Gordon Ramsay-Backed, Mission-Driven Borealis Foods Goes Public
Detroit, Michigan
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February 15, 2024 08:15 AM Eastern Standard Time
By Faith Ashmore, Benzinga
There is an undeniable, growing need for access to nutritious, high-protein meals at an affordable price in our society. With the rise in health concerns and the importance of a well-balanced diet, not to mention higher grocery bills, many Americans are struggling to meet their dietary needs. According to a recent survey, 1 in 8 American households struggles with malnutrition and food insecurity. This issue is especially prevalent in marginalized communities where poverty and issues like food deserts contribute to the issue.
The issue is not just domestic. The global population is expected to reach 9.8 billion by 2050, and as it stands, the current food production systems cannot support that many people. Conflicts in places like Ukraine and the Middle East have created restricted global food supplies, driving up prices, and presented a major threat to vulnerable segments of the population like children and the elderly. One of the ways scientists are looking to remedy this issue is through the promise of innovative solutions like food tech to solve rising concerns around global food insecurity. Food tech involves leveraging innovative techniques, tools and infrastructure to enhance food composition, production efficiency, sustainability and safety.
One pioneering company making strides in food tech is newly publicly listed Borealis Foods (NASDAQ: BRLS), led by founder and CEO Reza Soltanzadeh. The company focuses on high-quality, plant-based, shelf-stable meals containing complete protein with all essential amino acids and other key ingredients. There has certainly been a trend towards healthy food, as seen with the success of Simply Good Foods (NASDAQ: SMPL) and its healthy offerings. With all the advanced science in Beyond Meat (NASDAQ: BYND) products, price point has been a concern, and Borealis reports it has found a solution for the price point – offering more accessible products. So far, its efforts have focused on creating ramen, which is one of the most popular foods with 121 billion servings in 2022. Those instant packs of noodles that recall college dorms and kettles of hot water are the single most eaten food on the planet. Consumed by over 7 billion people, ramen represents both the scale of demand and potentially also the solution to a hungry planet.
“Global and humanitarian food programs are in desperate need of help from companies like ours to help solve this issue,” said Soltanzadeh. “With food science, world class manufacturing, and the aspirations of many dedicated people, we’re on that path.”
Soltanzadeh added, “Finding solutions to deal with malnutrition, for the people who need it most, has been at the front and center of our mission. We continue to develop meals that offer the highest quality protein and the right amount of fiber, while eliminating saturated fat content. In our experience, healthy food isn’t always the tastiest. However, with Master Chef Gordon Ramsay inspiring our culinary science team, our healthy food is also deliciously made. We believe food is meant to be enjoyed and celebrated.”
World-renowned chef Gordon Ramsay, an investor and brand ambassador, previously shared, "With the current cost-of-living crisis on everyone's minds and rising food prices being a worldwide problem, now more than ever, households across America face the very real issue of food insecurity. In conversation with Reza, I discovered we share a similar vision on how important it is to make nutritious and delicious options that are readily available, and more importantly, affordable. I've already got some big ideas, and I'm really looking forward to collaborating with the Borealis Foods team on their Chef Woo products in the coming months."
Influencer-driven marketing has proven quite successful with brands such as PRIME energy drink (Logan Paul x KSI), Teremana Tequila (Dwayne ‘The Rock’ Johnson), and Feastables (Mr. Beast), and Borealis has that at the centerpiece of their marketing strategy.
Borealis Foods began trading on NASDAQ under the symbol BRLS on February 8, 2024. This achievement marks a key step in the company’s expansion – with the company having only been set up in 2019 – manufacturing plant-based instant noodles from a state-of-the-art U.S. factory in Saluda, South Carolina. Borealis Foods reports that its products are currently in over 20,000 stores across the United States, Canada and Mexico, and it recently began distributing products in Europe.
In 2022, the packaged food market was valued at $181.3 billion, and it is expected to grow at a CAGR of over 8% between 2023 and 2032. Consumer demand, paired with growing food insecurity, could position companies like Borealis Foods ideally to expand in the coming years. And Borealis Foods isn’t alone; Pitchbook estimated that in 2020, private equity invested $18.1 billion in food tech-related companies which compares to less than $500 million in 2010. Food tech may very well usher in a new age of food production with higher-quality meals for people everywhere.
As Soltanzadeh looks forward to developing new food solutions, he has a vision and a mission. “We’re just scratching the surface of the 70 billion dollar Total Addressable Market (TAM) that is growing by double digits. This is where the opportunity lies for Borealis.”
Gordon Ramsay image property of Borealis Foods Inc.
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