Meal kits: Dinner is served!
Our retail & e-commerce analyst Clément Genelot explores the potential of the meal kit market.
Watch our new video on this emerging food trend.
DISCLAIMER
Bryan Garnier & Co, registered in France no. 452 605 512 is a MiFID branch of Bryan Garnier & Co Limited (a UK company registered under the number 03034095) and is authorized and regulated by the Financial Conduct Authority and the Autorité des Marchés Financiers (AMF). Registered address: 26 avenue des Champs Elysées, Paris 75008.
This has been prepared solely for informational purposes, and is intended only for use by the designated recipient(s). This information was obtained from sources we believe to be reliable, but its accuracy is not guaranteed. All information is subject to change without notice. This does not constitute a solicitation or offer to buy or sell securities or any other instruments, or a recommendation with respect to any security or instrument mentioned herein. This is not a confirmation of terms of any transaction. No representations are made herein with respect to availability, pricing, or performance. Additional information available on request.
This recording should only be listened to by those persons to whom it is addressed and is not intended to be relied upon by any person without subsequent written confirmation of its contents. If you have received this information in error, please destroy it and delete it from your computer. Any form of reproduction, dissemination, copying, disclosure, modification, distribution and/or publication of this recording is strictly prohibited. Please note that any views or opinions presented in this podcast are solely those of the participants and do not necessarily represent those of Bryan, Garnier & Co. Finally, the recipient should check this source and any attachments for the presence of viruses. Bryan, Garnier & Co accepts no liability for any damage caused by any virus transmitted by this communication.
Bryan, Garnier & Co is delighted to announce the appointment of Clifford Siegel as Non-Executive Chairman
PARIS, 12 January 2021 – Bryan, Garnier & Co, a leading pan-European Investment Bank focusing on growth companies, is delighted to announce that Clifford Siegel has been appointed as Non-Executive Chairman at the firm.
Based in London, Clifford will take up this new position to help develop Bryan, Garnier & Co’s strategy across Europe and the US.
Clifford, 63, has a distinguished career in the investment banking industry. After starting and running the US business of the Cresvale Group, he joined Jefferies in New York in 1990, before moving to London in 1993 to become the CEO of the group’s international business.
During Clifford’s 18-year tenure, Jefferies International grew from a small team in London to a global business with revenues of over USD 300m and offices in Asia and Europe. After retiring from Jefferies, he later founded and ran the debt capital markets boutique ISM Capital, before selling the business to Stifel Nicolaus Europe in 2016. He retired from his role as Vice-Chairman of Stifel Nicolaus Europe Ltd in the autumn of 2020.
Olivier Garnier, Co-founder & Managing Partner states: “We are delighted to welcome Cliff to Bryan, Garnier & Co. He brings both a wealth of experience in all facets of the banking business that will help us expand our business footprint and support our strategic ambitions”.
Clifford Siegel comments: “I have admired the remarkable success and consistency of Bryan, Garnier & Co for many years. I am delighted to be joining them at a time when, now more than even, there is a need for highly committed investment bankers with outstanding quality standards, deep industry expertise and broad transaction capacities to support growth companies and their shareholders”.
In his capacity, Clifford will contribute to strengthening the group’s corporate development initiatives. This includes strategic acquisitions and alliances following Bryan, Garnier & Co’s recent developments in the Nordics and the US, as well as the expansion of the firm’s activities in complementary areas such as fixed income and debt advisory.
With more than 60 private and public capital-raising and M&A transactions closed in 2020, Bryan, Garnier & Co benefits from its longstanding leadership in the healthcare, technology and environmental sectors in Europe. Recent transactions include the sale of smartTrade to leading software private equity investor Hg Capital, the take-private of ITSM player Easyvista by Eurazeo, capital for circular economy player asgoodasnew, the sale of Specim to Konica Minolta and the sale of BlueBee to Illumina. Over the years, Bryan, Garnier & Co has distinguished itself by backing some of the most disruptive companies in the domain of alternative proteins (Prolupin), green hydrogen (McPhy Energy), cannabis (Canopy Growth), blockchain and cryptocurrencies (Bitfury Group), and mRNA biotech (Moderna and BioNTech).
The consolidation wave in organic retail has begun
Since our September 2019 deep dive into the French organic market, the attractiveness of the market has remained intact and we are still seeing double-digit growth within the sector. General retailers outperformed specialists in organic goods sales in France, and we believe this trend will continue in 2020 as the organic market goes mainstream. Learn everything about the organic retail consolidation wave in our latest white paper.
