March 18, 2022
Since the pandemic’s onset, there has been greater consumer attention to maintaining good health habits. Providers of exercise equipment and activewear products mostly experienced sales boosts once 2020 came along. Similarly, so did providers of healthy foods.
Make no mistake. Healthy eating is big business. Meticulous Research, a provider of market intelligence, predicts the human nutrition market will reach $465.4 billion by 2025. We decided to look at a few publicly traded companies that are steeped in the business of providing healthy food to health-conscious consumers.
Many of us strive to maintain healthy eating habits, but those “cheat days” can sometimes derail progress. That’s where The Real Good Food Company, Inc. (Tii:RGF) comes in. Founded in 2016, the New Jersey-based company produces nutritious comfort foods low in carbohydrates, high in protein, and made from gluten and grain-free real ingredients available in over 15,000 retail locations. Among its offerings are healthy versions of enchiladas, cannelloni, burritos, lasagna and pizza bowls. Real Good Foods is increasing market penetration, evidenced by a 129% and 116% rise in the fourth quarter and full-year net sales, respectively.
One of the world’s largest food retailers, Kroger Co. (Tii:KR) has a strong presence in the healthy foods space due to its robust organic food segment. Through its Simple Truth brand of natural and organic foods, the retailer offers a line of packaged foods, meat/seafood, frozen foods, produce, dairy, deli, beverages and more that are free from artificial preservatives and GMOs. Kroger’s is increasingly focused on grocery delivery to compete with others in this space. The Cincinnati-based retailer recently expanded its delivery operations by adding facilities in Austin and San Antonio, TX and Birmingham, AL. Kroger anticipates opening 17 new facilities within the next 24 months.
With more than 370 stores in 23 states nationwide, Sprouts Farmers Market, Inc. (Tii:SFM) is a leading healthy grocer that added 81 plant-based products and 82 organic items in 2021 alone. The retailer, which opened its first store in 2022 to make natural foods accessible to everyone, focuses on farm-fresh produce and other healthy items. For shoppers who are conscious of where their food comes from, Sprouts Farmers Market reported that it is sourcing all shell and liquid eggs from cage-free, organic or free-range farms. The company is in expansion mode with plans to open 15 to 20 new stores this year.
SunOpta Inc. (Tii:STKL) is a leading company specializing in the sourcing, processing, and production of organic, natural and non-GMO plant- and fruit-based food and beverage products. With offerings that include frozen fruit, fruit-based snacks, plant-based beverages, ingredients and teas, the company bills itself as a plant-based food and beverages champion. SunOpta specializes in sourcing, processing, and packaging organic, natural and non-GMO food products and operates one of the leading global supply chains for organic ingredients. The company expects to generate consolidated full-year revenues in the $890-$930 million range, compared with $812.6 million for the fiscal year ended Jan. 1, 2022.
Finally, we wanted to look at the produce supply chain. An agri-food tech company specializing in eco crop protection that helps to reduce food waste and ensure food safety, Save Foods, Inc. (Tii:SVFD) provides a post-harvest process to improve the safety, freshness and quality of citrus, avocados, pears, apples, mangos and other produce. Based on a proprietary blend of food acids, the company’s treatments have been shown to reduce, on average, 50% of fresh produce waste all along the supply chain. Save Foods announced it is teaming up with Auryon Holdings, a strategic advisory and private equity firm, to make Save Foods’ green treatment available in Sub-Saharan Africa.
According to data compiled from more than 4,700 people who took part in the U.S. National Health and Nutrition Survey, only 2.7% of participants get moderate exercise, eat right, and avoid smoking. This statistic underscores the importance of and need for providers of healthy food options.
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