Maple Leaf Foods Inc. (MFI) Earnings Call Transcript & Summary

Good morning, everyone. My name is Geoff Beattie, Chair of the Board of Maple Leaf Foods. It is my pleasure to welcome you to our 2020 Annual Meeting of Shareholders. Joining me on our audio webcast today are Michael McCain, President and Chief Executive Officer of Maple Leaf Foods; and Suzanne Hathaway, Senior Vice President, General Counsel and Corporate Secretary. In addition to Michael and myself, the other members of your Board of Directors, including Bill Aziz, Ron Close, Jean Fraser, Tim Hockey, John Lederer, Kate Lemon, Jonathan McCain and Carol Stephenson are also participating in the meeting. In ordinary circumstances, we would have hosted our AGM earlier this spring at our corporate headquarters in Mississauga, but these are not ordinary times. In the interest of public safety, we made the decision in the early days of the outbreak of the COVID-19 pandemic to shift our AGM and move to a virtual-only format. As an essential service, we have been vigilant in our efforts to combat the spread of COVID-19, and this is just one small example. While Michael will speak more about the remarkable efforts of our maple leaf team to continue to deliver the food people need through these unprecedented times, I wish to take this opportunity to acknowledge and extend sincere thanks to everyone on the Maple Leaf team. While we miss the personal interaction with our shareholders that a traditional in-person AGM offers, we are very pleased that so many of you are able to join us online this morning. One of the advantages of this platform is that it offers all shareholders the opportunity to participate in the meeting, vote and ask questions in real-time regardless of physical location. With those introductory remarks, I will officially call the meeting to order. I will act as Chair of the meeting, and Suzanne will act as Secretary. Our agenda today will consist of 3 parts, starting with the formal business of the meeting, which will cover the matters set forth in the notice of meeting and accompanying management information circular dated May 8, 2020. Once the formal meeting has been concluded, we will move into a presentation by Maple Leaf Foods CEO, Michael McCain, which will then be followed by a question-and-answer session. You are welcome to submit your questions at any time during the meeting by selecting the messaging icon at the top of your screen, typing the message in the text box and clicking send. During the formal business of the meeting, questions and comments relative to the matters to be acted upon will be read aloud by Suzanne at the appropriate time. Questions and comments of a general nature will be read during the question-and-answer session at the end of the meeting. In the interest of time, questions and comments of the similar nature may be grouped together. We will endeavor to respond to as many questions as we can, with priority given to those logged in as shareholders and proxy holders. If we don't get to all the general questions, we will -- we are willing to follow-up after the meeting on the remaining questions. Now with the consent of the meeting, I appoint Shirley Tom and [ Christina Mustard ] of Computershare as scrutineers. Suzanne, can you please confirm that a quorum is present and the meeting is properly constituted?

Thank you, Geoff. I confirmed that an affidavit from Computershare attesting to the mailing of the notice of this meeting and the associated meeting materials to shareholders has been received. A copy of the affidavit, together with the notice of meeting, will be kept with the records of the meeting. Copies of the notice of meeting and the management information circular are also available on our Maple Leaf Foods website at www.mapleleaffoods.com and on SEDAR at www.sedar.com. I can also advise that the scrutineer's report has been received, and it confirms that a quorum is present. The meeting is therefore properly constituted and the scrutineer's report will be incorporated into the minutes of the meeting. In addition, I note that today's presentations contain forward-looking information. We encourage you to review the cautionary statements contained in our regulatory filings, which outline a number of factors that could cause actual results to differ. Copies of these filings are available on our website and on SEDAR. This virtual format relies on technology as well as coordination among individuals who are not in the same room due to physical distancing considerations. While we are not anticipating any issues, we do appreciate your patience in the event that we experience any technical difficulties or need to briefly pause the meeting.