Game-changing technologies to meet the climate challenge
Concern over the environment is higher than ever. Yet, current data on greenhouse gas emissions relies on delayed, self-reported, and biased estimates. Our latest white paper on climate tech explores the technologies that have improved emissions monitoring, potentially enabling a reduction in GHG emissions as big as the combined carbon footprint of Germany and France.
Discover our new video: Game-changing technologies to meet the climate challenge
DISCLAIMER
Bryan Garnier & Co, registered in France no. 452 605 512 is a MiFID branch of Bryan Garnier & Co Limited (a UK company registered under the number 03034095) and is authorized and regulated by the Financial Conduct Authority and the Autorité des Marchés Financiers (AMF). Registered address: 26 avenue des Champs Elysées, Paris 75008.
This has been prepared solely for informational purposes, and is intended only for use by the designated recipient(s). This information was obtained from sources we believe to be reliable, but its accuracy is not guaranteed. All information is subject to change without notice. This does not constitute a solicitation or offer to buy or sell securities or any other instruments, or a recommendation with respect to any security or instrument mentioned herein. This is not a confirmation of terms of any transaction. No representations are made herein with respect to availability, pricing, or performance. Additional information available on request.
This recording should only be listened to by those persons to whom it is addressed and is not intended to be relied upon by any person without subsequent written confirmation of its contents. If you have received this information in error, please destroy it and delete it from your computer. Any form of reproduction, dissemination, copying, disclosure, modification, distribution and/or publication of this recording is strictly prohibited. Please note that any views or opinions presented in this podcast are solely those of the participants and do not necessarily represent those of Bryan, Garnier & Co. Finally, the recipient should check this source and any attachments for the presence of viruses. Bryan, Garnier & Co accepts no liability for any damage caused by any virus transmitted by this communication.
Climate tech
Concern over the environment is higher than ever. As populations grow and economic development progresses, the risks of global warming and pollution will only increase.
Both the Kyoto protocol in 1997 and the Paris agreement in 2015 contain commitments to reduce greenhouse gas (GHG) emissions to limit the impact of global warming. However, there are huge hurdles to overcome to reach those targets, one of which is to improve the measurement and monitoring of GHGs.
Improved tools for measuring, verifying, and reporting GHG emissions now make it possible for outside parties to check the reality behind corporate reporting. This has led influential investors such as Blackrock and TCI – and the investment community in general – to be more vocal and to put pressure on corporations to improve their reporting and to reduce their GHG emissions. Designed to prevent the next “Dieselgate”, these new tools have led to a focus on methane emissions, where immediate, actionable and impactful solutions to reduce emissions can be deployed quickly. In this white paper, we discuss why better measurement of emissions is needed in the context of rising pressure from consumers, investors, and policy makers to fight climate change. We explore the technologies that have improved emissions monitoring in recent years, and look at future developments, in particular the powerful combination of data analytics with better data collection from internet of things (IOT) devices and satellites.
SaaS: the virtuous circle of subscriptions
Our lead software analyst Gregory Ramirez is exploring for us the Software-as-a-Service paradigm.
Discover our new video on the virtuous circle of subscriptions.
DISCLAIMER
Bryan Garnier & Co, registered in France no. 452 605 512 is a MiFID branch of Bryan Garnier & Co Limited (a UK company registered under the number 03034095) and is authorized and regulated by the Financial Conduct Authority and the Autorité des Marchés Financiers (AMF). Registered address: 26 avenue des Champs Elysées, Paris 75008.
This has been prepared solely for informational purposes, and is intended only for use by the designated recipient(s). This information was obtained from sources we believe to be reliable, but its accuracy is not guaranteed. All information is subject to change without notice. This does not constitute a solicitation or offer to buy or sell securities or any other instruments, or a recommendation with respect to any security or instrument mentioned herein. This is not a confirmation of terms of any transaction. No representations are made herein with respect to availability, pricing, or performance. Additional information available on request.
This recording should only be listened to by those persons to whom it is addressed and is not intended to be relied upon by any person without subsequent written confirmation of its contents. If you have received this information in error, please destroy it and delete it from your computer. Any form of reproduction, dissemination, copying, disclosure, modification, distribution and/or publication of this recording is strictly prohibited. Please note that any views or opinions presented in this podcast are solely those of the participants and do not necessarily represent those of Bryan, Garnier & Co. Finally, the recipient should check this source and any attachments for the presence of viruses. Bryan, Garnier & Co accepts no liability for any damage caused by any virus transmitted by this communication.
