Vegan Essentials grocery store is acquired for $ 1.4 million with plans to go public
Canada-based vegan marketplace Vejii recently signed the intention to acquire Vegan Essentials for $ 1.4 million. Vegan Essentials was founded in 1997 and is the longest running vegan market in the US. With the acquisition, Vegan Essentials would expand to serve a larger population. “Vejii’s acquisition of Vegan Essentials is not only an important milestone for the company, but for the entire plant-based market,” said Ryan Wilson and Mary Ernster, co-founders of Vegan Essentials. “With this acquisition, we believe Vejii is poised to capitalize on the rapid growth of the online herbal retail market driven by consumer demand, access to new products and the widest range of herbal products in one place.”
The Vegan Essentials management team will continue to work in the day-to-day operations of the company while the Vejii team will work on scaling the operation. “Vegan Essentials complements the Vejii family with a loyal customer base, established supplier relationships and sales channels that not only improve Vejii’s ability to continue scaling in the US, but also help extend the reach of Vegan Essentials through the improved tech stack and to increase Vejii’s marketing experience, ”said Vejii CEO Kory Zelikson. “Vejii will leverage over 20 years of consumer insights and data from VeganEssentials.com as the online grocery market has the potential to outperform traditional retail shopping in the long term and will drive our growth in the years to come.”
Along with plans to acquire Vegan Essentials, Vejii announced plans to raise CAD $ 10 million to list the company on a public stock exchange.
Booming plant-based sales
Vejii’s acquisition of Vegan Essentials, which launched with 3,000 products earlier this year, comes at a time when sales of plant-based foods can continue to skyrocket. According to data released earlier this month, sales of plant-based alternatives to animal products such as meat, dairy and eggs rose 27 percent in 2020 from 2019 to $ 7 billion. Sales of vegan meat rose 45 percent to 1.4 billion US dollars) and vegan milk (plus 20 percent to 2.5 billion US dollars) grew twice as fast as conventional meat and animal milk in 2020. When it comes to household penetration, 57 percent of Americans now buy plant-based alternatives to animal products, up from 53 percent in 2019.
Vejii President Darren Gill believes the acquisition will help online marketplaces meet this growing demand for plant-based foods, whose US sales he is projected to reach $ 20 billion over time. “Today marks a milestone as Vejii becomes the vegan online marketplace with the greatest reach between our two brands,” said Gill. “Our acquisition of Vegan Essentials provides a strong platform for future vendors and marketing rollouts on ShopVejii.com and VeganEssentials.com, while leveraging our team, sales, marketing channels and brand ambassador partnerships, as well as extensive customer insights that was made possible by the leadership position of Vegan Essentials established in the USA. “