Surrey-based vegetarian food maker No Meat Factory has netted US$42 million in venture capital to help it expand production across North America and potentially sell products around the world, the company announced this morning.
Munich, Germany-based equity investor Tengelmann Growth Partners is contributing most of this new cash injection, and this is Tengelmann’s initial investment in No Meat Factory. Greenwich, Connecticut-based Emil Capital Partners is an existing investor and a minor investor in the new financing round, the company said.
No Meat Factory’s ability to attract capital is impressive given what has been a sluggish climate for enterprises in B.C. seeking venture capital.
No Meat Factory makes vegan plant-based food at a 5,000-square-foot production facility at 120-19055 34A Ave. in Surrey.
Co-founders Dieter Thiem and Leon Bell say demand is strong and growing for plant-based meat products despite some industry leaders struggling.
Beyond Meat Inc. (Nasdaq:BYND), for example, was a stock market darling after it went public in May 2019, raising US$240 million. Its shares went public for US$25 each and then rose in value to be above US$234 each by July 2019. The money-losing company has since seen sales slide along with its share price. Beyond Meat’s shares ended trading yesterday at US$15.92 – down more than 93 per cent from their peak.
Thiem, No Meat Factory’s CEO, said things are different at his company.
“The traction No Meat Factory has experienced in just a few short years is evidence that consumers want greater access to plant-based alternative proteins and brands are looking for ways to deliver quality at an affordable price,” he said.
“With this latest funding round, we are excited to not only expand our operations to meet the needs of our partners, but to take advantage of the support and expertise of our investors as we expand our footprint globally.”
No Meat Factory plans to open a second manufacturing facility somewhere in the U.S. Pacific Northwest in early 2023. Its sales are primarily to what it calls “brand partners,” that make nuggets, hamburgars and other foods. The company would not reveal the names of its partners or be specific about whether those partners include fast-food restaurants.
Thiem and Bell say they have 65 years’ worth of combined experience in the plant-based food industry. Much of that is in plant-based meat production.
Marcel Bens, managing partner at Emil Capital Partners, said he was satisfied with how No Meat Factory has grown since his initial investment in 2019.
“We’re highly optimistic for the future of No Meat Factory as they plan to evolve beyond servicing brand owners and pursue private-label and foodservice opportunities more broadly,” he said.
B.C. has been a pioneer in the niche of plant-based meat replacements.
Sales hit $35 million in 2002 and he sold the venture to Hain Celestial Group (Nasdaq:HAIN) in 2003 for a sum that Potvin would not provide, but which BIV has previously reported to be $54.1 million.
He then founded Gardein Protein International, which sold its own proprietary type of meatless proteins.
Gardein was then sold in 2014 to Pinnacle Foods Inc. (NYSE:PF) for $175 million, although it was unclear how much of the company Potvin owned at the time.
Potvin in 2018 bought a majority stake in Vancouver’s Pacific Institute of Culinary Arts (PICA) from founder Sue Singer, who moved to Ontario, while longtime PICA chef Julian Bond purchased a minority stake of the company.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
