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How to invest in the clean meat industry?

In this article, we will look at a number of ways how investors can gain exposure to the clean meat industry which is expected to grow over ten fold in the next half a decade.

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How to invest in the clean meat industry?

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  1. How to invest in the clean meat industry? Written by Clean Meat News Australia In this article, we will look at a number of ways how investors can gain exposure to the clean meat industry which is expected to grow over ten fold in the next half a decade. In a previous article, we discussed the massive growth opportunity of the clean meat industry, which is still in its infant stage. However, identifying an investment opportunity or a high growth sector won’t get investors anywhere. Rather, investors should identify and analyze the ways and means to invest in such a high growth sector. Are there any listed companies to invest in? There are no publicly traded companies who focus on producing clean meat. However, a close analysis of a few publicly traded companies reveals that there are in fact companies who have invested millions of dollars in the clean meat industry, and these companies will take-off in value as soon as the clean meat industry becomes commercialized and mass production hit the markets. Tyson Foods is the world’s second largest processor and distributor of meat products, and the company has made significant investments in the cultured meat space. In 2018, Tyson Foods acquired a minority stake in one of the leading cultured meat producing companies; Memphis Meats. Memphis Meats successfully produced a lab- grown meatball back in 2016, but one of the significant problems faced by the company at present is reducing their costs, and this is where Tyson Foods can come and play a huge role in advising Memphis Meats on how to scale up to reduce costs. Memphis Meats is not the only significant investment Tyson Foods made in the cultured meat industry. Over the last couple of years, Tyson acquired a meaningful stake in Beyond Meatwhich focuses on producing plant-based meat substitutes. Beyond Meat’s burgers have already gained traction in the U.S., and is becoming a sensation as the world shifts to a more planet friendly stance in consuming food. In 2018, Tyson Foods announcedan investment in Future Meat Technologies, which is an Israel based biotechnology company with a focus on producing cultured meat.

  2. All these investments committed by Tyson Foods are ground-breaking investments, and investors should not take Tyson’s scale lightly. Working with Tyson Foods, these start-up companies are gaining access to advance technologies and deep pockets, which should expedite the process of bringing cultured meat to supermarkets. There’s virtually no doubt that the cultured meat industry is poised to grow for many years to come, and when this happens, I believe Tyson Foods will be at the forefront of the clean meat industry with investments worth well over a billion dollars in this industry. Investing in Tyson Foods provides investors with direct exposure to the growing clean meat industry, and I believe this is one of the best ways to invest in this growing sector. The company management of Tyson has repeatedly confirmed their plans to invest more in the clean meat industry, and this should provide an even greater exposure to investors who chose to invest in Tyson to gain exposure to the clean meat industry. Tyson Foods is listed on the New York Stock Exchange and currently trades at $69 per share. Even though there are no pure-play clean meat stocks to invest in at the moment, there are a number of listed companies who are working with clean meat processing companies to develop the relevant technologies required to disrupt the food processing industry for good. Understandably, these companies who are working with clean meat processing companies will gain substantially from the growth of the cultured meat industry, and investors should consider adding a stake from these companies to their portfolios to gain exposure into the growing cultured meat industry. Company name Stock code and market Line of work Agilent Technologies A(NYSE) Gene synthesis for acellular cultures and cell lines Amyris AMRS (NASDAQ) Acellular cultured flavors Archer Daniels Midland Venture Capital ADM (NYSE) Develop and commercialize animal- free proteins

  3. Bell Food Group BELL (SWX) Investments in clean meat processing companies including Mosa Meat Neto Group NTO (TLV) Investments in clean meat processing companies including Future Meat Technologies These are some of the listed companies that are working hand-in-hand with clean meat processing companies to commercialize the industry, and we expect many high- tech companies to partner with clean meat processing companies to drive the industry forward in the future. Investors should better keep an eye on these companies and other listed companies that might want to take part in shaping the clean meat industry. Investing in such companies is the best and only way to gain exposure to this industry through listed investments. Private equity investments remain the most popular way to invest in the clean meat industry In the early stages of an industry, it’s common to see that many investments in the industry are carried out as private equity transactions, and the same goes true for the clean meat industry as well. The absolute majority of investment opportunities available in the clean meat industry can be found in the private equity marketplace. More often than not, many investors believe that it takes them a fortune to be a private equity investor, and that doors to private companies would only be open to high profile investors. This is often not the case when it comes to emerging technologies, and in fact most emerging companies welcome investments from all types of investors subject to regulatory approvals. Mosa Meat, one of the disruptive and leading clean meat producing companies in the world is open for new investments, and the company has made this clear on their corporate website. Any investor who is interested in investing in Mosa Meat can

