“We don’t see chilled working. We’re more bullish on frozen” – V2Food’s Tim York sees opening in US plant-based meat

Core Insights - The US plant-based meat market is facing challenges, particularly in the fresh chilled category, which has seen a 20% annual decline for the past three years. In contrast, the frozen segment has shown more stability with single-digit growth or decline [1][7] - V2Food has acquired Daring Foods, a California-based alt-chicken firm, to strengthen its position in the US market despite the overall challenges in the plant-based sector [6][5] - The company is optimistic about the growth potential in the frozen plant-based category, especially with cleaner-label products that have shorter ingredient lists [7][12] Market Dynamics - The fresh chilled category in the US is not performing well, while the frozen category has been more resilient, attributed to established brands and a more gradual evolution in consumer acceptance [1][7] - Daring Foods has been successful, growing over 10% last year, and is one of the few brands in the US plant-based market that is expanding [11][9] - The plant-based meat market is expected to undergo a generational change over the next 30 years rather than a rapid replacement of animal protein [14] Product Development and Strategy - V2Food plans to leverage the Daring brand to introduce new products in the US, focusing on cleaner ingredient profiles [15][16] - The company is exploring hybrid products that blend plant-based and animal proteins to meet consumer demands for taste, cost, and nutrition [24][26] - V2Food is also working on proprietary ingredients to reduce costs and improve product appeal in the competitive market [18][19] International Expansion - V2Food is collaborating with Ajinomoto to enter emerging markets in Africa and Asia, focusing on providing high-quality protein alternatives [32][35] - The partnership aims to launch Daring frozen meal products in the US and expand into new geographical markets [33][36] - Consumer testing in Africa has shown promising results, indicating strong potential for plant-based products in these regions [35][36] Financial Performance - V2Food's business in Australia is experiencing modest growth, with foodservice growing at 30-50% annually, while the retail sector remains flat [20][21] - The pro-forma net sales for V2Food, including the acquisition of Daring, are estimated to be between US$30 million and US$50 million [37]