Sep 23, 2021 (Baystreet.ca via COMTEX) -- A bridge is said to be emerging between the $7-billion megatrend plant-based foods industry and the global market for sports nutrition and supplements, expected soon to be worth $35 billion.
Boosted even further by the COVID-19 crisis, we think this bridge forms one of the most attractive investment narratives we’ve seen in years.
It leads to what could be a brand new segment of both rapidly growing industries, with potential first-mover advantage going to whoever can crack a crucial code: How to make plant-based proteins as effective as the animal-based proteins that have, until now, dominated this market.
The sports nutrition supplements industry is now on track to reach $9.7 billion by 2027, and its protein segment alone could hit $3.1 billion.
On the other side of this bridge, the plant-based food industry is muscling its way into the estimated $4.3-trillion e-commerce segment, as new entrants not only look to threaten to disrupt the traditional food industry …
They’re also aiming to become the Amazon of niche plant-based offerings, much like Chewy.com did for pet supplies, outshining Amazon itself in the segment.
Until recently, no one has been able to crack the plant-based protein code to the satisfaction of the muscle-bound sports industry.
The company that we think finally did it landed itself an exclusive contract with one of the most popular brick-and-mortar sports nutrition stores: GNC.
And it’s about to launch on Amazon’s Launchpad platform.
And they’re not just brand ambassadors for a bridge between these growing industries …
They’re strategic investors.
The Numbers Behind Our Favorite Industry Bridge
Last year saw double-digit growth in the plant-based foods industry. Up by 27% in a single year, the plant-based food market grew almost twice as fast as the U.S. retail food market, which only saw a 15% increase in 2020--even as consumers stocked up on food for pandemic lockdowns.
Nearly 57% of American households now buy plant-based foods.
Analyst Kyle Gaa of the Good Food Institute called 2020 a “ breakout year for plant-based foods ”, citing “incredible growth” surpassing expectations.
SPINS head of retail Dawn Valandingham likewise noted that 2020 data indicates that retailers “should now assume everyone is a potential plant-based buyer”.
And while many consumers are looking for products that are better for them, the equally booming sports nutrition and supplements industry has also become a critical plant-based focal point. The global sports nutrition industry not only hit $10.7 billion last year, but it’s also expected to continue on a compound growth trajectory.
And if you add supplements to that, you’re looking at an anticipated industry value of over $35 billion by 2025.
The COVID-19 crisis appears to have sold consumers on the idea that the pandemic “proves that humans need to eat fewer animals”. And the market looks to have responded to these consumer interests with an aggressive level of ambition that has opened up some of what we think are the best investment--and most disruptive--opportunities in decades.
In minimal time, some plant-based stocks have increased to multi-billion-dollar valuations, and netted investors attractive rewards:
1) Beyond Meat /zigman2/quotes/211617595/composite BYND +2.17% now has a $6.65-billion market cap.
2) Oatly /zigman2/quotes/226726562/composite OTLY -0.69% has topped $9-billion.
3) Tattooed Chef Inc is up over 98% since its launch 5 years ago and now boasts a $1.6B market cap.
4) United Natural Foods /zigman2/quotes/202981234/composite UNFI +0.10% , the key supplier to Amazon’s Whole Foods, has given investors over 100% returns in a year.
5) YUM! Brands /zigman2/quotes/209029767/composite YUM +0.90% , which is now focused on a plant-based menu, has worked its way to an astounding $38B market cap.
PlantFuel CEO Brad Pyatt, a former NFL player himself, defines this industry trend as a much wider “active lifestyle” trend that is estimated as $53 billion --and counting.
What Peloton did for fitness...
What Oatly has done for plant-based milk …
What Beyond Meat has done for the vegan industry …
The Breakthrough Premium
The PlantFuel launch in GNC stores earlier this month features five new products including All-in-One Pre-Workout, All-in-One Nutrition, All-in-One Recovery, Performance Protein, and Daily Immunity and Hydration.
