Today we’re focusing on one of 2020’s most impressive winners, which we first featured back in July of this year when it was $1.72. It hit $5.14 after peaking in the $4 range four times since our original profile alert.

Considering last week’s high, it gained 199% since we first featured the company. Today, after months of growth, we’re taking another look.

Recognizing opportunities before the markets take notice, it’s something we pride ourselves on at TSXStock.

There may not be a better example of this than a company we introduced back in July of this year, a company that was flying under-the-radar but showing strong signs of growth due in large part to aggressive expansion plans.

Needless to say, those plans have paid off- and considering the projected growth of the market in which they operate, could very well continue to deliver gains.

Here is a fact:

• On Friday, July 10, 2020 Modern Meat Inc. closed at 1.72 and we quickly alerted our members to the potential of this plant-based meat alternative company.
• On Monday, July 13, 2020 Modern Meat Inc. climbed to a high of 1.99.
• By Wednesday, July 15, 2020 Modern Meat Inc. was trading at 4.75.

Over the course of three trading sessions CSE:MEAT OTC: SUVRF  jumped 176%

While we have seen some back and forth over the last several months one thing remains clear, MEAT remains just as committed to growth as ever before- in fact, they hit a 52-week high of 5.14 on November 30, 2020.

That represents a 199% climb since we initially profiled the company back in July.

We are once again turning our attention back to this triple-digit profile gain as we continue to see signs of further growth.

And we aren’t the only ones who are noticing the bullish trend.

After a slight pullback from that new 52-week high set last Friday, this week we’re seeing the web’s most popular technical analysis tools saying Green once again. TradingView’s Technical Analysis “Summary” is “Strong” for the 1-day analysis:

It’s not just the Technicals that are earning CSE:MEAT OTC: SUVRF strong opinions, in mid-November Forbes released yet another article featuring Modern Meat:

International Plant-Based Food Companies Eye U.S. Market For Exponential Growth

In the article Forbes points to the potential of MEAT thanks in large part to their planned expansion into the United States. (Modern Meat has since announced a co-packaging agreement with a California company capable of producing up to a wholesale value of $25 Million USD worth of total Modern Meat products per year through its facility)

As noted by MEAT founder and CEO, Tara Haddad, in this Forbes article:

“We think our growth will be exponential… and we’re expecting increased revenues [once our expansion is complete].”

Haddad also believes extra sales will come from the food service sector as many U.S. mid-level restaurant chains are incorporating Modern Meat into their menus.

Again, the market for plant-based meat alternatives is projected to explode.

This should come as no surprise when you consider two of the biggest names in the plant-based meat alternative space- Beyond Meat and Impossible Foods.

Consider:

• May 2, 2019 Beyond Meat went public with an initial IPO price of $25, with a $1.5 Billion valuation
• Less than three months later it was worth more than $13 Billion, an 859% spike from their IPO

• Impossible Foods, yet to go public, saw its latest funding round give it a valuation of $4.03 billion in August. A round earlier in the year was at $3.61 billion.

Both of these companies have attracted some very big name investors- Bill Gates, Twitter co-founder Biz Stone, and Leonardo DiCaprio, along with Alphabet, Khosla Ventures, UBS Group and Viking Global Investors.

They haven’t only attracted investors, they’ve attracted retail outlets- Wal-Mart, Kroger, Target, and most recently Costco among them.

Today we are focusing on the third plant-based meat alternative company to go public, one that has already established a strong retail presence in this multi-billion dollar industry. Perhaps more importantly, they have clearly outlined a path to for exponential growth as a lifestyle company.

It’s time you put Modern Meat Inc. (CSE: MEAT OTC: SUVRF) back on your radar once more:

Modern Meat Inc. (CSE: MEAT OTC: SUVRF )

Website:
www.themodernmeat.com

CSE Video Interview:
https://www.youtube.com/watch?v=QeJFsc2xybs

Company Video:
Introducing Modern Meat

Forbes Article:
International Plant-Based Food Companies Eye U.S. Market For Exponential Growth

Quote:
https://thecse.com/en/listings/diversified-industries/modern-meat-inc

In their own words: “Modern Meat is a plant-based meat alternative company based in Vancouver, British Columbia. The Company develops a portfolio of nutritious, gourmet vegan food crafted from natural ingredients. All products are chef curated with proprietary recipes that are free of soy, gluten, nuts and GMO’s. Modern Meat’s mission is to change the way food is produced and consumed for the benefit of people, animals and the environment.”

“Modern Meat is engaged in the business of developing plant-based meat alternatives made from plants that are non-GMO, soy-free, gluten-free and 100% vegan. Modern Meat’s current product lineup includes the Modern Burger, Modern Crabcakes, Modern Meatball and Modern Crumble.”

