Meatech - Revision history

109.180.50.163 at 13:22, 14 August 2022

2022-08-14T13:22:17Z

← Older revision		Revision as of 14:22, 14 August 2022
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	~~== Summary ==~~		A meat revolution

	~~'''~~A meat revolution~~'''~~

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			== Summary<ref name=":0">Source: Edison Investment Research.</ref> ==

	MeaTech 3D (MeaTech) is developing proprietary three-dimensional printing technology to be used in conjunction with its cultured meat process, which will enable the manufacture of premium meat products such as marbled steak. Alternative meat demand is booming and cellular agriculture could represent a new solution to the ever-increasing demand for protein. Cellular meat has the potential to significantly disrupt both meat- and non-meat markets over the next several decades.		MeaTech 3D (MeaTech) is developing proprietary three-dimensional printing technology to be used in conjunction with its cultured meat process, which will enable the manufacture of premium meat products such as marbled steak. Alternative meat demand is booming and cellular agriculture could represent a new solution to the ever-increasing demand for protein. Cellular meat has the potential to significantly disrupt both meat- and non-meat markets over the next several decades.

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	Due to MeaTech’s start-up nature, financial forecasts cannot be made with any certainty and management does not expect to report positive revenues or profits in the short to medium term. Uncertainty is compounded by regulatory risk, as cultured meat is not yet approved in most jurisdictions. As MeaTech is the first listed cultured meat company, it has no direct peers. Its net cash position was $30.6m at end H121. Given the free cash flow burn was $5.9m during the period, assuming no further acceleration in cash burn would suggest the company has enough cash for the next c 2.5 years. That said, the trend has clearly been an acceleration in cash burn and the intent to start to design and set up a pilot scale cultured chicken fat facility in Belgium during FY22 is likely to cause cash burn to accelerate.		Due to MeaTech’s start-up nature, financial forecasts cannot be made with any certainty and management does not expect to report positive revenues or profits in the short to medium term. Uncertainty is compounded by regulatory risk, as cultured meat is not yet approved in most jurisdictions. As MeaTech is the first listed cultured meat company, it has no direct peers. Its net cash position was $30.6m at end H121. Given the free cash flow burn was $5.9m during the period, assuming no further acceleration in cash burn would suggest the company has enough cash for the next c 2.5 years. That said, the trend has clearly been an acceleration in cash burn and the intent to start to design and set up a pilot scale cultured chicken fat facility in Belgium during FY22 is likely to cause cash burn to accelerate.

	== Cellular agriculture could disrupt protein production ==		== Cellular agriculture could disrupt protein production<ref name=":0" /> ==

	Meat protein in particular has witnessed a sharp increase in demand over the last decade, due to increasing consumption predominantly in China and India, yet global supply has been disrupted at times by outbreaks of disease. More recently, however, consumers have developed an increasing awareness of the unsustainability of conventional meat, providing significant scope for alternatives. While plant-based meat is currently the only commercially available alternative priced at a level that is affordable for consumers (albeit at a premium to mass market meat), Edison Investment Research believes cultivated meat could become a much more desirable alternative to conventional meat, and indeed could potentially replace it as consumers embrace cultivated meat.		Meat protein in particular has witnessed a sharp increase in demand over the last decade, due to increasing consumption predominantly in China and India, yet global supply has been disrupted at times by outbreaks of disease. More recently, however, consumers have developed an increasing awareness of the unsustainability of conventional meat, providing significant scope for alternatives. While plant-based meat is currently the only commercially available alternative priced at a level that is affordable for consumers (albeit at a premium to mass market meat), Edison Investment Research believes cultivated meat could become a much more desirable alternative to conventional meat, and indeed could potentially replace it as consumers embrace cultivated meat.
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	As discussed above, cultivated meat is not currently approved for sale in any jurisdiction apart from Singapore. That said, as cellular agriculture becomes closer to commercial viability, Edison Investment Research would expect more regulators to examine and approve the product. Edison Investment Research notes that regulation changes by jurisdiction, but also by product: for example, cultivated seafood would only require approval by the FDA in the United States, while cultivated meat requires both FDA and USDA approval in the United States. Edison Investment Research notes that in the EU, approval would be required both by the European Food Safety Authority via the Novel Food Regulation and individual countries. Furthermore, approval will be required for each different product and, potentially, using different components (such as edible scaffolds) would require a new safety review each time. Farming lobbies are powerful worldwide, especially in the United States and the EU. Edison Investment Research would expect farmers to lobby aggressively against the approval of cellular agriculture, and potentially try and dissuade consumers from switching to cultivated food.		As discussed above, cultivated meat is not currently approved for sale in any jurisdiction apart from Singapore. That said, as cellular agriculture becomes closer to commercial viability, Edison Investment Research would expect more regulators to examine and approve the product. Edison Investment Research notes that regulation changes by jurisdiction, but also by product: for example, cultivated seafood would only require approval by the FDA in the United States, while cultivated meat requires both FDA and USDA approval in the United States. Edison Investment Research notes that in the EU, approval would be required both by the European Food Safety Authority via the Novel Food Regulation and individual countries. Furthermore, approval will be required for each different product and, potentially, using different components (such as edible scaffolds) would require a new safety review each time. Farming lobbies are powerful worldwide, especially in the United States and the EU. Edison Investment Research would expect farmers to lobby aggressively against the approval of cellular agriculture, and potentially try and dissuade consumers from switching to cultivated food.