Thank you, Suzanne. Today, we will conduct all votes by ballot. To expedite the meeting, we have asked certain shareholders to move and second the various motions. The poll for all matters is now open for voting and voting instructions are available on your screen. Shareholders and proxy holders who have logged into the meeting using your control number are able to vote on each matter until I declare voting closed. You can vote by clicking on the polling icon at the top of the screen and completing the ballot. You may change your vote by selecting an alternative option on the ballot, or you may cancel your vote by selecting cancel. Once voting is closed, your ballot will automatically be submitted. Thank you to all shareholders who voted in advance of the meeting. If you have already voted and do not wish to change your vote, do not vote again during the online ballot. If you have already voted by proxy and your vote again during the online -- and you vote again during the online ballot, your online vote during the meeting will revoke your previously submitted proxy. We will announce the results of all voting, including proxies deposited before the meeting, at the conclusion of the formal part of the meeting. As I noted during my introductory remarks, shareholders and proxy holders may address any motion before the meeting by typing in your question or comment in the message section. If there is any discussion or questions on a motion, Suzanne will read the question aloud. We will now move to the first item of business, which is the presentation of the financial statements for the year ended December 31, 2019, together with the auditor's report on those statements. Financial statements and associated auditor's report have been mailed to those shareholders who requested them and are also available on our website and on SEDAR. No motion is required.

Thank you. Based on a review of the question-and-answer platform, I can confirm that no questions or comments on this item have been submitted.

Thank you, Suzanne. And seeing no questions or comments, we will move on to the next item of business, which is the election of directors. The number of directors to be elected has been set at 10. All 10 director nominees currently serve on the Board, and all nominees have confirmed their eligibility and willingness to serve as directors. The nominees are as follows: Bill Aziz; myself, Geoff Beattie; Ron Close; Jean Fraser; Tim Hockey, John Lederer; Katherine Lemon; Jonathan McCain; Michael McCain; and Carol Stephenson. May I please have a motion?

My name is Scott Lorimer, and I nominate each of the 10 nominees listed in the form of proxy and management information circular for election as a director.

My name is Josh Kuehnbaum, and I second the motion.

Thank you, Scott and Josh. Are there any further nominations?

Based on the review of the question-and-answer platform, I can confirm no other nominees or discussion have been submitted.

Thank you, Suzanne. As there are no further nominations, I declare the nominations closed. Shareholders are entitled to vote individually for each director. May I have a motion?

My name is Scott Lorimer, and I move that each of the director nominees be elected as a director of the corporation to hold office for a term to expire immediately following the annual meeting of shareholders in 2021 or until their respective successors are elected or appointed or they are otherwise ceased to hold office.

My name is Josh Kuehnbaum, and I second the motion.

Thank you, Scott and Josh. As the poll remains open, we will move on to the next item of business, which is the appointment of auditors and the authorization for directors to fit the auditor's remuneration. The Board has recommended the reappointment of KPMG LLP as auditors. This vote requires a simple majority. May I have a motion, please?

My name is Steve Elmer, and I move that the firm of KPMG LLP chartered accountants be appointed auditors of the company to hold office until the next annual meeting of shareholders or until their successors are appointed, and that the directors of the company be authorized to fix their remuneration.

My name is Josh Kuehnbaum, and I second the motion.

Thank you, Steve and Josh. Is there any discussion on this motion?

Based on a review of the question-and-answer platform, I can confirm that no questions or comments have been submitted on this motion.

Thank you, Suzanne. Shareholders and proxy holders are invited to vote if you haven't already done so. As the poll remains open, we will move on to the next item of business, which is the nonbinding advisory vote on the company's approach to executive compensation. May I have a motion?

My name is Josh Kuehnbaum, and I move that on an advisory basis and not to diminish the role and responsibilities of the Board of Directors, the shareholders accept the approach to executive compensation as described in the company's management information circular dated May 8, 2020.

My name is Steve Elmer, and I second the motion.

Thank you, Josh and Steve. Is there any discussion on this motion?

Based on a review of the question-and-answer platform, there's no discussion or question on this motion at this time.

