Maker of plant-based meat alternative products Zoglo’s Incredible Food Corp (CSE:ZOG), has secured another distribution deal in the Canadian market.
Zoglo’s confirmed this week all of its Zoglo’s Incredible food line is going to be made available through FreshCo stores, including consumer favourites like chicken strips, meatballs and burgers. FreshCo currently has 96 supermarkets in Ontario, but a total of 123 stores when you count its presence in Alberta, Manitoba, Saskatchewan and British Columbia.
Zoglo’s Incredible Food Corp. is a publicly-traded plant-based food company which offers nutrient-rich, plant-based appetizers, veggies, and meat substitutes to fulfil consumers needs for all occasions and cooking requirements.
Important new distribution relationship
FreshCo is a subsidiary of Sobeys Inc and was established in 2010 to provide high quality fresh food at low prices. The deal is another major step in Zoglo’s progress within the Canadian retail market, which is regarded by the management team as an important piece in its international distribution strategy.
“We are excited to initiate our FreshCo relationship beginning with introducing our products to their significant supermarket presence in Ontario and look forward to expanding across their national retail platform,” said Anthony Morello, CEO at Zoglo’s Incredible Food Corp. “FreshCo is an extremely well-managed organization with significant growth plans that will provide Zoglo’s with the opportunity to grow alongside them.”
Zoglo’s Incredible Food Inc., currently offers 14 products through its Traditional Green Box product line and aims to offer 12 innovative products for the mainstream market through its new Zoglo’s Incredible Black Box product line. Over the past 25 years, Zoglo’s products have been in distribution in over 700 retail stores across Canada including Walmart, Shoppers Drug Mart, Sobeys and Loblaws, and has representation in the United States and Europe.
The case for Zoglo’s Incredible Food Corp
Consumers are eating more plant-based foods than ever before. Much of this is driven by health concerns, but behind that there are also rising concerns about the impact that livestock farming, especially beef farming, is having on the environment.
A trend already in place prior to 2019 has in fact increased during the pandemic. In the course of the pandemic the rate of increase of plant-based food sales outpaced total food retail sales and animal-based meat sales.
An ever-increasing number of people are now eating plant-based meat alternatives at least once a week, if not more. That translates into a fast-growing market with a CAGR of 11.9% and an estimated size of $74.2bn by 2027, according to data from Research & Markets. We think that might be a conservative estimate.
Zoglo’s is positioning itself strongly in the Canadian retail market initially but note that it has the license to access any market except Israel. It is also going to be open to white label relationships with other partners. Under these circumstances the sky is really the limit with this stock. We have already seen how the fast food market has expressed interest in plant-based alternatives.