Pure-Play Plant - Based Food Stocks Index Up 1% Last Week, Down 57% YTD

Image by Sean Hayes from Pixabay

Despite all the hype regarding plant-based grocery and fast foods, there are very few publicly trading companies in that sector. That is going to change with the announcement that Kellogg Co. plans to split into three independent companies, of which one will focus exclusively on plant-based foods, by the end of 2023. 

The pure-play plant-based foods company will have about $340 million in net sales and be anchored by the MorningStar Farms brand, offering a significant opportunity to capitalize on strong long-term category prospects in North America initially, and internationally in the future.

In preparation for that event, the munKNEE Pure-Play Plant-Based Food Stocks Index, which had consisted of 4 fledgling fake meat, dairy, egg, and seafood stocks with market capitalizations of at least $50M, is being reconfigured with one (1) company, Laird Superfood Inc. (LSF), being removed (its market capitalization has dropped to less than $20M) and the addition of Beyond Meat (BYND) and Oatly Group (OTLY) which had previously been tracked as an aside to the Index due to the major market capitalizations of each company ($1.54B and $2.23B, respectively).

Below is the stock price performance of each of the 5 constituents last week (week ending June 24th) and YTD presented in descending order:

  1. Oatly Group (OTLY): UP 9.4% last week; (DOWN 48.7% YTD)
    • the world’s original and largest oat drink company catering primarily to customers in Sweden, Germany, United Kingdom, Netherlands, Finland, and North America. 
      • Chance of Financial Distress in the next 2 years: 29%
      • Analyst Consensus: 24 stock analysts currently rate OTLY as a BUY.
  2. Tattooed Chef (TTCF): UP +7.7%;  (DOWN 55.0% YTD)
    • offers a broad portfolio of plant-based food products that are available in the frozen food sections of national retail food stores across the United States.
      • Chance of Financial Distress in the next 2 years: 28%
      • Analyst Consensus: 9 stock analysts currently rate TTCF as a BUY.
  3. Beyond Meat (BYND): UP 7.2%; (DOWN 61.0% YTD)
    •  seeks to replicate the look, cook, and taste of meat. Its products are sold in the meat case of retail food stores across the U.S. and Canada and 83 other countries. 
      • Chance of Financial Distress in the next 2 years: +46%
      • Analyst Consensus: 26 stock analysts currently rate BYND as a HOLD.
  4. Guru Organic Energy (CSE: GURU; GUROF): DOWN 22.9%;  (DOWN 43.3% YTD)
    • a Montreal, Canada beverage company launched in 1999, when it pioneered the world’s first natural, plant-based energy drink.
      • Chance of Financial Distress in the next 2 years: 26%
      • Analyst Consensus: No analysts are following GUROF
  5. Else Nutrition (BABYF): DOWN 39.8%; (DOWN 37.1% 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.
      • Chance of Financial Distress in the next 2 years: 28%
      • Analyst Consensus: No analysts are following BABYF

The munKNEE Pure-Play Plant-Based Food Stocks Index went UP 1.1% this past week but remains DOWN to 56.9% YTD and DOWN to 83.4% from its peak in 2021.

We think the above Index reflects the true health of the plant-based food stocks sector in the U.S. and Canada.

For those interested in a tradable plant-based food ETF please note that the world's first plant-based ETF, the VegTech™ Plant-based Innovation & Climate ETF, was listed on the NYSE (EATV) on June 23rd (fund inception was on December 28th, 2021). The ETF consists of 43 companies up and down the supply chain that are innovating with plants and plant-derived ingredients to create animal-free products for sustainable consumption and has an expense ratio of 0.75%. Visit their site (here) for a list of constituents.

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