- Canadian-listed Zoglo’s Incredible Food Corp (CSE:ZOG) is a plant-based food specialist with global distribution remit
- Proprietary pea and soy-based recipes tapping into demand for non-meat protein
- Well-positioned to capitalise on white label relationships
- 200% revenue CAGR in 2020 and revenues forecast to hit C$43m by 2023
- Poised to distribute into European market, capitalising on climate concerns around meat farming
Consumption of plant-based foods is on the rise. It’s a fact.
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.
Enter Zoglo’s Incredible Food Corp (CSE:ZOG), which listed on the Canadian Stock Exchange in July of 2021. The company is focused on the development and roll out of next generation plant-based foods, not just for the Canadian market, but globally.
Established food tech suite is going global
The new company has been working on 12 SKUs underpinned by new food technology that will leverage leading edge extrusion technology to create products that mimic the look and feel of meat.
The ambition is to make plant-based eating available to all. These products will be non-GMO, they will be kosher and halal, and they will be lactose free, with low sodium and with added vitamins. There will be no preservatives. There will be no cholesterol.
Zoglo’s products are made from non-GMO soy and pea proteins which are rich in vitamin C, A and iron, calcium, potassium and folic acid. They are high in protein, fiber, omega-3 fats, anti-oxidants, and essential amino acids.
Innovation is a core part of the value add for Zoglo’s Incredible Food Corp
Zoglo’s is pushing back the frontiers of what is possible with plant-based meat alternatives – on the cards are new products that will emulate the taste and texture of fish and even prawns.
The company 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.
Zoglo’s Incredible Food Corp is a very fast moving proposition which goes well beyond the health food niche and really has the scope to go mainstream. It saw over 200% revenue CAGR in 2020, and we are anticipating the launch of a new product line in the second half of this year. Revenues by the end of this year (2021) are predicted to be twice what they were in 2020. The company is forecasting aggressive sales growth with revenues hitting C$20m in 2023 (1H) and possibly as high as C$43m by the end of that year.
Watch out for upcoming white label deals
Zoglo’s will be looking to move into the lucrative US market via a variety of avenues next year. However, it is also already in talks with several major names in the European market. We find this of especial interest, as market forecasts see Europe as the leading market for plant-based protein, with higher awareness of healthy eating habits, awareness of the impact of meat farming on the climate, and wider availability of raw materials.
Zoglo’s is very conscious of the need for a steady supply of plant-based protein for its products; it wants to avoid any bottle necks as anticipated white label partnerships start to get locked in during 2022. This makes Europe an ideal market for its products.
What we like about Zoglo’s Incredible Food Corp
The company has come onto the market at an ideal time for this sector, with increasing demand from large food purveyors, including supermarkets, for plant-based solutions. Many first-generation products of this nature were targeted at the vegetarian market, but the demand is picking up from a wider constituency of consumers.
The R&D pipeline at Zoglo’s Incredible Food Corp also looks very fruitful, with a Phase 2 initiative of plant-based products covering fish and other sea food, including a prawn ring and even alternative fish cakes.
“The intention is to lead this industry in innovation,” explains Jim Delsnyder, the COO at Zoglo’s. “We want to increase the range of plant-based items for consumers, so that they are available at five or six touch points in a typical grocery store. This includes having a plant-based meat alternative for ready-made meals, where there are few alternatives, especially in North America.”
There is more intolerance to animal-based protein, a bigger vegan population than ever before, and there are significant venture investments also powering into this sector. Soy-based solutions like that offered by Zoglo’s are anticipated to play a dominant role in the expansion of this market, according to Research & Markets. Pea protein, also utilized by Zoglo’s, is the fastest expanding segment.
Plant-based food solutions are a major growth area
We consider plant-based foods as a major growth area over the next five years. Investor interest in this sector has already been piqued. We expect that there will be an increasing focus on the environmental impact of meat farming in the near future, a major contributor to carbon and methane emissions. Politicians are only just getting started on just how to control the environmental impact of livestock farming, and we fully anticipate rising consumer concerns about farming in the near future.
This leaves plant-based food solutions developers in an excellent position to capitalise on demand. We like the fact that Zoglo’s Incredible Food Corp is focused on innovation and on delivering products which can look and taste like red meat, white meat and even sea food now. Watch out for their arrival in supermarkets near you soon.