Close Ad

The Spoon

Daily news and analysis about the food tech revolution

Future Food

Report: Impossible Foods Planning to Go Public

Impossible Foods, best known for its plant-based meat analogues, is preparing for a public listing, according to sources that spoke for an exclusive report by Reuters. The public listing could value Impossible at more than $10 billion.

Those sources note that the company is exploring going public via either an initial public offering (IPO) “in the next 12 months” or through a merger with a special-purpose acquisition company (SPAC). 

SPACs, also called blank-check companies, are a route to going public that involves less regulatory scrutiny than a traditional IPO. Going public via SPAC is a current “hot trend” on Wall Street, and an option becoming increasingly popular in the food world. AppHarvest made its public debut in February via SPAC, and AeroFarms, which just announced its plans to do the same.

Reuters’ sources also warned that Impossible’s public debut is subject to market conditions, and the company may change course and instead decide to do another round of private fundraising. To date, the company has raised $1.4 billion in funding, including a $200 million fundraise from August of last year. 

Its chief rival, Beyond Meat, went public back in May 2019, becoming the first-ever plant-based meat maker to do so. Both companies are in high demand right now, as sales of plant-based proteins totaled $7 billion in 2020, with meat analogues being the leading category. 

News of a potential public debut for Impossible comes the same week the company released its first ever national TV ad campaign, which is in part aimed at converting traditional meat eaters into devotees of Impossible’s plant-based wares. 

The company has in the last 12 months opened a direct-to-consumer e-commerce store, increased its geographic reach to more than 20,000 locations, and slashed its prices, putting products a little more on par with traditional meat.

Solar Foods Receives €10M to Scale Production of its Protein Made Out of Air

Solar Foods, which literally makes protein out of air, announced today that it has received €10 million (~$11.98 million USD) in funding from the The Finnish Climate Fund. The subordinated load will go towards revving up commercial-scale production of the company’s product, Solein. This brings the total amount of funding raised by Solar Foods to €35 million (~$41.6 million USD).

Based in Finland, Solar Foods uses a combination of captured carbon dioxide, bacteria and electricity to create Solein, which can make multiple food items including alternative proteins. A big promise of Solein’s is its narrower impact on the planet than traditional animal agriculture or even plant-based protein. It doesn’t require land or water, and is not dependent on weather. According to today’s press announcement, Solar Foods said that Solein creates roughly one percent of the greenhouse gas emissions of meat protein and 20 percent of those from plant protein production.

The technology was borne out of research from VTT Technical Research Centre of Finland and LUT University of Finland. Solein is now in the commercialization stage, and the new funding will be used to build a pilot production facility. The new facility will include a food bar and is scheduled to start operations in early 2023.

The nothingness of air is really turning into something in the alternative protein space. In addition to Solar Foods, the aptly named Air Protein does much the same thing and recently raised $32 million. Deep Branch calls itself a carbon dioxide recycling company because it turns CO2 into protein for animal feed, and recently raised nearly $10 million. And Swedish researchers at RISE have developed technology to turn air into fat.

For more on this nascent science and protein sector, check out our The Spoon Plus Insider Guide to Air Protein.

Beyond Meat Opens Its First Manufacturing Facility Outside the U.S., in China

Beyond Meat announced today the opening of its new manufacturing facility in the Jiaxing Economic & Technological Development Zone near Shanghai, China. The plant is Beyond’s first facility outside of the U.S. and is expected to increase both the amount of product the company can manufacture in that region and the speed at which it can do so.

The new facility will produce Beyond’s beef, pork, and poultry products, including “Beyond Pork,” the company’s minced pork product made “specifically for the Chinese market.” The facility will also function as an R&D hub for the region that will develop new products.

Beyond first announced its intent to build two facilities in China towards the end of 2020. The company already sells its plant-based beef products in that region via a deal with Starbucks. For a limited time in 2020, Beyond products were also available via Yum Brands restaurants, including KFC, Taco Bell, and Pizza Hut. 

In the Chinese market, it has competition from a handful of local players that includes Green Monday-owned Omnipork as well as HERO, which recently raised $850,000. Beyond CEO Ethan Brown said in a statement today that the opening of the new manufacturing facility will allow the company to “effectively compete” in China.

