Above Food Solidifies Position As One of North America's Largest Chickpea Ingredient Suppliers
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Recent acquisition expands Above Food's chickpea platform to approximately US$62 million of combined company revenues on a proforma basis
Positions Above Food as a leader in the US$15 billion global chickpea market, projected to grow at a 7.4% compound annual growth rate (“CAGR”) through 2032
Expands chickpea processing capabilities to serve key channels, driving innovation and product development throughout the rapidly growing plant-based protein sector
Regina, Saskatchewan –– September 5, 2024 –– TheNewswire – Above Food Ingredients Inc. (Nasdaq: ABVE, ABVEW) (“Above Food” or the “Company”), an innovative food company leveraging its vertically integrated supply chain to deliver differentiated ingredients and consumer products, today announced additional details related to its expanded chickpea business in connection with its previously announced acquisition of the specialty crop food ingredient division (the “Assets”) of Montana-based The Redwood Group, LLC (“TRG”). This strategic acquisition solidifies Above Food's position as North America's largest chickpea manufacturer, positioning the Company to capitalize on the growing global demand for plant-based proteins and meet increasing consumer preferences for sustainable, nutritious food options.
“We are pleased to expand our presence in the rapidly growing global chickpea market. Together with our recent acquisition, Above Food is now one of North America’s largest chickpea ingredient suppliers with a business that now represents approximately US$62 million on an annualized basis or 14% of our combined revenue on a proforma basis,” said Lionel Kambeitz, Founder, President, Chief Executive Officer and Executive Chairman of Above Food. “Our enhanced leadership in the chickpea sector aligns perfectly with our seed-to-fork platform, allowing us to control every step from seed selection and farming to ingredient processing and formulation, for conventional, natural regenerative, organic, and regenerative organic certified chickpeas. By leveraging our expanded operations and increased processing capabilities, we are well-positioned to meet the growing demand for plant-based proteins across human food, pet food, and export markets. Furthermore, we are able to drive innovation in chickpea-based products, strengthen relationships with growers and suppliers, and capture a larger share of the global chickpea trade. This strategic move not only positions Above Food as the go-to partner for food manufacturers seeking high-quality, sustainable chickpea ingredients but also aligns perfectly with our mission to create a healthier world — one seed, one field, and one bite at a time.”
Strategic Importance of Leadership in Chickpea Industry
The chickpea industry represents a substantial and growing opportunity for Above Food, driven by several key factors:
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Large and Growing Market: The US$15 billion global chickpea market is projected to grow at a CAGR of 7.4% through 2032, according to Zion Market Research. This growth outpaces many traditional protein sources, indicating a shift towards plant-based protein options. Notably, Saskatchewan, is the primary chickpea-producing province in Canada, accounting for approximately 80% of the country's production according to Saskatchewan Pulse Growers.
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Rising Consumer Demand: Chickpeas align perfectly with current consumer trends towards plant-based proteins, healthy eating, and sustainability, with 39% of US consumers trying to incorporate more plant-based foods in their diets. Chickpea’s nutritional density makes them an attractive option for consumers seeking healthier food choices and for manufacturers developing new nutritious product formulations.
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Versatility Across Applications: Chickpeas are incredibly versatile ingredients used in human food, pet food, and export markets. From traditional hummus and falafel to innovative meat alternatives, gluten-free flours, and plant-based dairy substitutes, chickpeas are used in a wide range of products. This versatility provides Above Food with diverse revenue streams across high-growth categories, driving demand and fueling ongoing product innovation.
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Sustainability Advantages: Chickpeas emerge as a frontrunner in sustainable agriculture, boasting a significantly lower environmental footprint compared to animal proteins. Their water-efficient cultivation, natural soil-enriching properties as nitrogen-fixers, and reduced carbon emissions align perfectly with the growing consumer demand for eco-friendly food options. These sustainability credentials, coupled with chickpeas' role in promoting biodiversity and food security, position them as a key ingredient for environmentally conscious consumers and manufacturers in the evolving landscape of sustainable food systems.
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Innovation Opportunities: Above Food's enhanced chickpea processing capabilities open up new avenues for product development and innovation in the plant-based protein sector, positioning the Company at the forefront of emerging food technology trends. The number of new product launches containing chickpea as an ingredient increased by 74% globally between 2018 and 2022, according to the Mintel Global New Products Database.
Above Food Ingredients Inc. (Nasdaq: ABVE, ABVEW) is an ingredient company that celebrates delicious products made with real, nutritious, flavorful ingredients delivered with transparency. Above Food’s vision is to create a healthier world — one seed, one field, and one bite at a time. With a robust chain of custody of plant proteins, enabled by scaled operations and infrastructure in primary agriculture and processing, and proprietary seed development capabilities that leverage the power of artificial intelligence-driven genomics, Above Food delivers nutritious foods to businesses and consumers with traceability and sustainability. Above Food’s consumer products and brands are available online at www.abovefood.com and in leading grocers across Canada and the United States.
Cautionary Statement Regarding Forward-Looking Statements
This press release may contain “forward-looking information” within the meaning of the United States federal securities laws and applicable Canadian securities laws. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” future,” “opportunity,” “plan,” “may,” “should,” “will,” “could,” “will be,” will continue,” and similar expressions and include, without limitation, statements about the ability of or expectations regarding the future performance of our business and operations.
Forward-looking statements are based on the current expectations of Above Food's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. You should carefully consider all of the risks and uncertainties described in the documents filed by the Company with the United States Securities and Exchange Commission, which is available on EDGAR at www.sec.gov/edgar.shtml. There may be additional risks that Above Food presently does not know or that Above Food currently believes are immaterial that could also cause actual results to differ from those contained in forward-looking statements. In addition, forward-looking statements provide Above Food’s expectations, plans or forecasts of future events and views as of the date of this communication. Above Food anticipates that subsequent events and developments will cause Above Food’s assessments to change. However, while Above Food may elect to update these forward-looking statements in the future, Above Food specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Above Food’s assessments as of any date subsequent to the date of this communication. Nothing herein should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results in such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein.