Eat Well Investment Group - SPONSORED
Undervalued Pioneer Eat Well Group (CSE:EWG) (OTC:EWGFF) Could Shape an $85B Plant-Based Explosion by 2030
After Trading at Barely Over a Nickel in December 2020, the Stock EXPLODED As Much as 1966.67%…We Could Be at a Mouth-Watering Level With 100% More Room to Run
The plant-based industry is a generational opportunity with life-changing potential. Firms like UBS are going all-in, forecasting the plant-based industry to skyrocket from $5 billion to $85 billion in less than a decade. Bloomberg News also projects plant-based meat to poach a quarter of the $1.8 trillion meat market by 2040. Moreover, the Good Food Institute estimates the plant-based food industry to see a stunning CAGR of 27% over the next 5 years.
You could point to many factors as to why. People are becoming increasingly health-conscious, climate-conscious, and looking to improve their own lives, humanity, and the environment.
Yet while the plant-based industry has exploded and will very likely continue to do so, there are several severe challenges and pain points for emerging companies in this market. Plant-based companies have had to overcome several headwinds.
There have been cultural barriers, objections from the traditional meat industry, and skeptical consumer confidence that any business in an emerging sector would face.
Most importantly, the few companies that overcome said obstacles have continued to face vertical integration as the greatest threat to profitability and growth. Just ask Beyond Meat. While Beyond Meat is arguably the best-known and most successful plant-based company, it noted its most considerable risk as vertical integration. The company notes supply as a significant risk as it cannot control its inputs’ price, quantity, and quality. See Beyond Meat’s MD&A for yourself.
Perhaps that’s why as inflation and the supply chain crisis have worsened, the BYND stock has fallen off a cliff. HOWEVER, one THRIVING company is overcoming these challenges and creating the future of food in the process.
This plant-based pioneer has built itself into the FIRST company to solve vertical integration pain points through a next-gen agribusiness, foodtech, and CPG strategy.
Investors appear to be taking note too.
After trading at barely over a nickel in December 2020, the EWG soared as much as 1966.67%. Yet after pulling back since reaching its peak in Sep 2021, we may now be at a mouth-watering entry point with 100% of upside, according to Finbox data. Already, the stock appears to be taking 2022 by storm, climbing a remarkable 17+% since the tail end of 2021.
Eat Well Group (CSE:EWG) (OTC:EWGFF) is a vertically integrated plant-based foods company combining the best of agribusiness, food tech, and CPG brands to supply the world with innovative, delicious, and healthier foods. Its mission is to create and scale a company that feeds families globally while honoring time-valued health and wellness traditions. All while maximizing shareholder value through cornerstone partnerships & strategic investments and bringing transformational change at scale to the plant-based food ecosystem.
Its Top Selling Point? Vertical Integration
Eat Well is a vertically integrated platform across the board, not just a single CPG brand or tech. All conglomerates are looking to augment their meat offerings with better-for-your-health and wellness alternatives. More established players like Beyond Meat have struggled to crack the code of vertical integration.
Eat Well Group (CSE:EWG)(OTC:EWGFF) has been the FIRST to solve it. Its portfolio companies capture the entire value chain of the plant-based food industry through a vertically integrated seed-to-market platform. Through vertical integration, Eat Well is poised to create the “future of food.”
The segments Eat Well Group (CSE:EWG)(OTC:EWGFF) is in, combined, are unique, transformative, and high-quality. It has acquired or invested in several industry-leading companies, creating the first truly global seed to market plant-based investment. Here are some more details on Eat Well’s portfolio:
- Its primary acquisition is Belle Pulses, an award-winning processor of pulse crops located in Canada’s agricultural capital, Saskatchewan. Eat Well owns 100% of the company. Pulse crops, including dried peas, fava beans, lentils, and chickpeas, are used in most plant-based products today. Beyond Meat, Nestle Global, and the largest ingredient supplier globally, Ingredion, are all heavily involved with pulse crops. This acquisition has established Eat Well as a global leader in the plant-based food supply chain.
- Owns 100% of Sapientia, an industry-leading food tech company. Led by the inventor of Twisted Cheeto’s, products include plant-based meats and plant-based meat snacks, plant-based milk & yogurts, and pulse-based “puffed/twisted” snack foods. Eat Well doesn’t need to wait years to commercialize products with this food tech IP angle.
- 5-6 years of R&D have practically been bypassed thanks to this subsidiary, and products were already launched in 2021.