The U.S. still leads in terms of demand for plant-based meat alternatives, but the Asia region is catching up. China, meanwhile, is the world’s largest consumer of meat, particularly when it comes to pork. At the same time, though, the meat-replacement category is growing in that country, with Euromonitor predicting it to be worth $11.9 billion by 2023. 

Beyond’s news comes the same week its chief rival, Impossible, launched its first-ever ad campaign to sway meat eaters towards plant-based products. Impossible has yet to to start selling its wares in China, however. At last check, the company was still waiting on regulatory approval for that market.

Eat Just’s Josh Tetrick on What It Will Take to Normalize the Concept of Cultured Meat

Will we ever reach a day when fast food restaurant serve nothing but plant-based or cultured meat? Many hope so, including Josh Tetrick, founder and CEO of Eat Just. But Tetrick’s ambitions for alternative protein stretch far beyond the QSR sector.

As of this writing, Eat Just is selling its cultured meat product at a restaurant in Singapore (where it got regulatory approval late last year). Stateside, the company has sold enough of its plant-based egg product to equal 100 million chicken eggs, and has been rapidly expanding throughout the restaurant industry.

As to wether we’ll ever see a day where the plant-based restarant is the norm, there are a lot of steps needed to get there. Tetrick and I chatted recently about these along with many other topics on the alt-protein front. Always a wealth of information when it comes to this subject, Tetrick explains what exactly it will take for cultured meat to reach parity with traditional meat, how experience matters when introducing it to consumers, and why he hops we reach a day when cultured meat becomes boring.

You can listen to the interview read the transcript of our conversation below. Note that the transcript has been lightly edited for clarity. 

Jenn Marston: You’ve had a few different announcements in the last few months around JUST getting into more restaurants. Do you ever see a point where we’re going to have restaurants, and I mean, big restaurants, McDonald’s, or, you know, Starbucks or something, only offering alternative proteins on their menus?

Josh Tetrick: I think that one, if we don’t get to that point — similarly if we don’t get to a point where every car dealership only sells an electric car — that our planet will not be in a good state 30 years, 50 years, 100 years from now. So before I tell you what I think it should happen, I’ll say I think it’s a necessity that it does happen, given the urgency that we have around oceans, rain forests or [the danger of] another zoonotic disease outbreak. 

I don’t think it will only be plant based. I see a world in which restaurants remove conventional meat from their menu. So they remove fried chicken, they remove hamburgers, they remove steaks or remove fish, they replace it with cultivated cultured meat. And some restaurants end up having plant based on the menu. That’s what the restaurant menu in the next 10, 20, 30 years will look like. I don’t think there’ll be a need for conventional meats. 

When you have actual meat cultivated, it doesn’t require slaughtering animals. So we’ve done a lot of really important research around this particular topic. [We did a lot of work] in Singapore, looking at restaurant operators and surveys and I’ll give you one finding from that: About 80 percent of restaurants said that they would put cultivated cultured meat on their menu. And about 70 percent of people said that if [cultured meat] meets the tastes and the cost demands, there would be no reason to have conventional meat on the menu at all. So I think that’s what you’ll see. And I think there will always be people that want plant. My girlfriend Shelley is a good example. I gave her some my chicken and she almost spit it out. She said, ‘I don’t want something that tastes like an animal.’ And I think there’ll be a lot of people like that. And that’s okay.

Jenn Marston: I definitely know some people who, if it tastes too much like the real thing, they don’t want anything to do with it. So that’s definitely a good point.

Josh Tetrick: I think it was a combination of [the product] literally being an animal, not a plant. It tastes very much like an animal. But it literally being an animal, combined with it tasting just like an animal was too much for her to take.

Jenn Marston: On the subject of cultured meat, there have been a ton of developments since we last spoke, including Eat Just serving customers in Singapore.

Josh Tetrick: You know, we’ve served almost 300 people, but 80 percent of the people said they feel good about eating it, about 70 percent of the people who paid for it say they’d be open to substituting [cultured meat] for not only conventional meat, but even plant based. So we’re going to be expanding to more restaurants and building a larger manufacturing facility in Singapore to make sure that we’re able to meet all the [demand].

