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The Spoon

Daily news and analysis about the food tech revolution

Alternative Protein

Mission Barns to Run Curbside Taste Tests for Its Cell-Based Bacon

Bacon lovers, take note. Berkeley, CA-based Mission Barns plans to run curbside taste tests of its cell-based bacon product outside San Francisco and Oakland restaurants in August (h/t Food Navigator).

Mission Barns gets its product by combining cell-cultured pork fat grown in bioreactors with plant-based protein. To do that, the company isolates cells from the animal, in this case the pig, and puts them in a warm cultivator where they grow just as they would inside the animal. Cells are then fattened and the tissue is harvested to create the “meat” portion of Mission Barns products.

On its website, Mission Barns says its process for creating “meat” is more sustainable than conventional livestock farming in terms of land and water use as well as greenhouse gas emissions. It’s also more humane, since the animal doesn’t actually have to be slaughtered to get the cells. 

As with all meat alternatives, though, taste is what will ultimately convert many consumers. To that end, Mission Barns is looking for “bacon lovers, experts, and aficionados” for this upcoming taste test, which is the first ever from the company. Potential “tasting consultants” must fill out an application. Once accepted, participants can sample the bacon in exchange for providing feedback to Mission Barns.

The company also told Food Navigator that it is testing new products with other food companies, including “one of the largest pork producers in the world.” 

Mission Barns has competition in the bacon realm from Higher Steaks, a UK-based startup that recently announced its lab-grown prototypes for bacon and pork belly. 

Overall, cell-based meat companies have received quite a bit of funding since the pandemic started surfacing some of the uglier realities of the conventional meat industry. New Age Meats recently raised an additional $2 million for its plant-based pork, while Integriculture nabbed $7.4 million in May and BlueNalu garnered $20 million in February.

This investment activity isn’t likely to slow. For the entire alternative protein category, investment has already surpassed the $1 billion mark, with more than $290 million of that going towards cell-based meat, according to a recent report from FAIRR.

Price parity still being an issue, it will be a while yet before consumers start actually bringing home the cell-based bacon. Mission Barns upcoming taste test should tell us more about how devoted bacon fans will react to cell-based versions of their favorite meat. 

We Tasted Brave Robot, The Ice Cream Made From Animal-Free Dairy

Last month when the founders of Perfect Day announced they’d launched a spinout called The Urgent Company to create science-forward food products that are earth-friendly, I got an email asking me if I’d like to try their first product: Brave Robot ice cream.

I figured why not? While I may not be a professional ice cream critic, the hundreds of gallons I’d logged in my life solidly place me in the ice cream enthusiast category.

In case you’re not familiar with the concept of animal-free dairy, here’s how Catherine Lamb described Perfect Day’s dairy, which is the same formula used in the new Brave Robot line up:

Perfect Day makes its dairy by genetically modifying microflora to produce the two main proteins in milk: casein and whey. They combine the dried proteins with plant fats, water, vitamins and minerals to make a lactose-free product that has the same properties — taste, consistency, and nutritional breakdown — of milk.

A few days later, the flavor lineup that landed on my doorstep was as follows: Vanilla, Buttery Pecan, PB ‘N Fudge, and Hazelnut Chocolate Chunk. I immediately got to “work”.

Any combo of peanut butter and chocolate usually can’t miss, so that’s where I started. It didn’t disappoint. The thick veins of fudge and peanut butter were as yummy as they sound, and maybe more importantly, the science-forward ice cream didn’t taste weird, or well, science-y, at all.

A scoop of Brave Robot vanilla

The other flavors were just as tasty. The nutty flavor of Hazelnut with big chocolate chunks was my son’s favorite, and my wife liked the crunchy Butter Pecan. Vanilla was vanilla, but in a good way.

After trying all four, I can say all were smooth and creamy, flavorful and, most importantly, tasted just like dairy-based ice cream. I’ve had lots of plant-based ice cream, and while most taste pretty good (if you’re ever in Seattle, I’d strongly recommend Frankie & Jo’s coconut milk ice cream), none had ever fooled my taste buds into thinking they weren’t made with dairy. Not so with Brave Robot.

