Unreal Deli

Unreal Deli

Growth Stage

Make Your Next Bite Unreal

Make Your Next Bite Unreal

Overview

Raised to Date: Raised: $40,801

Total Commitments ($USD)

Platform

StartEngine

Start Date

07/13/2023

Close Date

10/11/2023

Min. Goal
$14,993
Max. Goal
$1,234,996
Min. Investment

$340

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$17.87

Pre-Money Valuation

$19,994,779

Rolling Commitments ($USD)

Status
Funded
Reporting Date

10/30/2023

Days Remaining
Funded
% of Min. Goal
Funded
% of Max. Goal
Funded
Likelihood of Max
Funded
Avg. Daily Raise

$458

# of Investors

58

Momentum
Funded
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Year Founded

2019

Industry

Food, Beverage, & Restaurants

Tech Sector

Non-Tech

Distribution Model

B2B/B2C

Margin

Low

Capital Intensity

Low

Location

WOODLAND HILLS, California

Business Type

Growth

Unreal Deli, with a valuation of $19.99 million, is raising funds on StartEngine. The company makes premium plant-based deli meats and sells its three products through thousands of locations. The plant-based deli meat of Unreal Deli is made using whole vegetables and protein-rich grains and sells through chains like Publix, Kroger, Whole Foods, and Albertsons, grocers, delis, and restaurants. Jenny Goldfarb founded Unreal Deli in November 2019. The current crowdfunding campaign has a minimum target of $14,992.93 and a maximum target of $1.23 million. The campaign proceeds will be used for research and development, inventory, company employment, and working capital.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$4,373,841

$2,584,510

COGS

$3,335,928

$1,520,576

Tax

$0

$0

 

 

Net Income

$-386,879

$71,609

Summary Balance Sheet

FY 2022 FY 2021

Cash

$504,747

$431,399

Accounts Receivable

$264,072

$299,168

Total Assets

$1,765,202

$1,046,498

Short-Term Debt

$170,297

$210,536

Long-Term Debt

$0

$0

Total Liabilities

$170,297

$210,536

Financials as of: 07/13/2023
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Analyst Report

Synopsis

The plant-based food industry has experienced tremendous growth in recent years, driven by increasing consumer demand for healthier and more sustainable food options. According to a report by Grand View Research, the global plant-based meat market is expected to reach $35.4 billion by 2027, growing at a CAGR of 15.8%. Unreal Deli is a company that has positioned itself in this growing market by offering premium plant-based deli meats.

Unreal Deli has gained recognition for its innovative and delicious products. The company's plant-based deli meats are made using whole vegetables and protein-rich grains, providing a healthier alternative to traditional deli meats. Unreal Deli's products have been well-received, with the company being voted the #1 Plant-Based Meat by Thrillist and gaining exposure through its appearance on the popular TV show Shark Tank.

The company has successfully established partnerships with major grocery chains such as Publix, Kroger, Whole Foods, and Albertsons, as well as various grocers, delis, and restaurants. This widespread distribution network has allowed Unreal Deli to reach thousands of locations across the United States, tapping into the growing demand for plant-based meat products.

Unreal Deli's current StartEngine raise aims to raise funds for research and development, inventory, company employment, and working capital. The company has set a minimum investment amount of $339.53, with a maximum round size of $1,234,995.70. Unreal Deli is valued at $19.9 million.

Next Section: Price

Price

Unreal Deli is offering equity at a $19.99 million valuation. This valuation implies a revenue multiple of 4.57, which is relatively low compared to other companies in the food and beverage industry. Unreal Deli has achieved significant traction, with its products being sold in thousands of locations, including major chains like Publix, Kroger, Whole Foods, and Albertsons. The company has also secured partnerships with Walmart, Giant Eagle, and HEB, further expanding its distribution network in the coming years. Considering the company's current valuation and growth potential, Unreal Deli is reasonably valued.

Next Section: Market

Market

The plant-based meat market has experienced significant growth in recent years, driven by increasing consumer demand for sustainable and healthier food options. The US plant-based meat market, in particular, is estimated to be worth $1.7 billion. This market is expected to grow at a compound annual growth rate (CAGR) of 23.9% over the next few years.

