Toronto-based Zoglo’s Incredible Food Corp. (CSE: ZOG, FSE: 7UT) has agreed to acquire a 51% stake in London-based Monday Swiss UK, one of Europe’s leading developers and manufacturers of innovative plant-based food alternatives. Zoglo’s first signed a protocol to buy a 50.5% stake in Monday Swiss at the start of the year on August 3.

Who is Zoglo’s Incredible Food Corp?

Incredible Food Corp. from Zoglo develops and distributes nutrient-rich plant-based meat substitutes. The company currently offers more than 25 products, sold under its two main product lines, Traditional green box and Zoglo’s incredible black box. Zoglo products are now sold in more than 700 retail stores across Canada, including Walmart, Shoppers Drug Mart, Sobeys and Loblaws, with representation in the United States and Europe.

Monday Swiss products are sold under the Veggie Day and Monday Swiss brands. Monday Swiss has invested more than $ 3 million in R&D over the past five years, developing cutting-edge whole muscle plant-based technology, which aims to develop products that give consumers the exact experience of eating real meat and poultry.

Monday Swiss’s new manufacturing site is BRC, Kosher OU, Halal, ISF and SMETA certified, enabling it to meet a wide range of consumer needs around the world. It has four production lines, which can produce frozen, chilled and ready-to-eat herbal products and provide complete packaging solutions.

Monday Swiss has a well-developed distribution network, with a blue chip customer base that includes Tesco, Co-Op, Holland & Barrett and online grocery retailer Ocado.

Why is the agreement important?

Zoglo’s expects the agreement to allow it to leverage Monday Swiss technology and experience in new product development to further develop Zoglo’s product portfolio and be a market leader in the category. The proposed deal is expected to increase Zoglo’s annual sales to C $ 6 million and increase Zoglo’s ability to expand globally.

Antoine Morello, CEO of Zoglo’s, said: “This acquisition creates strong business activity and synergies for Zoglo’s in Europe and the UK, in conjunction with its current growing business in Canada and the US.

Alon cahn, Founder and Managing Director of Monday Swiss, added: “With a production capacity of over 500,000 kilograms per month and the ability to double our capacity by 2023, I believe Zoglo’s is poised to become one leading plant-based meat substitute companies. worldwide.

To meet expected growth in demand in Europe for its products, Zoglo’s common shares, in addition to being listed on the Canadian Securities Exchange in Toronto, can now also be traded on the Frankfurt Stock Exchange, effective today (November 4). The company is also requesting that its common shares be listed for trading on the OTCQB Growth Market, a U.S. trading platform operated by OTC Markets Group in New York.

Under the terms of the agreement, Zoglo’s will pay C $ 1.7 million in three installments by April 2022 and provide a loan to Monday Swiss of $ 1.1 million to finance the development of Monday Swiss’s business.

Winds of change

The market for meat substitutes is expected to experience significant growth, after more than 100 world leaders at the COP26 climate summit on November 2 pledged to end deforestation and cut methane emissions by 30 % from 2020 levels, as part of a global strategy to curb global warming.

As part of this pledge, governments have pledged to reduce animal husbandry, dubbed the “top villain” for methane emissions from livestock, and find ways to reduce meat consumption. It is against this backdrop of government action that we expect to see a shift in eating habits away from meat and more towards plant-based alternatives to meat, boosting sales from companies such as Zoglo’s. over the next few years.

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