VANCOUVER, BC. — Plant-based food producer The Very Good Food Company Inc. has initiated a review of its corporate strategy, including a possible merger with an industry partner or the sale of Very Good’s business and assets, either in part or as a whole.
A potential sale may include the company’s key brands The Very Good Butchers, a line of plant-based meats including burgers, hot dogs, pepperoni and pork, and The Very Good Cheese Co., offering dairy-free cheese varieties.
The review comes shortly after the release of Very Good’s second-quarter earnings report, which indicated a loss of $1.3 million in revenue, down 46% compared with the second quarter of fiscal 2021.
The majority of losses came from decreases in the company’s e-commerce sales, down 83% compared with the same quarter last year. The decrease was not unexpected, however, as Very Good began limiting e-commerce sales in January 2022 due to high digital marketing costs to gain new consumers and lowered production capacity.
The move away from e-commerce is part of the company’s three-pronged strategic approach, dubbed “Stabilize, Right-Size and Optimize,” to maintain and enhance the value of its business and operations.
Very Good’s primary strategy is creating sustainable growth and profitability through its wholesale and foodservice channels, which grew 117% compared to the second quarter of fiscal 2021.
As part of this growth, the company has expanded its retail presence in recent months, gaining distribution in Meijer Inc. stores in June, and The Giant Company and Weis Markets Inc. in July.
Additional initiatives in the approach included the closing of restaurant operations, the consolidation of Very Good’s production operations into one facility and a work force reduction.
Very Good also has experienced several leadership changes since the company terminated its chief executive officer in April. The company lost several of its board members, including its chief R&D officer, and president and interim chief financial officer. Parimal Rama, former vice president of operations for the company, was named CEO in July.
Very Good has not set a timetable for the completion of its corporate strategy review.