  4. directly contact the companythrough their website, and this provides investors with the ability to invest in a growing company at the start-up stage. The good thing about investing in Mosa Meat is that it doesn’t take you a fortune to invest in this high growth company. Mosa Meat categorizes investments into two segments. 1. Investments over €10,000 ($18,500 AUD) 2. Investments below €10,000 ($18,500 AUD) Apart from investing directly in a company, investors can opt-in to invest in a portfolio of clean meat processing companies via venture capital funds. New Crop Capital is a classic example of such a fund, and the fund opened for investors back in late 2016. Even though the fund is currently closed for investments, we believe this venture capital fund will come up with more open-ended funds to focus on the growing clean meat industry in the near future. New Crop Capital’s portfolioincludes stakes in almost all the cultured meat processing companies in the world including Memphis Meat, Mosa Meat, and many more. Stray Dog Capital is another venture capital investment fund that specializes investing in companies that are bound to make a significant impact to the clean meat industry and other animal friendly industries such as plant based meat. The portfolio of investments includes Beyond Meat, Aleph Farms, Geltor, Mosa Meat, and SuperMeat. VegInvest is also a fund that needs to be monitored by investors to identify any investment opportunity with this fund in the future, as this venture capital firm focuses on the same theme followed by many other socially responsible investment funds; investing in industries that will save lives. Historically, venture capital investors have been keen on investing in disruptive industries, and we believe the commercialization of clean meat products will attract many venture capital investors to this industry. One other important thing that needs to be understood by investors is that higher venture capital investments in the current period results in higher publicly listed clean meat processing companies in the future, as IPOs are one of the primary exit methods of venture capital investors. Are there any Exchange Traded Funds to invest in?

  5. Over the last decade, the appeal of Exchange Traded Funds (ETFS) has increased tremendously, and these funds are considered one of the most cost-effective ways to invest in any sector or market. As such, it’s an important consideration for investors to check whether there are ETFs with a focus on cultured meat and alternative meat solutions. Unfortunately, there are no ETFs with an exclusive focus on the clean meat industry at the moment, but investors need to focus on some providers of ETFs who are likely to introduce a clean meat industry based investment fund in the near future. The U.S. Vegan Climate Indexmanaged and marketed by Beyond Advisors focuses on identifying investment opportunities that are socially responsible. The investment objective of this fund is to address the concerns of vegans, animal lovers, and environmentalists. Even though the fund currently has not invested in the clean meat industry, we believe investors should keep a close eye on funds like this as there is every possibility of such a fund investing in the clean meat industry. Future investment opportunities Even though the number of options available to invest in the clean meat industry is limited, investors should not lose hope or heart at this point in time. Often, it takes several years for prominent investment management firms to come up with mutual funds, ETFs, and other investment vehicles to allow investors to invest in a developing segment, and this is true for the clean meat industry as well. The future outlook for investors is certainly promising, and we expect many start-ups to gain traction and trade publicly on various stock exchanges. For example, Beyond Meat backed by Tyson Foods has gained traction for many years with its trademark vegan meat burgers, and the company filed documentsfor an Initial Public Offering (IPO) in 2018. When listed, Beyond Meat would be the first pure-play alternative meat processing company to ever hit the public markets, and we believe this will provide a massive boost to the alternative meat processing industry including the cultured meat industry. As the industry grows and matures, we expect billions of dollars to flow into this industry, and massive investment opportunities will be created for investors. Investors who identify growth prospects in this industry should go ahead and make investments at this very early stage, and this will pave the way for such investors to earn very attractive returns on their investments.

  6. For more information about this emerging industry please visit the Clean Meat News Australia website.

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