Page 4 - Cubo - Winning In Plant-Based

Massive and accelerating

growth vs. animal products...
Get in it to win it…
but still huge head room!

The impact of Gregg’s vegan sausage roll (UK) is a
prime example of plant-based gaining traction.
Semi-ridiculed in the press (i.e. why would the workman’s
café want to jump on the vegan bandwagon), the sheer
amount of noise that was generated around what was
an inherently sensible launch (i.e. one of the countries
biggest sellers of sausage rolls making a vegan version)
showing the traction the area was gaining. Much as
Service people liked to have a bit of laugh about it, Gregg’s
Service
share price has been on the rise since the launch –
The power of plant-based!

As a result of the surge in demand, market leaders in
plant-based meats such as Impossible Foods, Beyond
Meat and Moving Mountains have received large
investment from P.E. firms and external investors. This is
allowing completely new entrants to own large chunks
of the market
Service

US stats show how the plant-based meat substitute market Start-ups Impossible Foods secured $300m in May 2019, and its

has rocketed in the last year… but importantly it still only Service food-service first approach is worth considering in
launch and roll-out strategies. For many consumers,
represents c.1% of global fish and meat sales
restaurants offer a perfect ‘testing ground’ to try new
plant-based products (dual benefit of someone else
prepping the product so can be sure it’s at its best,
plus the opportunity to publicise experimentation /
conscious choices to avoid meat even amongst those
Start-ups who are not vegan / vegetarian)
Start-ups

In many ways, plant-based milk has been well ahead
of the meat substitute curve in many countries. But our Supermarkets
Start-ups
view is that meat alternatives will catch-up fast, as a
better, wider range start to hit the shelves, and as their Supermarkets are also getting in on the game – and
price point invariably falls to a more ‘palatable’ level doing it very well! Tesco’s launch of Wicked Kitchen’s
plant-based range shows this perfectly, selling 4m units
for mainstream consumers… something we believe will
in first 33 weeks. This isn’t a
need to happen as the market matures and balances
low-rent budget offer, but a properly branded, boldly
out. This will make scale important and is where the positioned and extremely well executed range of foods
opportunity probably exists for the big players to steal Supermarkets – likely to command a strong position in the Tesco
portfolio. With a developing category there is a real
a march on the smaller ones (who are currently having chance for the retailers to flex their muscles and own
Supermarkets
a relatively easy ride). Current access to retail space Supermarkets a significant chunk, and early indications suggest they
and relatively high margins available to start-ups will could be well placed to do this
undoubtably diminish, as more serious competition from
‘heavy-weights’ is bought to bear...

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