Market acceptance of plant-based meats, including deli meats, is growing, as more consumers are adopting flexitarian, vegetarian, and vegan diets. Unreal Deli's products cater to this growing consumer demand for plant-based alternatives to traditional deli meats. The company's high market potential is further supported by the overall market growth rate and the increasing popularity of plant-based diets.

Overall, Unreal Deli operates in a niche market within the broader plant-based meat industry. With its premium products and established distribution network, the company is well-positioned to capture a share of the growing market for plant-based deli meats.

Next Section: Team

Team

Unreal Deli is led by founder and CEO Jenny Goldfarb. Outside of her 4.5 years with the company, she has little other experience. That said, her proven traction thus far mitigates her lack of experience.

Unreal Deli has a small but dedicated team of individuals who are committed to the company's mission. The team has complementary skills and expertise, spanning finance and marketing, allowing them to effectively develop and distribute their products. While the team is small, they have been able to achieve significant growth and secure partnerships with major retailers.

Overall, the Unreal Deli team, led by Jenny Goldfarb, has demonstrated the ability to create and market high-quality plant-based deli meats. Their success in securing partnerships with major retailers is a testament to their product's quality and market demand. Despite being lean and led by a somewhat inexperienced founder, they have significant proven traction.

Next Section: Differentiation

Differentiation

Unreal Deli differentiates itself in the plant-based meat market by offering premium, award-winning deli meats made from whole vegetables and protein-rich grains. The company has gained significant traction, with its products being sold in thousands of locations, including major chains like Publix, Kroger, Whole Foods, and Albertsons. Unreal Deli has also secured partnerships with notable retailers such as Walmart, Giant Eagle, and HEB, further expanding its reach in the market.

While there are established competitors in the plant-based meat industry, such as Impossible Foods and Beyond Meat, Unreal Deli sets itself apart by focusing specifically on deli meats. Its top direct competitors include Tofurky, LightLife, Simple Truth, Sweet Earth, Field Roast, and Plant Provisions. Unreal Deli's differentiation lies in the quality of its products, which have been recognized as the "#1 Plant-Based Meat" by Thrillist. The company's commitment to using whole vegetables and protein-rich grains in its deli meats contributes to its high-quality offering.

The company has gained recognition and validation through investments from Shark Tank and The Getty Foundation. Additionally, its products have been featured on the menu of Publix, with two subs available in 1,300 delis. This level of market penetration and recognition further solidifies Unreal Deli's position as a premium player in the plant-based meat industry.

While Unreal Deli has high-quality offerings, the price point is in line with the plant-based meat market, and slightly more expensive than traditional deli meat. That said, the company's commitment to continuous product development, including the upcoming release of plant-based bacon, demonstrates its dedication to meeting evolving consumer demands and expanding its product offerings.

Overall, Unreal Deli's premium, high-quality plant-based deli meats and its significant market traction differentiate it from competitors in the plant-based meat industry. With its expanding distribution network and partnerships, the company is well-positioned for growth and to capture a share of the addressable US plant-based meats market.

Next Section: Performance

Performance

Unreal Deli has demonstrated impressive performance and growth in the plant-based meat industry. The company's revenue reached $4.4 million in the most recent fiscal year, representing a significant growth rate of 69.2% compared to the previous year. This growth is a testament to the increasing demand for plant-based alternatives in the food industry.

Unreal Deli has successfully established partnerships with major players in the industry, including Sodexo, a leading food services and facilities management company. The company has also secured major distributors such as Publix, Kroger, Albertsons, and Whole Foods, allowing its products to reach thousands of locations across the United States. Unreal Deli's products have gained significant traction and popularity, with two subs on the Publix menu available in 1,300 delis.

Unreal Deli's success has been further validated by investments from prominent sources such as Shark Tank and The Getty Foundation. These investments not only provide financial support but also serve as a testament to the quality and potential of Unreal Deli's products.

Overall, Unreal Deli's performance and growth in the plant-based meat industry, coupled with its strategic partnerships and distribution channels, position the company for continued success in the future.

Next Section: Risk

Risk

Unreal Deli operates in a competitive market with well-established players such as Impossible Foods and Beyond Meat, as well as smaller players like Tofurky, LightLife, Simple Truth, Sweet Earth, Field Roast, and Plant Provisions. The presence of these competitors increases the risk of market saturation and price competition.