My family all liked Brave Robot too, but unlike me, they didn’t care as much about the impressive science behind it. Sure, I tried to explain to them how it had the same proteins found in dairy but without the downsides of milk (like lactose), but they just nodded, said ‘huh’, and spooned more into their mouth. To them, it was just good ice cream.

And I suppose that’s the point.

Wawa Goes Beyond Standard Convenience Store Fare With a Plant-Based Breakfast

Like most other types of food businesses, the convenience store is changing due to the pandemic, and that includes what’s on the menu when it comes to food. In line with that, today, convenience store chain Wawa announced a partnership with Beyond Meat to bring a plant-based breakfast option to its stores.

Dubbed the Sizzli Breakfast Sandwich, the new item will use Beyond’s Breakfast Sausage product. As of today, it’s available at 650 Wawa stores in the Mid-Atlantic region and will be available in all Florida stores from August 10 onward.

In certain parts of the country, namely the Mid-Atlantic, Wawa is practically iconic in the world of convenience store chains. But like many food businesses nowadays, it’s having to reinvent itself in the wake of changing consumer demands around healthy eating and massive shifts in how people get that food.

The chain already offers its “Wawa Your Way” menu, which offers healthier options and caters to various dietary needs/preferences (gluten-free, plant-based, etc.).

Adding a plant-based option to the menu is the obvious next step. Consumer demand for plant-based proteins has surged during the pandemic as ugly truths about the meat industry continue to come to light. The whole of the alternative protein category, including plant-based meat, is expected to grow to $17.9 billion by 2025.

But plant-based options isn’t the only change Wawa has introduced recently to meet new consumer behaviors. With more people staying at home, or just wary of mingling with strangers in public settings, the company has had to turn its attention to serving folks off-premises. Wawa struck a delivery deal with DoorDash in April, then launched curbside order and pickup in June. Just this week, the chain announced its first-ever drive-thru location, which will begin construction in August in Falls Township, PA.

Wawa’s announcements follow moves by other well-known convenience store chains to shift both their formats and products to meet the current times. 7-Eleven expanded delivery and introduced a new pickup feature in July. It too has a partnership with DoorDash. Over in Tokyo, Uber Eats is delivering food from Lawson Convenience stores. And let’s not forget cashierless checkout’s march into the convenience store realm, led by Zippin, Aramark, and others.

Wawa’s news from the week is further proof multiple intersections are happening right now between convenience stores, grocery stores, and restaurants, and between plant-based diets and traditional ones. Expect more of these lines to blur as the entire food industry continues changing at the pace of the pandemic.

Impossible Burger Now Available at Walmart

Impossible Foods announced today that its plant-based Impossible Burger is now available at nearly 2,100 Walmart stores across the U.S.

Whomever is in charge of retail operations/relations at Impossible has definitely been burning the midnight oil. Today’s announcement comes just days after Impossible announced that it was available at Trader Joe’s stores. Impossible Burger is now available at 8,000 retail outlets nationwide.

Part of what makes this news notable is just how quickly Impossible has ramped up production. In April of this year, just four months ago, Impossible Burger was only available in 1,000 retail locations. This ability to scale is a far cry from the production shortages Impossible experienced in 2019.

Walmart is the largest food retailer in the U.S., with grocery sales of $288 billion and more than 26 percent share of all groceries sold, according to FoodIndustry.com. So it was only a matter of time before Impossible hit Walmart shelves.

This has been a summer of aggressive moves by Impossible. In addition to new retail partners, the company launched its own direct-to-consumer sales channel, partnered with Starbucks and Burger King for plant-based sausage sandwiches, and made its Impossible sausage available to restaurants across the country.

Beyond Meat, Impossible’s rival, has been no slouch this summer either. The company launched another test of its plant-based chicken at KFC earlier this month, created a bulk package SKU that brought down the price of its burger, and made international expansion moves into China.

Both companies are striking while the iron is hot, as it were. Sales of plant-based meat have surged during the pandemic, with the coronavirus highlighting ethical issues around the production of animal meat. A lot is uncertain in these times, but it’s a pretty safe bet that we will be hearing even more news from both Impossible and Beyond throughout the rest of the year.

