Sahm Adrangi
November 19, 2020
Chief Investment Officer, Kerrisdale Capital

Tattooed Chef, Inc.: Recent SPAC Acquisition is Already Past its Sell-By Date

  • While Tattooed Chef revenues have grown rapidly this year, Nielsen scanner data show that retail sales stalled in recent months, significantly underperforming other plant-based emerging brands like Caulipower and Daiya
  • Tattooed Chef suffers from extreme concentration risk, with >70% of branded sales coming from selling just 4-5 products to Sam's Club.
  • The company has shown little ability to innovate and lacks any meaningful merchandising competence, making its foray into the grocer channel extremely unlikely to succeed.
  • TTCF trades at over 13x branded sales, a level that's much higher than typical for plant-based CPG transactions, and is worth less than half the current stock price.

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