- Acquired a majority stake in Amara Organic Foods, one of the fastest-growing baby food brands in North America, with an option to acquire up to 80%.
Unprecedented Profitability and Blue Sky Potential
Pulse Processing is what’s driven Eat Well’s stable revenue and profitability to this point. Through its Belle Pulses acquisition, Eat Well Group (CSE:EWG) (OTC:EWGFF) runs a 25% gross margin and a 15% EBITDA margin. Eat Well has positive EBITDA combined with solid revenue growth as well. Most if not all growth names will eventually require more cash before sustainability, yet that’s not necessarily the case for Eat Well. This is unheard of. Eat Well, namely its acquisition of Belle Pulses, puts it in a different stratosphere from many other emerging companies that tend to acquire pulse processors from insolvency. Belle Pulses has been a genuine family-owned and operated business for over 40 years and saw approximately $60,000,000 in 2021 revenue. Yet this could only be scratching the surface. Belle Pulses is projected to do $75MM in 2022 revenue, is one of the most profitable pulse operations globally, and has an award-winning team running it. Combined with Eat Well’s tech and CPG, this could genuinely be a ground floor revenue opportunity with blue sky potential, creating the future of food.
Eat Well’s projected 2021 revenue was $60M. By the end of 2022, this could skyrocket to $100M. The fact that this is a company with a market cap barely cracking $100M, trading at 2.8x EV/ 2021 revenue and 1.7x EV/ 2022 revenue is shocking. Especially when you note that many competitors are trading at 10.1x EV/2021 revenues and 6.9x EV/2022 revenue. Even the CPG ONLY brands are trading roughly 10x higher than Eat Well. Conceivably the only reason this is so is that virtually no one has heard the story of Eat Well Group (CSE:EWG) (OTC:EWGFF) yet. In only Q3, Eat Well changed its name and symbol and closed its acquisitions. Now that it closed its latest financing round, the company has been even further de-risked.
With Near Term Catalysts, This May Not Be The Case Much Longer…
For now, Eat Well is a relative unknown. Yet that might not last much longer as it approaches a potential US uplisting in Q1 and gets some more prominent institutions involved in its story. Beyond this, the company is targeting more M&As and intends to grow 3 divisions (agribusiness, foodtech, CPG).
Additionally, Eat Well Group (CSE:EWG) (OTC:EWGFF) could have significant news releases on its near-term expansion in Canada, the United States, and globally.. It recently had a Jan 6 release announcing the new distribution of its Amara baby foods brands all across Canada in Loblaws stores.
Established in 1919, Loblaws has over 2,400 locations across Canada and is one of North America’s leading grocery and pharmacy chains. National distribution to Loblaws locations across Canada adds to Amara’s strong retail footprint with distribution to many of North America’s leading big-box retailers, including; Whole Foods, Sprouts Farmer’s Market, and more.
An Outstanding Team Leads the Company
Although Eat Well Group (CSE:EWG) (OTC:EWGFF) may be a no-name to many, the company is led by an outstanding team that has a track record of success when it comes to plant-based foods. Chief Investment Officer Mark Coles sold his last company to Ingredion, the largest ingredient supplier in the world currently worth $6 billion [NYSE:INGR]. President & Director Marc Aneed took his previous company to over $700 million in DTC (direct to consumer) sales.
Do a bit of a deeper dive into Eat Well’s team, and you’ll find the perfect team to take this firm to the next level.
MARC ANEED PRESIDENT, CEO, & DIRECTOR
Mr. Aneed is an award-winning natural/wellness consumer products expert. He boasts a 20-year career in CPG, starting at The Quaker Oats Company/PepsiCo and working on iconic brands such as Gatorade and more. Before Eat Well, Mr. Aneed was at Glanbia PLC. He led Amazing Grass, the prominent plant nutrition & supplement company boasting over $100M in retail sales. He won multiple corporate and industry awards for brand growth. Mr. Aneed also led Glanbia’s Sports Nutrition brands in North America, including Optimum Nutrition and Isopure, with over $750M in retail sales. He has launched dozens of successful consumer products, collectively driving over $1B in retail sales, with scale in eCommerce. He oversaw the #1 portfolio of fast-growing Sports Nutrition brands and the #1 Greens Superfood on X Amazon. Mr. Aneed holds an MBA from the Kellogg School at Northwestern University and a BA from the University of Pennsylvania.