New Age Meats Raises Another $2M for Cell-Based Pork

Cultivated meat startup New Age Meats (NAM) announced today it has raised a $2 million seed extension round led by TechU Ventures. The round follows the NAM’s $2.7 million seed round from earlier this year and brings the company’s total funding to $5 million.

The Berkeley, CA company is currently developing a cell-based pork sausage and says the new funds will go towards this development. In particular, that includes bringing the price point of its product down. 

NAM will also use the funds to further build out its Food Science department, which it says is focused on getting the key attributes — taste, smell, texture, etc. — of its cell-based pork as close to the real thing as possible. On that note, the company held a taste test for its pork back in 2018 and received largely positive reviews. 

Another key element to NAM’s methods is its use of automation to optimize bioreactors and essentially grow its meat faster. Part of the new funding will go towards implementing more of this automation, as well as robotics, to speed up both the research and development processes. 

Investment in cell-based meat has already reached over $1 billion in 2020 so far, which is almost double what it was for all of 2019. Cell-based meat makes up a small-but-significant portion of that investment, and NAM’s seed extension follows funding news from BlueNalu, Integriculture, and others. 

Though the company didn’t provide a timeframe, NAM said today it plans to eventually build out a pilot facility, scale product development and production, and bring its first products to market.

As Cell-Based Protein Becomes a Reality, What to Call it Gets Increasingly Important

Last week we briefly covered news about a Rutgers study that found “cell-based” the best descriptor for lab-grown seafood products. Further thought and reading on the matter leads me to believe the study’s findings have implications for labeling across all of the cell-based protein space, not just seafood.

Here’s a quick recap: A new study by Rutgers in the Journal of Food Science recommends “Companies seeking to commercialize seafood products made from the cells of fish or shellfish should use the term ‘cell-based’ on product labels.”

The study, commissioned by cell-based seafood company BlueNalu, claims to be the first of its kind evaluating how to label alternative seafood products in a way that both appeals to consumers and meets regulatory requirements around product naming. The study was done by William Hallman, a professor who chairs the Department of Human Ecology at Rutgers-New Brunswick’s School of Environmental and Biological Sciences. He noted this week that participants in the study were able to tell the label “cell-based” apart from ones like “wild caught” or “farm raised,” and that those participants still believed the cell-based products were as nutritious as the others. 

Other names tested in the study were “cell-cultured seafood” and “cultivated seafood,” as well as phrases like “cultivated from the cells of ____” and “grown directly from the cells of ____.”

It’s not hard to understand why “cell-based seafood” resonates the most with consumers. The above phrases lack the kind of concise description needed for food products, and terms like “cultivated seafood” are rather muddy in terms of describing what goes into making the product. 

This question of labeling is only going to get bigger as cell-based proteins move further from concept and into a culinary reality for average consumers. We’ve already seen this play out to some degree with plant-based proteins. About a year ago, large meat corporations were pushing hard to ban their plant-based counterparts from using words like “burgers” and “sausages” on packaging. As we wrote previously, “Big Meat trying to quash alterna-meats’ popularity by telling companies how they can or can’t label themselves feels protectionist and ineffective, not to mention desperate, at this point.” 

And that was before the pandemic. Since COVID-19 hit and shed an uncomfortably bright light on issues in traditional meat production, demand for alternative proteins has been through the roof. Just this week, investment network FAIRR released a report stating investment in alt-protein for the first half of 2020 is nearly double the amount for all of 2019. That includes cell-based protein.

Whether Big Seafood pushes back on labeling now that more cell-based seafood is coming to market remains to be seen. It will certainly have a lot of opponents if it does. BlueNalu just announced a new facility designed for commercial production of its alt-seafood products. Wild Type raised a $12.5 million Series A round last year for its cultured salmon, and Shiok Meats just partnered with Integriculture to scale up production of lab-grown shrimp. And those are only the seafood-focused players in the cell-cultured protein space.

Big Seafood aside, effective labeling of all these products — and all cell-based protein products, really — will be key to appealing to new consumers who may not have previously known about cell-based meat and dairy, and that it’s just as nutritious as the real deal. When it comes to finding a name for these alt-protein items, that could be the most difficult and most rewarding challenge companies face.  

