Plant-Based Food Stocks Continued To Crater In November

The steep decline in the performance of the munKNEE Pure-Play Plant-Based Food Stocks Index (July: -7%; August: -16%; September: -5%; October: -5%) continued in November ( -13%) and is now DOWN -52.3% 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.

3 of the 5 constituents in the non-tradable 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 by more than 10% in November with the remaining two showing almost no change in price. The details are as follows, in descending order, with the year-to-date (YTD) performance of each in brackets:

  1. Guru Organic Energy Corp. (CSE: GURU; GUROF): UP +0.7%; (DOWN -10.2% YTD)
    • a Montreal, Canada beverage company launched in 1999, when it pioneered the world’s first natural, plant-based energy drink
    • announced the addition of GURU Guayusa Tropical Punch (pronounced gwai-yoo-suh) to its growing, plant-based energy drink family which includes Yerba Mate and Matcha.
    • also introduced a new blend of all-natural sweeteners comprised of organic stevia and monk fruit to achieve a rounder taste.
  2. Else Nutrition (BABYF); No Change; (DOWN -55.7% YTD) 
    • an Israel-based food and nutrition company focused on developing innovative, clean and plant-based food and nutrition products for infants, toddlers, children, and adults.
    • announced results for its third quarter ended September 30, 2021 (see here).
  3. Tattooed Chef (TTCF): DOWN -10.5%; (DOWN -29.7% YTD)
    • announced the appointment of Gaspare (“Gasper”) Guarrasi as its new Chief Operating Officer, effective November 29, 2021.
    • announced results for its third quarter ended September 30, 2021 (see here).
  4. Laird Superfood (LSF): DOWN -23.7%; (DOWN -66.8% YTD)
    • announced results for its third quarter ended September 30, 2021 (see here). 
    • macroaxis.com reports that LSF has a 58% chance of experiencing financial distress in the next 2 years of operation. 
  5. The Very Good Food Company (VGFC): DOWN -47.9% (DOWN -82.0% YTD)
    • designs, develops, produces, distributes, and sells a variety of plant-based meat and other food alternatives to customers in Canada and the United States.
    • announced results for its third quarter ended September 30, 2021 (see here). 

The average market capitalization of the above 5 stocks was $234M as of the end of November with an average stock price of $8.95/share. (The above-mentioned currency amounts are in U.S. dollars. Go here to convert to another currency),

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 each, and Beyond Meat (BYND), with a $4.2B market capitalization and price of $70/share and Oatly Group (OTLY), with a $5.0B market cap, are all excluded from the Index as their inclusion would mask the performance of the other plant-based food stocks in the sector.

Action Going Forward

The ongoing decline of the plant-based food stocks category may be seen as an opportunity to buy into the category while its components are "on sale". 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, check out the company websites as provided, and visit macroaxis.com for detailed financial analyses as to the financial health of each company. A good source of world-wide breaking news on plant-based products can be found at vegconomist.com.

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.

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