Investors worth $5.3tr report Unilever, Tesco and Nestle are leading the pack when it comes to plant-based protein
Unilever, Nestle, M&S and Tesco are among the firms best prepared to capitalise on the boom in plant-based 'meat' alternatives, according to analysis published today by an institutional investor network with more than $5tr in assets under management.
According to the report, large food companies are increasingly developing "proactive" strategies for managing rising consumer demand for sustainable protein, with 23 of the 25 companies assessed having expanded their alternative protein ranges in the last year.
From vegan sausage rolls to plant-based fast food, ice creams, and fish fillets, meat-free meals are fast becoming big business. The alternative meat industry is expected to be worth $100bn within the next 15 years, according to research quoted in the paper.
FAIRR works to raise awareness among investors of the risks factory farming and poor animal welfare can have on investment portfolios. Its network includes large institutional investors, such as Schroders and Allianz, which together hold assets under management worth $5.3tr.
Previous FAIRR reports have warned that global food giants could face material financial risk if they fail to invest in new alternative plant-based products which are changing the perception of meat alternatives.
But today's release suggests there has been a shift in company strategies, with five of the 25 firms FAIRR engages with being awarded the top "proactive" ranking for the first time. Those firms are undertaking risk assessments on their protein supply chains and expanding their range of plant-based products, FAIRR said.
"For too long big food has been playing catch up to consumers and start-ups on alternative proteins, when they should be leading this transformation," said Jeremy Coller, founder of FAIRR and chief investment officer of Coller Capital. "This report shows that some food multinationals are seizing the moment by setting clear strategic goals to increase their alternative protein exposure, supported by relevant metrics that are tracked and reported."