Jenn Marston: Why did you choose Singapore? Was it just that Singapore was most realistic to get regulatory approval first? Or is there something about that specific market you were interested in? 

Josh Tetrick: There’s a few reasons. Their regulatory approach is often very evidence-based. The more science- and evidence-based you are, the less politics are involved. Second reason is that Singapore is a global melting pot. You have people from all over the world there. So when you’re wanting to learn how consumers think about this, why they like it, why they don’t like it, what is causing them to hesitate, you get lots of different cultures. Within those 300 people, we got people from all over the world, young, old everywhere in between. That’s another important reason. And then the third reason is, you know, more people consume meat in Asia than anywhere else in the world. So that was, that was another important reason why we chose Singapore.

Jenn Marston: Is it is the plan that get into more restaurants next? 

Josh Tetrick: It is.

Jenn Marston: It seems like there is a lot of hype happening right now around cultured meat. And it seems like a lot of folks are very confident that cultured meat is gonna just explode very, very quickly. What do you think of some of these comments about it’s going to reach price parity quickly, it’s going to scale up very quickly. 

Josh Tetrick: Well, there are a lot of factors involved. So I guess I’ll just start with the things that I think are certain, then I’ll go to things that are higher and lower probabilities. 

What is certain is that cultured meat will eventually get to the price and then below the price of conventional animal protein. I do feel certain about that. 

The next [issue] is when we’ll get there [to parity] — a year or five or 15 years. This is where there is not 100 percent probability. But I would say more likely than not, that in the next 10 years, this production process will get below the cost of chicken. Now, in order for that to happen, other things need to happen. And those other things include more countries allowing for the sale of [cultured meat]. If you can only sell in Singapore, your market is restricted to the million plus people on the island. You’re not going to be producing tens of billions of pounds, which is what is ultimately required to get to the kind of efficiencies necessary to get below the cost of chicken. 

And then the third thing has to do with where we are in the US. I can’t tell you whether we are going to get regulatory approval this year or not, or whether [regulators are] going to approve it ’22. I think it’s more likely than not that we’ll see clearance sometime in the next two years. I hope it’s this year — we’re going to be ready if it is. But it’s hard to tell. A lot of companies will go out of business trying to get there. [Making cultured meat] is incredibly capital intensive, it is not easy. It is not straightforward. It requires hundreds and millions of dollars, if not a billion-plus dollars in investment, ultimately, to get there. It’s not for the faint of heart. And much like electric car production, you’re not going to have tens of thousands of companies making electric cars. You might have tens of thousands of companies making different sub components of electric cars, you know, the engine, the battery, the software.  But we only get to have a handful of companies doing the whole thing. I think that is very analogous to the cultured meat industry. 

The final thing I’ll say is, it is one of the real bright spots for us of what’s happening in Singapore. It’s one thing to talk about where production costs are going if you’re only making stuff for your friends and family and boyfriend and girlfriend and your fancy investors. That was the case for us up until we got clearance, and it’s the case for every other company. It’s another thing when you need to scale up to meet the demands of hundreds and thousands, then 10,000, then a million people. You learn a lot about producing more when you actually can produce more. So there’s going to be a ton of learnings that happen. As that scale up process happens, some things might be surprising on the downside, and some might be surprising on on the positive side, but we’ll learn as we make that happen.

Jenn Marston: How challenging is that? Part of getting consumers on board with this is obviously not just price parity, but also parity around taste and texture and the actual product. So how difficult has has that been for you all?

Josh Tetrick: Certainly at some point, whether it’s 5, 10 years (I sure hope it’s not 30 years), cultured meat will be below the cost of traditional meat. The second thing that I am certain about is we’ll eventually get to the point where not a single person can tell the difference because there’s literally no difference at all. Today, in the work that we’ve done, about 70 percent of the people think it tastes as good or better than traditional meat. There’s still a lot of work we want to do on texture. We’re going to be rolling out a chicken breast, which is a more advanced structural product.

