Vancouver, British Columbia. — The Very Good Food Company Inc., a plant-based food manufacturer, has initiated a review of its corporate strategy, including potential mergers with industry partners and the sale of some or all of Very Good’s businesses and assets. did.
Potential sales include the company’s flagship brands, The Very Good Butchers, a line of plant-based meats such as hamburgers, hot dogs, pepperoni and pork, as well as dairy-free cheese varieties. May include The Very Good Cheese Company.
The review follows the release of Very Good’s second quarter earnings report, which showed a revenue loss of $1.3 million, down 46% compared to the second quarter of fiscal 2021.
Most of the loss was due to the company’s e-commerce sales decline, which was down 83% compared to the same quarter last year. However, this decline was not unexpected. Very Good began limiting e-commerce sales in January 2022 due to high digital marketing costs to acquire new consumers and reduced production capacity.
The move away from e-commerce is part of the company’s three-pronged strategic approach, called ‘stabilize, rightsize and optimize’, to maintain and enhance the value of its business and operations.
Very Good’s primary strategy is to generate sustainable growth and profitability through its wholesale and foodservice channels, which grew 117% compared to the second quarter of fiscal year 2021.
As part of this growth, the company has expanded its retail presence in recent months, winning sales at Meijer Inc. stores in June and at The Giant Company and Weis Markets Inc. in July. .
Other initiatives in this approach included closing restaurant operations, consolidating Very Good’s production operations into one facility, and reducing the workforce.
Very Good has also undergone several leadership changes since the company sacked its chief executive in April. The company lost several directors, including its chief research and development officer, president and interim chief financial officer. Parimal Rama, the company’s former vice president of operations, said in July that he was named CEO.
Very Good has not set a timetable for completing the corporate strategy review.
