|The Stock Market is ultimately a reflection of the society we live in. So it is no surprise to see that it is giving its seal of approval to meat substitute companies as well as retailers who are increasingly focusing on plant based foods.
Shares in the British bakery Greggs Plc surged earlier this week after it announced that its sales and profits will be “materially higher” than expectations this year.
The reason? Well Greggs announced that its “very strong” start to 2019 has been given real momentum by the huge demand for its vegan sausage rolls – the vegan version of its hitherto most popular product. The rolls are now available in all of its high street and train station stores after the success of the pilot project which was reputedly twice as successful as the company had originally hoped for in terms of actual sales. Demand for the new roll actually outstripped supply. Consumers on the High Street are craving vegan options and that is what Greggs is finding success with.
Plant based food driving profitability
The company also claims that the vegan roll has caused increased store traffic which increases sales in general.
Greggs launched the vegan roll earlier this year on social media. It got the best possible publicity when Piers Morgan tweeted out to his 6.5 million twitter followers just how awful it was. Bingo!
Who would have thought that a stock market buzz would all be down to ninety-six layers of puff pastry and a Quorn filling?
Later this summer Greggs plans to relaunch its Mexican bean & sweet potato wrap to further cater for this growing market. The Company’s strategy for future growth is unlikely to ever be a “staple for carnivores” so expect more vegan offerings to follow soon. The Company is currently not experiencing the gloom that hangs over Britain’s retail sector. Quite simply, plant based food is driving its profitability
Bloombergs noted this development pointing out that Greggs shares have almost doubled in the past year
Beyond Meat Substitute companies soaring too
Over in the USA, Beyond Meat Inc’s stock has almost tripled since its IPO earlier this year. Its shares had another impressive hike of some 16% on Wednesday when Tim Hortons, a Canadian coffee shop giant announced that it would introduce three new sandwiches using Beyond Meat’s meatless sausage.
“As Canadians’ tastes and culinary preferences evolve, Tim Hortons is looking to provide new options for guests with a new Beyond Meat breakfast sandwich test,” said a company press release issued on Wednesday morning. “Starting today, select stores will be testing three delicious new breakfast options made with the 100 per cent plant-based Beyond Meat Breakfast Sausage patty.”
In addition, according to Bloomberg, Impossible Foods has also just raised $300 million this month.
Beyond Meat and Impossible Foods look set to become a 21st Century version of the Coke / Pepsi battleground for market share. They are out there seeking market share by combining with North American fast food outlets.