RCS - Agronomics Limited - Portfolio Company Update: All G Foods

AgronomicsAnnouncement

17/10/2023 07:00

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RNS Number : 2948Q  Agronomics Limited  17 October 2023

17 October 2023

Agronomics Limited

("Agronomics" or the "Company")

Portfolio Company All G Foods

 

Agronomics (ANIC:LSE), the leading listed company focused on the field of
cellular agriculture, is pleased to announce that portfolio company All G Food
Holdings Pty Ltd ("All G Foods") has announced the spin out and merger of its
plant-based brand into a new entity, The Aussie Plant Based Co. Ptd Ltd ("The
Aussie Plant Based Co").

All G Food's plant-based brand LOVE BUDS will be merged with Fen Foods Pty
Ltd's brand vEEF, both of which are leaders within retail and food service
channels respectively. As a result of this transaction, All G Foods will own
49% of The Aussie Plant Based Co. All G Foods will continue to focus on its
precision fermentation dairy business. Agronomics currently holds an
approximate 8% ownership of All G Foods on a fully diluted basis, a position
which accounts for 4.7% of Agronomics' net asset value, including post balance
sheet adjustments.

Jim Mellon, Co-Founder and Executive Director of Agronomics, commented:

"In splitting the two business units, All G Foods will benefit in the near
term from increasing the scale of the plant-based business. In turn, this will
allow the team to focus on the precision fermentation dairy business which we
believe is the longer term value driver."

The full announcement is set out below without any material changes:

A New Era for Plant-Based Meat: vEEF and LOVE BUDS Unite Under The Aussie
Plant Based Co.

[Sydney, October 17, 2023] In a landmark move that will reshape the
plant-based meat landscape in Australia, two Australian plant-based brands
have announced their merger under a new entity, The Aussie Plant Based Co. The
new business aims to capitalise on steadily increasing demand within the
plant-based meat category. An increasing number of Australians are choosing to
consume less meat due to the enhanced taste of plant-based alternatives and a
growing awareness of its positive effects on the environment.

THE AUSSIE PLANT BASED CO FOCUSES on Retail and Foodservice channels.

The Aussie Plant Based Co. is the result of a merger between All G Foods'
plant-based division and Fenn Foods. Their corresponding brands, vEEF and LOVE
BUDS, are leaders in the plant-based meat category within the retail and food
service channels, respectively.

The strategic merger will establish an extensive distribution network,
encompassing an impressive 6,000 distribution points across the country, along
with a well-established manufacturing hub situated on the Sunshine Coast. This
will position The Aussie Plant Based Co. to effectively cater to the diverse
needs of customers and consumers throughout Australia, with ambitions to
expand into the Asian and Middle Eastern markets.

Market Opportunity

The global plant-based meat market size was valued at US$ 4.4 billion in 2022
and is expected to grow at a compound annual growth rate of 25 per cent from
2023 to 2030.(1) Consumer expenditure in the plant-based meat sector in
Australia is forecast to hit US$ 1.5 billion by 2030.(2)

Plant-Based Meat Alternatives in Australia

Australians are moving towards plant-based diets as they become more aware of
the health and environmental advantages of these choices. Consumer studies
have unveiled a striking 75 per cent upswing in the preference for
plant-derived protein in the APAC region, outpacing the global average. The
research also found 73 per cent of Australian consumers intend to curtail
their meat consumption, while 55 per cent are ready to embrace a higher
consumption of plant-based cuisine.(3) This shift in consumer behaviour
underscores the evolving preference, improving taste and burgeoning demand for
plant-based offerings.

Jan Pacas founder of All G Foods and Chairman of the recently established
entity The Aussie Plant Based Co said, "the Aussie Plant Based Co aspires to
lead the Australian industry with the broadest route to market, an enticing
range of taste-first products, and our exceptional team. This strategic move
will allow All G Foods to focus solely on being Australia's leading biotech
specialising in precision fermentation".