Thank you, Suzanne. As there is no discussion, the vote is called and shareholders and proxy holders are on the motion. That is the final matter to be voted on at today's meeting. I will now declare the poll closed. As we wait for the final votes to be registered online, I would like to take a moment to thank you for expressing your voting preferences. With voting now completed and the poll closed, I am pleased to share the results with you. Based on the votes cast in advance of the meeting by proxy and online here today, I am pleased to announce that each director nominee has been elected with a majority of votes cast. Please join me in congratulating your 2020 Board of Directors. I look forward to continuing to work with all of you over the course of the next year. I'm also pleased to announce that the resolution to reappoint KPMG as the auditors of the corporation and the advisory resolution on Maple Leaf's approach to executive compensation have both also been approved by a majority of votes. Details on the voting results will be published following the meeting and filed on SEDAR. That brings us to the end of the formal part of the AGM. On behalf of Maple Leaf Foods, we thank you for joining us today and for your continued support. We are very proud of our responsibilities as an essential service and our role in the safety and security of the food system. Through these unprecedented times, our commitment to pursuing an integrated strategy that brings together our social and environmental commitments with our strategic, financial and operational objectives, remains strong. We wish all of you, your families and your communities good health. There being no other business, I declare the meeting terminated and invite you to remain online with us for the management presentation and question-and-answer session. Now please join me in welcoming Michael McCain, President and CEO of Maple Leaf Foods.

