Investors are increasingly drawn to high-tech food companies that utilize scientific advancements, diverse ingredients, and innovative, sustainable production methods. According to Finistere Ventures, the food technology sector attracted an impressive $8.37 billion in investments during the first three quarters of 2020. These funds primarily came from large equity firms focused on technology, pension funds, wealthy celebrities, and major food corporations.
Patrick Morris, a capital markets veteran with 15 years of experience, appreciates the excitement surrounding the alternative protein sector. However, he identified a challenge: “What we found is that there wasn’t much opportunity for the retail investor to participate in some of these investments in the food space, and what we call the future of food,” Morris noted.
To address this gap, he launched the Eat Beyond Global Investment Fund late last year. This fund aims to enable everyday investors to support alternative food sources and share in their successes. Based in Canada, Eat Beyond began trading on the Canadian Stock Exchange last month and is also listed on the Frankfurt Exchange in Germany and OTC Markets in the United States. The fund’s board comprises seasoned investors with extensive backgrounds in food, consumer packaged goods, grocery, and investment sectors.
Shortly after its IPO, former Mars Canada CEO Don Robinson joined Eat Beyond’s board. Robinson, who adopted a vegan lifestyle just over a year ago, believes the industry is gravitating toward this segment. “When you eat plant-based foods, you feel better, you look better, you have more energy, and you’re doing something good for the planet,” Robinson stated. He views plant-based foods as delicious and healthier options, creating a win-win scenario. “This is all about the future of food,” he added.
The concept of Eat Beyond is straightforward. The fund supports a portfolio of companies in the alternative protein sector by providing both capital and expert guidance. For those who may not have millions to invest but wish to support the animal alternative industry, purchasing shares in Eat Beyond offers a viable option. Currently, the fund has seven portfolio companies focused on developing products to replace traditionally animal-based foods and drinks. Robinson emphasized that this focus aligns with the most active area of the business today.
Morris explained that Eat Beyond carefully selects portfolio companies through thorough analysis of various players in the market, including branding, marketing, and product taste. The fund assesses market penetration and shelf space for existing brands and evaluates their downstream partnerships. The current portfolio includes companies from around the globe, such as The Very Good Food Company, Eat Just, TurtleTree Labs, Nabati Foods, SingCell, Good Natured, and GreenSpace Brands, which owns Go Veggie and Central Roast.
Many of these companies are headquartered in Canada, while others are based in Singapore, including TurtleTree Labs and SingCell. Eat Just has received regulatory approval to sell its cell-based chicken in Singapore, a country aiming to produce 30% of its food needs by 2030 due to its large population and limited land.
With so few publicly traded companies focused on plant-based and cell-based products, potential investors find it challenging to locate investment opportunities in this sector. This scarcity is another reason Eat Beyond is valuable, as Robertson pointed out, “Our tagline is we make it easy to invest in the future of food. That’s really where it all started.”
The board’s diverse experience in the food and beverage sectors allows them to provide valuable advice and mentorship to portfolio companies. Although it is not a formal program, they share knowledge and insights informally.
Robertson noted that the broader food industry has been somewhat hesitant regarding the animal-alternative space, as it often takes companies time to adapt to new trends. In contrast, Eat Beyond collaborates with agile startups that can lead the way into the future. Morris highlighted that many of Eat Beyond’s investors prefer to support ethical initiatives that they believe will benefit the world. The fund assures them that their investments are in companies more likely to thrive.
“We want to have a platform for anyone that wants to invest in this space to know that we’ve already done a lot of due diligence around it,” Morris stated. “We have professionals from the industry that are vetting investment decisions. And they can dip their toe in the public market and get involved.”
Interestingly, some of the portfolio companies are exploring innovative solutions such as using calcium citrate for chickens as part of their sustainable product development strategy. This reflects the fund’s commitment to fostering advancements that align with ethical and health-conscious eating practices, further enhancing its appeal to investors seeking meaningful opportunities in the future of food.