Meat Alternatives & Packaged Meats Play

Building positions in the alternative meat industry. Both plant-based meats as well as cultured (lab-grown) meat projects.

Industry

Food > Packaged Foods > Meat Alternatives

Stocks: 4
Strategy: Monthly DCA (ca. $350)

Monthly P/L: TBD
(since inception 2024-05)

Why is it a good industry to invest in?

Population is always increasing (newborns, people live longer) and people like meat and need its protein. Farming cattle is very bad for the environment, which will only get worse if production needs to increase. Another aspect is that animals need to die to get meat.

To do:

  • IPO watch: Watch for new lab-growing meat companies entering the market.

Stock Selection

INGR – Ingredion Incorporated

Wholesaler plant based ingredients, mostly food but also for pharma, beaty and other applications.

Summary

  • 3d printing food
  • Machine technology and ink (cells get mixed in ink) can be a lucrative business, small companies / farms / labs could easily start producing this way.
  • Starting to scale up their output

Conclusion

Pure gamble, no revenue data or forecasts, high risk

Risk: Save
Layer: Source Materials

Exchange NYSE
Website company website
Country USA
Employees 12,000
Founded 1906
Report DCF & Analysis

STKH – Steakholder Foods

3D printer technology that prints cell-based lab-grown meat into its final form.
Still in research and development, they will look to sell machinery and licence their technology.
They will also sell an ink basis that is needed to mix in the lab-grown animal cells.

Summary

  • Healthy financials
  • Good dividend (2.60%)
  • Good steady past performance
  • One of the cleanest managed and steady performing stocks i seen

Conclusion

Great value stock, will be a steady grower that provides a divi

Risk: High Risk
Layer: Manufacturing machines / supplies

Exchange NYSE
Website company website
Country Israel
Employees  
Founded 2019
Report DCF & Analysis

TSN – Tyson Foods

Second biggest meat processor (after JBS). From cattle to packaged meats. Also plant based alternatives and investments in lab-grown meats.

Summary

  • Has dividend (3.29%)
  • Second biggest meat processor (after JBS)
  • Plant based options
  • Big investments in Upside Food and Future Meat Technologies (Believer)
  • Has plant based meat brands already
  • Current meat provider ready for adoption when technology is ready.

Conclusion

Relatively safe. Best of both worlds, current meat and future adoption.

Risk: Average
Layer: Finished Products

Exchange NYSE
Website company website
Country USA
Employees 139,000
Founded 1935
Report DCF & Analysis

BYND – Beyond Meat

Packaged plant-based meat alternative brand.

Summary

  • Leader in plant based meat alternatives
  • More debt than market cap
  • High short float >40%
  • Decline in sales passed years (overall plant-based market sales were down the past years)
  • They are starting to take more production in-house

Conclusion

Risky but is popular brand, hopefully it turns around
Short-squeeze potential? but again … super risky

Risk: High Risk
Layer: Finished Products

Exchange NYSE
Website company website
Country USA
Employees 686
Founded 2008
Report DCF & Analysis

Industry Layers

  • Farming
  • Ingredients wholesale
  • Lab-grown Technology
  • Product manufactures / brands – plant based
  • Product manufactures / brands – lab-grown / cultured meat

Sub-Industry

  • Meat
  • Fish

This portfolio

  • Plant based ingredients: INGR provides ingredients to plant-based processors.
  • Plant based alternative meats: BYND is a well known brand for plant-based meat. Currently in a downtrend.
  • Current meat processor: TSN is the second largest packaged meat provider in the world. With plant based products and also investments in lab-grown meat.
  • Lab-grown process machinery: STKH develops printers that print lab-grown cells into meat, still in development and they will look to sell machines and licence their technology and supplies.

Future portfolio

  • Lab-grown packaged meat brands: We don’t have a specific stock that focuses purely on bringing lab-grown meat to the market. Keep an eye out for IPO’s and evolutions in this space.
    • currently most cultured meat makers are private companies still in research and development

Cons of current meat

  • Population is always increasing and more meat will be needed
  • Animal farming are bad for environment
  • Current meat kills animals
  • Animals that are going to be farmed need a lot of antibiotics Some animals are hard to farm in certain regions
  • Process of growing animals to slaughter them takes a lot of time

Pros about plant-based meat alternatives

  • Healthier then meat
  • Animals don’t have to die
  • Less pollution

Cons about plant-based meat alternatives

  • Still lot of hesitation from the market and meat enjoyers. Last couple of years sales have been down.
  • Plant based doesn’t have the same proteins as in meat based

Pros about lab-grown meat

  • Solution to keep meat and have less polution
  • Animals get to keep living after cells are taken.
  • No disseases and antibiotics in meat.
  • Hybrid meats (a mix of plant based and lab-grown animal fats) would be the most scalable solution.
  • Faster process than growing animals
  • Any meat can be created in any region.

Cons about lab-grown meat

  • Still very expensive
  • Currently not very scalable
  • Can still be bad for the environment at current scale
  • Need super-clean processing environment, the tiniest bacteria will ruin the whole batch
  • Still in research and development. No mass-production solutions available yet.
  • Only a few countries allow meat to be grown from cells.