Noodle Maker Bets Americans Will Dig Quorn’s Alternative Chicken

(Bloomberg) – World Nissin Corp. will use part of its $ 1 billion initial public offering to grow its fake meat business Quorn Foods Ltd. in the United States, by far the world’s largest market for plant-based alternative foods. based company, which also sells staple foods and is the owner of Lucky Me! instant noodles will use Quorn’s chicken substitute to take on heavyweights like Beyond Meat Inc. and Impossible Foods Inc. in an industry dominated by fake beef, executives said in an interview. “Our ambition is to become the king of the alternative chicken on a global scale,” Quorn CEO Marco Bertacca told Bloomberg ahead of the World’s largest IPO ever for a food company. ‘South East Asia. Monde debuted in the Philippines on Tuesday and closed at 13.48 pesos, down from its IPO price of 13.50 pesos. World plans to increase Quorn’s production capacity and ship to more fast food chains in the United States, spending nearly 16 billion pesos ($ 335 million) to expand its presence in the country. It also builds two fermenters and packaging facilities in the UK, where Quorn is based and has a 28% market share. Barclays Plc estimates that the global alternative meat market will grow tenfold to more than $ 140 billion by 2029, or 10% of the meat industry as a whole. as soon as possible, ”said Henry Soesanto, CEO of Monde. “We need a lot of money for this.” There is ground to be made up. Since its acquisition of 550 million pounds ($ 780 million) by Monde in 2015, Quorn has suffered construction delays and chiller failures at its facility, which has depleted inventory and forced it to cut back orders. . Monde’s compound annual growth rate of alternative meat sales grew only 5% between 2017 and 2020 despite the market boom. During this period, sales of Beyond Meat registered a CAGR of over 130%. In two years, Monde could take its plant-based business to Asia, with an eye on the Chinese market as the government aims to cut meat consumption. Quorn distributes limited quantities in Singapore and the Philippines. “Europe and the United States are at the forefront of alternative proteins. Asia is a bit late, but it is catching up in the next two to three years, ”Soesanto said in an interview with Bloomberg Television. We will always eat meat. But More Meat: QuickTake Rather than fake ground beef, Quorn will focus on chicken – the most consumed protein in the United States – and try to convince fast food chains to include it on their menus. A one-month planned promotion with Kentucky Fried Chicken in the UK saw Quorn chicken burgers “fly off the shelves,” Bertacca said. The “Imposter Burger,” with a Quorn “chicken” fillet made with KFC paste and topped with vegan mayonnaise and lettuce, sold out in four days, he said. Almost 90% of Quorn’s sales in 2020 came from the UK and Europe. In the Philippines, Monde’s staple food portfolio, including bread, noodles and sauces, is expected to continue to boost activity after profits jumped 26% last year to $ 7.34 billion. pesos, Soesanto said. Monde will pay out 60% of net income as dividends, up to 90% after long-term capital expenditure. The snack maker plans to increase its Lucky Me! sales of noodles by making them healthier and offering more flavor, while reducing palm oil content by 70%, Soesanto said. Instant noodles accounted for half of the world’s 68 billion pesos in sales in 2020. The average Filipino consumes only 36 packs of noodles per year, well below places like Indonesia, Vietnam and South Korea, where the number is over 60, he said. Agent David Nicol said Monde was looking for companies where it could supply food technology and where its partners could oversee local supply chains. “Given its dominant position in the Philippines, Quorn will be its main source of growth going forward,” said Gerard Abad, chief investment officer at AB Capital & Investment Corp. in Manila. The IPO is expected to put Monde in a good position to capture a significant share of the expanding meatless market, he said AIA Investment Management Pte, Eastspring Investments (Singapore) Ltd. and the investment fund D Singapore State GIC Pte are among the top investors, according to Monde’s. IPO prospectus. Soesanto said in a statement last week that there had been “immense interest” from international and domestic investors. Los Angeles-based Beyond Meat has jumped more than 800% in the three months since its May 2019 listing in New York City, and it remains almost 500% higher than its IPO price. Impossible Foods is preparing a public list, Reuters reported in April. Monde’s goal is for Quorn to at least match the pace of growth in the global alternative meat industry, even as new players like Nestlé SA and Unilever step up. join the fray. get even 5% of this huge market, we’ll be very happy, “Soesanto said of the US.” We don’t want to be left behind by the bus. (Closes the share price in the third paragraph.) More stories like this are available Subscribe now to stay ahead with the most trusted source of business news. © 2021 Bloomberg LP


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