Thank you, Geoff, and good morning, everyone. In a normal year, I'd be welcoming you to our ThinkFOOD! center, the heart of innovation at Maple Leaf Foods. I think we can all agree that 2020 has been anything but normal. Still, thank you for attending the 2020 virtual meeting of shareholders. In my youth in the '60s and '70s, I was a fan of the Nobel Laureate poet and songwriter, Bob Dylan. His track, The Times They Are A-Changin', was always relevant. "Come gather around people wherever you roam and admit that the waters around you have grown," he wrote. "The times they are a-changin'." Well, this is a time of great change and tremendous disruption. Those who understand it and adapt will thrive, and those who don't, well, not so much. Food and consumption are changing. Consumers want more basic, natural, less processed food choices they feel are healthier. They want more protein in their diets with less carbs, and lots of fruits and vegetables. And they want to consume responsibly. The climate is changing with profound effects on our lives and on the future we leave to our children and grandchildren. Society is expecting governments and business to step up to solve this threat. The resources required to sustainably feed up to 10 billion people in the future is anxiety-producing. It made only more difficult by political, social and economic resistance to change. Environmental concern amongst our consumers and investors led, but not restricted to climate change, is real and demanding. People are intensely interested in what we can do to reduce waste and water usage and where they can support reusable solutions. Both capital and public policy are rapidly fleeing high-emitting enterprises. The global balance is changing as the U.S. abdicates its role in global leadership, China is increasingly flexing its muscle and making strategic moves. Globalization is under attack and nationalism is on the rise. The implications for trade, for stability and supply chains are enormous. And Canada's role in this as a relatively small nation is even more difficult. And even capitalism itself is changing. The pure pursuit of quarterly shareholder value has driven business to a dead end, where communities and governments around us are increasingly hostile. The need to acknowledge in equities of prosperity that defy the census grows by the day. We need to reconnect the interest of business with those of the broader community and shared value, as we have articulated for many years, must emerge as the new capitalist ethos. Yes, the times, they are a-changin', and then there was COVID. The global COVID-19 pandemic has been the greatest threat this generation has faced. It has killed thousands of Canadians and sickened many more. It forced governments to put the economy into a coma, resulting in the largest, fastest contraction of jobs and economic activity in history. And of course, it's not over. In a crisis like this, it's easy to criticize leaders. In this country, our governments largely did the right things. They conveyed the seriousness of the virus. They did not minimize or ignore it. They followed the science and drilled into us the need to isolate and social distance. They provided large and urgently needed financial support for individuals and for business. One might think that the food industry and food would be somewhat unaffected. Indeed, ours was declared appropriately critical infrastructure and an essential service. It's often been said that no society is more than 3 meals away from revolution, yet we were not immune from the prospects of disruption. I would describe those most significantly as the dislocation of channel shift from food away from home to food at home, almost overnight, the skyrocketing adoption of e-commerce, an acceleration of plant protein interest, trial and growth, and the clear fragility of the U.S. protein industry. The foodservice industry represents 40% of food consumption in Canada and roughly 24% of Maple Leaf volume. Migrating foodservice volumes to retail channels in such rapid time frames is impossible unless excess retail capacity exists, which it generally does not. Maple Leaf took steps to adjust capacity as much as possible in short windows of time, but there were limits on these options. During the most difficult stages of the pandemic, consumers avoided in-person shopping experiences. This fueled the skyrocketing e-commerce volumes, which most believe will be sticky. Many consumers use the sometimes empty retail meat shelves as an option to try a plant-based alternative, so growth in these categories accelerated. And finally, it's clear the U.S. protein industry had greater challenges operating in a pandemic environment than we did. The consequences of this, combined with other factors such as channel shift, yielded the single most perverse market dynamic I have ever witnessed. It created the paradox of excess supplies of livestock at one end of the value chain, with empty store shelves at the other. There simply wasn't enough processing capacity in the middle to connect the 2, which also created highly volatile near-term market pricing. In the middle of all this turmoil, change and crisis, how did Maple Leaf behave? We enabled a crisis team very early to assess the risk factors and set our priorities firmly and quickly. We set those priorities to protect the health and safety of our people first; to protect the operational integrity of the food supply chain as an essential service; to follow the best available science, even as it evolved, guided by the CDC; and to collaborate and communicate actively with all of our stakeholders. We established very aggressive protocols quickly throughout our supply chains, including measures such as aggressive daily health screening and temperature checks of all our people, including mandating them to stay at home if they didn't pass. We increased social distancing in all of our facilities with staggered work. We applied mandatory face coverings for all team members at all sites and increased sanitation in all areas of our supply chain. We applied protocols for transportation to and from our facilities and the addition of trailers and tents to decrease density in our facilities. We communicated and coordinated actively with public health, the CFIA and our unions as it was also imperative to give our people the confidence just to come to work. Our IS teams did extraordinary things, rapidly transitioning all of us to full work-from-home mode in lightning speed. They really, really were awesome. Because of the stress that's placed on the heroes of our frontline workforce, especially during the early stage of this crisis, we also adjusted our compensation practices to recognize and support our people doing the right thing. This helped protect our team financially and encouraged them to stay home when necessary. But no compensation can fully express our gratitude for their absolutely incredible commitment. All of these efforts could not ensure we were untouched. A valued and dedicated employee and colleague died from COVID-19, and we mourn his loss. To date, 72 members across our network have been tested positive for COVID. Even a single case is too many. During the crisis, Maple Leaf Foods actively engaged in supporting our communities with emergency food relief donations and funding of over $1.3 million through the Centre for Action on Food Security, and we supported frontline health care workers across the country with a $2.5 million donation to the frontline fund. The challenge for society now is to provide people with confidence, the confidence to reenter the workplace and reengage the outside world. The more successful we are at minimizing a public health threat, the more readily we can gain trust, open our society and rebuild the economy. Maple Leaf happens to be experts in pathogen control in complex environments, that gives us some credibility in advocating to governments a path forward that includes materially higher levels of community COVID testing, a reengineering of testing strategies from reactive to proactive, and tracing capacity that enables us to run every case to its source. Our country is not there yet. With health and economic and social issues looming so large, it can be easy to overlook our operational and financial performance, but this performance underpins our ability long-term to create shared value and to execute on our very purposeful journey to raise the good in food and our vision to be the most sustainable protein company on Earth. In 2019, we made progress on each of our sustainability pillars: better food that meets consumer needs, a sustainable environmental footprint, responsible treatment of the animals in our care and creating social value through our work on food security. I'd like to mention 2 highlights from last year, which are foundational on this journey. In 2019, we took the most significant action in our history, action I've never been prouder of in my 40-year career in this business. Maple Leaf Foods announced we had become the very first large-scale food company, not just meat company, but food company in the world to become carbon-neutral now. That's been a journey for us and one based on the core principles of a robust carbon footprint initiative: avoid, reduce, recycle and offset. We've re-upped on our prior 2015 emissions reductions, but now committing one of only 290 companies in the world to do so at the time to the rigorous, challenging