Thursday , 20 January 2022

Plant-Based Food Stocks Declined Further In October

The steep decline in the performance of the munKNEE Pure-Play Plant-Based Food Stocks Index, consisting of 5 fledgling fake meat, dairy, egg, and seafood stocks with market capitalizations between $100M and $1B, declined another -5.3% in October after having declined -5% in September, -16% in August and -7% in July and is now DOWN -44% YTD.

Image by Sean Hayes from Pixabay

Here are the details:

About Plant-Based Foods

Chris Thompson, President & Director of Research of eResearch Corporation, reports that grocery sales of plant-based foods that directly replace animal products have grown 27% in the past year to $7 billion with 98% of those Americans who are buying plant-based meat also purchasing conventional meat. The total plant-based food market is expected to grow at a CAGR of 11.9% going forward and reach $74.2 billion by 2027.

The above being said, 4 of the 5 constituents in the munKNEE Pure-Play Plant-Based Food Stocks Index were DOWN in October, as follows, in descending order:

  1. The Very Good Food Company (VRYYF): UP +30.3% 
  2. Tattooed Chef (TTCF): DOWN -2.5% 
  3. Guru Organic (CSE: GURU; GUROF): DOWN -6.0% 
  4. Laird Superfood (LSF): DOWN -8.5
  5. Else Nutrition (BABYF); DOWN -30.3% 

The average market capitalization of the above 5 stocks is $300M with an average stock price of US$10.47/share.

Please note that:

  • Plant & Company Brands (VGANF), Eat Beyond Global (EATBF), Plant Fuel Life (CSE: FUEL),  Modern Plant Based Foods (MDRNF), Nepra Foods (CSE: NPRA) and Tofutti Brands (TOFB), with market capitalizations of less than $100M, and Beyond Meat (BYND), with a whopping $6.9B market capitalization and price of $99/share, are excluded from the Index as their inclusion would mask the performance of the other plant-based food stocks in the sector. (The above mentioned currency amount is in U.S. dollars. Go here to convert to another currency),

Action Going Forward

The above account is a grim reminder of how poorly the plant-based food stocks category has performed to date in 2021, but one could look at this decline as, perhaps, an opportunity to buy one or more of those stocks that have declined by doing some in depth research as to which hold considerable promise going forward. To that end, you are encouraged to click on the trading symbols of those stocks that are of interest and review their latest financial statements and commentary as found in the TalkMarkets data they have made available and check out the company web sites as provided.

The 5 pure-play stocks in the munKNEE Pure-Play Plant-Based Food Stocks Index are just that, pure, and focused almost exclusively on the research, development, sales, distribution, and marketing of vegan food products and, as such, the Index reflects the true health of the plant-based food sector in the U.S. and Canada.