Portfolio Company Update: All G Foods
17 October 2023
Agronomics Limited
("Agronomics" or the "Company")
Portfolio Company All G Foods
Agronomics (ANIC:LSE), the leading listed company focused on the field of cellular agriculture, is pleased to announce that portfolio company All G Food Holdings Pty Ltd ("All G Foods") has announced the spin out and merger of its plant-based brand into a new entity, The Aussie Plant Based Co. Ptd Ltd ("The Aussie Plant Based Co").
All G Food's plant-based brand LOVE BUDS will be merged with Fen Foods Pty Ltd's brand vEEF, both of which are leaders within retail and food service channels respectively. As a result of this transaction, All G Foods will own 49% of The Aussie Plant Based Co. All G Foods will continue to focus on its precision fermentation dairy business. Agronomics currently holds an approximate 8% ownership of All G Foods on a fully diluted basis, a position which accounts for 4.7% of Agronomics' net asset value, including post balance sheet adjustments.
Jim Mellon, Co-Founder and Executive Director of Agronomics, commented:
"In splitting the two business units, All G Foods will benefit in the near term from increasing the scale of the plant-based business. In turn, this will allow the team to focus on the precision fermentation dairy business which we believe is the longer term value driver."
The full announcement is set out below without any material changes:
A New Era for Plant-Based Meat: vEEF and LOVE BUDS Unite Under The Aussie Plant Based Co.
[Sydney, October 17, 2023] In a landmark move that will reshape the plant-based meat landscape in Australia, two Australian plant-based brands have announced their merger under a new entity, The Aussie Plant Based Co. The new business aims to capitalise on steadily increasing demand within the plant-based meat category. An increasing number of Australians are choosing to consume less meat due to the enhanced taste of plant-based alternatives and a growing awareness of its positive effects on the environment.
THE AUSSIE PLANT BASED CO FOCUSES on Retail and Foodservice channels.
The Aussie Plant Based Co. is the result of a merger between All G Foods' plant-based division and Fenn Foods. Their corresponding brands, vEEF and LOVE BUDS, are leaders in the plant-based meat category within the retail and food service channels, respectively.
The strategic merger will establish an extensive distribution network, encompassing an impressive 6,000 distribution points across the country, along with a well-established manufacturing hub situated on the Sunshine Coast. This will position The Aussie Plant Based Co. to effectively cater to the diverse needs of customers and consumers throughout Australia, with ambitions to expand into the Asian and Middle Eastern markets.
Market Opportunity
The global plant-based meat market size was valued at US$ 4.4 billion in 2022 and is expected to grow at a compound annual growth rate of 25 per cent from 2023 to 2030.1 Consumer expenditure in the plant-based meat sector in Australia is forecast to hit US$ 1.5 billion by 2030.2
Plant-Based Meat Alternatives in Australia
Australians are moving towards plant-based diets as they become more aware of the health and environmental advantages of these choices. Consumer studies have unveiled a striking 75 per cent upswing in the preference for plant-derived protein in the APAC region, outpacing the global average. The research also found 73 per cent of Australian consumers intend to curtail their meat consumption, while 55 per cent are ready to embrace a higher consumption of plant-based cuisine.3 This shift in consumer behaviour underscores the evolving preference, improving taste and burgeoning demand for plant-based offerings.
Jan Pacas founder of All G Foods and Chairman of the recently established entity The Aussie Plant Based Co said, "the Aussie Plant Based Co aspires to lead the Australian industry with the broadest route to market, an enticing range of taste-first products, and our exceptional team. This strategic move will allow All G Foods to focus solely on being Australia's leading biotech specialising in precision fermentation".
Alejandro Cancino founder of vEEF and CEO of The Aussie Plant Based Co, expressed his enthusiasm for the merger, saying, "This collaboration is a testament to our shared commitment to creating a sustainable, healthier and tastier future for Australians. By combining our strengths, we can accelerate the adoption of plant-based alternatives and contribute to a greener planet and more ethical sources of protein."
A Plant-Powered Tomorrow
With demand for plant-based products continuing to increase, the union of vEEF and LOVE BUDS under the umbrella of The Aussie Plant Based Co signifies a watershed moment in the Australian plant-based movement. This strategic merger seeks to establish new benchmarks in the industry by introducing a wide range of plant-based substitutes that have not been offered in the market to date that not only delight the palate but also contribute to the planet's well-being.
NEWLY FORMED BOARD OF DIRECTORS
The Aussie Plant Based Co has also announced a new era board of directors, which includes industry expert Rob Lederer, who brings invaluable expertise from within the meat industry, notably at Primo, a company acquired by JBS for A$1.45 billion. The board also welcomes Bryan Zekulich, a partner at the investment firm Bombora.