As a backdrop to MEAT’s most recent news we want to take a second and point out just how big the plant-based protein market/ plant-based meat alternative market is becoming:

• According to Brand Essence Research the Plant-Based Protein Market is valued at USD 16.45 Billion in 2018 and expected to reach USD 40.53 Billion by 2025 with the CAGR of 13.75% over the forecast period

• According to statistics from SPINS and The Good Food Institute, dollar sales of plant-based meat grew 38% from 2017 to 2019. A report last summer from UBS — months before COVID-19 — projected this rapid growth would continue, getting about 18.5 times bigger to becoming an $85 billion industry by 2030

It bears repeating, the projected growth is significant:

• According to Nielsen, sales of fresh plant-based meat alternatives have nearly doubled every month this year. In March, grocery stores sold 231% more fresh plant-based than a year prior.
• IRI data analyzed by The Good Food Institute saw an even larger increase, with plant -based meat sales 454% higher than the previous year the week of March 21

And several studies have highlighted the reasons for these lofty projections:

• According to a survey from the International Food Information Council released in February, 41% of consumers decided to eat plant-based meat because they like to try new foods.
• In another study from IFIC that concentrated on comparing plant-based and animal meat, 45% of consumers thought a plant-based product was healthier than ground beef based on the Nutrition Facts label.
• In the annual IFIC Food and Health Survey released in June, 43% said that a product with a description of “plant-based” would likely be the most healthy one out of several options.
• More than half of consumers — 52% — said eating plant-based foods made them feel healthier in a 2018 study from DuPont Nutrition & Health.

Let’s get back to Modern Meat Inc. (CSE: MEAT).

On December 1, 2020 the company provided an update on production for its new manufacturing facility in Vancouver, BC.

MEAT reported the acquisition of this facility back in late August, at the time noting it would “allow the Company to quadruple its manufacturing footprint and significantly increase production capabilities as its line of plant-based products consistently sell out on a weekly basis.”

Since the acquisition MEAT has:

• has worked to bring its operation up to full capacity
• has successfully implemented a double shift mandate in order to keep up with demand
• has been successful in hiring new staff and providing successful training to improve its gross product production capacity

The facility is currently at maximum capacity of approximately 100,000lbs per annum of all Modern Meat products, and the MEAT is actively looking for other production facilities and partners to keep up with on-going demand.

Earlier we mentioned MEAT’s intentions to expand, in late November the company declared their intentions to target Australia.

MEAT announced a non-binding letter of intent with SPQR HOLDINGS PTY LTD. (SPQR), a distributor and co-packer based in Adelaide, Australia to launch its portfolio of 100% plant-based meat alternative products.

Stated in the press release: “SPQR is a facility of approximately 21,000sq/ft with a full production staff. SPQR will be onboarding Modern Meat into its production facility as well as its distribution platform to likely increase its distribution to major national grocers.”

Two days prior to their announced Australian expansion MEAT announce they would be expanding its retail presence as well launching a Christmas marketing campaign on Vancouver Island for its line of 100% plant-based products including the Modern Burger, Crab Cakes, Crumble and Meatballs.

This is no small expansion either:

“Modern Meat is currently working with 30 retailers on Vancouver Island and will soon be expanding this base which could eventually open an exciting new growth market for the Company.”

While we mentioned the Forbes article earlier, it was what was in parenthesis that very well could signal just how quickly MEAT could grab a share of the US market.

On November 20, 2020 MEAT announced “a co-packing agreement with Real Vision Foods, LLC (“Real Vision”) of California . The Company has been seeking active growth opportunities in the United States to launch its portfolio of plant-based meat alternative products.”

“Real Vision is a California based co-manufacturer with the capability of producing up to a wholesale value of $25 Million USD worth of total Modern Meat products per year through its facility.”

Important to note, Real Vision’s management team has over 100 years of experience working with companies such as at General Mills, Pepsi and Yum Restaurants and the principles The have  provided over  250 different SKU’s  to retail,  mass merchandise & club store supply chain, with branded and private label applications in US and Canada.

The significance of this agreement was expressed by Haddad:

“This marks a major milestone for our company as it has been long been a goal to produce and sell our products in the US. We are incredibly excited to launch out of California with an early adopter of plant based vegan alternatives. We feel that by moving to an established team of co-manufacturing, our company is likely to see significant growth in our revenues.”

And the agreement will act as a solution to what has prevented Modern Meat’s growth to date:

Campbell Becher, Head of Finance and Mergers and Acquisitions for Modern Meat stated, “Modern Meat’s growth has always been an issue of available production capacity. By moving to the USA , our company has taken a significant step in the right direction to access production capacity that should support significant growth. By partnering with a strong co- manufacturer, it will allow Modern Meat to leverage its brand and amazing products to get placement in as many west coast retailers as possible. While growing Modern Meat in the USA we will continue our mandate to look for high quality brands with distribution that fit our company principles.”

