Looking at the Markets with David Moadel
hello and welcome to looking at the markets with david modell i'm
super excited to bring you opportunities in the markets and the experts the
world's leaders and mavericks and people who are
taking startups to new levels so that the world can be a better
healthier place and maybe just maybe we can all profit from it
the gentleman i have with me that you're watching right now is mr mitchell scott
ceo of very good food and very good butchers
if you're interested in the company you'll want to check out
verygoodbutchers.com and i'll try not to butcher this one
it is on the csc exchange ticker symbol very v-e-r-y
great ticker there easy to remember uh on the otc markets
v-r-y-y-f mr mitchell scott welcome to looking at the markets sir
perfect thanks very much for having me well it's
very rare that i get it perfect and i'm sure i won't but
i'm very glad to have you on the show you're very generous to say that
uh i want to talk about some major opportunities here
kovid 19 is changing many businesses and industries it's forcing them to change
fundamentally you're in the foods business
both with retail restaurant locations a butcher shop
wholesale the major chains and online sales
along with running a newly listed stock so what is your schedule like and do you
think that there are opportunities in this crisis for up for entrepreneurs
such as yourself yeah um in terms of schedule you know it
changes day to day it's a little hectic sometimes
um but it's good you know like being busy
um in terms of opportunities uh absolutely i think there's a ton of
opportunities uh you know even during crisis as you
mentioned before we kind of have almost three different main lines of
business um and so during cobit we kind of
reposition some of those um for example you know our restaurant
butcher shop uh we you know obviously way less people or
know people are going to restaurants for a while i mean
we're lucky on the west coast we didn't get hit as hard as other parts of the
world or the west coast of canada here um but
basically yeah we reduced our hours we shifted to more of a delivery model so
with you know ubereats skip the dishes um we kind of shifted our focus towards
our e-commerce operations um we've had you know e-commerce running
for years uh but saw kind of a surge in interest
uh kind of dude but also due to a new marketing partnership we rolled out
um so you know our online sales just kind of took off
and we also saw a really good growth in our grocery store sales
um i think that's just because more people are cooking at home
uh you know stocking up at the grocery store etc
yeah now in your industry which is i i would call it the meat replacement
plant based foods industry uh your world
revolves around making customers that want a protein experience without
getting it from animals it's about texture and taste but what is
the process like trying to find something that customers will love
and how much research and development is involved in
getting the food to taste great and get that experience
yeah that's a great question and you you nailed it there so taste and texture are
huge um so my business partner james is a
classically trained french chef he's been cooking for about 13 14 years
i from england actually originally but he has a very
very good understanding of flavor and how to flavor things how to spice things
properly um so he is the one who did all of our
initial research and development um the first parts he came up with were
burgers and english breakfast sausages he's since expanded it to a range of
about 15 products everything from you know bacon to ribs to steaks to
pepperoni deli meats um so the i don't want to say the taste
the taste part was easy for him but it was a little bit easier because he
already had this understanding of flavor uh the texture is a whole another ball
game and something we're still working on to this day
um our whole kind of ethos is just to keep a very clean ingredient deck
so all ingredients you understand so beans veggies herbs and spices
a bit of wheat flour to bind it all together so as a result it can be
difficult to achieve that texture without using like you know different
fillers or gums or or additives um but we've managed to to get pretty
close and i'm pretty happy with our products
i'm very happy with our products um and it's basically just
we're cooking together you know mix of beans and veggies
we're adding the sweet flour to it which kind of turns it into a dough
um that dough then gets shaped you know into sausages burgers
and then steamed and once it's steamed it has this kind of meaty
chew and texture to it it's called the process it's called a seitan
um and then moving forward we actually have an r d team based in in vancouver
uh that's been working for the past year um and they're kind of working the next
the next generation of products for us um and they're looking at different
protein sources like we're looking at uh fava bean protein and all these other
different ways of creating our products while still keeping that clean
ingredient profile yeah now there is a show called
dragon's den and in canada it's basically the equivalent of shark
tank in america it's a very popular show uh where people
who have startups uh go on the program and they pitch to
investors and you know sometimes they bite and
sometimes they don't so how much do you think the dragon's
den investors are crying right now over not pulling the trigger on this
opportunity this company early on what do you think
yeah i think they might be kicking themselves a little bit um
just as i guess a bit of a backstory so we were on dragon's den
i want to say a couple years ago uh we filmed in april
and i think it aired in i want to say december of 20
2018 probably it was a christmas special and we had a great kind of
experience on the show we had offers from five of the six dragons
i think they kind of got excited we're bidding against each other um we ended
up doing a handshake deal for uh 750 grand plus a million dollar
interest free loan for 10 of the company so valuing us at
you know seven and a half million at the time
uh which you know which was a great valuation for us back then um
and unfortunately you know we went through due diligence process
um and after it was all said and done they you know they decided not to to
invest well they ended up offering something up
much lower than what they'd agreed to on tv
um so we kind of walked away from the deal and were able to raise at that same
valuation um from uh through crowdfunding
um so i think now you know seeing the valuation now you know 100
over north of 100 million uh they're probably kicking themselves for
