Vancouver, British Columbia – The Newswire – April 2, 2024 - Plantify Foods, Inc. (TSXV: PTFY) ("Plantify Foods" or the "Company"), a Clean Label food company dedicated to providing consumers with nutritious and delicious food options, is pleased to provide a year-end letter to shareholders.

 

“Each day, we see consumers becoming more conscious about their health and the quality of the food they consume, and Plantify is positioned to meet their growing demands for transparency, health, accessibility and sustainability. We are excited to share with you our strategic focus on health and wellness and our commitment to changing the way we view healthy eating with Plantify’s Clean Label foods.

 

I am very pleased to provide an update on all of the accomplishments achieved in 2023, with a positive outlook for 2024. We have a strong product with a quality you can truly taste. We can feed a vast majority of the world, and we are committed to research and development into functional foods to create better-for-you products. On behalf of the management team, I’d like to thank all of our employees, contractors, suppliers, our committed shareholders and of course our customers for their continued support.

 

New Leadership - Same Core Values

When first introduced to Plantify, on the surface the company looked like every other plant-based food company. The 100% owned subsidiary Peas of Bean (“POB”), had been operating since 2018, and had succeeded in developing an initial sales channel with new markets opening up as they continued to develop and streamline the product offering. While working through the due diligence process, upon visiting the operations in Israel, and after meeting the team, it became evident this was a unique opportunity. With a simple yet beautiful mission, this was a company that had a lot more to offer.

 

There are inherent risks and challenges the Company faces as a start-up, in the vegan food space, and with operations in Israel. However, the strong foundation that has been laid provides great comfort. The passion and commitment of the entire team is evident from the goals that have been set, to the quality of the foods produced.

 

Food has the power to sustain and heal, and through healthy living, and a healthy diet, consumers can take charge of their health and wellbeing. It is so important to understand how effective these changes can be, especially in preventing or delaying the inevitable (ailments one might be genetically predisposed to like diabetes, high cholesterol, heart disease and cancer).

 

At Plantify, the team shares this same understanding, ‘What we eat has a direct impact on our health as well as the planet’s’. As the founding team experimented with plant-based ingredients and recipes, they discovered that healthy food could be both delicious and nutritious.

 

Today, Plantify is proud to offer a wide range of plant-based products that are made with the same care and attention to quality that is put into feeding our own families. Plantify is Delicious, Convenient, Sustainable and Healthy!

 

Who Is Plantify Foods?

Plantify is comprised of everyday people who lead busy lives, and don’t want to compromise convenience or taste for health. Plantify focus’ on the quality and flavour of the food produced so that consumers can feel good about feeding their families and have them enjoy what they are eating.

 

Plantify is not just another plant-based food company. The Company is not meant to merely cater to vegetarians and vegans and does not seek to exist within the confines of limitations, but rather revolutionize the way the world thinks about plant-based food. From vegan or vegetarian to flexitarian or meat-eater, the product line has something to offer. Plantify is pleased to be your main source of protein, however, Plantify’s products are a perfect appetizer, snack, side dish, or a base component that can be incorporated into a variety of meal options as the main attraction, or on the side.

 

Whatever the reason for seeking out Clean Label plant-based food options, Plantify is here to support consumers health and wellbeing. To support more sustainable farming, agriculture, manufacturing and processing in the food industry. To make a difference that impacts health, wellness, and the planet. To provide consumers with a wide variety of food options which empowers healthy more sustainable choices when grocery shopping and feeding ones’ family. Plantify is for everyone – every palate, preference and plate.

 

Plantify is committed to producing products made with:

• Whole natural ingredients;  

• No chemical preservatives or additives like sugar;  

• Minimal processing, while still achieving a similar shelf-life to competitors; 

• Free from common allergens (Dairy-free, Gluten-free, Soy-Free, Nut-Free, non-GMO); and 

• Plantify can feed a vast majority of the world with products that can meet Kosher and Halal standards. 

 

Health & Wellness Consumers

The shift towards health and wellness is a growing trend that is significantly impacting the food industry. People are becoming more conscious of their well-being and are actively seeking ways to improve their overall health.

