Plant-Based Offerings are Increasingly Important for Food Service Businesses, According to Recent Survey - Sol Cuisine is Positioned for Growth
- A July 2021 survey conducted by Hanover Researchi found that more than half of consumers indicate they would reconsider going to a restaurant that did not offer vegetarian or vegan options.
- Sol Cuisine is seeing strong demand and growing interest in its products as restaurants refresh menus to coincide with staged re-opening.
- The Company's range of plant-based food service offerings includes beef, chicken and fish analogs as well as various vegetable appetizers and entrees.
MISSISSAUGA, ON, July 21, 2021 /CNW/ - Restaurants in North America that do not offer an adequate selection of vegetarian and vegan menu items could find themselves losing customers as the industry reopens in the wake of the COVID-19 pandemic.
That is the key finding from recent survey results released today by Sol Cuisine Ltd. ("Sol Cuisine" or the "Company") (TSXV: VEG) a growth-oriented North American plant-based protein leader, with an expansive food service distribution network in Canada and the U.S. The Company's survey, conducted by Hanover Research, which polled 500 Canadian and U.S. consumers in July 2021 (the "Study") found that more than half of respondents would "reconsider going to a restaurant that did not offer vegetarian or vegan options." This is a direct result of the increasing number of vegetarians visiting restaurants as part of a larger group. The survey also revealed that 65% of respondents indicated that they go to restaurants with vegetarians sometimes, often, or very often. Excerpts of the Study are available below.
Sol Cuisine started providing the food service industry with vegan options more than 20 years ago when its founder Dror Balshine, a vegan himself, had difficulty finding food options while traveling across Canada for business. Today, Sol Cuisine has an established food service network across North America supplying plant-based products to some of the world's most recognizable restaurant chains. The plant-based protein market in the North America is expected to grow to US$13.8 billion by 2027ii. The plant-based segment of the food service sector in the U.S. currently generates approximately US$1.68 Billioniii in annual sales.
Sol Cuisine's extensive network of food service partners includes over 4,000 locations across Canada and the U.S. The Company continues to see strong demand for the 20 SKUs it offers to food service customers, including versions of its Hot & Spicy Chik'n Wing, Meatless Chik'n Tender, Meatless Extreme Burger, Sunflower and Beet Burger and Italian Meatball.
During fiscal 2020, the Food Service & Industrial channel accounted for approximately one-fifth of Sol Cuisine's Revenue.
The Study
The Study of 500 consumers in Canada and the U.S. was conducted by Hanover Research in July 2021, focused on ascertaining consumer attitudes and behaviour toward plant-based offerings, specifically within the food service sector. A selection of the results is included below:
- 52% of consumers surveyed indicated that they would reconsider going to a restaurant that did not offer vegetarian or vegan options;
- 65% of respondents indicated that they go to restaurants with vegetarians sometimes, often, or very often;
- 50% of these consumers indicated that the presence of vegetarian options has increased in importance in the past 2 years; and
- Only 3% of consumers said that plant-based options/meat alternatives are not at all important to them.
John Flanagan, CEO of Sol Cuisine commented, "The food service portion of our business is an important growth area, particularly as restaurants and other businesses re-open in alignment with the loosening of COVID-related restrictions in Canada and the U.S. The Study conducted by Hanover Research corroborates what we are seeing on the ground. Consumers want restaurants to offer more and better plant-based options, and restauranteurs are accommodating, with growth both in new launches as well as a deeper menu. We expect that consumers will continue adding larger proportion of plant-based foods into their diet, both at home as well as on the go. With a deep portfolio of best-in-class, highly differentiated products aimed at food service customers, Sol Cuisine is positioned to be a North American partner of choice as we all get back to enjoying the food we love, with friends."
For more details, visit Sol Cuisine's IR website at: investors.solcuisine.com or contact the IR team at [email protected].
About Sol Cuisine Ltd.
Sol Cuisine is the publicly traded parent company of Sol Cuisine Inc. following the completion of its "qualifying transaction" on May 19, 2021. Sol Cuisine is a fast-growing producer of branded and private label, consumer-preferred plant-based protein offerings across key center-of-plate and appetizer categories. The Company's products are offered through an established omni-channel distribution platform in Canada and the U.S. and are available in over 11,000 stores and more than 41,000 unique points of distribution across four primary channels: Canada Retail Sales & Club; U.S. Retail Sales & Club; Food Service & Industrial; and Private Label. Over a history of 20+ years, Sol Cuisine has consistently demonstrated an ability to innovate and delight consumers in Canada and the U.S., while remaining true to its commitment to producing great tasting products that are nutritionally superior both to meat-based offerings and to competitive plant-based products. This commitment has resulted in several Canadian product wins, including the #1 frozen plant-based burger in Canada, the #1 consumer-preferred chicken alternative and the #1 quality roast product as determined by Whole Foods Market. The Company's taste and nutritional superiority has also resulted in private label contracts with some of the most recognized natural brands in North America. These products are all produced at Sol Cuisine's two state of the art facilities, totaling 35,000 square foot facility in Mississauga, Ontario, capable of supporting up to 10 million kilograms of volume per annum.
For more details on Sol Cuisine's consumer brands:
Website: www.solcuisine.com
Instagram: @solcuisine
Facebook: @solcuisine
Twitter: @solcuisine
LinkedIn: @solcuisine
Forward Looking Statements
This press release includes forward-looking information within the meaning of Canadian securities laws regarding the Company and its business. Often but not always, forward-looking information can be identified by the use of words such as "expect", "intends", "anticipated", "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would" or "will" be taken, occur or be achieved. Such statements are based on the current expectations and views of future events of the management of each entity, and are based on assumptions and subject to risks and uncertainties. Although the management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this press release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding the size of the industry, the growth of the market for the Company's products, the rate and quantity of production at the Company's facilities, market conditions, economic factors, management's ability to manage and to operate the business of the Company and the equity markets generally. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
The TSX Venture Exchange has not reviewed, approved, or disapproved the content of this news release.
John Flanagan
Chief Executive Officer
905-502-8500
Forward Looking Statements
This press release includes forward-looking information within the meaning of Canadian securities laws regarding the Company and its business. Often but not always, forward-looking information can be identified by the use of words such as "expect", "intends", "anticipated", "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would" or "will" be taken, occur or be achieved. Such statements are based on the current expectations and views of future events of the management of each entity, and are based on assumptions and subject to risks and uncertainties. Although the management believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this press release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the company, including risks regarding the ease of consumers to find the Company's products locally or to purchase products online, the Company's conversion rate, the ability of the Company to map consumer interest, track search results and match the launch of new or additional SKUs and continued revenue growth,. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on any forward-looking statements or information. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
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i Independent research study was conducted by Hanover Research during July 2021. The study conducted interviews with 500 consumers in the U.S. and was commissioned by Sol Cuisine. The study was conducted on an independent third-party basis. |
ii Grand View Research |
iii The NPD Group/SupplyTrack®, 12ME Dec 2019 Excluding large commercial chains (250+ units) |
SOURCE Sol Cuisine Ltd.
Jonathan Ross, Sol Cuisine Investor Relations, [email protected], 416-283-0178; Kieran Lawler, Sol Cuisine Public Relations, [email protected], 416-303-0799
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