Coca-Cola: One brand, one promise
As one of the most influential players in the global food industry, The Coca-Cola Company exemplifies the immense responsibility that large corporations bear in tackling the global food problem. However, the brand promise of global refreshment and local value creation clashes sharply with the reality of resource scarcity in many regions of the Global South. To produce its world-famous beverage, the company draws on vast quantities of local freshwater reserves, jeopardising agricultural irrigation in water-scarce areas such as parts of India or Latin America. As a result of industrial bottling plants, groundwater levels fall, literally depriving local smallholder farmers of the basis for their livelihoods in growing essential staple foods.
At this interface, the European Union’s new regulatory instruments exert their integrative effect. Under the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), even a US giant such as Coca-Cola must provide comprehensive evidence that it does not violate human rights to food and water along the entire supply chain for products sold on the European market. Consequently, sourcing agricultural commodities such as sugar cane is also subject to the strictest environmental assessments to prevent land grabbing and the destruction of sensitive ecosystems. The group has made ESG progress in recent years, but can do much more with its international influence. At USD 93.50, the share price is close to its all-time high. The 2027 P/E ratio stands at 26.3, and analysts see little remaining upside.
PepsiCo: Responsibility for global food security required
As the world’s second-largest food and beverage group, PepsiCo also plays a key role in the global food problem, as its supply chain uses vast areas of agricultural land around the globe. With its pep+ sustainability strategy, the company is indeed making a concerted effort to transition millions of hectares of farmland to regenerative farming methods by 2030, but the reality of global sourcing reveals serious downsides. When agricultural groups drive down the cost of raw materials for the production of snacks and soft drinks, this often leads to extreme poverty in the producing countries and directly jeopardises local food security. Here, too, the CSDDD rules apply and will, in future, require globally operating groups to fulfil a duty of care backed by civil liability, under which they must actively prevent abuses by subcontractors and franchise partners. At the same time, the EU’s EUDR regulation requires the company to ensure comprehensive digital traceability of critical raw materials such as palm oil. Although PepsiCo is seeking to limit the damage through technological innovations and water recycling initiatives, the fundamental problem remains. The US giant’s shares have performed poorly this year, and it now even risks losing major customer KFC. With prices around USD 136, analysts on the LSEG platform still see upside to around USD 142.
Bringing the Green Revolution to Life: Can Bayer Accelerate MustGrow’s Growth?
Stricter laws, such as the European Corporate Sustainability Due Diligence Directive (CSDDD), are reshaping the future of global agriculture. With stricter sustainability requirements, established chemical groups face immense pressure to find ecological alternatives for global crop protection. A pioneering study published in Nature Food shows how fundamental this shift is: soil health alone already influences 12% of all fluctuations in crop production worldwide.
Crop science company MustGrow Biologics offers practical solutions based on natural mustard compounds. The two promising biological products TerraSante™ for soil fertility and the pre-registered TerraMG™ for crop protection precisely capture the spirit of the times. Operationally, the Canadian company is moving beyond the lab and into scalable production of TerraSante™. Although supply bottlenecks at contract manufacturers and costly air freight briefly held back TerraSante™ sales in the second quarter of 2026, the long-term market opportunities remain entirely unaffected. By mid-August, TerraSante™ revenue had already reached CAD 0.9 million, a substantial jump of over 46% compared with the entire previous year. With a strategic switch from expensive air freight to low-cost sea freight and new production lines, the company will quickly drive its operating margins toward its targets.
In October, COO Colin Bletsky provided fascinating insights into the company’s medium-term growth strategy at the 20th International Investment Forum (IIF).
However, the ultimate game changer for the valuation could emerge from the exclusive partnership with agricultural giant Bayer for Europe, the Middle East and Africa. In August, the Canadian company received the first milestone payment from the German DAX-listed group. According to MustGrow’s estimates, Bayer is expected to invest USD 35 million to USD 40 million over the next 5 to 7 years in the development, global regulatory approval and market launch of TerraMG™. Through the strategic sale of its low-margin third-party business, MustGrow Biologics has also sharpened its profile as a highly profitable, pure product platform. Thanks to CAD 1.4 million in licensing revenue from Bayer, the company recorded a net profit of CAD 0.4 million in the second quarter of 2026 despite logistical bottlenecks. Research firm GBC AG forecasts a significant revenue ramp-up, from the expected CAD 3.5 million in 2026 to over CAD 30 million by 2028. With around 110 granted or pending patents supporting its technology platform, MustGrow remains focused on developing solutions for global food security. With a market capitalisation of approximately CAD 27 million, the company combines an extensive research portfolio with a focus on sustainability in the crop science sector.
Note: MustGrow Biologics has announced an upcoming webcast panel discussion with Bayer AG featuring MustGrow’s Chief Operating Officer, Colin Bletsky and Ralf Glaubitz, Head of Crop Protection Product Team Biologicals at Bayer’s Crop Science division.
The “fireside chat” panel discussion will be broadcast on:
Wednesday, October 28, 2026, at 4:00 pm Eastern Standard Time / 9:00 pm Central European Time
Click here to register:
MustGrow’s Colin Bletsky and Bayer’s Ralf Glaubitz will discuss the global biological agriculture opportunity, the regulatory framework, and the future prospects of their partnership.
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