Above Meals Strengthens its Pet Meals Ingredient Platform with Latest Montana-Primarily based Asset Acquisition

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Acquisition expands Above Meals’s pet meals enterprise to roughly US$110M of mixed firm revenues on a proforma foundation

Strengthens buyer base, additional bolstering Above Meals’s present roster of world main pet meals manufacturing prospects

Positions Above Meals to capitalize on the US$26 billion world plant-based pet meals market, projected to develop at a 9% compound annual development price (“CAGR”) by means of 2032

REGINA, Saskatchewan, Aug. 22, 2024 (GLOBE NEWSWIRE) — Above Meals Substances Inc. (Nasdaq: ABVE, ABVEW) (“Above Meals” or the “Firm”), an modern meals firm leveraging its vertically built-in provide chain to ship differentiated elements and shopper merchandise, at the moment introduced extra particulars associated to its expanded pet meals elements enterprise in reference to its latest acquisition of the specialty crop meals ingredient division (the “Belongings”) of Montana-based The Redwood Group, LLC (“TRG”). This strategic acquisition considerably enhances Above Meals’s presence within the quickly rising plant-based pet meals market, positioning the Firm to capitalize on rising traits and meet growing shopper demand for high-quality, plant-based pet diet.

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“This acquisition considerably enhances our place within the quickly rising plant-based pet meals market, increasing our complete pet meals enterprise to roughly US$110M, or 25% of our mixed revenues on a proforma foundation”, stated Lionel Kambeitz, Founder, President, Chief Govt Officer and Govt Chairman of Above Meals. “Moreover, our seed-to-fork platform uniquely positions us to serve the evolving wants of the plant-based pet meals business, beforehand demonstrated by delivering a 13% natural CAGR in our legacy pet meals enterprise since 2022. By controlling each step from seed choice and farming to ingredient processing and formulation, we provide unparalleled traceability, high quality management, and customization capabilities. This vertical integration permits us to develop modern, nutritious plant-based elements particularly tailor-made for pet meals functions, assembly the rising demand for high-quality, sustainable pet diet options. As pet mother and father more and more search clear, plant-based choices for his or her pet companions, Above Meals’s complete strategy allows us to be a useful accomplice to main world pet meals producers. We will quickly reply to market traits, guarantee constant provide of premium elements, and help our companions in creating differentiated merchandise.”

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Strategic Significance of Management in Pet Meals Market

The pet meals business represents a considerable and rising alternative for Above Meals, pushed by a number of key elements:

• Massive and Rising Market: The US$26 billion world plant-based pet meals market is projected to develop at a CAGR of 9% by means of 2032, in line with Future Market Insights. This development is outpacing the general pet meals market, indicating a robust shift in the direction of shoppers adopting plant-based protein formulations for his or her pets.
• Increasing Pet Possession: 66% of US households personal a pet, in line with the American Pet Merchandise Affiliation. The US pet inhabitants has been persistently rising at 1-2% yearly from 2013-2022, as reported by Euromonitor. This pattern is anticipated to proceed, making a steadily increasing buyer base for pet meals merchandise.
• Pet Humanization Development: In accordance with Packaged Info, 92-96% of US pet homeowners view their pets as members of the family. This “humanization” of pets has been a robust long-term pattern for over a decade, reworking pet homeowners into “pet mother and father” who prioritize their pets’ well-being and are prepared to spend money on premium diet choices.
• Well being and Diet Focus: Mirroring traits in human diet, pet mother and father are more and more searching for more healthy, higher-quality meals choices for his or her pets. There’s a rising demand for contemporary, pure, and natural plant-based meals merchandise with transparently sourced elements. This pattern has been additional accelerated by the COVID-19 pandemic, with 48% of pet mother and father reporting feeling nearer to their pets because of the pandemic, in line with an American Pet Merchandise Affiliation’s Pulse Examine.
• Plant-Primarily based Innovation: The plant-based meals motion is driving innovation in pet meals, with elements like chickpeas and flaxseed changing into more and more standard alternate options to conventional soy, corn, and wheat proteins. This shift opens up new alternatives for differentiated ingredient suppliers like Above Meals, now North America’s largest chickpea producer following the acquisition of TRG, to turn into priceless innovation companions with producers in creating novel, nutritious plant-based pet meals formulations.
• Market Resilience: The pet class has traditionally proven resilience throughout financial downturns, as shoppers proceed to prioritize spending on their pets even when tightening budgets in different areas. This resilience was demonstrated throughout each the monetary disaster in 2008 and the COVID-19 pandemic when the pet business skilled constructive development regardless of a lowered urge for food for shopper spending.

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About Above Meals

Above Meals Substances Inc. (Nasdaq: ABVE, ABVEW) is an ingredient firm that celebrates scrumptious merchandise made with actual, nutritious, flavorful elements delivered with transparency. Above Meals’s imaginative and prescient is to create a more healthy world — one seed, one discipline, and one chew at a time. With a sturdy chain of custody of plant proteins, enabled by scaled operations and infrastructure in main agriculture and processing, and proprietary seed improvement capabilities that leverage the ability of synthetic intelligence-driven genomics, Above Meals delivers nutritious meals to companies and shoppers with traceability and sustainability. Above Meals’s shopper merchandise and types can be found on-line at www.abovefood.com and in main grocers throughout Canada and the USA.

Cautionary Assertion Relating to Ahead-Wanting Statements

This press launch might include “forward-looking data” inside the which means of the USA federal securities legal guidelines and relevant Canadian securities legal guidelines. These forward-looking statements typically are recognized by the phrases “imagine,” “venture,” “anticipate,” “anticipate,” “estimate,” “intend,” “technique,” future,” “alternative,” “plan,” “might,” “ought to,” “will,” “might,” “will likely be,” will proceed,” and comparable expressions and embrace, with out limitation, statements in regards to the potential of or expectations relating to the longer term efficiency of our enterprise and operations.

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Ahead-looking statements are primarily based on the present expectations of Above Meals’s administration and will not be predictions of precise efficiency. These forward-looking statements are offered for illustrative functions solely and will not be meant to function, and should not be relied on, by any investor as a assure, an assurance, a prediction or a definitive assertion of reality or chance. It is best to rigorously contemplate the entire dangers and uncertainties described within the paperwork filed by the Firm with the USA Securities and Trade Fee, which is obtainable on EDGAR at www.sec.gov/edgar.shtml. There could also be extra dangers that Above Meals presently doesn’t know or that Above Meals at present believes are immaterial that might additionally trigger precise outcomes to vary from these contained in forward-looking statements. As well as, forward-looking statements present Above Meals’s expectations, plans or forecasts of future occasions and views as of the date of this communication. Above Meals anticipates that subsequent occasions and developments will trigger Above Meals’s assessments to alter. Nevertheless, whereas Above Meals might elect to replace these forward-looking statements sooner or later, Above Meals particularly disclaims any obligation to take action. These forward-looking statements shouldn’t be relied upon as representing Above Meals’s assessments as of any date subsequent to the date of this communication. Nothing herein must be thought to be a illustration by any person who the forward-looking statements set forth herein will likely be achieved or that any of the contemplated leads to such forward-looking statements will likely be achieved. You shouldn’t place undue reliance on forward-looking statements on this communication, which converse solely as of the date they’re made and are certified of their entirety by reference to the cautionary statements herein.

Contacts

Media:
media@abovefood.com

Buyers:
traders@abovefood.com

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