science-based targets initiative, for 30% scope 1 and scope 2 absolute carbon emissions reductions by 2030. We are confident that we can achieve these. While there's a short-term cost, we view climate change as one of the greatest threats facing humanity. And it's incumbent on companies like ours on the front line of this challenge to act now and to act decisively. Our hope is that all of our competitors do the same. The second highlight was the pivot in 2019 in our Greenleaf business model to compete in the incredibly compelling and lucrative plant-based protein category. We've been in this category for a very long time. And in 2017, we strategically acquired a leading position in the plant protein space, supported by strong brands in Lightlife and Field Roast. We originally deployed our familiar profitable growth playbook. However, as we entered 2019, the game radically changed. Growth in plant protein consumption accelerated from low double digits to greater than 30% for the foreseeable future, spurred by innovation, and more prominent presentation in both retail and foodservice channels. New entrants in the category deployed very aggressive land grab playbooks, focused on revenue growth and terminal value with little regard for short-term profitability in favor of investment. Clearly, our prior approach was no longer viable in this new environment, so we had a basic decision to make: Are we in it to win? Or are we in it just to play? To make a balanced and informed choice on behalf of all of our stakeholders, we needed to answer 4 key questions. The first was, what do we feel the size and growth rate is for both the category and our potential share of that category? We concluded this category will grow to at least $25 billion in North America by 2029, and we believe that we can command a $3 billion market share. Secondly, we needed to understand what skills we need to win. Our brands, our innovation capacity, our marketing skills, and our supply chain proficiency were all deemed to be essential to winning and our core skill sets. We are in a pull position. Thirdly, do we have the financial capacity to support this venture? Maple Leaf is a very profitable, cash-generating business that can comfortably support the investments required. We needed to adopt the lens of SG&A investment, sized at roughly $150 million per year, investment levels required to drive the sustained 30% growth rates we aspired to. And we needed to answer the question, are we creating long-term value? Our discounted cash flow models behind this high-growth business and the underlying gross margin showed us how profoundly lucrative this opportunity could be to shareholders over time. We were excited by the answers to these questions, and we seized the moment as an opportunity that had transformative potential for Maple Leaf Foods. True to our entrepreneurial culture, we took fast, decisive action pivoting to a new economic model defined by our long-term goals of 30% annual revenue growth and underlying gross margin of 30%, supported by this upfront SG&A investment and the infrastructure to manufacture the products. We are now focused on executing the sustaining brand strategies, which will provide the framework for this growth expectation. While I've spent some time today walking through the lucrative plant-based growth trajectory available to us, it's important also to acknowledge that this isn't the only growth vector that we're pursuing at Maple Leaf. We've also positioned ourselves for accelerated growth in categories such as sustainable meat, where we are leaders in North America; in poultry, which is the highest growth market segment; in artisanal meats; and in value-added meal kits. Financially, we began reporting our results in 2019 as 2 segments or platforms: our Meat Protein business, with a profitable growth economic model, measured by modest organic revenue growth rates, capital investment and expansion of our EBITDA margins over time; and our Plant Protein business, with a revenue growth model plus terminal value measured on exceeding our strategic growth rate target of 30% while protecting the underlying gross margin at 30%. I'm happy to report that we delivered on these targets in 2019 despite erratic commodity markets and an increasingly competitive plant protein marketplace. In Meat Protein, sales increased 4.9%, excluding acquisitions, while we expanded our adjusted EBITDA margin by 50 basis points to 10.4%. It's really important to note that we achieved this expansion of margin despite experiencing a 110-basis-point headwind from weak pork markets. In Plant Protein, sales increased 24%, excluding acquisitions, with a strong 31% growth in the back half of the year after we pivoted our playbook. Plant Protein underlying gross margins, excluding the short-term inefficiencies in our supply chain, were in the 27% to 30% range. Our investment profile and therefore, our balance sheet, rapidly changed towards the end of 2019 and into 2020. To support significant growth capacity behind our poultry business, and ongoing growth in Plant Protein, capital spending was $271 million in 2019, is estimated to be $600 million to $650 million in 2020 and is likely to remain elevated in 2021. Because of the cash-generating ability in our core business, we expect to be able to maintain balance sheet leverage in line with investment-grade ratings through this period of heavy investment, although we now have a modest debt in our capital structure after years of a strong cash position. We did, however, scale back our share buyback program to $20 million in 2019. Reflecting our balanced approach to capital allocation and our optimism in future growth, your Board recently authorized a 10% increase to the quarterly dividend, maintaining our track record of consistent dividend growth. We know the future will be dynamic in the short term, but our focus remains unchanged: executing on our well-defined vision to become the most sustainable protein company on Earth. This adds value for all of our stakeholders, and it's deeply, deeply inspiring. Our purpose and vision are stronger and clearer than ever, and we proved our company's nimble nature during this pandemic as we adapted and changed at a pace that I never ever imagined possible. There will be lasting impacts from the COVID-19 pandemic, notably in redefining how we work together in the future as we seek to find new, more flexible, efficient and effective work structures that are also safe. This has been a once-in-a-generation moment. We've seen fragility in many of our global networks and physical supply chains. Clearly, this was the unequal pandemic where the most vulnerable in our society felt the impacts most severely. We saw this firsthand in our response to surging food security challenges across Canada through the lens of the Maple Leaf Centre for Action on Food Security. Our global community needs to restore commitment to global institutions and collaborations and recognize that the self-serving interest of nationalist policy cost all of us dearly during this time and left unchecked, it will get worse. We can do better. So as much as Maple Leaf Foods has changed for the better, more profitable and more sustainable, we are not complacent. More change is coming, and we need to respond to it and shape it, lest we be left behind. Capitalism, by its nature, creates jobs and economic prosperity, but it isn't working for everyone and it's under great attack. Millennials working in the gig economy do not see capitalism's superiority and wonder how the profit motive will fix our problems. We have to knit the interest of business back together with the interest of people or we will all be poorer for it. Now COVID's stress was hard enough for everyone to bear, but its strain was made worse by a stunning and very public awakening to the harsh reality of racism in our society, leading to an outpouring of protest, and in some unfortunate cases, to violence. These events, we hope have brought us to a long overdue tipping point in our understanding of racism's unacceptable persistence and its tragedy. Just as Maple Leaf has taken stands on so many social issues from LGBTQ rights to food and security, we will confront racism in our midst head on, beginning at our own company by educating ourselves, by having important transformational dialogue, and by taking action, real action that's required to affect change. As for the pandemic, its lessons are before us. And we need to be prepared to learn how to live safely with these viruses all around us. In our business, we need to buttress and secure our supply chains, which buckled, but did not break. And we need to understand and acknowledge the role that poverty plays in public health and do something about it. Dylan's message from 1963 should resonate for all of us. "As the present now will later be passed, the order is rapidly fading," he said, "and the first one now will later be last for the times they are a-changin'." By basing our profitability on a set of values and a higher purpose and vision, Maple Leaf Foods has positioned itself well for the new consumer environment. By operating according to these vision and values, Maple Leaf Foods will play a role in building a stronger Canada. Events like COVID, like climate change, like food insecurity, and social unrest will not define who we are, but our response to them will. Thank you for listening. Suzanne, I'll turn it back over to you.

