Ruslan Kogan backs plant-based meat firm Deliciou

Ruslan Kogan, kogan.com founder and former young rich-lister, is backing a plant-based meat firm called Deliciou.

Deliciou founder Kjetil Hansen. Picture: Jason Edwards

Ruslan Kogan, the kogan.com founder and former young rich-lister, is backing a plant-based meat firm called Deliciou, which has secured $1m worth of angel investment to expand its direct-to-consumer model internationally.

“The Melbourne-based firm recently launched a plant-based chicken product that it claims has no soy, sugar or preservatives and no added salt.

It also needs no refrigeration, offering a shelf life of 12 months, which has helped the firm grow its export market.

Founder and chief executive Kjetil Hansen said that over the past four years the business had increased annual revenues to $7m, while staff numbers had risen from one to 18.

Over the past 12 months, revenues had grown 1000 per cent, he said, adding that the business was projecting revenues of $6m for 2020, with most of its orders coming from offshore — predominantly North America.

“Due to the shelf-stable nature of all our products (even our plant-based meats) and our online platform, we have a strong international offering. Now, with this additional funding we are able to support our global growth aspirations even further,’’ he said of the backing by Mr Kogan and other angel investors, including former McKinsey & Co Australia managing partner Adam Lewis and Jane Martino, the executive director for ventures at Light Warrior, family office of Radek Sali.

Deliciou’s Plant Based Chicken Serves You Right.

Mr Kogan said: “When I first met KJ I was impressed with his hardworking attitude and his entrepreneurial approach.

“The plant-based meat alternative industry has a promising future, and people clearly love what Deliciou has created. I tried some of the products myself, and the very next day I called KJ and told him I wanted in.”

Kogan shares are trading at an all-time high after its latest trading update for April and May showed gross sales grew more than 100 per cent and gross profit was up more than 130 per cent over the fourth quarter to date.

The company last week launched a $100m share placement.

The share price surge has bolstered by millions of dollars the lucrative options package set to be awarded to Mr Kogan and his chief financial officer, David Shafer, that were struck at a price when the sharemarket collapsed in March.

Sales of plant-based meat products have skyrocketed in the US during the COVID-19 lockdown. According to Nielsen data, the largest spike in grocery food sales in March and April were meat-free alternatives, which surged 264 per cent.

Sales of other plant-based foods also boomed over the period including dried beans (140 per cent), kidney beans (102 per cent) and chickpeas (91 per cent).

“The plant-based food cat­egory continues to skyrocket as a combination of consumer demand, investment and product advances drive consumption,’’ said Mr Lewis, who is also a ­director of Deliciou.

“Deliciou’s innovation in this category has enabled it to tap into the growing number of ­people — whether they are vegan, vegetarian or not — who are seeking out meat substitutes in response to a combination of increasing ethical, environmental and health concerns.”