In our view, this isn’t just another protein drink, either.
This is rooted in science and cutting edge technology. PlantFuel says it uses clinically proven and scientifically validated ingredients for optimal performance.
Not only have they created a protein powder that we think actually tastes good, but they’ve done it with premium plant-based ingredients.
The company is also conducting research to demonstrate its plant-based protein is just as effective as animal-based protein, or whey.
America is obsessed with protein --and it’s no longer the purview only of bodybuilders and athletes. Two out of every 5 Americans say they consume protein drinks and shakes. It’s a national obsession, but it has its own set of nutrition problems.
Whey--a byproduct of turning milk into cheese--may not be all it was initially cracked up to be. Some say dairy-based protein isn’t healthy. Beyond the digestive issues that can be caused by dairy and highlighted by the growing trend to give up dairy altogether, many protein drinks out there could contain toxic elements that pose great health risks.
But whey has long had one advantage: It’s animal-based amino acids have always out-performed their plant-based peers.
That’s where PlantFuel believes it can do the impossible, and that’s the key to owning this emerging market.
PlantFuel’s science-based product is premium in more ways than one: They’ve added amino acids that they say match those found in whey … and they’ve also added performance mushrooms.
Now on offer, with a lineup of new products still to come …
1) All-in-One Nutrition features 20g of complete plant-based protein plus 29 fruits and vegetables, as well as clinically studied Wellmune® beta glucan for immune system health to provide you with complete nutrition on the go. The initial flavor offerings include Chocolate and Vanilla.
2) Performance Protein delivers 20g of complete, plant-fueled protein with added vegan-fermented BCAAs as InstAminos® and PeakO2® performance mushrooms. The initial flavor offerings include Chocolate and Vanilla.
3) All-in-One Pre-Workout uniquely features patented 3DPump -Breakthrough™ with vegan-fermented citrulline, glycerol and Amla fruit extract to support exercise performance, recovery and nitric oxide; along with 250mg of Purcaf® Organic Caffeine plus 85mg of Dynamine® to increase perceived energy and alertness. The initial flavor offerings include Fruit Punch, Watermelon and Blue Raspberry.
4) All-in-One Recovery provides vegan fermented BCAAs as InstAminos® with essential amino acids as vegan Amino9® plus vegan CreaPure® Creatine and BetaPrime® to reduce soreness and recovery time, and optimize muscle protein synthesis. The initial flavor offerings include Blood Orange and Berry Breeze.
5) Daily Immunity + Hydration features clinically proven ingredients Wellmune® to strengthen the immune system, and Aquamin™ calcified sea algae to provide superior hydration benefits. PlantFuel® Daily Immunity + Hydration is the proven choice to fuel your daily active lifestyle. The initial flavor offerings include Citrus Burst, Tropical Punch and Raspberry Lemonade.
Celebrities Join The ‘No F***ing Whey’ Campaign
We think nothing heralds the launch of a company looking to bridge two massively growing industries like a celebrity buy-in.
On August 31st, PlantFuel ( CSE: FUEL ; OTC: BLLXF )announced strategic investments by NFL Hall of Fame Wide Receiver Terrell Owens and Rap Superstar Lil Yachty, adding even more excitement to the retail launch of this premium brand.
Former NFL star Terrell Owens
"As everyone knows, throughout my professional career I've been in phenomenal shape and extremely conscious about what I put in my body," said former NFL star Terrell Owens. "From Day 1, I was thoroughly impressed by my exploration of PlantFuel and its products. I am excited about my partnership with PlantFuel and delighted to join their team."
For Lil Yachty, PlantFuel is his second deal with his newly launched VC fund, Scoop Investments.
NFL and music industry celebrities add even more power to PlantFuel’s management team. PlantFuel was founded by a former NFL player, as well, and is being led in its marketing efforts by a former business development leader for Amazon.
PlantFuel’s founder and CEO is former NFL player Brad Pyatt , who previously has already built one $200-million empire.