Dinner is served
Barely 10 years old, the market for meal kits is worth USD3.5bn today. The idea of putting together pre-packaged fresh ingredients using a recipe that accompanies them in the box appeals to consumers who value “naturalness” and quality alongside convenience.
Although meal kits are currently favoured by a relatively niche group of high-income and urban Millennials, the segment is expected to grow 17% year-on-year, to reach USD8.9bn in 2025. And that’s before Covid, which has simultaneously boosted the home consumption and e-commerce that drive the meal kit market. The sales performance of meal kit groups such as HelloFresh and Marley Spoon has seen a sharp acceleration in Q2 2020.
For meal kit companies, success is all about customer acquisition and retention. With hefty promotional spending needed in a new and competitive market, each customer costs EUR70-150 to acquire, yet mid-term retention rates are only 10-12% on average. As a consequence, few players have been profitable – at least until Covid, which has now inflated profitability to break-even for many. However, it’s unlikely that this stimulus will endure, and we envisage further exits in a market that has seen plenty of consolidation since 2018. In our view, it’s the inherent challenges of the meal kit market, rather than meal kit launches from giants such as Amazon and incumbent large retailers, that’s been behind the shakeout in meal kit players.
In a market that’s still fragmented, we see two models proving successful: either international expansion driven by sophisticated data collection and analytics; or a regional strategy focused on operational excellence. It’s these approaches that may yet see the global market for meal kits mature beyond its niche and take a lasting place in the global food market.
Digital health: sleep
In the past decade, digital solutions have emerged to help patients manage chronic diseases such as diabetes, hypertension and asthma, which affect 147 million adults in the United States alone.
Using cognitive, behavioural and psychological methods, these solutions have gained momentum in recent years, buoyed by technological advances and compelling medico-economic evidence that has driven payers to extend coverage. This trend has led to the emergence of successful companies such as Livongo, Omada Health and Big Health.
Digital adoption has now spread to mental health care, especially in relation to sleep. Poor sleep is one of the most common health problems, leading to increased healthcare costs and lost productivity across the world. Evidence of behavioural solutions for sleep problems indicates that annual savings of up to USD1,000 in healthcare costs per patient are possible, which should lead to strong adoption by payers who are early adopters of innovative solutions for driving healthcare costs down.
Finally, we believe that digital solutions will improve our understanding of sleep, which remains one of the “black boxes” of biology. The new generation of accurate and reliable sleep-monitoring wearables will contribute to a better understanding of sleep by enabling big data analysis, and will have potential applications in the early diagnosis of cognitive disorders, treatments and remote monitoring at large scale.
Medical cannabis in Western Europe
In this paper, we explore the reasons behind the growth of cannabis as a therapeutic substance and we explore the dynamics and developments in European medical cannabis, with a particular focus on Germany, Europe’s leading cannabis market.
The global cannabis market is evolving from an illegal and mainly recreational market dominated by drug cartels to a legal medical and recreational market in the hands of public and private companies.
Western Europe boasts some of the world’s fastest-evolving and most significant opportunities in medical cannabis, with countries reassessing their restrictions as public support for legalization grows and commercial and social benefits become apparent.
Existing medical cannabis markets such as Germany, Italy and the Netherlands are expanding their programs whilst new medical markets like the UK, France and Spain are reviewing current legislation. And the seeds of a second wave of growth to allow recreational adult use of cannabis are being planted.
Western Europe is on track to become the world’s largest legal medical cannabis market over the next ten years, projected to be worth EUR15.3bn in 2029, up 60x from EUR250m in 2019. Germany, the leading European medical market, is expected to grow to EUR4.9bn by 2029 from EUR210m in 20191. In this paper, we examine the dynamics and developments in European medical cannabis, with a detailed look at the German market.
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Game changers facing B2B telecom operators
The B2B telecom market offers highly attractive growth opportunities. As corporates digitalize, their migration to new technologies and services is opening the door for challengers and outsiders to grab market share from incumbents.
Current valuations in the B2B telecom sector are high comparable with software, but they reflect strong growth profiles and high levels of recurring revenue. M&A is set to continue as investors look for recurring revenue and growth. At the same time, all B2B operators are seeking to accelerate their development, gain scale in distribution or with their services portfolio, and seize the growth opportunities presented by technology transformation.
In this paper we look at the main trends that are shaping the B2B telecom market and driving a wave of consolidation and M&A. We explore how technologies such as VoIP, unified communications, fibre and SD-WAN are challenging legacy services and providers, and opening opportunities for the smaller players. And we describe the valuations and the drivers for M&A in the sector and discuss the strategy of different players, from incumbents to local “outsiders”.