But even if we solve for taste and texture, there’s also consumer perception: the feelings, the ideas that make people want to buy the product. It’s a confusing process, making cultured meat. It’s an unnatural process. I’m not saying these things are right, I’m just saying this is what a consumer feels. And I think ultimately, you could get your costs right, you get the taste and texture just perfect. But you’re still left with the most important thing: Do the consumers want to buy your product. The process of lab-grown meat might be holding them back. So it’s really important that we address that stuff. Now. We built a brand around addressing that stuff head on. We know many consumers will think it’s unnatural. That’s okay, let’s deal with it. And we want to deal with it by explaining our process, contrasting it to the conventional meat-making process. Eventually, having a digital platform allows consumers to really interact with stuff a little bit more, so they can get familiar with it. We need to normalize this method of production, so it’s not so opaque to consumers. When it’s confusing, their brains will naturally jump. In the case of cultured meat, many brains will naturally jump to, ‘This just isn’t natural.’ And we have found quite a stark difference between consumers over the age of 20 and consumers under the age of 20.

Jenn Marston: Yeah, I get a lot of a lot of folks who just look at me like I’m crazy when I asked them if would you eat meat grown in a lab, but I think it’s, you know, what more do we do to sort of educate consumers? How do you start talking to everybody in a way that’s going to make it have the same appeal, as, say, Doritos?

Josh Tetrick: A big component is allowing people to experience it. So I’ll use a car analogy. Imagine I was in Birmingham [Alabama, where he grew up] and I was talking to some of my friends and I said, ‘Would you would you want to drive a pickup truck doesn’t have an internal combustion engine? Would you be down with buying that?’ I’m almost certain my friends would say, ‘Hell no.’ But then Tesla comes out with that pickup truck that I saw them demoing. If my friends could go to a Tesla store in Alabama, get into that truck, and take it on the back country roads, then there’s an experience of something and there’s a perception change.

The most important thing we think you can do to change perception is allow people to experience in a concrete way, not in a theoretical abstract way. We need to get out in front of more people, right, more restaurants and more retailers and allow people to have the ability to actually access their other meat analogues. 

The second thing is, I think you need to talk about this in a way that is not so technical that you lose people, but is concrete enough where you’re not hiding things from people. And that’s the hard balance. Because the more you unpack, the more you’re being open about it. But the more you unpack, sometimes people can just get lost in the science. It’s about finding the right balance of not getting so technical that people’s eyes just glaze over, but concrete and technical enough that people don’t walk away from that interaction thinking something has been hidden from them. That balance applies whether it’s a label interaction or commercial interaction or menu interaction, or a one to one interaction. One thing that we’ve actually found to be effective is to say, ‘Yes, it is true, the meat is made in a large stainless steel [container], that true statement.’ That statement can be both a little off-putting to people and a little liberating to people. But when you contrast that to how conventional meat is produced, people tend to feel a little bit better. So I think, experience number one, people just got to experience that. And then two, I think talking about in a way that is a little bit more relatable.

Jenn Marston: Something that I think there’s a huge need for more of translating the science into something that isn’t gonna insult folks intelligence or lied to them, but it is also going to, you know, the average person needs to be able to understand it.

Josh Tetrick: Especially if some of our folks are over the age of 20, if you describe the process of culturing meat, the vast majority will say it is strange. And I think the first step to effectively communicating is to acknowledge that is true. To most people, it sounds bizarre, it sounds strange. That’s okay. Let’s now let’s deal with it. Right?

Jenn Marston: Yeah, exactly.

Josh Tetrick: The more we effectively address it, the more we move [the industry] forward. For example, I understand why my mom would think it’s strange. In her mind, meat has been made her entire life (and the history of humanity) by slaughtering an animal and then cutting up their flesh. Cultured meat is different. Let’s just acknowledge that.

And what we’ve seen in other industries and with other products is that something that can be strange can also at some point in time be normalized, and can end up being pretty boring. And eventually, I want [cultured meat] to get to the point where people are sitting down at restaurants or go into grocery stores, and they don’t even have conversations about it anymore. They’re just like, yeah, I want some chicken. Sounds good. Do you have any chicken left in the freezer? Right? Yeah. There doesn’t need to be this philosophical engagement.

