Major food producer Tiger Brands on Monday announced a debut investment under its venture capital fund that was launched in 2021, throwing its weight behind Herbivore Earthfoods, in a bid to diversify and tap into the fast-growing plant protein sector.
The R100m fund was launched with the aim of driving growth for Tiger Brands by investing in innovative businesses based in Sub-Saharan Africa within the foodtech and agritech sectors.
The first investee company, Herbivore Earthfoods, whose product line includes dairy-free milk alternatives and desserts, as well as confectionery and protein alternatives, was founded in 2014 to make healthy, plant-based foods that are accessible and affordable in SA.
Demand for plant-based meal replacements has risen in recent years, driven by millennial and young adult consumers as they become more conscious about what they eat.
The global plant-based market is forecast to grow to more than $162bn by 2030, while research report “Africa plant protein market — size, trends, competitive analysis and forecasts (2018-2023)” shows the African plant protein market, of which SA represents 57%, is expected to grow by 6.5% to $560.6m by 2023.
After its multimillion-rand investment into Herbivore, which is co-run by founder Chanel Grantham and company director Davey du Plessis, Tiger’s capital fund became a minority shareholder alongside co-investor Secha Capital, an early-stage private equity firm.
“Our partnership with the Herbivore team will involve leveraging each other’s combined strengths to achieve their growth strategy and to push the boundaries of an affordable and healthy alternative product offering to consumers,” said Barati Mahloele, director of the venture capital fund.
She said Tiger Brands was deliberate about taking a minority stake, as “we don’t want to stifle the entrepreneurs in any way”.
Herbivore, which has seen 40% year-on-year growth since 2014, is available online and at various Pick n Pay outlets, while it also exports small volumes to Namibia and Zimbabwe.
For the Herbivore team, the aim is to get its products on the shelves using the network and expertise of Tiger Brands and the skills of the Secha team.
“At Herbivore we see plant-based as the future of food. More consumers are realising the benefits of a plant-based diet,” Grantham said.
The maker of Jungle oats, Koo and Mrs Balls said it would be actively involved in supporting Herbivore’s growth ambitions through improved governance and strategic guidance, as well as leveraging the group’s route-to-market and research & development expertise.
“Sustainability is a current and future driver of the economy, and plant-based foods are not a trend but a permanent category growing in every aisle and food service restaurant globally,” Kuhle Mnisi, principal at Secha, said.
“We’re equally proud of the effect the business has by being seven times more water-efficient and producing 90% fewer greenhouse gas emissions than animal-based products.”
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