Is the future vegan? The Pure Foods (ASX:PFT) share price might say so

The Pure Foods Tasmania Ltd (ASX: PFT) share price is up today after it shared news it has acquired another plant-based food brand.

| More on:
bottles of colourful plant based juices

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There aren't many companies catering to vegans on the ASX, but Pure Foods Tasmania Ltd (ASX: PFT) may be giving it a go. Its share price is up today after it shared news it has acquired another plant-based food brand. The company announced its acquisition of Cashew Creamery, which follows its acquisition of Lauds Plant Based Foods last month. It also holds ownership of plant-based cheese brand New Pastures.

The company stated in this morning's announcement its strategy is to grow into the plant-based market through acquisitions.

The Pure Foods share price is up after today's news. At the time of writing, shares are trading for 83 cents, up 4.4% marking an intraday high.

Let's look further into Pure Foods' plant-based approach.

Growing through acquisitions

Pure Foods announced it has acquired Cashew Creamery this morning.

The latest acquisition is another step for the company's growth into the plant-based food market, which it states is set to be worth $3.9 billion by 2024.

According to Pure Foods, the cashew-based ice cream brand has grown its year to date sales by more than 50% over the year ending on 8 March 2021.

The acquisition is estimated to cost Pure Foods around $420,000, with approximately 52% to be paid in cash and 48% in shares.

On 2 February, Pure Foods announced it had acquired Lauds Plant-Based Foods.

It stated that doing so would grow the brand significantly in the short term due to Pure Foods' extensive distribution channels. Additionally, it also said that it hoped its ownership of Lauds gives it access to its niche market network.

Pure Foods' CEO Michael Cooper commented on the company's plant-based focus when announcing its acquisition of Lauds:

We believe we can build an amazing business that can bring more and more plant-based food and beverages to Australia and distributed to our core export customers, principally in Hong Kong and Singapore.

While it's only early days for Pure Food's vegan approach, its future may be interesting.

Pure Food's share price snapshot  

The Pure Foods share price hasn't necessarily shown the same optimism in the plant-based food sector as the company. It is currently down by 20% year to date. Though, it is up 220% over the last 12 months.

The company has a market capitalisation of around $38 million, with approximately 53 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Boss Energy, Core Lithium, Latin Resources, and Santos shares are rising today

These ASX shares are having a good finish to the week. But why?

Read more »

Happy woman in purple clothes looking at asx share price on mobile phone
Share Gainers

Why Invictus Energy, Perpetual, Polynovo, and Zip shares are charging higher

These ASX shares are catching the eye on Thursday. What's going on?

Read more »

two men in mining hats shake hands on a deal with gas pipelines in the background, indicating a deal between Senex and 29 Metals
Share Gainers

Guess which ASX All Ords share just leapt 59% on a new gas discovery

Investors are bidding up the ASX All Ords energy share following a significant gas discovery in southern Africa.

Read more »

Businesswoman whispering in male colleague's ear as he looks surprised
Share Gainers

Up 118%: Is this 'high quality' stock the best-kept secret on the ASX 200?

Why are these pharmaceutical shares turning heads at the moment? The Elvest team explains.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Chalice Mining, Core Lithium, Perpetual, and Polynovo shares are racing higher

These ASX shares are having a very strong session on Wednesday. But why?

Read more »

A young boy points and smiles as he eats fried chicken.
Share Gainers

'Double-digit earnings growth': 2 fast-rising ASX shares not too late to buy

Get on these stocks before all their potential is realised, say Celeste analysts. So what are you waiting for?!

Read more »

Top 10 blank list on chalkboard
Share Gainers

Here are the top 10 ASX 200 shares today

It was back to reality for ASX shares today...

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
Share Gainers

Why Droneshield, Origin, ResMed, and Whispir shares are pushing higher

These ASX shares are having a good time despite the market weakness.

Read more »