	==MeaTech’s vision: A B2B service==		==MeaTech’s vision: A B2B service<ref name=":0" />==

	MeaTech is targeting a broad range of cell types and cultured products, through both research and development (R&D) and acquisitions. While MeaTech began its R&D with beef cultured products, it acquired Peace of Meat in February 2020, as previously mentioned, which focuses on avian products. In July 2021, MeaTech announced it was launching development of cultivated pork cells. MeaTech’s development of fat and muscle cells for each class of meat is aimed at eventually developing hybrid products (which, as a reminder, contain a mix of plant-based and cultured meat), ground meat products, processed meat and structured 3D printed meat. Edison Investment Research illustrates this in Exhibit 5.		MeaTech is targeting a broad range of cell types and cultured products, through both research and development (R&D) and acquisitions. While MeaTech began its R&D with beef cultured products, it acquired Peace of Meat in February 2020, as previously mentioned, which focuses on avian products. In July 2021, MeaTech announced it was launching development of cultivated pork cells. MeaTech’s development of fat and muscle cells for each class of meat is aimed at eventually developing hybrid products (which, as a reminder, contain a mix of plant-based and cultured meat), ground meat products, processed meat and structured 3D printed meat. Edison Investment Research illustrates this in Exhibit 5.
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	In terms of geography, MeaTech is based in Israel but also has operations in Belgium, at its subsidiary, POM. In March 2022, MeaTech announced it was expanding its operation into the US to accelerate its go-to-market strategy. Its California-based office will include activities in R&D, business development and investor relations. It has recently moved into new headquarters in Rehovot (Israel), which is the epicentre of Israel’s foodtech sector.		In terms of geography, MeaTech is based in Israel but also has operations in Belgium, at its subsidiary, POM. In March 2022, MeaTech announced it was expanding its operation into the US to accelerate its go-to-market strategy. Its California-based office will include activities in R&D, business development and investor relations. It has recently moved into new headquarters in Rehovot (Israel), which is the epicentre of Israel’s foodtech sector.

	==Management==		==Management<ref name=":0" />==

	The senior leadership team at MeaTech comprises:		The senior leadership team at MeaTech comprises:
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	'''Simon Fried, Head of Business''': Simon has broad experience covering tech, retail, fast-moving consumer goods, finance and strategy consulting. Before joining MeaTech in December 2019, he was co-founder of CBO and US president of Nano Dimension.		'''Simon Fried, Head of Business''': Simon has broad experience covering tech, retail, fast-moving consumer goods, finance and strategy consulting. Before joining MeaTech in December 2019, he was co-founder of CBO and US president of Nano Dimension.