I think I think the truth is that whether it’s [about] not slaughtering an animal or an environmental reason, or a zoonotic disease reason, I guess all these things kind of are wound up in, “How does it make a person feel?” All of them — sometimes individually, sometimes in combination — I think, for most people, make them feel better about eating it. But I do think you have to talk about things like health, not using antibiotics, to some extent food safety. Often those things can be a bigger driver than sustainability or animal welfare. With that said, and this was a surprising result from the research that we did, the primary purchase driver, both for US consumers, and consumers in Singapore, was the fact that they could consume this meat without slaughtering an animal. Now, they might have correlated that with lots of other things like food safety and environment. So it might not have been looked at like it’s just like a purely independent variable. But I did find that to be interesting. But yeah, I mean, you have to talk about in a way that people can relate to. If I’m talking to my mom about this (my mom is not vegan or vegetarian), I would focus on you know, ‘Mom, you know, the fried chicken used to make me so it tastes like that. And it’s gonna have less antibiotics, that stuff you want and you’ll probably feel a little bit better by the day.’ That’s probably what I would say to my mom. That’s what I actually have said to my mom.

GFI: Plant-Based Retail Sales Reach $7B in the U.S.

Retail sales of plant-based foods in the U.S. reached $7 billion in 2020, according to new data released this week by the Good Food Institute and the Plant-Based Foods Association (PBFA). Sales grew 27 percent in total, which is nearly twice as fast as total U.S. food retail sales. The $7 billion figure includes plant-based meats, eggs, and dairy products.

Plant-based milk is still the largest category of the bunch, and grew at 20 percent over the last year to reach $2.5 billion in sales. Almond milk remains the top seller, though oat milk is catching up, according tot he report. 

Plant-based meat analogues nabbed second place in terms of retail sales, which grew to $1.4 billion in 2020. GFI called plant-based grounds — or plant-based versions of ground beef — the “breakout” product format. “Plant-based ground sales more than doubled in size over the course of 2020, in part due to the introduction and increased distribution of those products in retail.”

Findings for other plant-based categories in the report include:

  • Eggs, once a tiny category, grew 168 percent — a 706 percent increase over the past two years.
  • Ice cream grew 20 percent, to $435 million.
  • Yogurt grew 20 percent, to $343 million.
  • Butter and cheese grew 36 percent and 42 percent, respectively.

Obviously the reason for the increase in sales is that consumers are more interested than ever in eating these products, particularly as traditional meat comes under fire for both environmental and ethical reasons. GFI’s report noted a 3.4 percent jump in U.S. households purchasing plant-based foods in 2020, reaching 56.8 percent of consumers.

The new data comes on the heels of a March report from GFI that found $2.1 billion had been invested in plant-based foods in 2020, including the $700 million raised by Impossible, LIVEKINDLY’s $335 million, and Oatly’s $200 million in private equity financing.

As far as who is actually buying these products, GFI found, in this week’s report, that the demographic tends to be “from higher income brackets.” However, we can expect that to change, according to the Institute: “As plant-based food prices drop over time and begin to reach price parity with animal-based products, we can expect consumers from lower income brackets to increase their purchasing of plant-based products as well.” 

ReGrained Launches New Cookie Dough with Doughp and Partners with Future Food Funds in Japan

ReGrained, an ingredient company that upcycles spent brewery grain, and Doughp, an e-commerce site for gourmet cookie dough, partnered to create a new cookie dough flavor that incorporates Regrained SuperGrain flour. The new flavor launched April 1 on DoughP’s website.

The cookie dough collaboration is called “Beast Mode Brownie”. With the addition of ReGrained Supergrain +, the protein content is double the amount of Doughp’s regular doughs, and the fiber content is six times higher. Dan Kurzrock, the cofounder of ReGrained, said that the company envisions many collaborations like this in the future. “A lot of people perceive us as a consumer goods company because we’ve launched a few products and packaged goods, championing upcycled foods, but really we’re an ingredient company powered by food technology,” Kurzrock told me by phone this week.