FAIRR: Investment in Alternative Protein Has Already Reached $1.1B in 2020

Investment in alternative protein for the first half of 2020 is almost double what it was for the whole of 2019, according to a new report by investor network FAIRR. Between January and the beginning of July of 2020, over $907 million was invested into plant-based foods, compared to $457 for the whole of 2019. More than $290 million has been invested into cell-based meat so far in 2020. The entire market for alternative protein is expected to grow to $17.9 billion by 2025.

The U.S. is still the largest market for alt-protein, reaching almost $5 billion in sales in 2019, $1 billion of those for meat alternatives. China’s is also a huge market for alternative proteins, particularly when it comes to meat replacements. 

We’ve noted this growth frequently over the last few months, and FAIRR’s report lays out some of the main drivers behind consumers’ insatiable appetites for non-animal protein. There’s the aforementioned uptick in investment, a point supported by a recent slew of news announcements. In the last week alone, Better Meat Co. raised $1 million, Joywell Foods raised $6.9 million, and plant-based cheese company Grounded raised $1.74 million.

FAIRR also calls out the rise of plant-based seafood products and a decrease in production costs for manufacturers as market drivers, along with an increase in companies using alt-protein to diversify their product lines. Last year saw a number of major milestones that brought these issues further into the light and helped alt-protein go mainstream. For instance, Nestlé opened its own production facility for plant-based meat in May of this year. UK grocer Sainsbury’s launched its own line of plant-based products in early 2020. Meanwhile, Starbucks, KFC, and a host of other QSRs have rushed to add plant-based offerings to their menus.

Then, of course, we have the pandemic to thank for this massive uptick in demand for alternative protein. “Consumers worldwide are rethinking how they eat and what they eat amidst supply chain disruptions and public concern over the link between meat production and viral diseases,” the report states.

Across the board, investment in food tech is up since the start of the pandemic, having reached $4.8 billion in the first half of 2020 according to a report from Finistere. This too is in response to the current global health crisis.

But FAIRR also calls COVID-19 “only the latest straw on the camel’s back” when it comes to alt-proteins. Pre-pandemic, our heavy reliance on animal-based proteins was already under scrutiny because of animal supply chains’ negative impact on the environment, not to mention human health. Throw a zoonotic pathogen in there (which COVID-19 is widely believed to be), and it’s easy to see why the pandemic has accelerated the demand for animal-free protein sources.

What’s next? Cell-based protein, probably. While that sector has made up a much smaller portion of investments in the first half of 2020, those dollars are nonetheless pouring in. As the pandemic wrecks more havoc on our food system and sheds light on the importance of finding new sources of protein, expect the interest in cell-based proteins to continue its acceleration.

3D Meat Printing Startup SavorEat Lands $3 Million in Funding

Israel-based SavorEat, a company which has developed a proprietary technology that simultaneously print and cooks plant-based meat substitutes, has landed a $3 million funding round. The funding round was led by investors Mor and Meitav Dash.

The funding round, which was first reported by Israel-based news publication Globes, is the second for SavorEats in the last two weeks. Prior to this investment, the company had raised $1.75 million from Millennium Food-Tech.

The investment comes as interest in 3D printed meat alternatives heats up, especially in Israel. Other startups competing in this nascent market include Redefine Meat (formerly Jet Eat) and Meatech, a company which prints cultured meat cells into steak.

SavorEat’s technology is unique in a couple of ways. The first differentiator is that is uses a plant-based cellulose as a binder. The cellulose is combined with other ingredients such as plant-based fats and protein to make the final product.

Another thing that sets SavorEat apart is that it prints fully cooked pieces of meat.

From my piece on SavorEat earlier this month:

The other big differentiator for SavorEat’s technology is that it prints and cooks simultaneously, which allows the company’s printers to make a fully cooked piece of 3D printed meat like you might see produced by a futuristic appliance like that in the TV show Upload.

The food comes out “ready to be eaten,” said Vizman. “We’re printing one layer, then we cook one layer, print one layer, cook one layer. So at the end, you get something that’s ready to be consumed.”

