The parent company of alternative meat brand The Very Good Butchers has agreed to pay C$3 million for vegan cheesemaker The Cultured Nut
By Murielle Gonzalez
The Very Good Food Company (Very), the maker of Canada’s plant-based meat brand The Very Good Butchers, said it has signed a non-binding letter of intent for the acquisition of all the shares of The Cultured Nut, a plant-based cheese company located in Victoria, British Columbia.
Mitchell Scott, chief executive of The Very Good Food Company, said: “The proposed acquisition of The Cultured Nut marks Very’s first move into the dairy alternatives space, and is the next natural step towards achieving our near-term objective of being a leader in the plant-based food technology industry.”
Scott explained that both companies have the shared ethos of using only high-quality whole food ingredients and that The Cultured Nut is a perfect addition to the company’s existing and growing product portfolio.
“We have been selling [The Cultured Nut] plant-based cheeses in our e-commerce and retail stores since September 2017, and have seen increased demand from consumers and highly positive reviews,” said Scott.
He concluded: “We feel that by quickly integrating The Cultured Nut into our existing processes and distribution network, these synergies will allow us to scale their operations significantly and create a key, and entirely new revenue stream for our company.”
The Very Good Butchers: IPO success
Very designs, develops, produces, distributes and sells a variety of plant-based meat and other food alternatives. The firm’s products include The Very Good Burger, Smokin Burgers, Very British Bangers, Pepperoni, Ribz, Taco Stuffier, Roast Beast and Steak.
The company was founded by Mitchell Scott and James Davison in December 2016 and is headquartered in Victoria, Canada.
Very, a portfolio company of Eat Beyond Global, entered the Canadian Securities Exchange in June with a C$4 million IPO, selling 16.1 million shares at a price of $0.25 per share.
Stocks of Very have skyrocketed. At the time of writing, shares were trading at C$7.87.
Very said The Cultured Nut is rapidly growing on the West Coast of Canada with a well-established line-up of innovative products consisting of block style cheeses, cream cheese, and plant-based butter. Products are tree nut-based and both soy and gluten-free.
The Cultured Nut products are distributed in several online and grocery retailers including SPUD.ca and select Whole Foods stores.
Very believes the alternative dairy market, including the plant-based and vegan sector, is expected to grow at an annual growth rate of 11.2%, reaching $44.9 billion by 2027.
The company said the intended acquisition is timely and an excellent complement to the company’s existing product line under The Very Good Butchers brand.
Pursuant to the deal, the aggregate purchase price for Cultured Nut will be C$3 million. In addition, key Cultured Nut employees will enter into employment agreements with Very.
The companies have agreed to complete due diligence by 15 February and to negotiate and execute the definitive agreement.
Date published: 15 January 2021