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November 11, 2020

The Very Good Food Co. takes lease on new Canada plant

The Very Good Food Co. in Canada has secured a lease on a new pre-built production facility as the meat-alternative start-up expands capacity to meet rising demand.

By Dean Best

The Very Good Food Co. in Canada has secured a lease on a pre-built production facility as the meat-alternative start-up expands capacity to meet demand locally and also in the US, a market the business entered two months ago.

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The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
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Located in Vancouver, British Columbia, the so-called Rupert plant adds to one other in Canada situated in Mount Pleasant, Victoria, and another under construction in the US in Patterson, California.

The new site has 45,000 square-foot of space encompassing production, refrigeration, warehousing, R&D and office areas. Operations at the newly-acquired factory are expected to begin in the first quarter, Very Good Food, which owns the Very Good Butchers brand, said in a statement. 

In the US, Very Good Food also said it has formed an agreement with local sales and marketing agent Good Now Foods, which has been engaged to secure wholesale partnerships in “advance of the production ramp up scheduled for 2021” at the Patterson plant. 

“The timely availability of the Rupert facility has presented us with a unique opportunity to address near-term demand while we work to operationalise our facility in Patterson, California,” said CEO Mitchell Scott, who founded the company in 2016 with James Davison, the chief research and development officer.  

“We expect to be able to bring the Rupert facility online swiftly and add significant capacity to address current production shortfalls arising from strong demand for our products in Canada and the US.”

The ten-year lease on the property, which commences in January, has an option for renewal for two periods of five-year terms. Very Good Food said it plans to spend CAD3m (US$2.3m) on the facility over the next 12 months to improve “process workflow, drainage and heating, ventilation and air conditioning”.

Following the signing of the lease, Very Good Foods said the Mount Pleasant facility will now accommodate its R&D operations.  

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Free Report
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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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