Additionally, ReGrained announced its partnership with and investment from Future Foods Fund in Japan at the beginning of March. The investment was not disclosed, but it will be used to create collaborations with food companies in Japan to launch new products in this market.

ReGrained uses spent grain from craft breweries, with mixture of about 95% barley, with some wheat and rye (one six-pack of beer uses about one pound of grain, so there is plenty of spent grain to go around throughout the country). The company has a patent on the way it upcycles spent grain, and its final product is a flour called ReGrained SuperGrained+. The flour has the same protein as almond flour, is prebiotic, and contains three times more fiber than whole wheat flour.

Kurzrock is the officer on the board of the Upcycled Food Association, which includes around 150 companies that use upcycled food for food or beauty products. Within this association, a few other companies use spent grain from breweries to create new food products. Rise also makes high protein and high fiber flour, as well as baking mixes, granola, and brownies. The Upcycled Grain Project makes a variety of bars and crackers. Leashless Labs uses beer grains to make dog treats.

ReGrained’s current products include several different flavors of snack puffs, which can be purchased on its website for $3.99 a bag. The cookie dough collaboration will be available for at least the rest of this quarter, and a two-pack of 16oz containers costs $39.

Mapping a Path Forward for Farmers in an Alt-Protein Landscape

This is The Spoon’s weekly Future Food newsletter. Subscribe today to get it in your inbox.

Most working in the alt protein space are familiar with research showing that traditional animal agriculture is both bad for the planet and highly un-sustainable as the primary source of calories if we plan to feed 10 billion people on this planet by the year 2050.

Over the past decade, this realization — along with a growing consumer appetite for better tasting plant-forward food and huge leaps forward in food science and biotech — has resulted in massive interest on the part of investors in the alt-protein space.

In spite of the evidence, the entrenched incumbents in traditional agriculture have aggressively pushed back against the growing interest in alt-ag alternatives. For example, the Dairy Association and Cattlemen’s Associations have made significant efforts to counter the fairly substantial body of research that links animal agriculture to higher levels of greenhouse gases. They’ve also underwritten research to highlight consumer confusion about new meat alternatives, hired nutritionists to create counter-narratives about the health benefits of plant-based food, and fought against plant-based alternatives labeling their products as “meat” and “milk.”

This pushback is not a hard sell to the average small- and medium-sized farmer, who knows they will make less money if consumers eat less meat. Unless, of course, these farmers radically change the products they are selling.

Easier said than done. For most people, transitioning to a completely new career or starting a brand-new business is challenging, to say the least. For a farmer, transitioning away from animal agriculture is like doing both at the same time. Throw in other complicating factors, such as family legacies, property rights and whole lot more more considerations, and you see why most livestock farmers would rather just keep doing what they’re doing, which is to sell traditional meat.

The reality is, to get more livestock farmers to convert their legacy farms towards plant-based proteins or cellular agriculture, there’s a whole lot of work that needs to be done and resources to be committed, and even then many farmers will choose not to transition.

But that doesn’t mean we shouldn’t try, and some organizations are already endeavoring to help farmers make the switch.

On the plant-based side, Refarm’d and Transfarmation are programs that support farmers converting their existing livestock farms into plant-based products. Refarm’d provides resources to help dairy farmers start growing ingredients for plant-based milks such as almond or oat milk. Transfarmation helps farmers shift to growing high-value crops like hemp, and by helping them apply for grants to support the transition.

There aren’t currently any such programs for cell-ag, in part because the market for cell-cultivated meat is so nascent and also because cellular agriculture is a much bigger departure from what is traditionally considered farming.

What would a cell-ag farmer’s life look like? One idea, as outlined by Future Meat‘s Chief Science Officer Yaakov Nahmias, would be a hybrid approach. Existing livestock farmers would invest in bioreactors and other cultivated meat production and produce both animal meat and meat made in bioreactors.

From there, hybrid farmers would be able to compare the amount of time and resources it takes to create each product. If the prognosticators around cellular agriculture are right, cell-cultured meat will become way more efficient from a resource input-to-calorie output perspective, which should mean — beyond the up front capital and retraining costs — cell-cultured meat production should be much cheaper. Add in how much faster it is to create animal cells using cellular agriculture, and the choice may be clear: cell-cultured meat production could be a much more sustainable and competitive business in the long term than traditional farming.

