CANADA- Canadian plant-based protein manufacturer, The Very Good Food Company has effectively put itself up for sale after months of financial instability.

The Very Good Butchers and Very Good Cheese Co. brand owner disclosed a process to assess potential strategic alternatives to maximize shareholder value as it has been losing money since its creation in 2016.

The company stated in a statement that potential possibilities might include an acquisition by, or a merger with, an industry partner involving all or part of Very Good’s business or assets.

The firm issued its most recent financial distress alert in August when it acknowledged that, despite having received US$6.5 million from the market in June, it needed to raise additional funds to meet its obligations.

“There can be no assurance that the strategic review process will result in any strategic alternative or any assurance as to its outcome or timing,” the company said in a statement.

The resignation of founders Mitchell Scott (CEO) and James Davison (chief R&D officer), complete with the admission of a cash burn, signaled concern for the company in April.

Then, in May, a statement issued a warning regarding the company’s likely future viability in the absence of additional funding.

When CEO Scott was replaced by former Nestlé executive Matthew Hall, the company reduced its manufacturing footprint by eliminating two factories in Canada and one in the US.

Along with the announcement of 160 personnel reductions, the company also stated in August that it was examining the sale of inventories and “non-core” equipment.

The Very Good Company has, however, not set a timetable for completion of the review process and does not intend to disclose developments related to the process.

The Very Good Company has, however, not set a timetable for completion of the review process and does not intend to disclose developments related to the process.

More generally, recent months have seen an increase in indications of a slowdown in the global market for plant-based meat.

As part of a larger organizational restructuring, Kellogg revealed in June that its meat alternative business, which includes the MorningStar Farms brand, may be sold.

Beyond Meat released its financial figures for the fourth quarter earlier in the year and compared to the same quarter last year, net revenues were actually down 1.2%, and grocery sales in the US were down 19.5%.

Loss of market share may have contributed to the decline to a lesser extent according to Beyond Meat, indicating that the market is perhaps being swamped but not yet saturated.

In April, Maple Leaf Foods, a Canadian producer of fresh meat and plant-based alternatives, recently began a review of the latter after two consecutive quarters of disappointing sales for its chilled meat-free Field Roast and Lightlife brands.

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