July 4, 2022 8:03 AM

Looking for an investment that will grow post Covid: functional mushrooms

While Canada stands poised between economic jump-start and Covid slowdown, investors may need to start from the ground up, what could be better than mushrooms? And not the magic ones making news. No, this growing functional fungi phenomenon has a lot more to offer the world, especially in the wake of Covid-19, and companies like Rritual Superfoods Inc. may be well-positioned to grow sharply.

/ Published 2 years ago

Functional Mushrooms a surprising post covid growth opportunity
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Despite a vaccine on the Canadian horizon and an impressive quantity of government liquidity flowing into the economy, lockdowns and Covid-19 cases continue to spread. The economy is looking to grow, but many of its traditional options are still fettered. Yet there are uniquely positioned unorthodox options, like mushrooms, investors dare not ignore. And while some minds might jump to psilocybin, the flashy ‘magic’ mushroom molecule, the real post-Covid investment is found in functional fungi like those that Rritual superfoods inc. are working with. 

Why mushrooms are a unique answer to Canada’s post-Covid investor dilemma

While Canadians struggle against Covid-19 and the restrictions put in place to fight it, investors are facing a difficult dilemma. The TSX and other indexes show strong upwards trajectories, pushed by positive news about vaccines, the return of optimism, and liberal government spending. Yet, the small business brick-and-mortar world of concrete value is struggling, and other alternatives like tech are already over-inflated.

There is money, of that there is no doubt, the question is where to find growth opportunities that have not already been over-exploited during the Covid-19 recession. Mushrooms might not make your average investor shortlist alongside energy, mining, or gadgets; they don’t have the flash. But fungi are a growing phenomenon in the financial world. Which kind of mushrooms you bet on, however, is key to tapping into their success. 

Functional mushrooms offer better returns than the ‘magic’ mushroom mirage

Chances are you might have spotted some mushrooms in the wild, or in the news this autumn. But neither are the kind investors should be studying. While foraging for mushrooms remains an increasingly popular leisure activity – and has enjoyed a renaissance during the pandemic as an outdoor non-social activity – it is by definition not a lucrative opportunity to be seized. 

The ‘Magic’ mushroom variety, or rather the potent chemical psilocybin they contain, seems more promising. Indeed, by its very nature, it attracts attention and interest. It has been at the heart of cutting edge mental health research, and some optimistic analysts are starting to hail it as the next big ‘legal’ drug market boom. Unfortunately, it is too early to reap any real rewards from this speculative sector. 

The magic mushroom ‘craze’ is still a decade away, and while some decriminalization has occurred, commercial legalization has not. Most of the uses under consideration are highly specialized mental health considerations; far from the widespread panacea that cannabis and CBD became. Mired in legal battles and social stigma around hallucinogens from a decades-long war against the molecule, psilocybin is not the mushroom-miracle investors might hope for. 

But that doesn’t mean there isn’t one out there. 

Rritual’s Mushrooms may not be as fun, but they offer post-Covid functionality

Functional is a catch-all category for mushrooms which combines their rich medicinal and nutritional values. You’ll find in it adaptogen mushrooms from ancient traditions in China or India (like reishi the ‘mushroom of immortality’) as well as many native to the thick forests of the north like turkey tail or chaga mushrooms. And while for centuries these were collected by hand and used in traditional medicine to combat everything from illness to stress, modern science, industry—and the ambitions of superfood company Rritual Inc.—are taking them to the next level. 

With properties that can help us fight off the effects of stress and inflammation, functional mushrooms have a lot to offer modern society. Just look at Rritual’s product offerings, which includes elixirs (simple powders to add to your daily coffee or tea) supporting a wide range of needs. From boosting immunity to relieving stress and helping people focus, functional mushrooms and adaptogens make for a rich variety of potent combinations. They deliver not just flavor or flash but results that can be felt in the long term. And it’s nice to see a Canadian company with the marketing chops and industry insight to deliver on that potential. 

From an investment perspective, they are also clearly the stronger choice. Legal, unbound by any regulatory strictures, and increasingly popular and common, functional mushrooms are the exact opposite of the magic mushroom cousins. And it’s not just customers who stand to gain— for investors, the functional mushroom market’s growth is set to outstrip the wellness category growth rate by almost 30%. Some Canadian companies, like Rritual, plan to ride that wave and even steer it, as they become a dominant force in the functional mushroom world. 

In a world where Covid has radically changed how we think about health, profits are being made now, and not in a distant ‘magical’ future. And for investors who want to reap rewards now, functional solutions are required, like mushrooms.

(Featured image by Adege via Pixabay)

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