Thank you, Michael. With those thought-provoking remarks, we'll now move into the question-and-answer session. At this time, we have received a couple of questions. The first one is from [ Jennifer Bear ]. She starts with a comment as follows: I have a question from PETA regarding the threat that slaughterhouses pose to human health and Maple Leaf Foods' timeline for making the transition to exclusively vegan meat instead of slaughtering animals in light of the fact that company's slaughterhouse workers have contracted COVID-19 and become ill. This would be the next logical step for Maple Leaf Foods to take since it already produces the Field Roast and Lightlife vegan brands. Slaughterhouses are hot beds of disease. Over 27,000 coronavirus infections with more than 90 deaths in the U.S., and over 1,000 cases in Canada have been directly linked to the outbreak in slaughterhouses. The demand for vegan food is skyrocketing, and market for vegan protein will be worth over $40 billion by the end of 2025, up from $21 billion in 2020. Her question is, when will Maple Leaf Foods take a leading role in sparing animals' miserable life and painful death, protecting human health and responding to consumer demand by producing exclusively vegan meat?

Well, thank you for your question. I would begin by recognizing that through the pandemic, Maple Leaf, I think, behaved quickly and responsibly in our efforts to both protect our people and supply consumers with the food they required as an essential service. We are committed as an organization to providing consumers with the choices that they demand. It is important to recognize that 95% of consumers are meat consumers, and our direction and strategy and business is focused on meeting those needs responsibly and sustainably. We also recognize that there is a large and growing body of consumers who want to both consume more protein and want more choice in their proteins, specifically in plant protein, and we are also serving those needs. We are in both the meat protein business and in the plant protein business, and we expect to enhance our sustainability commitments on both of those platforms and categories, both meat and plant protein. And in doing so, we'll recognize our commitments to animal welfare. Maple Leaf has recognized that animal welfare is central to our sustainability commitments. It is a core value of our organization. And accordingly, our animal welfare policies and programs are amongst the best in the world, and we're proud to be leaders in that field. We have applied that leadership in both our capital commitments and our operational practices, and we're continuously improving on those practices, guided by our professionals and third-party advisers, including those that we've appointed to our Animal Welfare Advisory Council. So directly, to answer your question, our intent, as an organization, and we're proud of this intent, in our vision to become the most sustainable protein company on Earth, is to build a more sustainable meat business and a sustainable plant protein business, together, meeting the needs of consumers and behaving responsibly and protecting our people and the welfare of our animals, and we intend to continue that.

