Very Good CEO Terminated, Lay-Offs Ahead as Company Pivots to 'Sustainable Growth'
Plant-based food tech company Very Good is restructuring its core leadership, announcing that its CEO Mitchell Scott has been terminated effective immediately. Additionally, James Davison has resigned as chief research and development officer, as well as from the board.
Rather than immediately fill the role of CEO, the company has decided to temporarily create an executive committee, made up of several senior executives from within the company. This committee will review and approve any of the company’s organizational, financial, operational and strategic decisions. The committee will also have the help of a Vancouver-based recruiting agency to find a suitable replacement.
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Ana Silva, president of Very Good and a member of the executive committee, stated that Very Good is taking decisive steps as it faces an important juncture. “Our focus is to continue to build on our brand and reputation and grow our market share in the plant-based meat segment while optimizing our operations toward a path to profitable growth," she added.
The leadership shuffle follows a March 16 announcement that Very Good is looking to implement cost improvement measures, transitioning from a top line growth focus to sustainable and profitable growth, with the following measures in mind:
E-Commerce Economics: The company is looking to shift its focus from digital marketing campaigns aimed at acquiring new customers to target existing subscribers and consumers driven to its website, boosting existing brand awareness and equity. The move looks to save costs as acquiring new consumers through its e-commerce business has become more expensive — impeding the profitability of the channel.
Workforce Reduction: Very Good is looking to reduce its workforce across multiple business operations, resulting in a sizable reduction in total annual salaries. The company is also evaluating different options for consolidating its production facilities to improve efficiencies.
"As we go forward, we will continue to execute against a strong set of strategies that will help us to further drive our top line growth by expanding our distribution points and improving our customer and consumer marketing model,” said Silva.
“And while we expect some volatility in the next couple of quarters as we set up cost improvement initiatives and work to streamline our operations, our long-term growth thesis remains intact as we continue to lead and innovate within the plant-based food industry,” she added.
Prior to its March 16 announcement, the company had been rapidly expanding its product portfolio, launching a line of plant-based sausage, meatballs, and burgers under its “The Very Good Butchers” subsidiary in August. Additionally, Very Good launched several of its plant-based cheese products under its new brand “The Very Good Cheese Co.” last May.
This past February the company had announced “increased retail distribution, inaugural production from its Patterson facility, and upcoming innovations,” as it expanded its Butcher's Select line.
During its 2021 Q4 earnings report, the company stated it achieved “solid year-over-year growth across its e-commerce and wholesale channels,” reporting 70% higher revenue for Q4 compared to Q3.
"Very Good achieved certain of its strategic objectives for 2021 including scaling production, deepening brand awareness, expanding into U.S. wholesale, and launching innovative new products,” said Mitchell Scott, co-founder and CEO of Very Good. “2021 was a year focused on investment and top-line growth, and 2022 will be more measured and focused on establishing a clear path to profitability."