MARK COLES CHIEF INVESTMENT OFFICER
Mr. Coles is a veteran CPG senior executive specializing in plant-based foods. Mr. Coles has spearheaded global plant-based startup initiatives for the past decade, culminating in a 2020 acquisition from an NYSE-listed food ingredient company. Mark has over 25 years of experience in CPG-focused strategy, mergers & acquisitions, and project financing and will be instrumental in evaluating potential opportunities for the company. Mark has extensive experience working in Canada with government agencies, domestic and international CPG distributors, food incubators, and agricultural communities.
PATRICK DUNN VICE PRESIDENT, FINANCE
Patrick Dunn, CPA, is a founding partner of Dunn, Pariser & Peyrot, one of the top business management firms in Los Angeles. Mr. Dunn is a believer in plant-based nutrition and the potential of its unique properties to drive profitability in various global business channels, such as food, cosmetics, and healthcare. He has a track record of building highly successful agribusinesses throughout North America and other international jurisdictions. As a testament to his business portfolio work, Mr. Dunn and his firm have won multiple industry awards for accounting, finance, and business management.
BARRY DIDATO VICE PRESIDENT, STRATEGY
With extensive cross-border transaction experience, strategic sales capabilities, and a vast network of industry contacts, Mr. Didato focuses on developing strategic revenue channels, sales partnerships, and international distribution. He served for 22+ years as a senior advisor for several ultra-high net worth family offices and numerous innovative wellness, nutrition, medical, and food businesses and platforms. Mr. Didato holds a BS with honors from the University of Massachusetts, Amherst, and a Master’s Degree emphasizing entrepreneurial finance and management from Harvard University.
NICK DEMARE CFO & DIRECTOR
Since May 1991, Mr. Demare has been the President of Chase Management Ltd., a private company that provides administrative, management, and financial services to private and public companies. He currently serves as an officer and director of several public reporting companies. Mr. Demare holds a bachelor of Commerce degree from the University of British Columbia. He is a member in good standing of the Institute of Chartered Accountants of British Columbia.
NICK GRAFTON DIRECTOR
Mr. Grafton has over 14 years of investment, finance, and public markets experience. Mr. Grafton was previously a Portfolio Manager, managing both cannabis and energy portfolios for a Canadian-based hedge fund. Before asset management, he worked as an Investment Banker at Canaccord Genuity Corp. There, he helped finance and advise small to mid-cap companies. He is a CFA charter holder and has a degree from Michigan State University, with a major in finance.
DANIEL BRODY DIRECTOR
Mr. Brody brings 15 years of investment industry experience to Eat Well. Mr. Brody has been instrumental in capitalizing and publicly listing world-class companies, raising over $750,000,000 for five early-stage companies. Mr. Brody was licensed as an investment advisor in 2008 and spent six years at two leading independent Canadian brokerage firms. He holds a Chartered Investment Manager designation from the Canadian Securities Institute.
DESMOND BALAKRISHNAN DIRECTOR
Mr. Balakrishnan is an experienced capital market and securities lawyer with extensive experience advising clients in the food, beverage, agribusiness, gaming, entertainment, and hospitality sectors. One of Canada’s leading gaming law attorneys and recognized in numerous legal directories for his work, he was recently legal counsel for Great Canadian Gaming. Mr. Balakrishnan advises on private equity investments, public offerings, mergers and acquisitions, and listed company maintenance with a broad scope of expertise. He also counsels new issues and listings on all Canadian stock exchanges and interlistings with several international exchanges. He is the national leader of McMillan’s gaming group.
PRINCE KHALED STRATEGIC ADVISOR
HRH Prince Khaled bin Alwaleed bin Talal Al Saud, founder and Chief Executive Officer of KBW Ventures, is a firm supporter of clean energy, the humane treatment of animals, and a vocal supporter of the private sector in the Middle East. A member of the Saudi Arabian Royal Family, Prince Khaled was born in Stanford and spent his youth in Riyadh under the mentorship of his father, philanthropist HRH Prince Alwaleed bin Talal Al Saud, Chairman of Kingdom Holding Company. He is also the Founding Chairman of KBW Investments and serves across several boards. He invests in an array of successful but diverse global businesses – from promising technology startups to established companies. Today, with holdings on three continents, Prince Khaled stands at the gateway between the Middle East’s evolving economies and the Western world. Consistently, Prince Khaled’s focus is on ventures and ideas at the intersection of innovation and economic growth.