The emphasis on health and wellness has also led to the development of innovative products that cater to specific dietary needs. From gluten-free and nut-free options to plant-based alternatives, the food industry is continuously evolving to meet the diverse needs and preferences of health-conscious consumers.

This has led to a rising demand for Clean Label foods, which are minimally processed and that contain minimal artificial ingredients, additives, and preservatives, and are often allergen aware. Clean Label foods have gained popularity due to their simple and recognizable ingredients.

The Rising Demand for Clean Label Foods

The increasing demand for Clean Label foods is driven by several factors.

People have become more aware of the potential health risks associated with consuming artificial ingredients and additives. Studies have shown that certain additives and preservatives can have adverse effects on health, such as allergies, digestive issues, and even long-term health conditions.

The rise of technology and access to information has made it easier for consumers to educate themselves. This newfound knowledge has allowed consumers to make more informed choices and prioritize their health and well-being.

Furthermore, the increasing prevalence of chronic diseases, such as obesity, diabetes, and heart disease, has also contributed to the demand for Clean Label foods. People are now more conscious of the impact their diet can have on their overall health and are actively seeking healthier alternatives to overly processed foods.

Transparency in food labeling is crucial in the Clean Label movement. Consumers want to know exactly what they are consuming to better understand the impact it has on their health. This detail allows consumers to make choices that align with their values and dietary needs. By offering this level of transparency, Plantify not only meets consumer expectations but also sets a new standard for the industry.

 

Furthermore, as more people choose Clean Label food options, there is a ripple effect that influences the entire food system. This includes encouraging farmers to adopt more sustainable and organic farming practices, promoting ethical sourcing, and reducing the overall environmental footprint of the food industry.

Clean Label foods are playing a significant role in disrupting the food industry. This shift in consumer behavior not only drives innovation but also has far-reaching effects on the entire food system, promoting sustainability and a healthier future. Plantify is pleased to be championing this movement and will continue to innovate and improve as we grow.

2023 Accomplishments:

With the commissioning of the new manufacturing facility in 2022, the Company set itself up to alleviate growing pains and ensure an efficient ramp-up of production capabilities to meet the increased demand for its products. This facility can produce upwards of 8,000 Kg of products on a daily basis and is set up to be expandable with the addition of new production lines, where infrastructure has already been built, but new machinery would be required.

This has allowed the Company to meet the growing demand for its products and further improve operational efficiencies. The overhead fixed costs remain high; however, they will continue to reduce as production increases.

2023 was a busy, productive, stressful and successful year for the Company. The R&D team expanded the product offering, and the expanded product line secured new customers. The Company successfully completed transactions to raise funds to advance its goals, achieving growth in emerging markets with new customers, and which resulted in a significant improvement in revenue over 2022.

• R&D expanded product offering to +38 different products across 4 (four) main product categories with the addition of Soups and Salads (which includes Dips, Spreads and Salads); 

• Raised a total of $3.3 million by way of Convertible Debenture and a Rights Offering 

• Increased sales by 61% when compared to 2022, with total revenue of $604,000 for 2023 (see 2024 Year End Financial Statements and Management Discussion & Analysis); and  

• Penetrated new markets securing new customers with the expansion of the product line. 

2024 Accomplishments To-Date and Outlook for Remainder of the Year:

2024 has started off strong as the Company looks to increase order size or upsell new products to the existing customer base, as well as continue its sales outreach efforts in new markets. The goal for 2024 will be to make a significant push for new sales within the U.S. as a priority, and Europe as a second priority. Both jurisdictions have strong demand for Clean Label products, but the U.S. is currently lacking in supply, and Plantify has the ability to meet this growing demand.

• New White Label partners (such as Pikante USA, and Label Delice in France among others); 

• Commissioned a new production line dedicated to Dips, Spreads Salads, which is three times faster than the existing line, and which will increase efficiencies and reduce labour; 

• New local retailer with 11 locations throughout the country, expanding Plantify’s footprint in its local market;   

• Expanded sales within the U.S. (significant sales outreach to secure customers of size); 

• Targeted sales within Europe (niche countries where our Clean Label products are in high demand); 

• Continuous improvement initiatives to assess opportunities for cost savings, increasing efficiencies and streamlining the business as the Company continues to grow; and 

• Application to list on the Nasdaq Stock Market LLC (“NASDAQ”), will open up a much larger pool of capital with greater visibility through a listing on one of the largest capital markets in the world. 

