2020 was a banner year for VC investments in food & ag. technology investments (APPH)
APPH is a SHORT
In 2020 $17.3B was invested in food technology, and $5B was invested in agriculture technology companies. Food technology investments were up 73% YOY to a record high. Agriculture technology investments doubled YOY also to a record high. In food technology, delivery startups, e-commerce, and meal kit companies saw the largest investments. There were 631 funding rounds according to Finistere Ventures’ 2020 Agrifood Tech Investment review.
Since 2020, there have been more than $46B in public market exits for food-technology companies. There were four indoor agriculture companies among the top ten VC investments in agriculture technology totaling $720M. In food-tech, there were five meal kits and delivery companies in the top ten VC investments totaling $2.8B. More food-tech companies are expected to go public this year, with Oatly expected to begin its roadshow soon. There have also been reports that Eat Just, Chobani, and Impossible Foods will go public later this year.
Mexican beer imports decelerate (STZ)
Total beverage alcohol imports declined 4% by value over the past 12 months and declined 2% by value over in Q1, as seen in the chart below. 35% of all imported beverage alcohol imports by value came from Mexico over the period.
- Imported beer was flat by volume and grew 2% by value over the last 12 months. In Q1, imports were flat in volume and grew 2% by value. In the three months ended February, volumes grew 11% while value grew 13%. 72% of imported beer by value comes from Mexico. Imports by volume from Mexico declined 0.7% in March and were down 0.4% in Q1. Constellation Brands imports have slowed as inventory levels at distributors have returned to normal levels.
- Imported packages spirits for the last 12 months grew 3% by volume and declined 5% by value. Over the last three months, volumes grew 9% and grew 4% by value. 33% of all imported packaged spirits by value came from Mexico.
- For the last 12 months, imported packaged wine grew 9% by volume and declined 9% by value. In Q1, volumes grew 1% and declined 9% by value. For the last 12 months, exported packaged wine decreased 11% by volume and declined 8% by value. In Q1, volumes grew 6% in volumes and 4% by value. 42% of all exported packaged wine by value is destined for Canada.
Canadian beer sales accelerate (TAP)
Canadian domestic beer sales increased 10.3% by volume in March YOY, accelerating from 1.0% growth in February, as seen in the chart below. Imported beer volumes fell 21.3% in March, improving from the -30.4% decline in February. Exports increased 1.6% in February, decelerating from the 10.9% in January (reported on a one-month lag). Beer volumes in Canada had been relatively flat in 2020. The strong results in March combined with the easier comparisons in April could lead to another month of accelerating sales.