you know not getting in at seven and a half you know a year and a half ago um
but hey i mean i think this this show is it's more of a
an entertaining kind of business show than a serious show about deal making
like from what i've heard something like 80 to 90
of the deals on these shows end up falling through afterwards
yeah absolutely uh once again i'm speaking with mr mitchell scott ceo of
very good food and very good butchers if you want more information please
visit verygoodbutchers.com if you're interested in the stock
on the cse exchange very very on the otc markets
vryyf and i want to know as somebody who's interested in this
sector how much growth and demand is there for your products and where do
you think the company's going to be in let's say 12 months or even 24 months
yeah absolutely um so i think the whole i mean the whole space has just been
taking off over the past few years there's a ton of demand
uh there's a ton of interest um in in plant-based eating
you know for multiple reasons you know ethical uh environmental health
and just the products are getting so good um it almost
you know you know you're almost you're not really missing out on anything right
and some of these products are so good um
and in terms of where i think we're i mean in terms of demand i mean we've
been we've been production limited since day one
um you know we have a waiting list of grocery stores that want to carry our
product we're having to cap the amount of online
orders we take and we're doing everything we can to scale up our
production as quickly as possible to keep up with this kind of demand and
to access that pent up demand um in 12 months to a year so we've got
two kind of major projects we're working on
right now um both related to you know making more products so that we can you
know meet this demand uh one is in vancouver um so we're in
victoria west coast of canada uh so it's a ten thousand square foot
facility it's gonna be our new headquarters
it's gonna be about seven thousand feet of production space uh currently we've
got about four thousand feet in victoria um it's going to be a butcher shop
restaurant test kitchen r d lab office space um so that should be
able to kind of provide enough product for to satisfy the canadian market
um then we've also signed at least for a facility in california
um and that's quite a bit bigger it's 25 000 square feet uh we've got to write a
first refusal on an additional 25 000 square feet um and
that's going to be able to make you know 90 million uh dollars worth of worth of
product or so uh per year at least initially just as
we can and then we have room to further expand that
and that's going to be to serve the us the u.s market uh both in
retail wholesale and then also online yeah very good food very good butchers
coming to america coming to california if i'm correct
and we're talking about huge production volumes potentially the this is uh it's
kind of like the beatles coming to america right i think it's huge um
and also big news in the last financing that
uh you just completed accredited investors millionaires
institutional money they paid 1.30 canadian per share
and they received a two dollar canadian warrant that means they can only profit
if the stock goes above two dollars uh it's currently
not there yet so i believe this is still early stage
and they're going to want to see it go over that price and they believe that it
will obviously otherwise they wouldn't have
made that investment what do these sophisticated investors
what are they seeing that got them so excited what do you think
i think the big thing they're seeing is that
i mean i think they see they see what our what we need to do
right we need to scale up our operations um and increase our production capacity
you know and once we've done that we've got all this pen up demand um
so accessing those you know those higher sales volumes are going to
come as a result of that increased production capacity
um i mean currently our you know when we're when we close that round our run
rate was probably around five six million um or so per year
um so if we can get this production online where we could be up at you know
40 to 60 million plus uh per year within the next
year or so um obviously if you take the the multiple
on sales and apply to that much higher sales figure you can you can project a
much higher stock price um so i think that's what got them
excited also i just think i think the mark the
the market itself you know a lot of interest in the space you know there's a
few other companies in this space but we're also
i think there's maybe one or two other public companies in the space um
and we were the the second one to ipo so i think they still think there's a lot
of room to grow in the market um and i
think yeah i think they they like the company they like our products our
positioning you know our branding i think it's just
kind of a combination yeah i view this as a global phenomenon
uh today canada tomorrow usa i mean
where else are you targeting both in the u.s and elsewhere i mean
are you really going global with this yeah so the big focus in the next
let's say year one to two years is is kind of capture that north american
market uh with you know direct to consumer
e-commerce but also with you know wholesale retail
um then we'd love to go to europe uh and potentially you know
australia and the hr region apac um so the idea would be
you know we could go to so let's say go to europe um
set up a flagship you know butcher store we kind of see them as
marketing branding tools uh set up manufacturing roll
just basically to use the same playbook so roll out e-commerce roll out
retail wholesale and then kind of go from there and yeah go global
yeah you saw him on dragon's den now you saw him on looking at the markets
very good sir i don't know if that's an upgrade or not but hey we're so proud to
have you here uh this is dave david modell looking at
the markets we've been speaking with mr mitchell scott you got to go to
www.verygoodbutchers.com to get more information
i don't want people to invest in something until they know what they own
okay so learn about the company but if you want
an early stage opportunity in this growing plant based meat
alternatives market this is one way to do it and this is a
company in hyper growth mode as i see it
so check that out i'll put the link in the description below this video to go
to the website uh mr mitchell scott we'll have to have
you back here for an update uh not only on the california facility
but on the global takeover that's in progress thank you for coming
on looking at the markets appreciate today
thanks so much david cheers have a good
one
you