Hi there,
It is definitely an up and coming industry - I have been watching VERY closely. By all accounts the Very Good Burger is well received by consumers and it has a high quality product. One of the issues has been sourcing materials, and keeping up with demand. It has been forced to limit orders and hasn't been actively marketing because it has been unable to meet demand.
This however, is slowly changing as new capacity has come on board recently and it partnered with a few third party logistics partners to help solve some of its supply chain issues. It also increased capacity at its Victoria plan and has further expansion plans to expand capacity from 8,100 lbs to~19,000 lbs per week.
Keeping its price down has been the share offering at $1.30 per share from the beginning of August. Not to be concerned, this is normal course of action for high-growth stocks. It will take some time to digest these new shares and has provided investors with a decent entry point.
As for BU, it actually announced news today. It's JV received a $30 million investment from Bunge (NYSE:BG). This will help acclerate the constuction of its plant-based protein production facility in Manitoba. According to the company, "it will be the only commercial-scale facility capable of producing food-grade canola protein in the world". It is scheduled for completion by end of year.
Unlike VERY however, revenue at BU has been in a steady decline from $87M three years ago to $31M this last year. On a trailing twelve month basis, it has posted revenue of $24M - not exactly what we want to see from a company that is supposed to be operating in a high growth industry.
There are considerable risks with both of these companies. Is the shift to non-meat, plant-based protein permanent? Is it capped at a certain growth rate? Is this a fad that will taper? So many unanswered questions. However, when looking at these types of companies i also look to historical performance. In this case, VERY stands out well above BU.
Mat