Production of Modern Meat products through Real Vision is expected to commence in Q1 2021.

On November 18 Modern Meat announced the appointment of Craig Wallace to the advisory board:

Modern Meat Annnounces Ex Maquarie Managing Director Craig Wallace as Head of Global Acquisitions and Member of the Advisory Board

According to the news, “Mr. Wallace’s has led the establishment of Private Capital Funds and capital formation globally. Mr. Wallace has over 30 years of capital markets experience, having held senior positions in advisory firms, Investment Banks and Private Equity Companies, including, Clarion Capital (managing director), the Macquarie Group (managing director), MGPA (Managing Director & global head of capital markets) and Spearhead Capital Partners (CEO).”

“Mr. Wallace has spearheaded transactions totaling in excess of USD8 billion and has extensive relationships with global institutional capital and CEOs of leading public and private companies globally. He has also sat on numerous investee-company boards and global Investment & Credit Committees in which he has overseen in excess of USD20 billion in approved transactions. He led MGPA’s FUM growth, taking it from USD600 million to USD6 billion (equity) in a period of three years. Craig is a qualified Chartered Surveyor, under the Finance & Investment Pathway, and a Member of the Royal Institute of Chartered Surveyors.”

Not to be overlooked in all of MEAT’s advancements as a plant-based meat alternative company, the push to become more of a lifestyle brand shouldn’t be ignored.

This move was evidenced by their November 17, 2020 press release in which they announced they had closed its previously announced acquisition of brands from JDW Distributors LLC (“JDW”). “This completes the first step in the Company’s U.S. expansion and acquiring these brands from JDW will introduce a robust sales and distribution network.”

What makes this so noteworthy are the brands being acquired:

“JDW has been focused on selling healthy, gourmet foods for 16 years, starting their own line of vegan brands including the popular Snacks from the Sun® Popped Potato Crisps and Sunflower Chips and Sunsations® Fruit Jellies, the last three years. JDW’s focus on health and quality ingredients aligns with the philosophy of Modern Meat.”

These products already have a strong presence at food and non-food retailers.

Once again, Haddad detailed the impact this acquisition would have for MEAT:

“We are pleased to be closing the acquisition of JDW Distributors LLC and onboarding their amazing brands and staff. With our new foothold in the US market our company will swiftly begin our growth to the US. We are extremely excited about the upcoming growth soon to come from our company. These are soon to be very exciting times.”

Clearly MEAT is aggressively following their expansion plans and we will touch on one more move they’ve made before encouraging you to do further research.

On November 3, 2020 MEAT announced the completion of its acquisition of two Victoria’s Health & Organic Bar retail locations in Vancouver, BC ., now branded as Modern Health and Wellness Bar.

Here’s an excerpt from that press release that gives evidence to MEAT’s opportunity to grow their brand in new outlets:

“For 18 years, Victoria’s Health & Organic Bar has earned its reputation in the health and “Good For You” community and has developed a strong and loyal following.  Last year’s gross sales from all locations, including the third store in North Vancouver, BC , totaled approximately $4.3 million , focusing only on health-related products.”

“This is a significant step forward as we advance the Modern lifestyle brand and further supports our goal of making plant-based nutrition more accessible,” said Tara Haddad , CEO of Modern Meat.  “Over the past two months we have been working through some extensive renovations and permitting to rebrand the stores with a focus on offering unique plant-based products. Our team is ready to drive new growth opportunities that are fully aligned with consumers’ preferences for nutritious plant-based alternatives that taste great, are sustainable and good for the environment.”

There is no shortage of news to highlight just how impressive MEAT has been since becoming the third plant-based meat alternative company to go public. While we have seen the headlines grabbed by companies like Beyond Meat and Impossible Foods, the real opportunity for growth may be this up-and-coming Canadian gem that is not only targeting new and explosive markets but actually entering them.

Be sure to have CSE:MEAT OTC: SUVRF  on your screen this week.

As we mentioned a moment ago, this week we’re seeing several of web’s most popular technical analysis tools offering favorable opinions. Investing.com’s Technical Analysis is also “Strong” for the 1-day analysis:

With MEAT’s production and distribution expanding and the market for plant-based foods accelerating at a significant rate, we’ll be watching CSE:MEAT OTC: SUVRF this week to see how this young public company continues to develop.

Always conduct your own research and discuss it with a professional. If a situation isn’t right for you to research, that’s OK, there will always be more situations presenting themselves in the future.

For further information on CSE:MEAT OTC: SUVRF visit the company’s website at www.themodernmeat.com, read the company’s filings located at https://sedar.com and feel free to check out a quote at https://thecse.com/en/listings/diversified-industries/modern-meat-inc.

Please, I urge you to do your research on CSE:MEAT OTC: SUVRF right away and as always, trade safe.