According to SavorEat CEO Racheli Vizman, the company has signed a partnership with one of the largest fast-food chains in Israel, BBB Group (Burgus Burger Bar), and they plan on testing the product out in the restaurant chain in the next twelve months. From there, the company hopes to use the recent funding round to commercialize and expand using the their recent funding.

Finistere: Food Tech Investment Reached $4.8B in the First Half of 2020

An unusually high volume of food tech investment news has kept us on our toes all summer, and we’re not the only ones to notice. Food tech VC firm Finistere Ventures said today that 2020 so far as been an “extraordinary” investment time for both food tech and agtech, with much of that investment happening smack dab in the middle of the pandemic. More importantly and according to the firm’s latest findings, much of the capital is actually a direct reaction to the pandemic. Finistere, whose investment portfolio includes Memphis Meats, CropX, and Good Eggs, released the findings today in collaboration with PitchBook Data, according to a press release sent to The Spoon.

For the first two quarters of 2020, total agtech investment reached $2.2 billion compared to the $2.7 billion raised for the entirety of 2019. While slightly lower, food tech investment reached $4.8 billion during the first two quarters of 2020 compared to $7 billion for all of 2019, and that number will continue to rise rapidly (see below). 

Large investments, what Finistere calls “mega rounds” of more than $100 million have continued and encompassed all of the top 10 food tech investments and 50 percent of the top agtech investments. 

Other notable points, as quoted directly from the report, include:

  • Investors are helping startups push their funding needs outside the “Covid zone” and build more evidence of their value as future growth investors will be looking for signals of scalability.
  • Rounds led by new investors have been a lesser part of the 2020 total, which is likely to continue while capital managers take stock of the market conditions.
  • While early-stage Agtech has seen a decrease in pre-money valuations, valuations for late-stage financings continued to increase in 2020 despite the current pandemic. Valuations will be under pressure looking forward and will likely require a year or more for the true impact of Covid to manifest in this metric.

Food tech, in particular, has a promising outlook right now, thanks in no small part to consumers’ collective behavioral shift to eating more at home. “It is our view that there will be lasting and persistent changes to consumer behavior in at-home consumption, and interesting to note this is the first year since 1994 that restaurant share of food consumption dropped versus in-home,” the report stated.

Other activity around the food tech sector supports this idea. Online grocery sales have experienced record highs since the start of the pandemic. Many companies, from plant-based meat producers to snack brands, have launched direct-to-consumer channels in response to this shift away from public spaces and into the consumer home. And with the state of the restaurant industry still very much in flux, these behaviors aren’t likely to change anytime soon.

Finistere noted that for food tech, retaining customers and growing margins will be important to future funding rounds.

Agtech will have a bit more of an uphill climb. The report states that agtech companies “are likely to face a turbulent outlook for 2021,” citing farming margins, labor costs, trade conflicts, and pressure to develop more sustainable farming methods as factors. The industry should expect much consolidation in the future.

Better Meat Co Raises $8.1 Million For Plant-Based Ingredient Enhancers

Plant-based ingredients startup Better Meat Co. announced today they have raised an $8.1 million seed round. The new funding round was led by Greenlight Capital and Green Circle Foodtech Ventures. Johnsonville, the maker of Johnsonville Sausages, also participated alongside alt-protein investment fund Level VC. This brings the total funding for Better Meat Co. to $9.7 million.

Better Meat Co. describes itself as a business-to-business ingredients company. They sell plant-based ingredients to food companies that then incorporate them into meat products. The plant-based ingredients typically account for anywhere between 25 to 50 percent of the ingredients in these blended products.

“We offer a range of ingredients to major meat companies,” Better Meat Co. CEO Paul Shapiro told The Spoon. “We enable them to use fewer animals and more plants.”

According to Shapiro, the ingredients aren’t just a way to replace meat with lower-cost fillers, but instead to improve the overall nutritional value and enhance the flavor.

“What we offer are meat enhancers,” said Shapiro. “We’re going to improve the yield. We’re going to improve the mouthfeel.”

As mentioned, the company also aims to improve the overall nutritional value of the products. Adding these ingredients can reduce the sodium or cholesterol compared to a 100 percent meat-based offering. The ingredients also round out a diet by adding more vegetables, something Better Meat customers like Perdue like to tout.