Alejandro Cancino founder of vEEF and CEO of The Aussie Plant Based Co,
expressed his enthusiasm for the merger, saying, "This collaboration is a
testament to our shared commitment to creating a sustainable, healthier and
tastier future for Australians. By combining our strengths, we can accelerate
the adoption of plant-based alternatives and contribute to a greener planet
and more ethical sources of protein."

A Plant-Powered Tomorrow

With demand for plant-based products continuing to increase, the union of vEEF
and LOVE BUDS under the umbrella of The Aussie Plant Based Co signifies a
watershed moment in the Australian plant-based movement. This strategic merger
seeks to establish new benchmarks in the industry by introducing a wide range
of plant-based substitutes that have not been offered in the market to date
that not only delight the palate but also contribute to the planet's
well-being.

NEWLY FORMED BOARD OF DIRECTORS

The Aussie Plant Based Co has also announced a new era board of directors,
which includes industry expert Rob Lederer, who brings invaluable expertise
from within the meat industry, notably at Primo, a company acquired by JBS for
A$1.45 billion. The board also welcomes Bryan Zekulich, a partner at the
investment firm Bombora.

-ENDS-

¹ Industry Analysis
(https://url.avanan.click/v2/___https:/www.grandviewresearch.com/industry-analysis/plant-based-meat-market___.YXAzOmFsbGdmb29kczphOm86YWZjYjAwYzAyMjY0NWNlNTUxMWNmNTY5NjM3NGRkYzQ6NjpmNzRkOjgxMDc4NzFkMWVlYjQ2ZmU5MDcxMWZiNjU5NmJkMTUwYmU3ZGJhMjg5NDgwMDRjY2EzZTU3MGM0YzNjYmJlYjc6cDpU#:~:text=The%20global%20plant%2Dbased%20meat,24.9%25%20from%202023%20to%202030.)

²
(https://url.avanan.click/v2/___https:/www.statista.com/topics/8030/plant-based-food-in-australia/___.YXAzOmFsbGdmb29kczphOm86YWZjYjAwYzAyMjY0NWNlNTUxMWNmNTY5NjM3NGRkYzQ6NjowNzMzOjI1NTk4ODYwMDdiNzYxMDUzMmE4ZWRlNDc3MGJiMDMzZWNiMWE1N2ZjNjFiMzRiZWU3OGFiM2UwNDI3M2RiZTc6cDpU#topicOverview)
https://www.statista.com/topics/8030/plant-based-food-in-australia/#topicOverview
(https://url.avanan.click/v2/___https:/www.statista.com/topics/8030/plant-based-food-in-australia/___.YXAzOmFsbGdmb29kczphOm86YWZjYjAwYzAyMjY0NWNlNTUxMWNmNTY5NjM3NGRkYzQ6NjowNzMzOjI1NTk4ODYwMDdiNzYxMDUzMmE4ZWRlNDc3MGJiMDMzZWNiMWE1N2ZjNjFiMzRiZWU3OGFiM2UwNDI3M2RiZTc6cDpU#topicOverview)

(3)https://www.foodmag.com.au/kerry-plant-based-alternative-research-reveals-top-drivers-for-consumers/
(https://www.foodmag.com.au/kerry-plant-based-alternative-research-reveals-top-drivers-for-consumers/)

 

The Aussie Plant Based Co.

At (https://aussieplantbased.com/laadwzvs2tq4ltov) The Aussie Plant Based Co
(https://aussieplantbased.com/laadwzvs2tq4ltov) , we rise with purpose, guided
by a steadfast commitment to creating a world that thrives on compassion,
sustainability, and positive change. We have a small but strong portfolio of
brands, including vEEF and LOVE BUDS, with over 6,000 distribution points
nationwide and a state-of-the-art manufacturing hub on the Sunshine Coast,
allowing the company to meet the diverse needs of customers and consumers
across the country.

vEEF

Since its establishment in 2018, (https://veef.com.au/) vEEF®
(https://veef.com.au/) has been captivating both plant-based enthusiasts and
meat lovers with its delectable and inventive meat alternatives. These
products, created by award-winning chef and founder of vEEF® Alejandro
Cancino, are sure to convert even the most sceptic meat lovers. The vEEF®
team is dedicated to producing mouthwatering, planet-friendly creations,
inviting you to be part of a culture that is sustainable and delicious.

