Roots Sustainable Agricultural Technologies (ASX:ROO) plans to progress its plant and hemp-based meat alternative options in the USA after completing a survey of global suppliers and pricing for hemp-based protein products in collaboration with Hempoint.
The company signed a non-binding Letter of Intent (LOI) with leading organic hemp grower and hemp food manufacturer Hempoint in December 2020 to progress opportunities in the lucrative organic plant and hemp-based alternative meat market.
Since executing the LOI, Czech Republic-based Hempoint has completed a global survey for Roots to generate data on suppliers and pricing of hemp protein for the meat replacement market.
Roots will now utilise this data to advance several initiatives, including the launch of hemp-based meat replacement products and the establishment of a US hemp-based food venture.
Both parties will amend the initial LOI and progress another agreement that will see Hempoint become a consultancy arm for Roots.
“Solid base to progress opportunities”
Executive chairman and CEO Boaz Wachtel said: “We have undertaken considerable work in the last few months with Hempoint and expect that the survey and background data compiled will provide us with a very solid base to progress opportunities in the plant and hemp-based meat markets.
“Our key near-term focus is to advance an operation in the US, with the launch of our hemp-based meat replacement products to follow shortly after.
“The US is a large addressable market, which has a number of food supply issues and it could be very lucrative for Roots.
“Roots is very well placed to capitalise on the growing global concerns around food security for developing and established nations and cementing relationships with the likes of Hempoint and others will advance this further.”
Multi-year plan
Preparations are underway to finalise a multi-year plan with American-based partners and the company expects to provide further updates over the coming months.
The alternative meats market represents a significant opportunity for Roots.
Plant and hemp-based alternative meat products are gaining considerable traction, driven by consumers seeking health dietary options and R&D efforts from health experts and food manufacturers.
The market is anticipated to grow to US$27.9 billion and then to more than US$240 billion in the next two decades.