EFFV – Planting Seeds to Break Molds

Industry sectors like alternative energy and others using sustainable production criteria are succeeding in reducing their impact on climate change. Now, the incredible and fast developments in the sector of Food Technology (Food Tech) are also contributing to the overall positive impact on climate change and the environment. In addition, we recognize that the Food Tech sector contributes to a healthier consumer; the products have no ‘cides’ – no pesticides, no fungicides, and no herbicides; no other chemicals, no antibiotics, etc.

Earth First Food Ventures, or EFFV, is a venture capital platform for Ultra High Net Worth (UHNW) clients and families with a diverse portfolio of investments in businesses focused on (i) plant-based products, and their marketing and branding, (ii) cellular agriculture (finfish, fermentation techniques), and (iii) land-based aquaculture. EFFV only invests in Food Tech businesses that have sustainable production, are ESG ‘standard bearers’ and adhere to the (applicable) UN’s SDGs thereby having a positive impact on the environment, the local community and human health.

Changing Habits through Quality Products

One of EFFV’s partners, Plant Power, is a company domiciled in the UK that commercializes tempeh, a plant-based alternative protein crafted from fermented soya beans.  The manufacturing of Plant Power’s tempeh adheres to criteria of sustainability  and is GM-free. Plant Power already has over 18 months of commercial operations with impressive sales growth to-date. The company has established an important footprint in the U.K. and, this past July, successfully launched in the Republic of Ireland. Now, Plant Power is getting ready to expand to the Middle East with the leading, top-end food distributor in the region. Plant Power’s mission is to ‘Make Tempeh Mainstream’ across multiple important markets.

EFFV entered into a letter of intent to take an 18% stake in Plant Power along with a Board seat and voting rights. EFFV will play an important role in the growth of Plant Power, provide financing for the company’s future expansion (including closer alignment between the company and its manufacturer, the largest dedicated tempeh producer in the EU). The mega trend in Europe is clear: consumers are increasingly willing to adopt quality plant-based food in their daily routine, and Plant Power tempeh will be a key product.

Support from the Roots Up

Another of EFFV’s business is involved in the production of fresh leafy greens and diverse herbs using hydroponics technology set in urban locations.

Their first great example is Crate to Plate, launched by partnering with a Brazilian UHNW family and a member of an iconic supermarket chain in the U.K. Crate To Plate  uses hydroponic growing facilities as this method is increasingly seen to be sufficiently scalable to fulfill the growing demand for clean, fresh leafy greens and similar produce. Today, the company has three farms producing in the center of London (Canary Wharf) and has a target of 100 or more farms by 2025. Crate to Plate is set to become a renowned brand not only in the U.K. and Europe, but also in selected emerging markets as regions like Latin America and Africa will be targeted for future expansion. EFFV has an 8% equity stake in Crate To Plate along with a voting Board seat and it will , increase this further after the capital raise. EFFV will be an important contributor to the success of Crate To Plate.

Pomegranate – EFFV’s vertical integrator of its plant-based assets: Pomegranate will be a fast, casual vegetarian and vegan meals business, with vision to develop an EU-wide brand. Pomegranate will be supplied by Crate To Plate and Plant Power, among other top-end producers. Unlike companies in this sector, Pomegranate will not invest in 'brick & mortar'; rather the two pillars of the business plan are Ghost Kitchens and food trucks. This represents a 'capex-light' business with no legacy restaurants weighing on performance. Delivery will be through several technologies including drone delivery (itself quite advanced in Ireland already). The company has hired 3 seasoned food professionals (2 general managers and 1 COO) who are ready to come onboard as soon as funding is secured.

The business is expected to launch in 2Q2021 in Ireland and by 2022 it will expand to some of the main EU markets and the neighboring U.K.  Pomegranate will be fully ESG compliant, focusing on low carbon footprint, positive environmental and social impact, and will invest in non-plastic product packaging alternatives for its products.

Thinking Ahead

EFFV has also shown interest in investing in technologies and businesses that, despite not having the current acceptance or reach that plant-based products have, they have the potential to become standards as sustainable production systems. These are cell-agriculture and a land-based aquaculture fund.

Cell-agriculture is the name given to the process of manufacturing meat, seafood and poultry products from animal cells, which replaces the need for farms and animal husbandry and slaughter, while having a nearly infinite scalability potential and a hugely positive impact on the environment. With big companies and names like Cargill, Bill Gates, Tyson Foods, Nutreco and Sumitomo, among many others, showing interest in this technology, its relevance might increase rapidly in the next few years. The decision to invest selectively in this technology / business at this stage may well prove to be a smart and timely.

EFFV also contributed to the fundraising of Pure Salmon, focused on land-based aquaculture using the Recirculating Aquaculture System technology (with technology provided by AquaMaof, from Israel). The concept is  inland production of Atlantic salmon in enclosed facilities that are highly controlled biologically. With an increasing global demand for healthy protein and natural resources being harvested at a rate that points towards depletion, the use of this technology for the production of clean protein is crucial to the development of healthy diets around the world. Production is stable and all year round, and the implemented bio-control measures ensure the production of clean and healthy fish (i.e., no chemicals, no antibiotics).

Pure Salmon has  a production target of 260,000 tons per year of Atlantic salmon in facilities around the world, funded by Fund I (closed – see below) and subsequent funds still to be launched. Their close proximity to major consumer centers ensures low carbon footprint (i.e., the fresh fish is not flown to end-markets), increased product freshness (i.e., shorter delivery time), full product traceability and production processes that are 100% sustainable. EFFV contributed 12% ($42.7m) of capital to Fund I (total raised $358m) from its wide network of UHNW families. Fund I will build 3 facilities: Japan (Mie Prefecture) for 10,000 tons p.a., France (Boulogne-sur-Mer) for 10,000 tons and Virginia, USA for 20,000 tons. Fund I also owns a smaller facility in Poland (approximately 500 tons per annum) that serves as the project’s R&D and excellence center, as well as for training and formal certification of all Pure Salmon staff before they are assigned to the facilities.

Modern Strategies for Modern Projects

EFFV not only focuses on businesses that disrupt the current norms in production and distribution, but is also doing a tech-based fundraising approach to private capital markets.: a Security Token Offering (STO). When compared to traditional VC funding or private placement, STOs provide great advantages in terms of transparency, liquidity and lower fees, while also being accessible to users at a global scale and benefitting from the strong KYC/AML measures of the technology providers and select STO exchanges (those that are regulated) to make sure every transaction is secure.

The target raise is $10,000,000 representing a 33% equity interest in EFFV. Proceeds will be allocated to the multiple verticals. EFFV’s five-year execution plan has a projected multiple on invested capital of 4x-5x. Another important factor in EFFV’s future is their recent alliance with Benchmark Group International, which will join the company as a significant shareholder and active contributive member with full oversight and voting rights, an alliance that we in MobileyourLife are proud to have facilitated.

Both sides have shown their full support for the partnership, with the CEO of EFFV, Brian Ruszczyk, confirming that they are “delighted to partner with Benchmark Group International as we continue our global expansion plans in innovative food-technologies for a better world”. Pieter Coetzer, CEO of Benchmark Group International, stated that this deal was possible since both organizations “share similar goals for climate change, environmental stewardship, and innovation in the food supply chain for a better Planet and healthier consumers.”

With the support of a world leader in impact investing capital for Food Tech and renewable energies like Benchmark, their unrivalled reach global customer network and their selection of Food Tech disruptive and impact businesses, EFFV has their sights in making a substantial contribution to this new and exciting sector with a view to become a leading brand in the industry.