Expansion Efforts in Europe – There is tremendous opportunity in Europe, mainly in France (currently sell to), as well as other niche countries where there is demand, and a shift to plant-based foods as a staple.

• Continue to increase volume through existing sales channels;  

• Responsibly target new countries that can be easily serviced; and 

• Target new opportunities outside of White Label and Professional Food Service. 

Entry to North America – The North American market, especially the US given its population size, especially where products like Plantify are in high demand with limited competition.

• Entered the US through our White Label partners; 

• Targeting specific regions to begin rolling out products; and 

• Assess large-scale ecommerce platforms like Walmart, Amazon, Costco, Thrive Markets among others. 

We see a lot of opportunity for growth in these two markets, comforted by the growth of our sales to existing customers, and our ability to conduct additional R&D to offer new products.  We remain focused and pragmatic so that we manage our cashflow along the way, while focusing our efforts to ensure maximum returns.

We have line of sight to solidifying our sales channels which will improve revenues, mitigate the fixed costs at the operations, and improve the overall performance of the Company.”

Suzette Ramcharan, CEO of Plantify Foods.

About Plantify Foods

Plantify Foods is committed to providing consumers with nutritious, Clean Label food options while pioneering innovation in the food and beverage industry. The Company has a simple mission: to ensure that everyone has access to high quality food alternatives that are clean and healthy, are nutritious and tasty, use whole natural ingredients, and are easy to prepare.

Plantify Foods, through its wholly owned Israeli subsidiary, currently sells its diverse range of products in Israel, and is actively expanding its footprint across Europe and North America. With its new manufacturing facility, the Company can increase production and continue to create new Clean Label food products to meet the growing demand of health-conscious consumers from all walks of life.

If you have any questions or need more information, feel free to contact the Company directly.

Contacts:

Gabriel Kabazo

Chief Financial Officer and Corporate Secretary

Phone: (778) 601-8420

 

Investor Relations

Email: ir@plantifyfoods.com

 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

 

Forward Looking Statements:‎

This news release contains “forward-looking information” within the meaning of applicable Canadian ‎securities legislation. All statements, other than statements of historical fact, included herein are forward-‎looking information. In particular, this news release contains forward-looking information regarding but not limited to the Company’s statements regarding discussions of future plans, estimates and forecasts and any statements as to management’s expectations and intentions with respect to, among other things, the ability to raise capital as needed, and the successful listing on NASDAQ, and the timing thereof. There can be no assurance that such forward-‎looking information will prove to be accurate, and actual results and future events could differ materially from ‎those anticipated in such forward-looking information. This forward-looking information reflects ‎Plantify’s current beliefs and is based on information currently available to Plantify and on ‎assumptions it believes are reasonable. These assumptions include but are not limited to the Company’s ability to implement its business plan. Forward-looking information is ‎subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of ‎activity, performance or achievements of Plantify to be materially different from those expressed or ‎implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general ‎business, economic, competitive, political and social uncertainties; general capital market conditions and market prices ‎for securities; delay or failure to receive regulatory approvals; the actual results of future operations; ‎competition; changes in legislation, including environmental legislation, affecting Plantify; the timing and availability of ‎external financing on acceptable terms; and loss of key individuals‎. A description of ‎additional risk factors that may cause actual results to differ materially from forward-looking information can ‎be found in Plantify’s disclosure documents on the SEDAR+ website at www.sedarplus.ca. ‎Readers are further cautioned not to place undue reliance on forward-looking information as there can be no ‎assurance that the plans, intentions or expectations upon which they are placed will occur. The forward-‎looking information contained in this news release represents the expectations of Plantify as of the date ‎of this news release and, accordingly, is subject to change after such date. Plantify expressly ‎disclaims any intention or obligation to update or revise any forward-looking information, whether as a result ‎of new information, future events or otherwise, except as expressly required by applicable securities law.