It’s clear converting to plant-based or cellular agriculture future (or both) on the part of farmers will take lots of convincing and lots of resources. Lots of resources usually means government involvement, in the form of new programs, direct subsidies or tax incentives.

While the US government supports animal agriculture with billions in direct subsidies each year, there’s little to no financial support given towards building a more sustainable farmer future. That’s a shame since American meat and dairy farmer will face increasing competition from overseas producers of plant-forward, fermented and cell-cultured food products. Nation-states like Singapore and Israel, which have significantly less farmland than the US, are already betting on future food innovation as a way to become much more, if not entirely, self-sufficient for food, and it won’t be long before other countries (many of them customers of U.S. animal agriculture) take their cues from these early pioneers.

While some of the Green New Deal type legislation-makers did talk of lower-carbon footprint farming as one of the primary goals, much of the focus was on crop farms and not livestock farmers. This is partially due to the massive political influence the cattle and dairy farmer lobbies have in U.S. politics, but also because creating models for lower-carbon outputs for crops is a big enough lift in itself.

While it’s not clear what the Biden administration is thinking around cell-cultured meat production, the Biden campaign made clear ramping up the bio-manufacturing industry was one of their strategic priorities, and specifically made it part of their rural support plan outlined during the campaign.

While cultivated meat-based infrastructure investment might not be the first priority in the coming infrastructure or farm bills in the next couple years, that doesn’t mean Biden and congress can’t push for programs to begin underwrite these future transitions and to also look for creative solutions that could underpin the future of farming. Last year, the UK government announced a program aimed at investing in completely new technologies and business models around agriculture. This type of program is just one potential model for the US government as a way to begin laying the foundation for a way for livestock farmers to prepare for a post animal agriculture future.

Future Food News Round-Up

Apeel Unites Avocado Suppliers Through an Expanded Network Fighting Food Waste – Apeel Sciences announced today that more than 20 leading suppliers from the global avocado industry have joined its network in an effort to keep more food out of landfills.

MeliBio Raises a Sweet $850,000 Pre-Seed Round for Bee-Less Honey – MeliBio, a startup that makes real honey without the need for bees, announced today that it has raised an $850,000 pre-seed round of funding.

TurtleTree Scientific Partners With JSBiosciences to Develop Cell Culture Media at Commercial Scale – TurtleTree Scientific, the B2B arm of cellular ag company TurtleTree Labs, announced a new partnership with JSBiosciences to collaborate on the development of cell culture media.

Nemi Makes Sustainable Snacks From Drought-Tolerant Cactus – Chicago-based company called Nemi is using cactus as its star ingredient to make sustainable snack foods

The LIVEKINDLY Collective Closes $335M Funding Round

Plant-based food company LIVEKINDLY Collective announced this week it has closed a $335 million funding round led by global impact investing platform The Rise Fund. Existing investor Rabo Corporate Investments as well as S2G Ventures participated in the round, which brings LIVEKINDLY’s total funding to date to $535 million.

That’s a substantial amount of funds raised for a company that’s barely one year old. LIVEKINDLY was formed in March 2020 when Foods United bought vegan-focused media company LIVEKINDLY and rebranded under its current namesake. Currently, the company is comprised of a few different brands: Oumph!, The Fry Family Food Co., LikeMeat, and No Meat. All of these brands share a common goal of getting more plant-based products to the masses around the world. 

To that end, LIVEKINDLY says it will go towards new acquisitions, partnerships, and investments, as well as expanding geographically in the U.S. and China. 

LIVEKINDLY’s funding comes on the heels of a report from the Good Food Institute that found $3.1 billion was invested into the alternative protein sector in 2020 — three times more than the amount invested in 2019. Plant-based protein took the bulk of the money, with $2.1 billion invested into the space. 

Of course, much talk these days is on the promise of cultured meat, but it will be years before products reach consumers en masse, as companies are still focused on bringing costs down and getting regulatory approvals.

In the meantime, as the numbers above suggest, there is plenty of demand for plant-based protein, including meat analogues from LIVEKINDLY’s growing roster of brands. 