-ENDS-
² https://www.statista.com/topics/8030/plant-based-food-in-australia/#topicOverview
3https://www.foodmag.com.au/kerry-plant-based-alternative-research-reveals-top-drivers-for-consumers/
The Aussie Plant Based Co.
At The Aussie Plant Based Co, we rise with purpose, guided by a steadfast commitment to creating a world that thrives on compassion, sustainability, and positive change. We have a small but strong portfolio of brands, including vEEF and LOVE BUDS, with over 6,000 distribution points nationwide and a state-of-the-art manufacturing hub on the Sunshine Coast, allowing the company to meet the diverse needs of customers and consumers across the country.
vEEF
Since its establishment in 2018, vEEF® has been captivating both plant-based enthusiasts and meat lovers with its delectable and inventive meat alternatives. These products, created by award-winning chef and founder of vEEF® Alejandro Cancino, are sure to convert even the most sceptic meat lovers. The vEEF® team is dedicated to producing mouthwatering, planet-friendly creations, inviting you to be part of a culture that is sustainable and delicious.
LOVE BUDS
LOVE BUDS is proudly crafted in Australia and graces the menus of venues nationwide, including Betty Burgers, The Sporting Globe, Australia Venue Co (such as Brew Dog, Cargo Bar, Bungalow 8), TGIs and Patty Smiths to name a few.
BUDS is on a mission to delight meat enthusiasts with a groundbreaking plant-based offering that will leave them exclaiming, 'I can't believe it's not meat!' Our unwavering dedication is focused on delivering delectable alternatives to beloved meat-based classics like burgers, sausages, nuggets, and arancini to health-conscious Australians.
About Agronomics
Agronomics is the leading listed venture capital firm with a focus on cellular agriculture. The Company has established a portfolio of over 20 companies at the Pre-Seed to Series C stage in this rapidly advancing sector. It seeks to secure minority stakes in companies owning technologies with defensible intellectual property that offer new ways of producing food and materials with a focus on products historically derived from animals. These technologies are driving a major disruption in agriculture, offering solutions to improve sustainability, as well as addressing human health, animal welfare and environmental damage. This disruption will decouple supply chains from the environment and animals, as well as being fundamental to feeding the world's expanding population.
About Cellular Agriculture
Cellular Agriculture is the production of agriculture products directly from cells, as opposed to raising an animal for slaughter or growing crops. This encompasses cell culture to produce cultivated meat and materials, and fermentation processes that harness a combination of molecular biology, synthetic biology, tissue engineering and biotechnology to massively simplify production methods in a sustainable manner.
Over the coming decades, the source of the world's food supply traditionally derived from conventional agriculture is going to change dramatically. We have already witnessed the first wave of this shift with the consumer adoption of plant-based alternative proteins but today, we are on the cusp of an even bigger wave of change. This is facilitated by advances in cellular agriculture. This change is necessary, given scientists' claims that if we maintain existing animal protein consumption patterns, then we will not meet the Paris Agreement's goal of limiting warming to 1.5℃.
AT Kearney, a global consultancy firm, projects that cultivated meat's market share will reach 35% by 2040. This combined with the Good Food Institute's estimate that a US $1.8 trillion investment will be required to produce just 10% of the world's protein using this technology, means that we are on the cusp of a multi-decade flow of capital to build out manufacturing facilities. Funding in the field of cellular agriculture is accelerating, however, still, less than US$ 5 billion has been invested worldwide since the industry's inception in 2016.
For further information please contact:
|
Agronomics Limited |
Beaumont Cornish Limited |
Canaccord Genuity Limited |
Cavendish Securities Plc |
Peterhouse Capital Limited |
SEC Newgate |
|
The Company |
Nomad |
Joint Broker |
Joint Broker |
Joint Broker |
Public Relations |
|
Richard Reed Denham Eke |
Roland Cornish James Biddle |
Andrew Potts Harry Rees Alex Aylen (Head of Equities) |
Giles Balleny Michael Johnson |
Lucy Williams Charles Goodfellow |
Bob Huxford George Esmond Anthony Hughes Alice Cho |
|
+44 (0) 1624 639396 info@agronomics.im |
+44 (0) 207 628 3396 |
+44 (0) 207 523 8000 |
+44 (0) 207 397 8900 |
+44 (0) 207 469 0936 |
agronomics@secnewgate.co.uk |
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 4 hours ago Johnson Matthey
- 5 hours ago Galliford Try
- 5 hours ago Galliford Try
- 5 hours ago Centrica
- 6 hours ago Smith & Nephew