Milling & Baking News Corporate Profiles - 2019 - 54

Hortons, TGI Friday's, Dunkin', Del Taco and a test in McDonald's restaurants
in Canada.
Plant-based burger orders at quick-service restaurants were up 10% from last
year, reaching 228 million servings, according to The NPD Group, Chicago. The
strong year-over-year growth of plant-based burgers is primarily due to increased
availability at restaurant chains, generating trial on the part of beef burger buyers.
"Plant-based burgers allow consumers to substitute without sacrifice," said
Darren Seifer, food and beverage analyst at The NPD Group. "They get the
'burger' experience while assuaging their need for more protein and social
concerns. With that said, U.S. consumers have not given up on beef burgers but
are willing to mix things up every now and then."

QDOBA

INDUSTRY REVIEW: PLANT PROTEIN

The plant-based boom has stoked the appetite of the investment community. Plant-based food and beverage start-ups have raised more than $17 billion in funding since 2009, said Michele Simon, founder and executive director
of the Plant Based Foods Association.
"Plant-based foods aren't new, but what's happening now is it's gone from
being a niche industry targeting mostly vegetarians and vegans, who are still
an important part of the market segment, but now it's grown into a mainstream industry that is targeting everyone, and that's really what's causing it
to explode, combined with the innovation that's happening," Ms. Simon said.
In September,Tyson Foods, Inc., Springdale, Ark., announced an investment in
New Wave Foods, San Francisco, a manufacturer of plant-based shellfish alternatives, including a shrimp alternative made with seaweed and plant protein.
This past June, Tyson Foods launched a line of blended and plant-based
products under the Raised and Rooted brand. Initial product applications sold
under the brand include nuggets and burgers.
"We're excited about this investment in the fast-growing segment of the
plant-based protein market," said Amy Tu, president of Tyson Ventures. "This

continues our focus on identifying and investing in companies with disruptive
products and breakthrough technologies related to our core business so we can
continue to serve a growing global population."
Plant-based food and beverage businesses are a focus of Stray Dog Capital,
Lenexa, Kas.
"Due to the nature of our thesis, we're not looking for companies that have a
product as good as the animal-based version, but rather ones that are better in
taste, texture, price and/or process," said Macy Marriott, a venture analyst at the firm.
"Data are showing a notable consumer shift led by millennials and Gen Z in the form
of flexitarians and reducetarians who are wanting to incorporate more plant-based
options in their diet, and we're seeking innovative products that fulfill that desire."
Stray Dog investments include Good Catch, a maker of plant-based seafood alternatives; Miyokos Kitchen, a maker of vegan cultured nut cheese; and
Goodseed Burger, a brand of veggie burgers made with hemp seeds. Another
portfolio company, Ocean Hugger Foods, Inc., produces plant-based sushi ingredients made with tomatoes, carrot and eggplant.
"The rise in plant-based eating has awakened the C.P.G. category," Ms. Marriott said. "A 2018 Nielsen study found that plant-based product sales are growing
across all categories. During the 12-month study range, alternative meat sales
skyrocketed by 24%. This growth is great news for major players like Beyond
Meat and Impossible Foods but also indicates plenty of room for new entrants." CP

LEADING FROZEN/REFRIGERATED

The future of plant-based foods

meat substitutes brands

meat substitutes vendors
1
2
3
4
5
6
7
8
9

Kellogg Co.
Savage River, Inc.
Garden Protein International, Inc.
Lightlife Foods, Inc.
Field Roast Grain Meat Co.
Kraft Heinz Co.
Turtle Island Foods, Inc.
Dr. Praeger's Purely Sensible Foods
Vitasoy USA, Inc.
Private label
Total

Dollar sales
$274,876,323
$60,746,851
$55,406,293
$45,970,621
$28,969,190
$24,852,537
$19,138,729
$13,916,682
$8,188,055
$12,456,920
$600,236,174

% change
from
year ago
0.6%
148.2%
-2.5%
-2.9%
26.6%
-5.5%
-0.4%
12.0%
-13.0%
26.7%
8.6%

1
2
3
4
5
6
7
8
9
10

MorningStar Farms
Gardein
The Beyond Burger
MorningStar Farms Grillers
Field Roast
Boca
Tofurky
Lightlife Smart Dogs
Dr. Praeger's
Beyond Sausage
Total

Dollar sales
$236,527,852
$55,406,293
$39,359,305
$37,317,696
$28,969,190
$24,837,911
$18,795,370
$18,075,192
$13,916,682
$13,634,450
$600,236,174

% change
from
year ago
1.6%
-2.5%
225.5%
-4.8%
26.6%
-2.7%
-1.1%
1.8%
12.0%
NA
8.6%

Data for 52 weeks ended Aug. 11, 2019
Total U.S. - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains)
Source: Information Resources, Inc.

54 \ November 2019

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