South Africa lifts alcohol ban for the third time (BUD)
South Africa will now allow limited sales of alcohol after lifting its third ban on alcohol sales. The South African President announced that alcohol sales would be permitted for licensed premises for offsite consumption from Monday through Thursday 10 AM to 6 PM. Premises licensed for onsite consumption are permitted during the week from 10 AM to 10 PM. The latest ban on alcohol sales began on December 28. The government says the country has passed the peak of the second wave. South Africa also received its first million doses of COVID-19 vaccines.
A quarter of the country’s alcohol sales before the pandemic was estimated to be illicit, so the ban had limits. South African alcohol excise taxes decreased 28% YOY, with the three bans covering 20 weeks. South Africa is the 12th largest beer consumer globally, and AB InBev has nearly 90% of the formal market share. South Africa also had the most COVID-19 infections and deaths on the continent.
Stryve Foods coming public (ANDA)
Stryve Foods has reached a definitive agreement to merge with SPAC Andina Acquisition Corp. (ANDA). When the transaction is closed, it will trade under the ticker SNAX. Stryve produces paleo and keto-friendly biltong meat snacks. Biltong is a South African air-dried meat that utilizes a curing process. The products are available in 17,000 retail outlets, including Walmart, Sprouts Farmers Market, CVS, and online. Products include South African style biltong and Latin American style Carne Seca. Compared to beef jerky, which is cooked, the process of air-drying has up to 50% more protein per serving and less processing/ingredients.
The company is projecting revenue to double to $51M this year after doubling in each of the past two years. At closing, the company would be valued at $170M, including a $42.5M private placement. The merger is expected to close in Q2. Stryve raised $20-25M in the spring of 2020 and $16.5M in its previous round. The capital was mostly invested in its production facilities and marketing. Jaxie Alt, named co-CEO last year, was previously the co-chief marketing officer at Dr. Pepper Snapple.
The competition in plant-based meat products is unceasing (BYND)
Plant-based meat sales grew 148% in 2020. The plant-based food trend is receiving increased focus from the food industry. Many companies are investing R&D into the category due to the growth and changing consumers’ preferences. Technology is not a barrier to entry into the category. Beyond Meat may have captured a lot of attention with its IPO and penchant for press releases, but it isn’t easy to find a food company not expanding into the category. While Beyond Meat has focused mostly on beef substitutes, other companies have pursued additional proteins. Schouten has been developing plant-based proteins since the 1990s and recently expanded into plant-based tuna. Just Egg significantly expanded its capacity in 2020 and is developing new egg substitute meals. Quorn has launched its chicken alternative wings made from fungi in Fatburger restaurants in January. New Wave Foods is about to launch plant-based shrimp.
Each week a new plant-based meat product seems to be launched. This week’s launches include:
- Under its Field Roast brand, Maple Leaf Foods (MFI CN) is launching plant-based hot dogs made from pea protein, brown rice, and fava bean. The plant-based hot dogs have the same protein as traditional hot dogs but less sodium. Maple Leaf Foods acquired Field Roast Grain Meat, a plant-based food manufacturer, in 2017.
- Franklin Farms is launching vegan and non-GMO burgers made with tofu, soy protein, and textured wheat protein.
- Rebellious Foods expands its portfolio of frozen plant-based meat alternatives by adding patties, tenders, and a reformulated nuggets recipe. Rebellious Foods raised $6M in Series A funding last year to target plant-based chicken product alternatives.