LOVE BUDS

LOVE BUDS (https://welovebuds.com/) is proudly crafted in Australia and graces
the menus of venues nationwide, including Betty Burgers, The Sporting Globe,
Australia Venue Co (such as Brew Dog, Cargo Bar, Bungalow 8), TGIs and Patty
Smiths to name a few.

BUDS is on a mission to delight meat enthusiasts with a groundbreaking
plant-based offering that will leave them exclaiming, 'I can't believe it's
not meat!' Our unwavering dedication is focused on delivering delectable
alternatives to beloved meat-based classics like burgers, sausages, nuggets,
and arancini to health-conscious Australians.

About Agronomics

Agronomics (https://agronomics.im/) is the leading listed venture capital firm
with a focus on cellular agriculture. The Company has established a portfolio
of over 20 companies at the Pre-Seed to Series C stage in this rapidly
advancing sector. It seeks to secure minority stakes in companies owning
technologies with defensible intellectual property that offer new ways of
producing food and materials with a focus on products historically derived
from animals. These technologies are driving a major disruption in
agriculture, offering solutions to improve sustainability, as well as
addressing human health, animal welfare and environmental damage. This
disruption will decouple supply chains from the environment and animals, as
well as being fundamental to feeding the world's expanding population.

About Cellular Agriculture

 

Cellular Agriculture is the production of agriculture products directly from
cells, as opposed to raising an animal for slaughter or growing crops. This
encompasses cell culture to produce cultivated meat and materials, and
fermentation processes that harness a combination of molecular biology,
synthetic biology, tissue engineering and biotechnology to massively simplify
production methods in a sustainable manner.

 

Over the coming decades, the source of the world's food supply traditionally
derived from conventional agriculture is going to change dramatically. We have
already witnessed the first wave of this shift with the consumer adoption of
plant-based alternative proteins but today, we are on the cusp of an even
bigger wave of change. This is facilitated by advances in cellular
agriculture. This change is necessary, given scientists' claims that if we
maintain existing animal protein consumption patterns, then we will not meet
the Paris Agreement's goal of limiting warming to 1.5℃.

 

AT Kearney, a global consultancy firm, projects that cultivated meat's market
share will reach 35% by 2040. This combined with the Good Food Institute's
estimate that a US $1.8 trillion investment will be required to produce just
10% of the world's protein using this technology, means that we are on the
cusp of a multi-decade flow of capital to build out manufacturing facilities.
Funding in the field of cellular agriculture is accelerating, however, still,
less than US$ 5 billion has been invested worldwide since the industry's
inception in 2016.

 

For further information please contact:

 Agronomics Limited   Beaumont Cornish Limited  Canaccord Genuity Limited       Cavendish Securities Plc  Peterhouse Capital Limited  SEC Newgate
 The Company          Nomad                     Joint Broker                    Joint Broker              Joint Broker                Public Relations
 Richard Reed         Roland Cornish            Andrew Potts                    Giles Balleny             Lucy Williams               Bob Huxford

 Denham Eke           James Biddle              Harry Rees                      Michael Johnson           Charles Goodfellow          George Esmond

                                                Alex Aylen (Head of Equities)                                                         Anthony Hughes

                                                                                                                                      Alice Cho
 +44 (0) 1624 639396  +44 (0) 207 628 3396      +44 (0) 207 523 8000            +44 (0) 207 397 8900      +44 (0) 207 469 0936        agronomics@secnewgate.co.uk

 info@agronomics.im

 

 

 

 

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