View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
January 11, 2021

The Very Good Food Co. targets plant-based cheese firm The Cultured Nut

The Very Good Food Co., a Canada-based meat-alternative start-up, plans to expand into a new category via M&A.

By Dean Best

The Very Good Food Co., a Canada-based meat-alternative start-up, plans to expand into the dairy-free category after signing a non-binding letter of intent to acquire The Cultured Nut company.

Free Report
img

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.

Founded in 2016 by chief executive Mitchell Scott and James Davidson, its head of R&D, Very Good Food manufactures meat-free burgers, sausages, hot dogs and pepperoni under The Very Good Butchers brand for the retail and foodservice channels from two facilities in Canada. The company is also setting up an operation in the US.

Its deal for Cultured Nut, a dairy-free cheese business based in Victoria, British Columbia, will be subject to regulatory approvals once due diligence and a “definitive agreement” have been completed under an exclusivity period running to 15 February. “However, the company can give no assurance that the acquisition will be completed as proposed or at all”, Very Good Food said in a statement today (11 January).

The transaction price has been set at CAD3m (US$2.3m) and will consist of a mixture of cash payments and common shares. “Key” employees at Cultured Nut will transfer to Very Good Food, which went public last year via an IPO

Very Good Food’s CEO Scott said: “The proposed acquisition of The Cultured Nut marks Very’s first move into the dairy-alternatives space and is the next natural step towards achieving our near-term objective of being a leader in the plant-based food technology industry. We have been selling their plant-based cheeses in our e-commerce and retail stores since September 2017, and have seen increased demand from consumers and highly positive reviews. 

“We feel that by quickly integrating The Cultured Nut into our existing processes and distribution network, these synergies will allow us to scale their operations significantly and create a key, and entirely new revenue stream for our company.”

Cultured Nut’s products are sold through select stores of Whole Foods Market and online, and include block-style cheeses, cream cheese and plant-based butters that are soy- and gluten-free.

Related Companies

Free Report
img

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.

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food