, with an unofficial slogan of “we butcher beans, not animals”.
And so… the Very Good Food Company was born.
Today, the company is a vertically integrated vegan meats producer that sells arguably the best branded vegan burgers, sausages, taco mix, pepperoni, bacon, and steak on the market.
On the company’s online shop, the burger has a 4.5-star rating (73% 5-star ratings) with many claiming it to be the best vegan burger they’ve ever tried (far better than the Beyond Burger, said multiple folks), with great taste and texture.
The taco stuffer has a 5-star rating. The pepperoni has a 5-star rating. The steak has a 4.5-star rating. Across all the reviews, the customers have spoken: these products are among the best in the vegan meat world.
Plus, the company has a great brand (the branding is edgy, unique, and full of character — exactly the ingredients that will attract young consumers) and has a strong social media presence which is helping cultivate exceptional brand loyalty.
If all that’s true… then why is The Very Good Food Company only worth $80 million… while Beyond Meat (NASDAQ:BYND) is worth $10 billion?
Supply.
The Very Good Food Company makes awesome vegan meat products with huge demand… sales are up 226% so far in 2020 (including 395% growth last quarter) … but the company is still making all of its vegan meat out of a tiny 4,000 square foot production facility in Victoria.
Naturally, this has led to enormous supply constraints, to the point where the company has a message on its website saying that processing orders may take up to five to six weeks.
But these supply constraints are on the cusp of getting fixed.
The company has leveraged enormous growth in 2020 to successfully raise a bunch of capital, which the company has committed to opening up two new production facilities: a 10,000 square foot facility in Vancouver and a 25,000 square foot facility in California.
The Vancouver facility will help The Very Good Food Company meet robust demand on the west coast of Canada.
The California facility, meanwhile, will help the vegan meat maker expand in the U.S. for the first time ever (the company sells exclusively through grocery chains in Canada and online today).
In so doing, these production expansions lay the groundwork for The Very Good Foods Company to go from tiny but super successful $80 million vegan meat maker on Canada’s west coast… to a giant and still super successful multi-billion-dollar global alternative food giant.
Much like a Beyond Meat.
Which means that buying this tiny vegan stock today — before its global expansion — could be an enormously profitable move.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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