Above Food Strengthens its Pet Food Ingredient Platform with Recent Montana-Based Asset Acquisition
22 Agosto 2024 - 9:45AM
Above Food Ingredients Inc. (Nasdaq: ABVE, ABVEW) (“
Above
Food” or the “
Company”), an innovative
food company leveraging its vertically integrated supply chain to
deliver differentiated ingredients and consumer products, today
announced additional details related to its expanded pet food
ingredients business in connection with its recent acquisition of
the specialty crop food ingredient division (the “Assets”) of
Montana-based The Redwood Group, LLC (“TRG”). This strategic
acquisition significantly enhances Above Food's presence in the
rapidly growing plant-based pet food market, positioning the
Company to capitalize on emerging trends and meet increasing
consumer demand for high-quality, plant-based pet nutrition.
“This acquisition significantly enhances our
position in the rapidly growing plant-based pet food market,
expanding our total pet food business to approximately US$110M, or
25% of our combined revenues on a proforma basis”, said Lionel
Kambeitz, Founder, President, Chief Executive Officer and Executive
Chairman of Above Food. “Furthermore, our seed-to-fork platform
uniquely positions us to serve the evolving needs of the
plant-based pet food industry, previously demonstrated by
delivering a 13% organic CAGR in our legacy pet food business since
2022. By controlling every step from seed selection and farming to
ingredient processing and formulation, we offer unparalleled
traceability, quality control, and customization capabilities. This
vertical integration allows us to develop innovative, nutritious
plant-based ingredients specifically tailored for pet food
applications, meeting the growing demand for high-quality,
sustainable pet nutrition solutions. As pet parents increasingly
seek transparent, plant-based options for their pet companions,
Above Food's comprehensive approach enables us to be an invaluable
partner to leading global pet food manufacturers. We can rapidly
respond to market trends, ensure consistent supply of premium
ingredients, and support our partners in developing differentiated
products.”
Strategic Importance of Leadership in
Pet Food Market
The pet food industry represents a substantial
and growing opportunity for Above Food, driven by several key
factors:
- Large and Growing
Market: The US$26 billion global plant-based pet food market is
projected to grow at a CAGR of 9% through 2032, according to Future
Market Insights. This growth is outpacing the overall pet food
market, indicating a strong shift towards consumers adopting
plant-based protein formulations for their pets.
- Expanding Pet
Ownership: 66% of US households own a pet, according to the
American Pet Products Association. The US pet population has been
consistently growing at 1-2% annually from 2013-2022, as reported
by Euromonitor. This trend is expected to continue, creating a
steadily expanding customer base for pet food products.
- Pet Humanization
Trend: According to Packaged Facts, 92-96% of US pet owners view
their pets as family members. This “humanization” of pets has been
a strong long-term trend for over a decade, transforming pet owners
into “pet parents” who prioritize their pets' well-being and are
willing to invest in premium nutrition options.
- Health and
Nutrition Focus: Mirroring trends in human nutrition, pet parents
are increasingly seeking healthier, higher-quality food options for
their pets. There's a growing demand for fresh, natural, and
organic plant-based food products with transparently sourced
ingredients. This trend has been further accelerated by the
COVID-19 pandemic, with 48% of pet parents reporting feeling closer
to their pets due to the pandemic, according to an American Pet
Products Association's Pulse Study.
- Plant-Based
Innovation: The plant-based food movement is driving innovation in
pet food, with ingredients like chickpeas and flaxseed becoming
increasingly popular alternatives to traditional soy, corn, and
wheat proteins. This shift opens up new opportunities for
differentiated ingredient suppliers like Above Food, now North
America’s largest chickpea manufacturer following the acquisition
of TRG, to become valuable innovation partners with manufacturers
in developing novel, nutritious plant-based pet food
formulations.
- Market Resilience:
The pet category has historically shown resilience during economic
downturns, as consumers continue to prioritize spending on their
pets even when tightening budgets in other areas. This resilience
was demonstrated during both the financial crisis in 2008 and the
COVID-19 pandemic when the pet industry experienced positive growth
despite a reduced appetite for consumer spending.
About Above Food
Above Food Ingredients Inc. (Nasdaq: ABVE,
ABVEW) is an ingredient company that celebrates delicious products
made with real, nutritious, flavorful ingredients delivered with
transparency. Above Food’s vision is to create a healthier world —
one seed, one field, and one bite at a time. With a robust chain of
custody of plant proteins, enabled by scaled operations and
infrastructure in primary agriculture and processing, and
proprietary seed development capabilities that leverage the power
of artificial intelligence-driven genomics, Above Food delivers
nutritious foods to businesses and consumers with traceability and
sustainability. Above Food’s consumer products and brands are
available online at www.abovefood.com and in leading grocers across
Canada and the United States.
Cautionary Statement Regarding
Forward-Looking Statements
This press release may contain “forward-looking
information” within the meaning of the United States federal
securities laws and applicable Canadian securities laws. These
forward-looking statements generally are identified by the words
“believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” future,” “opportunity,” “plan,” “may,” “should,”
“will,” “could,” “will be,” will continue,” and similar expressions
and include, without limitation, statements about the ability of or
expectations regarding the future performance of our business and
operations.
Forward-looking statements are based on the
current expectations of Above Food's management and are not
predictions of actual performance. These forward-looking statements
are provided for illustrative purposes only and are not intended to
serve as, and must not be relied on, by any investor as a
guarantee, an assurance, a prediction or a definitive statement of
fact or probability. You should carefully consider all of the risks
and uncertainties described in the documents filed by the Company
with the United States Securities and Exchange Commission, which is
available on EDGAR at www.sec.gov/edgar.shtml. There may be
additional risks that Above Food presently does not know or that
Above Food currently believes are immaterial that could also cause
actual results to differ from those contained in forward-looking
statements. In addition, forward-looking statements provide Above
Food’s expectations, plans or forecasts of future events and views
as of the date of this communication. Above Food anticipates that
subsequent events and developments will cause Above Food’s
assessments to change. However, while Above Food may elect to
update these forward-looking statements in the future, Above Food
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Above Food’s assessments as of any date subsequent to
the date of this communication. Nothing herein should be regarded
as a representation by any person that the forward-looking
statements set forth herein will be achieved or that any of the
contemplated results in such forward-looking statements will be
achieved. You should not place undue reliance on forward-looking
statements in this communication, which speak only as of the date
they are made and are qualified in their entirety by reference to
the cautionary statements herein.
Contacts
Media:media@abovefood.com
Investors:investors@abovefood.com
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