Financially, Unreal Deli has experienced negative net income in recent fiscal years, indicating potential profitability challenges. Although the company has shown revenue growth, it is important to closely monitor its ability to achieve sustainable profitability in the future.

Overall, while Unreal Deli has gained market acceptance and has a unique product offering, it faces significant competition and is not yet profitable. Investors should carefully consider these risks before making an investment decision.

Next Section: Bullish Outlook

Bullish Outlook

Unreal Deli has already gained significant traction, with its products being sold in thousands of locations including major chains like Publix, Kroger, Whole Foods, and Albertsons. This widespread distribution network provides Unreal Deli with a strong foundation for future growth.

Unreal Deli has also received recognition and validation for its products. The company was featured on Shark Tank and voted the #1 Plant-Based Meat by Thrillist. These accolades not only enhance the brand's reputation but also attract more consumers to try their products. Additionally, Unreal Deli has a strong product pipeline, with plans to introduce new offerings such as plant-based bacon in the near future. This continuous innovation and expansion of the product line will help the company capture a larger share of the growing plant-based meat market.

The market potential for plant-based meats is high, as more consumers are adopting a flexitarian or vegan lifestyle. Unreal Deli is well-positioned to capitalize on this trend and meet the increasing demand for sustainable and cruelty-free food options. With its strong revenue growth of 69.20% in the most recent fiscal year, the company has demonstrated its ability to attract and retain customers.

Unreal Deli has strong market potential, a widespread distribution network, an innovative product pipeline, and positive brand recognition. With its focus on sustainability and delicious plant-based deli meats, the company is well-positioned to capture a significant share of the growing plant-based meat market.

Next Section: Bearish Outlook

Bearish Outlook

Unreal Deli operates in a competitive market with well-established players that have already gained significant market share and brand recognition, making it challenging for Unreal Deli to differentiate itself and capture a significant portion of the market. Additionally, the rise of industry giants like Impossible Foods and Beyond Meat further intensifies the competition and poses a threat to Unreal Deli's market position. At $26 per pound for the plant-based roasted Turkey, Unreal Deli is on the higher end of the price spectrum, especially compared to meat alternatives. The products may be out of range for many budget-conscious consumers.

Despite its revenue growth of 69.20% in the most recent fiscal year, the company still reported a net loss of $386,879. This indicates that Unreal Deli has yet to achieve profitability and may face challenges in achieving sustainable financial success. Additionally, the company's monthly burn rate of $32,239.92 suggests that it is consuming cash at a significant rate, which could put additional strain on its financial position.

Considering the competitive landscape, Unreal Deli's financial performance, and the challenges it faces in differentiating itself, there are significant risks associated with investing in the company. Investors should carefully evaluate the company's ability to overcome these challenges and achieve sustainable growth before considering an investment.

Next Section: Executive Summary

Executive Summary

Unreal Deli is a plant-based food company that specializes in premium deli meats made from whole vegetables and protein-rich grains. The company has gained significant traction, with its products in thousands of locations, including major grocery chains like Publix, Kroger, Whole Foods, and Albertsons. Unreal Deli has received investments from notable sources such as Shark Tank and The Getty Foundation. The company is also expanding its partnerships, with major names like Sodexo as a partner and Publix, Kroger, Albertsons, and Whole Foods as major distributors. Unreal Deli has demonstrated strong revenue growth, with sales reaching $4.4 million in the most recent fiscal year, representing a growth rate of 69.2%.

While Unreal Deli has shown promising growth, it is important to note that the company is currently in a pre-profit development phase. Unreal Deli has a low margin level and experienced a net loss of $386,879 in the most recent fiscal year. The company's valuation of $19.99 million seems reasonable considering its revenue multiple of 4.57 and the growth potential of the plant-based meat market.

Overall, Unreal Deli presents an attractive opportunity in the growing plant-based food industry. With its strong traction, expanding partnerships, and increasing revenue, the company has the potential for further growth. However, investors should be aware of the competitive landscape and the company's current pre-profit development phase.

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Unreal Deli on StartEngine 2023
Platform: StartEngine
Security Type: Equity - Common
Valuation: $19,994,779
Price per Share: $17.87

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