Should You Buy The Dip On Vejii Holdings?

Image sourced from Unsplash

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

Let's face it. Plant-based and vegan food is going to be a huge trend in the future. Some would disagree with me and say "no Vishal, not the future. Now". I was raised in a family of vegetarians all my life, and have been a vegetarian most of my life. A few years back, it would be difficult to get some veggie options (always the veggie burger, linguini alfredo, or Margherita pizza). Not anymore. Most restaurants now have plenty of vegetarian and vegan options. It's a great time to be a vegetarian or a vegan.

A lot of people in my generation are opting for vegan meals. The food tastes good (I've heard sometimes it tastes just like meat), and people feel they are doing something good for the environment. I think this trend will increase. The one sticky point is the price of vegan food at supermarkets. With oil prices rocketing, and agricultural commodity prices shooting higher, this will translate to higher food inflation. In fact, food prices have hit all time highs. Combine the fact that the Bank of Canada is raising rates, the middle class is being pinched on two sides and may begin to save more than spend. And when they do spend, they might try to spend the least amount possible, which means cheaper meals. I have found vegan/organic food tends to be more on the pricier side of things, which means the consumer may cut back.

To read my opinions on the plant-based sector as a whole, check out my plant-based 2022 outlook, and be sure to read tons of our plant-based content written by Kieran Robertson. He also has a weekly plant-based sector roundup so you will be caught up with all the weekly news and latest news.

Today's idea is one I fully can get behind. Vejii Holdings (VEJI.CN). Vejii is a digital marketplace offering thousands of plant-based and sustainable-living products, from hundreds of vendors in a centralized, online shopping experience. If you watched our Investor Roundtable on Vejii, I like to call them the Etsy of plant-based and sustainable living. I make that comparison because of the niche both companies have carved out.

You can check out the world's largest plant-based marketplace at shopvejii.com.

The company has been making moves. Vejii announced a couple of acquisitions. Vejii acquired Veg Essentials LLC, a leading online retailer of vegan grocery products. The acquisition provides Vejii with access to a second strategically located warehouse in the US, as well as over 20 years of consumer insight, data, and buying power. The companies have a combined subscriber list of over 130,000 across North America and Europe. The Company plans to consolidate its logistics, marketing and buying with Vegan Essentials to increase efficiencies and margins between the two companies.

Vejii kicked off the year with the acquisition of VEDGEco USA Inc, a leading online B2B wholesale platform for plant-based products. Vejii is growing, and onboarding new customers and products. Management really deserves a round of applause for proving they can execute their plans and objectives.

Vejii announced the launch of Planet Based Foods hemp-protein products including the HEMP Burger, HEMP Crumble, and the HEMP Sausage Patty product ranges on the Company’s US platform. This will enable Planet Based Foods to reach national exposure via Vejii’s existing infrastructure of data, tech, marketing, and logistics. Planet Based Foods will also have access to the Company’s growing 200,000 social media followers, brand ambassadors, and email marketing lists.

On February 23, 2022, Vejii announced a record unaudited consolidated revenue of approximately $513,000 in January 2022, representing a growth of 1,158% compared to January 2021. Furthermore, in the same period, Vejii generated a gross profit of $189,000. In just one year, Vejii has built out its marketplace to offer more than 3,500 products from over 500 brands in the Consumer Packages Goods (CPG) space. The Company has also established six points of distribution in North America with plans to add more. For more details, check out this article.

Blender Bites (BITE.CN) and their product offering has joined Vejii's fulfillment and distribution platform. Their top-selling products will be available throughout Canada on the Vejii Express platform.

“We love Blender Bites and their product offering that provides consumers with a simple solution towards maintaining a healthy diet. We’re proud to partner with an award-winning brand that recognizes our ability to deliver their products across the country, direct-to-consumer, and at the same time offer a world-class buying experience,” said Darren Gill, President, and COO of Vejii.

Last month, Vejii announced that the company has signed a consignment and fulfillment services agreement with Unreal Deli Inc. Unreal Deli will provide inventory to Vejii Fulfillment Services (VFS) on consignment.

“We continue to see increasing demand from brands looking to leverage our distribution network which spans across the US and Canada, to provide D2C shipping for their products. Approximately 40% of our Vejii Express offering, which makes up all of our top-selling SKUs are now on consignment through the VFS platform,” said Kory Zelickson, CEO of Vejii.

Unreal Deli’s products will be available for sale on Vejii Express and through its own direct-to-consumer (D2C) consumer channel. On the other hand, Vejii will pick, pack, and ship orders for Unreal Deli products both on ShopVejii.com and Unreal Deli’s own eCommerce platform, unrealdeli.com.

Any Shark Tank viewers here? Unreal Deli appeared on the show and secured an investment from Mark Cuban. Unreal Deli has offered New York-style deli meat through retailers like Whole Foods, Publix, Wegmans, and Quiznos, to name just a few. Furthermore, the company offers its products through its own D2C consumer channels and its existing relationship with ShopVejii.com and VeganEssentials.com.

Unreal Deli was also voted the No. 1 Best Plant-Based Meat on Thrillist and was ranked as the No. 1 Best-Selling Vegan Deli Meat on Amazon. In addition to being 100% plant-based, Unreal Deli’s products are also high in protein and are GMO-free.

The most recent news regards Vejii going vegan fried chicken. Vejii will purchase, market, and promote VFC fried Chick*n products in the United States (US) through ShopVejii.com, and its Food Service products through VEDGEco.com.

VFC is an environmentally conscious brand making an impact. VFC beat every generic animal-based southern fried chicken in all environmental categories. As for the company’s products, VFC’s Chick*n is made using wheat, which produces one-quarter of the emissions compared to chicken.

Potential double bottom on Vejii?

The stock broke a major support at $0.625, and the stock has been going downhill ever since. There was some signs of bottoming at $0.50, but that did not hold. The stock made new record all time lows on March 16th 2022 hitting $0.16. And yes, there has been a share consolidation.

My Market Moment readers know that I love these type of set ups. I am seeing signs of a potential bottom. We could have a double bottom, or a "W" shaped pattern here. The only thing missing is the breakout trigger.

I would need a daily candle close above $0.32 to confirm the trigger of the reversal pattern. That's when the bulls get real excited. Until then, the stock can continue to make lower highs and lower lows.

Authored by Vishal Toora, Equity.Guru

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.