TO: Clark
Hansen, CEO of Anima Mundi Development Partners
FROM: R.
Tyler Evans, Research and Development Department
DATE: July
26th, 2015
SUBJECT: Investment Recommendation Memo
Soylent - Use less. Do More.
Dear Mr. Hansen,
Thank
you for considering our advice before following through with your next
investment. The newly formed Research and Development team at AMDP is excited
to share our research with you and hopefully excel this company into a new
generation of success. When you mentioned that you were currently seeking
investment opportunities that follow and embody the Triple Bottom Line, one
company jumped to the forefront of discussion here in the Research and
Development Department. Soylent is a relatively new company that invented a
meal replacement product and a company that you should definitely invest in.
Before I get into who Soylent is and what they are doing to demand attention, I
want to reiterate that basic characteristics and standards that were taken into
account while searching for the appropriate new investment for AMDP.
The Triple Bottom
Line (TBL):
A
successful accounting framework that includes the 3 P’s: People (Social), Plane
(Environmental), and Profit (Financial). Devised in 1994 by John Elkington, the
TBL strategy has been growing in popularity ever since. The aim of the
framework is to achieve sustainable development.
Corporate Social
Responsibility (CSR):
CSR
functions as a form of corporate self-regulation, which is actively worked into
the business model. Paying careful attention to
compliance with all laws, standards, and appropriate procedures. A company that
embodies CSR goes further than taking responsibility for all corporate action,
and potential encourages positive change in the business environment.
Social Enterprise
:
An
organization or company that utilizes Social Enterprise aims to maximize
positive improvements in both human and environmental spheres. It is necessary
and more important to design an effective social impact than it is to focus on
the monetary profits of the company.
Carbon Footprint
:
The
Carbon Footprint of a company refers to the negative environmental impact or
levels of Carbon Dioxide and various other harmful chemical compounds that are
released as a result of the company’s activity. A common term is greenhouse
gases, which are responsible for depleting the ozone layer and global warming
effects.
What is Soylent?
Soylent
founder, Robert Rhinehart and a team of fellow young developers saw a need for a
simpler food source. Driven by the initial goal of breaking down food into the
smallest possible components they eventually created a drinkable food product
that effectively serves as a full nutritional meal replacement in 2013. It is
designed as a staple meal for adults providing all the maximum nutrition that a
normal daily diet would require.
Approved
by the FDA, Soylent is a healthy, fast, and affordable food source quickly
storming onto the scene from athletes to gamers across the nation. The idea
behind the company is a new choice for maintaining a balanced diet without
traditional food concerns or hindrances. No more grocery shopping, cooking, or
McDonald’s, Soylent can be used daily or variably however consumers chose to
acclimate it to their diet.
Soylent
includes protein, carbohydrates, fats, fiber, vitamins, and minerals, but
without excessive or unnecessary sugars, saturated fats, cholesterol, or
proceeded ingredients. The drink takes only minutes to prepare and equates to
less than $5 per meal when mixed and served correctly.
Why Soylent?
The
young company is important to follow because of the potential impact on the
food and nutrition battle across the globe. It is still growing in recognition
and acceptance in the field, but those that are aware of Soylent praise the
product. The meal replacement drink is also Vegan and can be used as a weight
loss dietary option.
Brian
Merchant, in an article for Motherboard, writes about his experiences drinking
nothing but Soylent for 30 days. Although originally uncertain, he lost 10
pounds, and his doctor told him he was in better shape than he was months
previously. He insists in his article that Soylent is not only healthy for
himself, but also environmentally healthy. By avoiding meat and cattle,
individuals are releasing the growing burden on the planet and endorsing a more
sustainable diet.
Another
avid consumer writes about his experiences using Soylent for over 5 months and
his transition to using the meal replacement in 90% of his diet. He praises the
drink for his loss of 24 lbs, lack of necessity to plan meals, lack of worry
about deficiency in nutrients. “Food is Fuel,” he states, and Soylent may be
the best possible fuel for the best price and easiest accessibility on the
market. There are numerous blog posts on the web about critics that decided
they couldn’t knock it till they tried it and ended up recognizing the
nutritional, financial, and time benefits firsthand.
The
company is still extremely small and just recently launched their first bottled
product to go along with the online bulk order options. It is still relatively
difficult to determine how other industry contenders will face the new star.
Some argue that they enjoy food, cooking, and all the hassle and bustle of
restaurants, which Soylent declares unnecessary. Rhinehart would tell foodies
that Soylent does not need to totally replace other food sources, but can also
be seen as a supplement to a regular diet.
In Line With AMDP
Standards :
Soylent
was originally conspired in order to make the people’s lives easier, healthier,
and more efficient. It takes a gallon of gasoline to produce just a pound of
beef and the cattle industry accounts for almost 25% of the Earth’s arable
land. Soylent accounts for the TBL strategy because is environmentally,
socially, and financially conscious. Although still a very small company, it’s
plans for Social Enterprise and Social Responsibility are undeniably on point
with global standards. Unless the planet and people are in a better place as a
result of the introduction of Soylent, then the product is a failure. The aim
of the company is to make people’s lives better, without leaving a large Carbon
Footprint and minimizing potential negative impacts to the environment.
Final Recommendation
:
After
reviewing the companies online presence, personally speaking with Rhinehart and
other members of the founding team, and trying the drink myself I have to
advise that you consider investing in this company for the long term. The idea
is potentially revolutionary in the way that we think about and utilize food
across the planet. Soylent makes sense socially, environmentally, and
financially. In a modern busy world, Soylent could be the next great addition
to human’s never-ending pursuit of efficiency.
Whether
or not AMDP invests with Soylent or not, I guarantee others soon will. The meal
replacement is not for everyone and is still is stages of redevelopment and
initial growth, but there is a strong market existing for this product as I
have seen first hand and continually read about online. Once the young founders
have ironed out the details and created a final version of the product
restaurants, grocery stores, and other healthy supplements should watch out!
Sources:
1.
https://www.soylent.com/
4.
http://www.ibrc.indiana.edu/ibr/2011/spring/article2.html
5.
http://fourhourworkweek.com/2013/08/20/soylent/
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