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Saturday, July 24, 2021

Expansion in Plant Based Foods Space; the Rise of Very Good Food Company Inc (OTCMKTS: VRYYF)

Very Good Food Company Inc (OTCMKTS: VRYYF) is running northbound in a hurry skyrocketing up the charts since hitting the US OTCQB markets. The force is strong in VGFC and the stock has come a long way since its IPO at $0.25 per share.

its easy to get excited about a Company like VGFC operating in the booming plant based foods sector and growing at record levels. The Company is currently embarking on a massive planned expansion into the U.S. market with a new strategically located California production facility. VGFC signed a lease for approximately 25,000 square feet of space in a fully built-out food  production  facility  located  in  Patterson,  California. At full capacity the facility is anticipated to have a maximum production volume of 550,000 lbs per week to supply demand for VGFC’s products in the U.S. market. VGFC also has first refusal on an additional 25,000 square feet in the same building to double the footprint of its facility.

Very Good Food Company Inc (OTCMKTS: VRYYF) operating out of British Colombia, and trading as (VERY) in Canada, the Company is an emerging plant-based food technology player that designs, develops, produces, distributes and sells a  variety  of  plant-based  meat  and  other  food  alternatives.  The Company’s mission is to employ plant-based food technology to create products that are delicious while maintaining a wholesome nutritional profile. VGFC’s minimally-processed, vegan meats are handcrafted in British Columbia, Canada with whole-foods you’ve likely got in your kitchen; beans, grains, vegetables, herbs and spices. To date VGFC has developed a core product line under The Very Good Butchers brand. Located at theverygoodbutchers.com the Company offers Plant-based meats handcrafted with real, whole-food ingredients

VGFC is a fast growing Company in the booming plant-based foods space recently reporting Q2 results; the Company reported record quarterly revenue of $1,100,816 million, up 225%quarter-over-quarter from $338,552 and up nearly 400% year-over-year from $222,054. The increase in revenues for the three months ended June 30, 2020 was mainly due to an increase in eCommerce Store sales associated with an eCommerce Partnership Agreement entered into during March 2020.When compared to the 6 month period ended June 30, 2019 the Company has improved its gross margin from34% to 42%. The Company continues to have industry leading margins when compared to competitors such as Beyond Meat, who recently announced a 29.7% gross margin on revenues.

The global plant-based meat market is expected to grow from $12.22 billion in 2019 and to $12.41 billion in 2020 at a growth rate of 1.58%. The slow growth in 2020 is mainly due to the economic slowdown across countries owing to the COVID-19 outbreak and the measures to contain it. The market is then expected to grow and reach $17.73 billion in 2023 at CAGR of 12.62%. North America was the largest region in the plant-based meat market in 2019. Asia-Pacific was the second largest region in the plant-based meat market in 2019.

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VRYYF

VGFC is embarking on a significant growth project with its planned expansion into the U.S. market with a new strategically located California production facility that will significantly increase VGFC’s production capacity and support growth in the Company’s wholesale and ecommerce sales in the United States. The Company signed a lease for approximately 25,000 square feet of space in a fully built-out food production facility located in Patterson, California. The California Facility requires minimal renovations as it already contains key food production infrastructure such as coolers and freezers, allowing for it to be brought online on an expedited time frame. When the initial 25,000 square feet is operating at full capacity after a ramp up period, the facility is anticipated to have a maximum production volume of 550,000 lbs per week to supply demand for VGF’Cs products in the U.S. market. Under the terms of the lease,

VGFC has a right of first refusal on an additional 25,000 square feet in the same building to double the footprint of its facility. Within the overall complex, over 500,000 square feet of warehouse space is also available to the Company for cold storage as its operations expand.The lease for the California Facilityprovides for an initial term of five years and seven months with renewal options for two consecutive five year terms. The base monthly rent under the lease is US$24,743 with the first payment due April 1, 2021.The California Facility is strategically located on the same property as one of VGF’s recently announced third party logistics providers such that product can be delivered for distribution by way of a short-haul forklift at minimal cost with no time in transit. The California Facility is also located on key shipping routes for ground transportation to wholesale clients and in close proximity to key suppliers of input products.

CEO Mitchell Scott recently stated: “After closing our oversubscribed bought deal financing in early August, we are now able to move ahead with an accelerated expansion into the U.S. market. The California Facility is more than double the size of our future Vancouver facility, and will be capable of substantially larger production volume.  With the strong demand we are currently experiencing for our products, finding a facility that could become operational quickly was key, and being located on the doorstep of a key logistics partner made this location an excellent fit.”

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Currently running northbound in a hurry, the force is strong in VGFC and the stock has come a long way since its IPO at $0.25 per share. VGF operates in the booming plant based foods sector and is growing at record levels. The Company is currently embarking on a massive planned expansion into the U.S. market with a new strategically located California production facility. VGF signed a lease for approximately 25,000 square feet of space in a fully built-out food production facility located in  Patterson, California. At full capacity the facility is anticipated to have a maximum production volume of 550,000 lbs per week to supply demand for VGF’s products in the U.S. market. VGR also has first refusal on an additional 25,000 square feet in the same building to double the footprint of its facility. The California Facility is more than double the size of the Company’s future Vancouver facility, and will be capable of substantially larger production volume perfect as the Company continues to see record growth. We will be updating on VERY when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with the Very Good Food Company.

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Disclosure: we hold no position in VERY either long or short and we have not been compensated for this article.

Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.

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