	==Financials==		==Financials<ref name=":0" />==

	MeaTech is still in its early stages and hence does not have any revenues, nor is it expecting to have any in the shorter term.		MeaTech is still in its early stages and hence does not have any revenues, nor is it expecting to have any in the shorter term.
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	==Valuation==		==Valuation<ref name=":0" />==

	MeaTech is still in its early stages, hence without revenues or profits expected in the shorter term, it is hard to value. Furthermore, as MeaTech is the first listed cultured meat company, it has no direct peers. The closest listed peers are in the alternative protein segment, namely Beyond Meat, Oatly and Burcon Nutrascience. While none of these are expected to be profitable in the shorter term, MeaTech’s peers do generate revenues at present. Edison Investment Research notes that both Beyond Meat and Oatly have recently reduced their expectations for FY22 due to slower growth/consumer uptake and rising raw material costs. Based on consensus, Oatly is trading on a FY22e EV/sales multiple of c 3.0x and Beyond Meat is trading on c 5.5x. In Edison Investment Research's view, it would therefore not be unreasonable to assume that MeaTech could achieve a similar low-to-mid single-digit multiple once there is a track record of a few years of strong revenue growth.		MeaTech is still in its early stages, hence without revenues or profits expected in the shorter term, it is hard to value. Furthermore, as MeaTech is the first listed cultured meat company, it has no direct peers. The closest listed peers are in the alternative protein segment, namely Beyond Meat, Oatly and Burcon Nutrascience. While none of these are expected to be profitable in the shorter term, MeaTech’s peers do generate revenues at present. Edison Investment Research notes that both Beyond Meat and Oatly have recently reduced their expectations for FY22 due to slower growth/consumer uptake and rising raw material costs. Based on consensus, Oatly is trading on a FY22e EV/sales multiple of c 3.0x and Beyond Meat is trading on c 5.5x. In Edison Investment Research's view, it would therefore not be unreasonable to assume that MeaTech could achieve a similar low-to-mid single-digit multiple once there is a track record of a few years of strong revenue growth.
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	* Economic outlook: despite cellular meat having strong long-term growth drivers from demographic changes and consumer demand for more sustainable food sources, the demand for meat (both conventional and alternative) is vulnerable to changes in the macroeconomic outlook and consumer incomes. This is especially likely to be the case in the nearer term, as cellular meat is likely to be sold at a premium when launched initially.		* Economic outlook: despite cellular meat having strong long-term growth drivers from demographic changes and consumer demand for more sustainable food sources, the demand for meat (both conventional and alternative) is vulnerable to changes in the macroeconomic outlook and consumer incomes. This is especially likely to be the case in the nearer term, as cellular meat is likely to be sold at a premium when launched initially.
	* Changing consumer preferences: MeaTech may be exposed to changes in consumer tastes and preferences, with consumers choosing to shun cultured meat products.		* Changing consumer preferences: MeaTech may be exposed to changes in consumer tastes and preferences, with consumers choosing to shun cultured meat products.

	~~==Notes==~~

	~~The source of this article is Edison Investment Research.~~

	==Actions==		==Actions==
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	To contact Meatech, click [mailto:info@meatech3d.com here].		To contact Meatech, click [mailto:info@meatech3d.com here].

			== References and notes ==
	[[Category:Thesis]]		[[Category:Thesis]]
	[[Category:Equities]]		[[Category:Equities]]

	__INDEX__		__INDEX__

103.126.60.198 at 10:26, 14 August 2022

2022-08-14T10:26:00Z

← Older revision		Revision as of 11:26, 14 August 2022
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			== Summary ==

	'''A meat revolution'''		'''A meat revolution'''

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	~~== Summary ==~~

	MeaTech 3D (MeaTech) is developing proprietary three-dimensional printing technology to be used in conjunction with its cultured meat process, which will enable the manufacture of premium meat products such as marbled steak. Alternative meat demand is booming and cellular agriculture could represent a new solution to the ever-increasing demand for protein. Cellular meat has the potential to significantly disrupt both meat- and non-meat markets over the next several decades.		MeaTech 3D (MeaTech) is developing proprietary three-dimensional printing technology to be used in conjunction with its cultured meat process, which will enable the manufacture of premium meat products such as marbled steak. Alternative meat demand is booming and cellular agriculture could represent a new solution to the ever-increasing demand for protein. Cellular meat has the potential to significantly disrupt both meat- and non-meat markets over the next several decades.
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	[[Category:Thesis]]		[[Category:Thesis]]
	[[Category:Equities]]		[[Category:Equities]]

