Plant-based meat manufacturer says it aims to become a global leader with an expansive distribution network
Canadian plant-based meat manufacturer Modern Meat is acquiring Kitskitchen Health Foods, a plant-based soup company which sells to 135 grocery retailers in British Columbia and Alberta, including Fresh Street Market and Whole Foods.
Established in 2013 Kitskitchen’s products are locally sourced and sustainable; its revenue forecast for this year is C$950,000.
Under the agreement, Vancouver-based Modern Meat will own the distribution rights to Kitskitchen’s brands and said it “plans to continue to work with its team”. The total purchase price is 300,000 shares and a finder’s fee of 9,000 shares will be issued.
Tara Haddad, chief executive of of Modern Meat, said: “The acquisition unites us with a well-established brand with an attractive growth profile. Kitskitchen product and management aligns with Modern Meat’s philosophy of the fast-growing plant-based space. We feel the ready-to-eat category in the plant-based space is underexplored. By acquiring a well-recognised local brand and putting our financial resources behind it, I feel we can grow the sales of Kitskitchen significantly,” states
Campbell Beecher, head of finance and M&A at Modern Meat, added: “Kitskitchen is a strategic acquisition for our company as it has established a great local following with consumers and has a broad existing distribution with many online and large grocery chains. By implementing our financial expertise with the Kits team, we will be looking to grow its revenues and develop it into a national brand.”
Modern Meat also announced it has signed a definitive co-packing agreement with Viveri, a distributor and co-packer based in Adelaide to launch its products in Australia.
Viveri, formerly known as SPQR Holdings, has a facility of approximately 21,000 square feet and produces ready-made meals, pasta and protein, cakes and pastries, gelati, coffee, sandwiches, salads, panini, and breads, which are distributed to major supermarket retailers in southern Australia, including IGA, Foodland, Coles and Woolworths.
Both companies have finished their due diligence process and are moving to product testing and production logistics. Viveri will include Modern Meat into its production facility and begin distribution to its large network of retailers and national grocers in Q2 this year. Viveri stated that as Modern Meat’s sales grow, it may decide to retrofit its existing facility to accommodate production needs.
Craig Wallace, head of global acquisitions at Modern Meat, said: “This is a great achievement for our company and the first step outside North America to becoming a global competitor in the plant-based meat alternative industry. I feel there is no better place to begin the global expansion of our company than Australia, as its residents represent early adopters.”
Tara Haddad, founder and chief executive of Modern Meat, added: “We continue to grow our distribution network and are thrilled to announce our definitive agreement with Viveri an experienced group of food specialists. We have significant growth potential in the Australian market and feel it is crucial to team up with a partner who recognises the value of our unique products and also has the capacity to execute production, distribution and accelerate our growth plans.
“Consumers are demanding more plant-based options that enable healthier lifestyles. Our goal is to be a leader in the plant-based space, and we will do this through continued product innovation and an expansive global distribution network.”
Date published: 21 January 2021