10 Vegan Stocks Billionaires Are Loading Up On
In this article, we will take a look at the 10 vegan stocks billionaires are purchasing. If you want to skip our detailed analysis of the industry and its growth prospects, go to the 5 Vegan Stocks Billionaires Are Loading Up On.
Vegan food refers to food that is free from any animal products or by-products, including meat, poultry, fish, dairy, eggs, honey, and other animal-derived ingredients. Veganism is a lifestyle and dietary choice that aims to avoid animal exploitation and promote ethical, environmental, and health considerations. According to Statista, the size of the global plant-based food industry is set to compound at an annual growth rate (CAGR) of 18.6% from a size of $29.4 billion in 2020 to $161.9 billion by the end of this decade. The rapid increase in the growth of the global vegan food industry has been associated with several potential health benefits, including a reduced risk of heart disease, cancer, and other diseases. Furthermore, the growth of the lactose-intolerant population is anticipated to provide a boost to the global vegan food industry in North America and Europe as consumers are looking for alternative products. On the other hand, increased awareness regarding animal rights, an increase in disposable incomes, and evolving lifestyles are seen to be the key growth drivers in the Asian Pacific region. According to a study published by the Journal of the American Medical Association (JAMA), people who adopt vegan food have a higher life expectancy as opposed to people who live on a meat-based diet. As a result, health-conscious customers are adopting vegan food, benefiting the leading plant-based food stocks.
In addition to this, the higher emergence of zoonotic diseases like COVID-19, avian influenza (bird flu), Ebola Virus Disease, and Lyme in recent times has accelerated the switch towards vegan food and boosted the popularity of vegan ETF. The US Vegan Climate ETF (VGEN) holds the distinction of being the first fund to focus on vegan investments. The changing preferences are also playing in favour of notable plant-based penny stocks such as Tattooed Chef, Inc. (NASDAQ:TTCF) and Komo Plant Based Foods Inc. (OTC:KOMOF). According to Euromonitor, around 40% of consumers around the world are limiting the consumption of animal-based foods as of 2021. Vegan food is also attributed to having a lower carbon footprint compared to animal-based food. Livestock farming, especially cattle, is a significant contributor to greenhouse gas emissions. As per the Food and Agriculture Organization (FAO) of the United Nations (UN), global livestock is responsible for generating 14.5% of all greenhouse gas emissions.
Innovation in the Vegan Food Market
The positive outlook of the vegan food industry can be comprehended by the rising popularity of plant-based fast food restaurant chains like Slutty Vegan. The venture was started in a ghost kitchen in Atlanta, Georgia, by entrepreneur Pinky Cole in early 2018. Within a few months, Slutty Vegan established its physical presence by opening up a food truck. Soon after, it opened its first permanent location in the Big Peach and has now expanded its footprint to Brooklyn, Gwinnett, and Dallas. The business has been able to raise $25 million in series A funding at a valuation of $100 million. The restaurant has gained a significant following for its delicious vegan comfort food. The name "Slutty Vegan" is meant to challenge stereotypes and redefine the perception of vegan food. The menu at the restaurant features a variety of plant-based burgers.
Furthermore, the Minneapolis, Minnesota-based retail giant Target Corporation (NYSE:TGT) also launched a private label brand called Good and Gather, targeted towards vegan food consumers. The brand provides a variety of plant-based products that are clearly labelled as vegan or plant-based. These include items such as fresh fruits and vegetables, plant-based milk alternatives, vegan snacks, canned goods, grains, and more. The brand has grown its annual sales to more than $2 billion in a brief period since its launch in 2019. Some of the best vegan stocks capitalizing on the expanding industry include Kellogg Company (NYSE:K), Tyson Foods, Inc. (NYSE:TSN), and Archer-Daniels-Midland Company (NYSE:ADM).
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Our Methodology
We used Insider Monkey’s exclusive database of billionaire-owned stocks to shortlist the best vegan stocks with the highest number of billionaire investors as of the first quarter of the year. We have included companies with significant exposure to the vegan food industry. The best vegan stocks have been ranked in ascending order of the number of billionaires holding a stake in them. We have also included information regarding the total number of hedge fund investors in these companies as of Q1 2023.
10 Vegan Stocks Billionaires Are Loading Up On
10. The Hain Celestial Group, Inc. (NASDAQ:HAIN)
Number of Billionaire Investors: 7
Dollar Value of Billionaire Holdings: $26,546,311
Number of Hedge Fund Holders: 18
The Hain Celestial Group, Inc. (NASDAQ:HAIN) is a Boulder, Colorado-based food company that is heavily focused on producing and selling a wide range of natural and organic food products, including plant-based snacks, dairy alternatives, and other vegan-friendly food items.
In a note issued to investors on May 10, Brian Holland at TD Cowen assigned The Hain Celestial Group, Inc. (NASDAQ:HAIN) stock a target price of $22 along with an Outperform rating. Experts believe that the appointment of Wendy Davidson as the Chief Executive Officer (CEO) and President of The Hain Celestial Group, Inc. (NASDAQ:HAIN) in January 2023 has been beneficial for the corporation. Davidson's extensive consumer packaged goods (CPG) experience has helped The Hain Celestial Group, Inc. (NASDAQ:HAIN) streamline its operations more efficiently.
Madison Funds shared its stance on one of the best vegan stocks in its Q4 2022 investor letter. Here’s what the firm said:
“Stock selection was the poorest for us in this sector. Two stocks in particular – The Hain Celestial Group, Inc. (NASDAQ:HAIN) and Scott’s Miracle-Gro (SMG) – while big winners for us in 2020 and 2021, hurt the portfolio in 2022.