			__INDEX__

>Louis at 16:28, 22 July 2022

2022-07-22T16:28:47Z

← Older revision		Revision as of 17:28, 22 July 2022
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	To contact Meatech, click [mailto:info@meatech3d.com here].		To contact Meatech, click [mailto:info@meatech3d.com here].
			[[Category:Thesis]]
			[[Category:Equities]]

Manos: /* Summary */

2022-05-16T22:12:52Z

Summary

← Older revision		Revision as of 23:12, 16 May 2022
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	MeaTech 3D (MeaTech) is developing proprietary three-dimensional printing technology to be used in conjunction with its cultured meat process, which will enable the manufacture of premium meat products such as marbled steak. Alternative meat demand is booming and cellular agriculture could represent a new solution to the ever-increasing demand for protein. Cellular meat has the potential to significantly disrupt both meat- and non-meat markets over the next several decades.		MeaTech 3D (MeaTech) is developing proprietary three-dimensional printing technology to be used in conjunction with its cultured meat process, which will enable the manufacture of premium meat products such as marbled steak. Alternative meat demand is booming and cellular agriculture could represent a new solution to the ever-increasing demand for protein. Cellular meat has the potential to significantly disrupt both meat- and non-meat markets over the next several decades.

	[[File:Meatech cover image.jpg~~\|600px~~]]		[[File:Meatech cover image.jpg]]

	'''Meating demand'''		'''Meating demand'''

>Tim: Undo revision 629 by 88.151.155.34 (talk)

2022-03-15T16:19:18Z

Undo revision 629 by 88.151.155.34 (talk)

← Older revision		Revision as of 17:19, 15 March 2022
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	Source: Kearney, Edison Investment Research		Source: Kearney, Edison Investment Research

	Protein consumption has witnessed a significant shift over the past five years, with the launch of plant-based meat alternatives such as Beyond Meat’s and Impossible Foods’ burgers. Meat alternatives have become more mainstream and acceptable to non-vegetarians, and the emergence of flexitarianism (to reduce – rather than eliminate – overall meat intake) has encouraged consumers to transition towards plant-based products. Indeed, protein consumption has become more flexible, as consumers make decisions based on ethical, environmental and health considerations. Food retailers and restaurants have adapted by offering more plant-based alternatives over time, with the latest addition being plant-based ‘Beyond Fried Chicken’ at KFC restaurants in ~~Janua~~		Protein consumption has witnessed a significant shift over the past five years, with the launch of plant-based meat alternatives such as Beyond Meat’s and Impossible Foods’ burgers. Meat alternatives have become more mainstream and acceptable to non-vegetarians, and the emergence of flexitarianism (to reduce – rather than eliminate – overall meat intake) has encouraged consumers to transition towards plant-based products. Indeed, protein consumption has become more flexible, as consumers make decisions based on ethical, environmental and health considerations. Food retailers and restaurants have adapted by offering more plant-based alternatives over time, with the latest addition being plant-based ‘Beyond Fried Chicken’ at KFC restaurants in January. The dairy segment has also been significantly disrupted by the advent of plant-based alternatives: what started as a transient fashion led to an increased uptake of plant-based dairy alternatives. This, in turn, led to increased availability of tasting and appealing alternatives, with consumers increasingly switching to what are perceived to be more ethical and healthier options.

	Edison Investment Research believes cultivated meat and seafood has the potential to disrupt conventional farming and fishing industries in a similar way. If the technical hurdles of cost, scalability and regulatory risk prove surmountable, cultivated protein could be priced at a similar level to conventional protein, but with much cleaner and more sustainable credentials.		Edison Investment Research believes cultivated meat and seafood has the potential to disrupt conventional farming and fishing industries in a similar way. If the technical hurdles of cost, scalability and regulatory risk prove surmountable, cultivated protein could be priced at a similar level to conventional protein, but with much cleaner and more sustainable credentials.

