Canada: Very Good Food Company plots foodservice entry after increasing production capacity

Company faced shipping setbacks and labour shortages in Q2 due to Covid-19

The Very Good Food Company (VERY) is increasing its production capacity after being hit by shipping setbacks and labour shortages in Q2 due to Covid-19.

As part of its plan, VERY has set a target for its Vancouver-based Rupert facility to produce 40,000 pounds of its plant-based meat products per day in Q4.

A second production line will be commissioned at the plant in Q4 with testing a food production starting in Q1 2022.

The second line will allow VERY to expand into the foodservice channel in North America next year.

“With both lines operational, the facility will be able to produce 37 million pounds of product on an annualised basis,” VERY CEO Mitchell Scott told analysts last week during the company’s Q2 earnings report.

Scott announced a second facility in California would commence production in September to fast-track popular VERY product the Taco Stuff’er.

“We recently announced that food production will begin at our Patterson facility in California starting in September 2021 on commercial-grade kitchen equipment in order to fast-track the production of Taco Stuff’er, one of Very Good’s most in-demand SKUs, while the installation of the facility’s first major production line is underway and targeted for completion before Q2 2022,” Scott said.

The second plant will have a maximum capacity to produce 98.5 million pounds of product each year.

Like many others in the food industry, VERY faced setbacks in Q2 as Covid-19 caused labour shortages and shipping delays during the three-month period.

“We anticipate that these challenges will continue in the near-term and potentially slow the targeted ramp up plan to meet the fast-growing demand for our products in North America,” Scott added.

The company expanded its distribution reach into the UK in July via a deal with 3PM logistics provider Peter Green Chilled.