While plant-based ingredients enhancers for products like chicken nuggets may not be as sexy as, say, the Impossible Whopper or a futuristic vision of meat grown in bioreactors, Better Meat Co. and its products are a recognition that we aren’t going to be a post-animal food world anytime soon and we’d better figure out a way to transition.

CEO Shapiro put his company’s products into context by pointing to the electric vehicle market.

“What we offer is not necessarily a totally electric hybrid like the Tesla, but instead a technology that allows for the major meat makers to hybridize their products.”

In short, while Better Meat Co.’s technology is more Prius than Tesla, the company still serves an important role by acting as a bridge to help big CPGs transition over time to a more sustainable, plant-based future.

Impossible Foods Now at Trader Joe’s, Plans to Expand Retail Presence 50x in 2020

Trader Joe’s, the quirky and beloved supermarket chain, announced yesterday that it now carries Impossible Foods’ plant-based ground beef (h/t to Business Insider). But TJ’s is just one stop for Impossible’s aggressive expansion plans this year as the company said as part of yesterday’s news that it plans to expand its retail presence 50x this year alone.

The company has been aggressive with its retail growth throughout this year, and that appears to be accelerating. In April, Impossible was at 1,000 retail locations. In May that number bumped up to 2,700. In June that number reached 3,000, and as part of yesterday’s news Impossible said it was now available in 5,000 stores. (Trader Joe’s has 503 locations.)

Not bad for a product that was only available at select restaurants just last year.

This rapid retail rollout across the U.S. coincides with the COVID-19 pandemic that helped create a surge in consumption of plant-based products. At the same time, the pandemic has resurfaced ethical issues around the production of animal-based meat here in the U.S., especially as meat packing facilities became hot spots for coronavirus transmissions.

In addition to being more available at grocery stores, Impossible launched its own direct to consumer sales channel, allowing consumers to buy its burgers in bulk.

It’s been a busy year all around for plant-based meats. Beyond Meat created its own bulk packaging, bringing the price of its plant-based burgers down closer to traditional meat. Beyond also launched another plant-based chicken pilot with KFC in Southern California, and started selling plant-based sausage at retail. Impossible’s plant-based sausage is now featured in Burger King and Starbucks’ breakfast sandwiches and is available to all restaurants in the U.S.

With a little less than half a year remaining in 2020, I expect the news around plant-based won’t be slowing down anytime soon.

Food Tech News: Shelf Engine Raises $12M, Willie Nelson Does AgTech

There was much ado about food tech funding this week. Seriously. Between Cooks Ventures’ Series A, Zuul’s $9 million round, and all the figures in between, we barely had time to write about anything else. With that in mind, here are a few more bites of food tech news before another weekend of staying at home starts.

Shelf Engine raises $12 million.

Seattle-based Shelf Engine, whose AI tech manages grocery store inventory to cut down on food waste, announced this week it had raised $12 million. The round was led by GGV Capital and included participation from Initialized Capital, Foundation Capital, Correlation Ventures, 1984, Founders’ Co-op, and Liquid 2 Ventures.

Ikea sets launch date for plant-based meatballs.

This one’s for fans of DIY furniture who also happen to love plant-based meat. Ikea finally unveiled a plant-based version of its famous meatball made from yellow pea protein. Meatballs will be available on August 3 in the U.K. and September 28 in the U.S. in the frozen food section of its stores as well as in the cafeteria. That’s assuming, of course, that the pandemic hasn’t shut us all down again.

Image via Shock Ink/Pamela Springsteen.

Willie Nelson backs regenerative agriculture.

Last year it was CBD-infused coffee. This year, Willie Nelson is making his contribution to the food industry by backing regenerative agriculture. AFN reported this week that regenerative ag business TerraPuerzza has partnered with the country icon to bring regenerative land, water, and resource management techniques to Willie’s 500-acre Luck Ranch in Texas.

Domino’s launches a website for recycling pizza boxes. 

Domino’s and its main box supplier, WestRock, launched recycling.dominos.com this week to better educate consumers on how to recycle their pizza boxes. That includes clearing up some recycling myths (yes, you can recycle a box with grease on it) as well as helping folks understand what to do if their area does not accept recycling.