TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence. 

Image by Sean Hayes from Pixabay

The munKNEE Pure-Play Plant-Based Food Stocks Index has been declining month after month (July: -7%; August: -16%; September: -5%; October: -5%; November: -13% and a further -6.1% so far this month) and is now DOWN -53.3% YTD. 

About Plant-Based Foods

According to eResearch Corporation, 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.

All 5 constituents in the non-tradable munKNEE Pure-Play Plant-Based Food Stocks Index, consisting of fledgling fake meat, dairy, egg, and seafood stocks with market capitalizations between $100M and $420M, have gone down so far in December.

The performance of the constituents in the Index month-to-date are as follows, in descending order, with the year-to-date (YTD) performance of each in brackets:

Note that each constituent has hyperlinks to 3 areas of additional information which are imperative for any individual considering investing in this sector:

• The company name is hyperlinked to provide you with a description of the company and an analysis of its stock.
• The trading symbol is hyperlinked to additional financial data and commentary on the company (where available).
• The percentage increase YTD is hyperlinked to a chart of the company's stock performance YTD.

1. Tattooed Chef (TTCF): UP +0.3%; (DOWN -26.2% 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.
   • according to macroaxis.com Tattooed Chef has less than a 26% chance of experiencing some form of financial distress in the next two years of operation.
2. Laird Superfood (LSF): DOWN -5.5%; (DOWN -73.4% YTD)
   • announced results for its third quarter ended September 30, 2021 (see here). 
   • according to macroaxis.com Laird Superfood has more than a 58% chance of experiencing financial distress in the next 2 years of operation.
3. Guru Organic Energy Corp. (CSE: GURU; GUROF): DOWN -10.5%; (DOWN -15.9% YTD)
   • a Montreal, Canada beverage company launched in 1999, when it pioneered the world’s first natural, plant-based energy drink.
   • according to macroaxis.com Guru Organic has over a 77% chance of experiencing financial distress in the next few years of operation.
4. The Very Good Food Company (VGFC): DOWN -19.0% (DOWN -82.6% 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.
   • according to macroaxis.com, Very Good has about a 35% probability of financial distress in the next few years of operation.
   • announced results for its third quarter ended September 30, 2021 (see here).
5. Else Nutrition (BABYF); DOWN  -35.2%; (DOWN -70.3% 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.
   • according to macroaxis.com, Else Nutrition has over a 73% probability of financial distress in the next few years of operation
   • announced results for its third quarter ended September 30, 2021 (see here).  

The average market capitalization of the above 5 stocks is $220M with an average stock price of $8.76/share. (The aforementioned 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,  Modern Plant Based Foods (MDRNF), Nepra Foods, and Tofutti Brands (TOFB), with market capitalizations of less than $100M each, and Beyond Meat (BYND), with a $4B market capitalization and price of approximately $67-68/share and Oatly Group (OTLY), with a $5B 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 hyperlinks above, review their latest financial statements and commentary and check out the company websites to fully understand the financial health of each company. A good source of worldwide 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.