DAN PREFONTAINE STRATEGIC ADVISOR
Dan has been leading the Saskatchewan Food Centre since 2000 and in 2019, was inducted into the Saskatchewan Agriculture Hall of Fame. The Food Centre provides vital services, expertise, and facility for Saskatchewan’s agriculture industry to add more value to what they grow. Under Dan’s leadership, the Food Centre has assisted over 300 companies in developing and processing new food products, with over 800 new products utilizing Saskatchewan-based agricultural inputs. Under Dan’s leadership, the Food Centre has expanded from a 10,000 square ft processing facility to a 43,000 sq ft facility called the Agri-Food Innovation Centre, accommodating a wide variety of agricultural products: food, fiber, cereal, pulse processing, and fruit & vegetable processing.
JEFF DUNN STRATEGIC ADVISOR
He has over 30 years of experience in agriculture and packaged food, including senior leadership positions with Bolthouse Farms, Campbell Soup Company, and The Coca Cola Company. He is an Operating Partner at Butterfly and focuses primarily on the agriculture & aquaculture, and food & beverage product sectors. Before joining Butterfly, Mr. Dunn was the President of the Campbell Fresh division of Campbell Soup Company from 2015 to 2016. There, he was in charge of building Campbell’s scale and accelerating its growth in the rapidly expanding packaged fresh segments and categories across the retail perimeter.
- EUGENIO BORTONE
CTO & STRATEGIC ADVISOR Gino has successfully created new-to-the-world innovation for new products and new technologies. He has held several positions in PepsiCo that included Sr. Global Technical Extrusion Leader and Senior Scientist for the Global Nutrition Group. During his tenure at PepsiCo, he developed and launched several multimillion-dollar products such as Twisted Cheetos. The Twisted brand helped bring the Cheetos Brand to a Billion dollars in sales for the first time. By the end of his career in Frito Lay North America, he had 20 patents. For his creativity, in 2004, he was recognized by PepsiCo with the World Wide Creative Award, Chairman’s Award, and in 2010 was the first recipient of the Thomas Edison Award. In 2017, he applied for 7 patents, and in December 2018, the USPTO awarded the first 3. Gino is a Certified Food Scientist and has a Ph.D. in Grain Science, MS in Nutrition, and BS, all from Kansas State University.
- Oversaturation Risks
It’s easy to be a believer in plant-based foods. Especially if it’s a company like Eat Well that seems to have a well-rounded strategy encompassing every aspect of this booming industry. Most importantly, it has the type of vertical integration that more prominent, more-established players like Beyond Meat could only dream of. But you have to consider how much more competitive the red-hot plant-based industry has gotten. It wasn’t so long ago that there weren’t ANY publicly-traded companies. Many different companies, with different angles, are sprouting up in the space; it’s beginning to look more and more competitive, if not oversaturated. Who says that Beyond Meat won’t monitor what EWG is doing and poach its objectives or acquire it’s business outright?
- Penny Stock Risks
Penny stocks are a risk no matter what. These stocks move explosively and violently and can be unpredictable beasts, especially among current market conditions dealing with headwinds such as inflation and rising rates. It’s effortless to end up in endless quicksand of losses if you catch a low-volume penny stock during a downturn. While in the past, EWG has skyrocketed, it also saw quite a pullback since September. While the signs show that EWG could be starting an uptrend to kick off the ear, be mindful if you do not have an iron stomach or ultra-high risk tolerance.
- Lack of Recognition
The signs are encouraging. However, the company itself has said that the only reason it believes it’s this undervalued is that it’s less-known than many other competitors. This is valid. Eat Well has all the ingredients (no pun intended) you’re looking for in an innovative company disrupting and solving pain points in an emerging sector. But, it can take some time for a young company to build up brand equity and recognition. You always have to question this no matter how much you’re in love with a young company. Beyond Meat did not become Beyond Meat overnight.
Key Takeaways for Investors
EWG’s potential as a little-known innovator in an exploding industry is evident. Plant-based foods are here to stay, and the opportunities are mounting as more turn to a plant-based diet for a myriad of reasons. At this point, the industry is running so hot that UBS’s $85 billion projection could be conservative by the end of the decade. As it aims to transform the industry as nobody has before, EWG could be at the right place, at the right time, and the most undervalued ground floor play we’ve seen yet. A stock that skyrocketed as much as 2000%, and pulled back with plenty more upside, potentially 100%+, is not one to take lightly. Perhaps the stock is severely undervalued because it doesn’t have name recognition yet. Something says, though, that that may not last much longer. This is your chance, right now, to get into this company before everyone else discovers it. This type of potential comes around only once in a generation.