Category Archives: Sustainable Food

Unilever targets $1.2 billion sales target for meat and dairy alternatives but it’s simply not good enough

Unilever targets $1.2 billion sales target for meat and dairy alternatives but it’s simply not good enough

The plant-based meat market is expected to grow enormously in the coming years given the shift in consumer preferences for sustainable. Barclays predicting the market will grow by more than 1,000% over the next 10 years to reach $140 billion by 2029. It comes as no surprise to us then that companies would look to capture that tailwind to drive revenues, profits and cash flow.

Recently Unilever (UL) announced plans to dramatically increase sales of plant-based meat and dairy alternatives as part of a new sustainability program designed to shrink the environmental footprint of its food brands. While the company targets $1.2 billion of plant-based foods and dairy alternatives over the next five to seven years, consensus revenue forecasts put the company’s 2023 revenue near $64.4 billion.

Despite Unilever’s good intentions, that context means less than 2% of its revenue in the coming years would be derived from plant-based foods and dairy alternatives. Under the Tematica scoring system that barely gives the company a low-level “1” score for our Sustainable Future of Food investing theme and index with Foxberry.

The Anglo-Dutch consumer goods giant said last week that it plans to sell more than $1.2 billion worth of plant-based foods and dairy alternatives within the next five to seven years, largely by boosting sales from its The Vegetarian Butcher brand and increasing the number of vegan alternatives across its extensive portfolio.

Unilever acquired plant-based meat company The Vegetarian Butcher in late 2018 and since has expanded the brand into more than 30 countries and secured a major supply deal for the firm’s vegan patties and nuggets with Burger King. In the same time frame, it has launched a number of vegan products for its most high profile brands, including Hellman’s, Magnum and Ben & Jerry’s.

“As one of the world’s largest food companies, we have a critical role to play in helping to transform the global food system,” said Hanneke Faber, president of Unilever’s food and refreshment division. “It’s not up to us to decide for people what they want to eat, but it is up to us to make healthier and plant-based options accessible to all. These are bold, stretching targets which demonstrate our commitment to being a force for good.”

 

Source: Unilever sets $1.2B sales target for meat and dairy alternatives | Greenbiz

Be The Change You Want to Eat?

Be The Change You Want to Eat?

After over 920 years, Oxford University has been prompted to make a bold step forward in making menu changes that will not only benefit the environment (assuming more institutions follow suit) but also help their students lean towards a healthier diet. No word on the fate of the “traditional English breakfast” – yet.

BURGERS and lamb chops may soon be off the menu after Oxford students voted to ban meat from the university.

Source: Students vote to ban meat from university

The Future of Agriculture is Now!

The Future of Agriculture is Now!

In as much as hydroponic farming was an agriculture curiosity in the 1980’s (and quickly relegated to growing “Hydro Weed”) that technology coupled with some clever algorithms and space planning has given rise to crop yields that would make John Malthus himself throw up his hands in frustration.

95% less water. 99% less land. 400X more yield.

Source: This 2-Acre Vertical Farm Out-Produces 720 Acre ‘Flat Farms’

Thematics outperform the broader equity markets in October

Thematics outperform the broader equity markets in October

A confluence of factors weighed on equities in October including the resurgence of the coronavirus that resulted in fresh restrictions late in the month, scuttled fiscal stimulus talks in Washington, renewed US-China trade tensions, the continuation of Brexit talks, and the lead up to the final innings of the contentious 2020 US presidential election. The end result saw the major market indices record their worst month in several with the S&P 500 shedding 2.8%, which added to its September losses and left it up 1.2% through the first 10 months of 2020. The Dow Jones Industrial Average fell 4.6% in October, leaving it down 7.1% with two months left to go in 2020. In comparison, all six of Tematica Research’s thematic indices outperformed both of those major market barometers in October, once again confirming that only by thinking differently can investors hope to outperform.

With Election Day 2020 having finally arrived, investors are anxiously waiting for the presidential results and those for the U.S. Senate, which will determine its political composition for the next few years. There is chatter of a potential Blue Wave, but we are likely in for a nail biter of an evening.

Barring a landslide victory by either Trump or Biden, which, depending on your view of potential swing states is either highly probable or wishful thinking, the probability is high the next president will not be declared quickly. Indeed, we would not be surprised if a contested election emerges. When that happened in 2000, it took five weeks, complete with recounts and court rulings, to know the outcome of the presidential race, and in that time volatility was a recurring factor for U.S. equity markets.

If we get a split decision — a president from one party with the other party a majority in the Senate — odds are we are in for four years where little will get done in Washington. It wouldn’t be the first time.

Stepping back we have to ask: will a changing of the guard have a demonstrative impact on our investment themes and indices?

Will the shift to digital shopping slow in the near-term? Probably not, especially given what is unfolding with the COVID-19 pandemic.

Will people stop streaming video content? Not likely. Even Walt Disney (DIS) now refers to its box office facing business as a legacy one as it focuses on its Disney+ streaming service.

Are people going to stop looking for food and other products that have cleaner ingredients and environmentally friendly packaging? Will farmers stop buying agricultural equipment that will help drive crop yields and productivity? Doubtful on both counts.

Will the deployment of 5G networks and 5G smartphones come to a grinding halt? Again not likely.

And so on…

Yes, the players in Washington may change and during that process, there will be some immediate to short-term volatility but the structural changes that power Tematica’ investment themes will continue on. That said, we’ll be sure to watch policy changes and regulatory mandates in the coming quarters to identify any potential headwinds as well as new tailwinds that could further entrench the structural changes that underpin our investment themes and indices.

Impossible Foods Seeking World’s Best Scientists

Impossible Foods Seeking World’s Best Scientists

Not content to simply offer alternatives to beef production and consumption, Impossible Foods announces goal to “Eliminate Animal Agriculture”

With a mission to reverse global warming and halt catastrophic biodiversity collapse, Impossible Foods is replacing the world’s most destructive technology – the use of animals to transform plants into meat, fish and dairy foods.

Source: Impossible Foods Is Doubling Its R&D Team and Seeking World’s Best Scientists To Help Eliminate Animal Agriculture

What Is Precision Farming, And Who Are The Players To Watch?

What Is Precision Farming, And Who Are The Players To Watch?

Food is perhaps the best known consumable product, and the economic laws of supply and demand are pointing to an emerging pain point unlike any we have seen in recent history. To combat this looming problem, the agriculture industry is embracing technology, much of which is similar to that housed inside the smartphones we use today, giving rise to the precision agriculture market.

Read more here

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