The Very Good Food Company Provides Production Capacity Update for its Rupert Facility
Vancouver, British Columbia--(Newsfile Corp. - July 28, 2021) - The Very Good Food Company Inc. (TSXV: VERY) (OTCQB: VRYYF) (FSE: 0SI) ("VERY GOOD" or the "Company"), a leading plant-based food technology company, is pleased to provide a production and facility update after recently announcing the upcoming launch of its new Butcher's Select line of gluten and soy-free plant-based meats available this summer.
VERY GOOD is pleased to report that its first production line ("Line 1") at its Rupert facility, located in Vancouver, Canada, is now producing four times the daily production volume of the Company's Victoria facility. Line 1 was commissioned in April 2021 with some food production starting in May. Currently operating five days a week with three shifts per day, Line 1 will be producing an average of 13,000 lbs per day starting in August. Production volume is rapidly increasing week over week from continuous operational and process improvements in conjunction with increased production hours.
Line 1 is fully operational and mainly produces The Very Good Butchers original suite of products. The Company expects the ramp up of capacity of Line 1 to continue into the fall as it targets 40,000 lbs per day on average starting in Q4 2021; gradually increasing to an average of 60,000 lbs per day in early Q1 2022. This additional capacity will support the increasing demand for VERY GOOD's products which have an average sales price of CDN$14 per lb in e-Commerce and CDN$7 per lb in wholesale.
VERY GOOD will be commissioning its second production line ("Line 2") at the Rupert facility in Q4 2021 which will be dedicated to the production of its new highly anticipated gluten and soy-free Butcher's Select Line. The new product line will diversify the Company's portfolio of plant-based meats and position The Very Good Butchers brand in the meat substitute category which has been largely dominated by Beyond Meat and Impossible Foods. Line 2 will also allow for expansion into the North American food service channel. VERY GOOD recently partnered with Copper Branch, the world's largest plant-based restaurant franchise with over 40 locations across North America, and with Fresh Prep, the Vancouver-based homegrown meal kit company.
"We are proud of our team and the milestones they have achieved to date at the Rupert facility," said Mitchell Scott, co-founder and CEO of The Very Good Food Company. "We have already surpassed the production volume at our Victoria facility which, until recently, was our only source of capacity to meet the growing demand for our products. The Rupert facility is ramping up lock step with the timing of our entry into US retail stores."
VERY GOOD today also announced that it has granted an aggregate of 150,000 options to its President, Ana Silva, in connection with her appointment to the Company's board of directors in April 2021. Ms. Silva's options have an exercise price of $3.70 per share, a five year term and will vest in quarterly equal tranches over a period of 24 months. The timing for the option grant was determined in accordance with the black-out period restrictions of VERY GOOD's Trading Policy.
About The Very Good Food Company Inc.
The Very Good Food Company Inc. is an emerging plant-based food technology company that produces nutritious and delicious plant-based meat and cheese products under VERY GOOD's core brands: The Very Good Butchers and The Very Good Cheese Co. www.verygoodfood.com
OUR MISSION IS LOFTY, BADASS BUT BEAUTIFULLY SIMPLE: GET MILLIONS TO RETHINK THEIR FOOD CHOICES WHILE HELPING THEM DO THE WORLD A WORLD OF GOOD. BY OFFERING PLANT-BASED FOOD OPTIONS SO DELICIOUS AND NUTRITIOUS, WE'RE HELPING THIS KIND OF DIET BECOME THE NORM.
This news release contains forward-looking information for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Any such forward-looking information may be identified by words such as "proposed", "expects", "intends", "may", "will", and similar expressions. Forward looking information contained or referred to in this news release includes statements based on VERY GOOD's current expectations and assumptions relating to its business, the environment in which it operates and its future operations, including the scale and timing of the anticipated production capacity increases at the Rupert facility and the continued trend of such production capacity increases into early Q1 2020, the increasing demand for VERY GOOD's products, the timing for the launch of the Butcher's Select line and the benefits VERY GOOD expects to derive from the new product line, the attributes of the Butcher's Select products, the Company's plans and expectations for Line 2 at the Rupert facility, and the lock step timing of the Rupert facility's production ramp up with VERY GOOD's entry into US retail stores. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information, but which may prove to be incorrect including, but not limited to, material assumptions with respect to the continued strong demand for VERY GOOD's products, the accuracy of the construction schedule, timely receipt of required permits and cost estimates for Line Two, availability of construction crews and materials, the continued production capacity ramp-up to meet distribution commitments, the availability of sufficient financing on reasonable terms to fund the Company's capital and operating requirements, the ability to obtain necessary equipment, production inputs and labour, and competitive conditions and the Company's ability to position VERY GOOD competitively. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information because VERY GOOD can give no assurance that such expectations will prove to be correct. Risks and uncertainties that could cause actual results, performance or achievements of VERY GOOD to differ materially from those expressed or implied in such forward-looking information include, among others, negative cash flow and future financing requirements to sustain and grow operations, limited history of operations and revenues and no history of earnings or dividends, expansion of facilities, competition, availability of raw materials, dependence on senior management and key personnel, general business risk and liability, regulation of the food industry, change in laws, regulations and guidelines, compliance with laws, unfavourable publicity or consumer perception, product liability and product recalls, risks related to intellectual property, difficulties with forecasts, management of growth and litigation, as well as the impact of, uncertainties and risks associated with the ongoing COVID-19 pandemic, many of which are beyond the control of VERY GOOD. For a more comprehensive discussion of the risks faced by VERY GOOD, please refer to VERY GOOD's most recent Annual Information Form filed with Canadian securities regulatory authorities at www.sedar.com. The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, VERY GOOD disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release. 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 news release.
For further information, please contact:
Chief Executive Officer and Director
Corporate Communications and Investor Relations
Phone: +1 855-472-9841
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