Maker of plant-based meat alternative products Zoglo’s Incredible Food Corp (CSE:ZOG) managed to post an eye-watering 560% increase in third quarter revenues after it introduced 12 new products at the end of August – effectively having them on the market for only one month of the last quarter. Zoglo’s revenues shot up to $1,687,686 in Q3, up from an average quarterly sales of $300,000 last year, before the company was listed.
Zoglo’s offers nutrient-rich, plant-based appetizers and meat substitutes for a diverse base of consumers.
What’s behind the revenue success story?
In the second half of this year the company significantly boosted the distribution of its plant-based meat alternatives making them available through supermarket chains Walmart Canada and Metro, and more recently Canada’s FreshCo chain of grocery stores, Sobey’s subsidiary Foodland and Calgary Co-op. Its products are now available in over 650 retail locations across Canada and its Kosher food line in 800 stores.
“Zoglo’s has delivered an incredible first quarter since our public listing, and we are very excited about the future of the brand,” said Anthony Morello, CEO of Zoglo’s. The company has made over $2 million in sales in the first two months of launching its Incredible product line in late August, “for a 10 times increase of sales versus the same period of sales of the Zoglo’s brand in 2020″, added Morello.
The rise in revenue translated into record gross profits of $331,338, representing an approximately 20% gross profit margin on revenues.
“In the short period of time that our new products have been in stores, we have had very successful feature activity and strong sales. Retailers have been very happy with the performance of the brand thus far”, added Morello.
So what next for Zoglo’s?
Zoglo’s has big plans for next year, which will not only focus on expanding its product line to include children’s food and fish alternatives (to complement current consumer favourites such as chicken strips, meatballs and burgers), but more importantly entering the US market and boosting its distribution growth.
Access to Zoglo’s shares has become easier for European investors since November when the firm listed on the Frankfurt Stock Exchange. The firm also entered into a binding memorandum of understanding to buy a 51% stake in Monday Swiss UK Ltd., a leading developer and manufacturer of innovative plant-based food alternatives. The acquisition will help Zoglo’s evolve its meat alternatives food portfolio and is expected to increase annual sales by up to C$6 million. Monday Swiss operates a state-of-the-art facility producing Veggie Day. Monday Swiss has invested over $3 million in research and development over the past five years, providing major customers such as Tesco, Holland & Barrett, Co-Op, and online grocery retailer Ocado, with leading-edge plant-based technology.
Why we like Zoglo’s
Climate and environmental awareness have contributed to the fast expansion of meat-free foods over the last five years with the increase in sales probably the steepest since the start of the Covid pandemic. In the UK the number of vegans has risen by 40% over the last 12 months, with over 13 million Britons expected to be meat-free by the end of this year.