CEO.CA Chairman's Briefing

VANCOUVER, BC, Jan. 23, 2023 /CNW/ - Modern Plant Based Foods Inc., (CSE: MEAT) ("Modern Plant Based Foods") or (the "Company"), an award-winning plant-based food company is pleased to report that kitskitchen Health Foods Inc., (kitskitchen) a portfolio company of Modern Plant-Based Foods, announces a comprehensive new marketing strategy to increase revenues within the growing soup category. Kitskitchen will engage a team of 19 specialized tasters to launch a series of in-store demos in some of Canada's largest retailers. Concurrently, Kitskitchen will also launch a strategic digital ad campaign to re-instate the brand as a leader in the fresh soup space, gearing up for the launch of the dried soup line.  

Kitskitchen has experienced steady and consistent growth since launching back in 2014, building its community support and revenues subsequently. "We have managed to establish brand consistency and loyalty, having delicious, healthy, comfort foods that anyone can enjoy. It is great timing to launch a new marketing initiative to reinforce our brand a well-known favourite and gain reach to new clientele and reach a new height of revenues this upcoming year," states Joni Berg, Chief Executive Officer of Kitskitchen Health Foods. "In past years, we have seen a direct link to our revenue growth from participating in tastings, we feel getting in front of our customers and letting them try the delicious soups has consistently been the most effective method and therefore have decided to scale the model." Kitskitchen has commenced initial steps to launch the incentives, committing to in-store demo programs in Nesters Market and Natures Fare this upcoming February and March.

Nesters Market and Nature's Fare cover 24 locations in Western Canada, and are Canada's second largest privately held company with annual sales upwards of $10 billion. The conglomerate is a leader in Canadian grocery landscape, owning over 15 grocery chains including Save-on-Foods, Buy-Low Foods, Urban Fare, Choices Markets, Meinhardt Fine Foods, and Quality Foods.¹

Kitskitchen will also simultaneously be launching a digital marketing campaign heavily focused on social media platforms and geotargeted advertisement. Over 40% of people learn about food via a digital method.² There are over 500 million daily active users on Instagram worldwide (DAU). Every month, half of the users on Instagram use the Explore tab to discover new content and accounts to follow.³ Kitskitchen has developed a strong connection with its consumers through in person interactions, on social media, and through its partnered retailers. The new marketing strategy will hit all three outlets to reinforce brand awareness and have an increased budget to launch a targeted digital ad campaign. The Company expects to see a 20% annual revenue increase as a result of the new marketing efforts.

The soup market is projected to witness a CAGR of 2.9% in the upcoming five years. Increasing product varieties, consumption of health and wellness products, and active promotions by market players are expected to contribute to the growth of the soup market. The growing demand for healthier food products is expected to boost the demand for soups. The market witnesses a seasonal sales surge, as consumers tend to buy soups more during the winters when compared to the summers. The increasing product varieties, consumption of health and wellness products, and active promotions by the market players have contributed to the market's growth over the past few years. The rising demand for healthy food products is expected to boost the demand for soups in the region, which accounts for a significant share of the market studied.⁴

Over the last year, Kitskitchen managed to increase growth to their bottom-line profit by focusing on fostering sales to pre-existing markets with minimal marketing spend. Leading into 2023, the Company has determined the new marketing strategy will be implemented using excess profits from the year prior.

Modern Plant Based Foods is a Canadian food company based in Vancouver, British Columbia that offers a portfolio of plant-based products including meat and dairy-free alternatives, soups, and vegan snacks. Our products are available at select restaurants and retailers across Canada including our own Modern Wellness Bar located in Vancouver. We take a holistic approach to plant-based living and understand the importance of providing nutritious and sustainable alternatives to consumers without sacrificing taste. We want people to feel good about the food they eat which is why we are deliberate in choosing ingredients free of soy, gluten, nuts, and GMOs. Our mission is to change the way food is produced and consumed for the benefit of people, animals, and the environment by using natural plant-based ingredients.

Cautionary Statement Regarding Forward-Looking Information

This news release includes certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities legislation that are not historical facts. Forward- looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to: the Company and the Company's business and prospects; the Company's objectives, goals or future plans; the Company's sales growth, planned expansion, awareness of the Company's brands, future sales and revenue growth, and the business, operations, management and capitalization of the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; local and global market and economic uncertainties arising in respect of the COVID-19 pandemic; litigation, availability of key product ingredients, legislative, environmental and other judicial, regulatory, political and competitive developments; the ability to effectively expand manufacturing and production capacity; the ability to obtain retail partners to distribute Company products, the success of market initiatives and the ability to grow brand awareness; the ability to attract, maintain and expand relationships with key strategic restaurant and food service partners; our ability to predict consumer taste preferences; delay or failure to receive regulatory approvals; the sufficiency of our cash to meet liquidity needs; those additional risks set out in the Company's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Accordingly, the forward-looking statements discussed in this release may not occur and could differ materially as a result of these known and unknown risk factors and uncertainties affecting the Company. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

SOURCE Modern Plant Based Foods Inc.

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