21st October 2021 By Bridget O'Connell | firstname.lastname@example.org | @foodtickernz
New Zealand hemp meat trailblazer Sustainable Foods is preparing a $1.5m capital raise as it looks to scale for market penetration and growth both here and overseas.
The company led by chief executive Justin Lemmens and business development manager Kyran Rei is looking for wholesale investors to back its growing portfolio of hemp-based meat alternatives marketed under its Plan*t brand.
Having recently consolidated its production sites to a new scalable facility in Paraparaumu, the Kapiti Food Hub, Sustainable Foods said it has “the base capability, product, production, brand, sales channels, and business relationship” to now focus on building out its domestic and international markets.
According to documents filed with investment platform Snowball Effect, it is looking for capital to support this move against the backdrop of a fast-growing plant-based food sector.
“Its growth strategy includes continuing new product development around range, ingredients and sourcing localisation, growing domestic revenue, pursuing international market opportunities and growing the core Sustainable Foods team,” the documents said.
Lemmens has previously told the Ticker about Sustainable Foods’ export-led expansion plans. They would focus on Australia and other Asia Pacific markets such as Singapore, Hong Kong, China, Japan, with a goal of $20m of revenue within five years.
In New Zealand, Sustainable Foods has already established retail sales channels with Foodstuffs and Countdown, as well as a strong foodservice footprint working with leading distributors, as well as quick service restaurant brands including Hell Pizza, Burger Wisconsin, Tank Juice and Gorilla Burger.
According to the offer preview, Sustainable Foods achieved revenue of $606,000 in full year 2021 and is targeting more than $2m revenue in full-year 2022 based on year-to-date revenue of $741,000 from 1 April to 30 September 2021.
The documents said domestic revenue by channel is tracking at 75% retail and 25% foodservice over the last four months given the pandemic impact.
Further revenue growth is expected in Q3 FY22 with the launch of its new chick*n products.
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