In this file:
· New Wave Foods launches plant-based shrimp with Tyson backing
· Motley Fool: Tyson has proved it can weather setbacks
New Wave Foods launches plant-based shrimp with Tyson backing
January 6, 2021
Yahoo Finance’s Alexis Christoforous and Mary McGovern, New Wave Foods CEO, discuss growth as the company completes its $18M series A fundraising.
ALEXIS CHRISTOPHOROUS: Well, if 2020 was the year of the plant-based burger, then 2021 could be the year of plant-based seafood. New Wave Foods announced today it just closed an $18-million series A round for its plant-based seafood alternatives. Investors include New Enterprise Associates, Evolution VC Partners, and Tyson Foods, which owns a minority stake in the company.
Joining me now is the CEO of New Wave Foods, Mary McGovern. Mary, thanks so much for joining us, and congratulations on the series A round. Tell us what you plan to do with the money you've raised now. What will that allow New Wave Foods to do?
MARY MCGOVERN: Well, thank you. Yes, closing the $18 million series A puts us in a position to enter the market with great force. We are about to come in with a very aggressive go-to-market plan. We're coming in through food service where 80% of shrimp is consumed. The shrimp market itself is an $8 billion market, so we are really entering some huge white space with an extraordinary product that has the taste, the texture, and the versatility of shrimp. So we are very excited. We have deemed 2021 the year of the shrimp.
ALEXIS CHRISTOPHOROUS: OK. So tell us what-- I'm a big fan of shrimp, by the way. What is the New Wave shrimp made of, exactly?
MARY MCGOVERN: Well, New Wave shrimp is 100% plant-based. The cornerstones are, first of all, seaweed. So there is a seaweed derivative that gives it its crunch. And it's also the protein. The plant protein is mung bean. So those are two of the anchors of our product.
ALEXIS CHRISTOPHOROUS: So right now, you've got shrimp, plans for other products, I understand. Will we start seeing plant-based crab and plant-based lobster down the road?
MARY MCGOVERN: Absolutely. So in this coming year, our plan is to own shrimp. So we are going to enter the market, and not only with the first shrimp, which is like a frozen, pre-cooked shrimp. And it is the size that you would have in an entree. We're going to come with a second size, which is more of a popcorn size, as well as breaded and soft. So we're going to come in and give the full array of shrimp in this year.
And then we are going to follow next year to complete the shellfish portfolio with lobster, scallops, and crab, all plant-based, 100% plant-based.
ALEXIS CHRISTOPHOROUS: Mary, I want to talk about where we can find your products, because it's my understanding that they are not in retail stores or online. And I guess that leaves restaurants. If you're supplying restaurants, it's a challenging time to be doing that. Here we have this pandemic, lots of restrictions on indoor and outdoor dining. So how are sales right now to the restaurant industry for you?
MARY MCGOVERN: So we're just starting to ship this month. And we are very excited to have a wonderful partner for distribution which will give us national distribution very quickly. And because 80% of shrimp is consumed on food service, it's most certainly the channel to be in.
There have been, even in these difficult times, some really highly successful adaptive players in the market, and we're going with them first. But we think that the back half of the year, we're really going to see things pick up, which is perfect timing and perfect positioning not only for our product, but the fact that so many people want to get back out, normalize their lives, go out to dinner. And there's only that much more interest in plant-based, healthy, sustainable eating coming out of this pandemic period.
ALEXIS CHRISTOPHOROUS: I understand you are not a publicly traded company, so you don't have to tell us all. But can you share with us who any of your partners are, what restaurants we might expect to see your New Wave shrimp being offered in?
MARY MCGOVERN: I wish I could. But I can tell you that in the second quarter, and certainly in the back half of the year, you will see us in national chains as well as regional. And you'll see us in a variety of settings. So this year, you will start to see us in many locations.
more, including video [6:40 min.]
Motley Fool: Tyson has proved it can weather setbacks
Plus: Both fixed and equity funds aim to deliver, sticking with employer’s stock and this week’s trivia.
By The Motley Fool
via The Dallas Morning News - Jan 6, 2021
The Fool’s Take
Tyson Foods has certainly felt the impact of COVID-19, which has hurt production.
The company has been facing headwinds such as supply struggles, pricing pressures amid weak restaurant sales and rising demand for meat substitutes. While recent results suggest that Tyson is dealing effectively with the issue and its operations are running more smoothly, rising COVID-19 cases may prove to be another setback.
The stock was recently down more than 30% from its 52-week high — presenting a buying opportunity. Tyson is one of the biggest processors and sellers of beef, pork and chicken, with brands such as Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, IBP and State Fair.
Even in a bad economy, demand for its products remains stable. Despite ongoing issues, Tyson’s results showed an improvement in its fiscal fourth quarter, with adjusted sales down by only 2% year over year as the virus continued to affect production. — and operating profit jumping by 40% despite higher COVID-19-related expenses. Showing confidence in its future, Tyson’s board of directors recently raised its quarterly dividend by 6%, and the stock yielded over 2.7%.
No one wants to see widespread shutdowns, but that’s a possibility. with cases rising. Regardless, Long-term Tyson investors can collect dividends while waiting for better times...