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• Investors in Very Good Food Company (NASDAQ:VGFC) and VGFC stock are seeing gains of more than 100% today
• This surge comes after a distribution agreement with a large Canadian retailer
• Investors are now wondering if Very Good is a beaten-down stock worth a buy or too speculative to add right now

Today's been a very good day for investors in companies making plant-based meat alternatives. Shares of Beyond Meat (NASDAQ:BYND) have surged more than 11% in this afternoon's session. And other smaller-cap stocks, such as The Very Good Food Company (NASDAQ:VGFC) are following suit. That said, today's incredible 150% move in VGFC stock is notable and deserves attention.

This move comes on the heels of a key announcement between Very Good and Loblaw (OTCMKTS:LBLCF). Loblaw is one of the largest retailers in Canada. As such, it carries tremendous reach north of the border. Very Good announced a distribution agreement with Loblaw to carry its products in more than 2,000 stores. For this micro-cap company, worth just under $40 million after today's rally, it's clearly a big deal.

Like other plant-based meat alternative companies, Very Good has seen its share price plummet since its 2020 peak. Once trading at more than $7 per share, today's increase brings this stock to around 30 cents per share, still representing an impressive decline. That said, with such dramatic downturns come bottom-fishers, looking to scoop up bargains in this environment.

Let's dive into what this agreement details and why investors are growing so bullish on this deal.

Why Is VGFC Stock Soaring Today?

For Very Good, an unprofitable company in a high-growth sector, this is a tough time to be a publicly listed company. The market is rather unforgiving right now. Indeed, profitability is of utmost importance to investors, many of whom are busy de-risking their portfolios right now.

Accordingly, while Very Good is still a ways off from being profitable, this deal is being viewed by the market as a key step in the right direction. The company's assortment of sausages, meatballs and ribs are appealing to consumers. Accordingly, this company had seen strong growth metrics in the past, before this craze tailed off.

That said, as valuations have come down, investors appear to be picking their spots in this high-growth sector of the grocery trade. Plant-based meat alternatives may indeed be the future. Accordingly, for those considering the Canadian market, Very Good appears to be an interesting speculative bet.

Right now, I'm of the opinion this is a "show me" stock. The market has certainly wanted to see more traction, as evidenced by the price action with this stock. Whether this is the traction the market wanted to see or not will be determined by how this company trades moving forward. Accordingly, Very Good has found its way onto my watchlist.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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