While both companies were so-called COVID beneficiaries (businesses that benefited from consumers staying home and spending on their homes during COVID), we felt they possessed certain additional drivers that would maintain their fundamentals into 2022 and beyond. Hain, for example, has a strong portfolio of organic health and wellness brands that target a higher-end demographic. As strong as their brands are, there is ample room for growth. Put simply, there are channels of distribution like Costco and Walgreens that their brands don’t currently serve, but we believe eventually will. Furthermore, we believed HAIN’s portfolio had pricing power to pull them through this inflationary period.
While we were largely correct on both counts, we underestimated the challenges they faced in their European business (40% of revenue), which overshadowed their success in North America. Entering 2022, HAIN’s stock had just hit a 5-year high of $45. However, the good times were short-lived as Russia invaded Ukraine early in 2022, sending energy prices materially higher in Europe. Although HAIN has a #1 or #2 market share in their brand categories, they could not withstand the economic shock from the war. The pressures on Hain’s European business came from multiple fronts: Rising energy prices skyrocketed their manufacturing and transportation costs. Essential ingredients for their products, like sunflower oil, became scarce as Ukraine is a key exporter of grains. The pressure on energy prices exacerbated an already weakened U.K. consumer due to BREXIT. And finally, the structure of the grocery market in the U.K. led to a delay in price increases. All of these factors weighed heavily on earnings and cash flow. Although we reduced our position size in the early summer, the stock took considerable punishment. As we enter the new year, HAIN’s European business has stabilized considerably. Natural Gas prices have meaningfully corrected, bringing relief not just to their costs but to the U.K. consumer.”
9. Celsius Holdings, Inc. (NASDAQ:CELH)
Number of Billionaire Investors: 8
Dollar Value of Billionaire Holdings: $97,884,998
Number of Hedge Fund Holders: 24
Celsius Holdings, Inc. (NASDAQ:CELH) is a Boca Raton, Florida-based company that specializes in the production and distribution of fitness and energy drinks. The company has a portfolio of vegan-friendly products that are kosher and sugar-free as well.
On June 2, Peter Grom at UBS increased the price target on Celsius Holdings, Inc. (NASDAQ:CELH) stock from $130 to $160 and reiterated a Buy rating. The analyst sees Celsius Holdings, Inc.’s (NASDAQ:CELH) next phase of growth to be driven by international markets.
As of Q1 2023, 8 billionaire investors held a stake worth over $97.8 million in one of the best vegan stocks.
8. National Beverage Corp. (NASDAQ:FIZZ)
Number of Billionaire Investors: 8
Dollar Value of Billionaire Holdings: $200,652,737
Number of Hedge Fund Holders: 12
National Beverage Corp. (NASDAQ:FIZZ) is a Fort Lauderdale, Florida-based beverage company that owns various popular brands like LaCroix, Shasta, and Faygo. The LaCroix line of sparkling water products is vegan, and its ingredients include carbonated water and natural flavours without any animal-derived ingredients. Meanwhile, some of the Shasta and Faygo soda flavours are vegan as well.
Of the 943 hedge funds in Insider Monkey’s database, 12 funds reported owning a stake in National Beverage Corp. (NASDAQ:FIZZ) at the end of Q1 2023. National Beverage Corp. (NASDAQ:FIZZ) has secured eighth place on our list of the best vegan stocks billionaires are purchasing.
7. MGP Ingredients, Inc. (NASDAQ:MGPI)
Number of Billionaire Investors: 9
Dollar Value of Billionaire Holdings: $30,338,235
Number of Hedge Fund Holders: 25
MGP Ingredients, Inc. (NASDAQ:MGPI) is an Atchison, Kansas-based company that produces and supplies various food and beverage ingredients, including alcohol, proteins, starches, and other speciality ingredients. MGP Ingredients, Inc. (NASDAQ:MGPI) primarily focuses on supplying ingredients to other manufacturers and businesses. The company’s Proterra series is a line of plant-based proteins that replicate the feeling of consuming meat when rehydrated. The product line is kosher-certified and produced from non-genetically modified organisms (GMO) wheat.
MGP Ingredients, Inc. (NASDAQ:MGPI) is also considered one of the best vegan stocks to buy, as 9 billionaire investors reported owning a stake in the company at the end of Q1 2023.
6. Bunge Limited (NYSE:BG)
Number of Billionaire Investors: 9
Dollar Value of Billionaire Holdings: $109,687,892
Number of Hedge Fund Holders: 37
Bunge Limited (NYSE:BG) is a Chesterfield, Missouri-based agribusiness and food processing company involved in the production, processing, and distribution of agricultural products. Bunge Limited (NYSE:BG) operates in various sectors of the food industry but is primarily known for its involvement in the sourcing and processing of agricultural commodities such as grains, oilseeds, and sugar. The company offers various plant-based proteins that are derived from canola, faba, pea, and soy and considers faba protein as an ideal ingredient for vegan cheese brands.
In addition to Bunge Limited (NYSE:BG), Kellogg Company (NYSE:K), Tyson Foods, Inc. (NYSE:TSN), and Archer-Daniels-Midland Company (NYSE:ADM) are also among the best vegan stocks billionaires are purchasing.
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Disclosure. None: 10 Vegan Stocks Billionaires Are Loading Up On is originally published on Insider Monkey.