Thank you, Michael. We have one more question currently. It comes from [ Brenda Morris ]. She asked, Maple Leaf recognized early on the growth opportunities in the plant-based protein space and acquired Lightlife and Field Roast. With the increase in risk associated with the factory farming, disease outbreak, water pollution, et cetera, do you see pivoting and increasing attention in this space and really being a leader in this traditionally animal-reliant industry? Thank you.

Without reiterating what I just described in terms of Maple Leaf's commitment to a sustainable enterprise, which includes better food, better care for the animals, a more sustainable planetary environment and our commitment to community building, I would say, first, that I do not believe that we are seeing an increased risk profile in our farming practices. In fact, the contrary. We're seeing an improvement in our risk profile, both in terms of people and animals. But we are seeing growth in our plant-based business. And we expect, as consumers increase their protein consumption and their desire for more diversified choices of protein to meet both those needs through our meat business and our plant protein business. We believe that the future of consumption in protein will be mostly defined by the flexitarian consumer, not just consumers that have a -- either a strictly carnivore diet or a strictly vegan diet. We believe the future and future growth of this category will be in flexitarianism where consumers are seeking a more balanced protein regimen in their diet.

Thank you, Michael. At this time, there are no further questions that have been submitted through the question-and-answer platform. In light of that, that will bring our meeting to a conclusion. On behalf of Maple Leaf Foods, we wish to thank you again for joining us here today, and we wish you all the best.