88.151.155.34: Test

2022-03-15T16:15:32Z

Test

← Older revision		Revision as of 17:15, 15 March 2022
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	Source: Kearney, Edison Investment Research		Source: Kearney, Edison Investment Research

	Protein consumption has witnessed a significant shift over the past five years, with the launch of plant-based meat alternatives such as Beyond Meat’s and Impossible Foods’ burgers. Meat alternatives have become more mainstream and acceptable to non-vegetarians, and the emergence of flexitarianism (to reduce – rather than eliminate – overall meat intake) has encouraged consumers to transition towards plant-based products. Indeed, protein consumption has become more flexible, as consumers make decisions based on ethical, environmental and health considerations. Food retailers and restaurants have adapted by offering more plant-based alternatives over time, with the latest addition being plant-based ‘Beyond Fried Chicken’ at KFC restaurants in January. The dairy segment has also been significantly disrupted by the advent of plant-based alternatives: what started as a transient fashion led to an increased uptake of plant-based dairy alternatives. This, in turn, led to increased availability of tasting and appealing alternatives, with consumers increasingly switching to what are perceived to be more ethical and healthier options.		Protein consumption has witnessed a significant shift over the past five years, with the launch of plant-based meat alternatives such as Beyond Meat’s and Impossible Foods’ burgers. Meat alternatives have become more mainstream and acceptable to non-vegetarians, and the emergence of flexitarianism (to reduce – rather than eliminate – overall meat intake) has encouraged consumers to transition towards plant-based products. Indeed, protein consumption has become more flexible, as consumers make decisions based on ethical, environmental and health considerations. Food retailers and restaurants have adapted by offering more plant-based alternatives over time, with the latest addition being plant-based ‘Beyond Fried Chicken’ at KFC restaurants in Janua

	Edison Investment Research believes cultivated meat and seafood has the potential to disrupt conventional farming and fishing industries in a similar way. If the technical hurdles of cost, scalability and regulatory risk prove surmountable, cultivated protein could be priced at a similar level to conventional protein, but with much cleaner and more sustainable credentials.		Edison Investment Research believes cultivated meat and seafood has the potential to disrupt conventional farming and fishing industries in a similar way. If the technical hurdles of cost, scalability and regulatory risk prove surmountable, cultivated protein could be priced at a similar level to conventional protein, but with much cleaner and more sustainable credentials.

>Prisha at 13:06, 15 March 2022

2022-03-15T13:06:56Z

← Older revision		Revision as of 14:06, 15 March 2022
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	'''A meat revolution'''		'''A meat revolution'''

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>Prisha at 13:03, 15 March 2022

2022-03-15T13:03:07Z

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	~~[[File:Meatech logo.jpg\|150px]]~~

	'''A meat revolution'''		'''A meat revolution'''

	[[File:Meatech ~~cover image~~.jpg\|~~600px~~]]		[[File:Meatech logo.jpg\|150px]]

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	MeaTech 3D (MeaTech) is developing proprietary three-dimensional printing technology to be used in conjunction with its cultured meat process, which will enable the manufacture of premium meat products such as marbled steak. Alternative meat demand is booming and cellular agriculture could represent a new solution to the ever-increasing demand for protein. Cellular meat has the potential to significantly disrupt both meat- and non-meat markets over the next several decades.		MeaTech 3D (MeaTech) is developing proprietary three-dimensional printing technology to be used in conjunction with its cultured meat process, which will enable the manufacture of premium meat products such as marbled steak. Alternative meat demand is booming and cellular agriculture could represent a new solution to the ever-increasing demand for protein. Cellular meat has the potential to significantly disrupt both meat- and non-meat markets over the next several decades.

			[[File:Meatech cover image.jpg\|600px]]

	'''Meating demand'''		'''Meating demand'''

>Prisha at 12:57, 15 March 2022

2022-03-15T12:57:01Z

← Older revision		Revision as of 13:57, 15 March 2022
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	[[File:Meatech ~~cover image~~.jpg\|~~600px~~]]		[[File:Meatech logo.jpg\|150px]]

			'''A meat revolution'''

	~~'''A meat revolution'''~~		[[File:Meatech cover image.jpg\|600px]]

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>Ricky at 22:25, 14 March 2022

2022-03-14T22:25:59Z

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