The company raised $135 million in October of 2020 to expand into the U.S. That sum is part of this $335 million funding round.

SuperBrewed Foods Uses Fermented Microbes to Create High-Protein Plant-Based Alternatives

The Good Food Institute called fermentation the “third pillar” for alternative proteins, and $435 million was invested in fermentation companies in the first seven months of 2020. Fermentation itself is not a new technology and has been used since B.C. times to produce beloved products like beer, cheese, sauerkraut, and yogurt. This process can be used to modify the flavor and texture of plant-based ingredients to make them behave more like animal-based ingredients. An emerging start-up in the fermentation and alternative protein space is SuperBrewed Food, which ferments microbes to create a vegan protein powder that can be used as a key ingredient in plant-based cheese spreads, milk, and yogurt.

Bryan Tracey, the CEO and Founder of SuperBrewed Foods, was focused on how a gorilla is an herbivore, but could somehow bulk up to have such a large body mass on diet consisting of only plants. The answer was found in its gut-lining; a certain microbe in herbaceous animals allows them to thrive on a plant-based diet. “We went searching into the microbiomes of many different animals and found what we like to call the protein specialists, which are helping you digest the food that you eat to deliver you the nutrition that you thrive off of,” Tracey told me by phone last week.

The original microbe discovered by SuperBrewed was extracted from the gut lining of an undisclosed herbivore animal, and then multiplied using plant-based sugars to feed the growth. SuperBrewed Food uses a low-cost anaerobic environment to grow its bacteria, which is the same process that beer breweries use. Once the bacteria is multiplied, it is washed, separated, and dried to create SuperBrewed Food’s protein powder.

The company is focused on appealing to both flexitarians and vegans, and one appeal to its protein is the B12 content. Vegans typically have to take B12 supplements, but a single teaspoon serving of the protein powder contains 25% of the daily recommended serving of B12.

SuperBrewed Food sent me some prototypes to try that showcased the applications of its microbe-based protein. I sampled three plant-based cheese spreads made by Superbrewed that used its protein, and I was pleasantly surprised by the fluffy texture and creaminess of the cheese spreads. Other vegan cheese spreads I’ve sampled are dense or gummy, but the SuperBrewed spreads had a texture similar to whipped cheese spreads I ate in my pre-vegan days.

In 2020, companies using fermentation to produce alternative protein products raised a total of $837 million in capital, so there are certainly more players emerging in this space. Perfect Day produces flora-based alternative dairy products by fermenting yeast. Nature’s Fynd applies fermentation to a microbe that was originally extracted from the geothermal pools of Yellowstone National Park, and recently unveiled its first product line that incorporates its proprietary Fy Protein. Change Foods uses a process called precision fermentation to create alternative dairy products and is currently developing mozzarella and cheddar.

To date, SuperBrewed has raised $45 million in capital from private investors. The company is about to open its first round of funding to outside investors and will use this to launch its first products in the market in early 2022. The first products brought to market will be plant-based cheese spreads, cream cheese, and hard cheese.

‘Premium’ Cultured Meat Company Orbillion Bio Joins Y Combinator’s Winter 2021 Class

Startup accelerator Y Combinator has made its first investment in a cultured meat company with the addition of Orbillion Bio to the Winter 2021 cohort. Prior to joining YC, Orbillion participated in both the Brinc accelerator and Big Idea Ventures NYC program.

Orbillion’s focus is on cultivating higher-end meat products such as elk, lamb, and Wagyu beef. To develop these products, the company runs multiple cell lines through bioreactors, screening the cells and isolating those best suited to commercial food scale production. Machine-learning software helps pick out the best tissue and media combinations with which to make meat analogues.

The company told TechCrunch this week that its first product will be a Wagyu beef product that will be more of a minced product than a whole cut of steak. Orbillion plans to get that product into the market in 2023, though in what capacity (e.g., a restaurant) the company did not say, nor did it elaborate on which market.

The goal is to eventually provide the kinds of craft meats one would purchase not from the grocery store but from a high-end butcher shop. 

The focus on high-end meats may allow Orbillion’s products to reach price parity with their traditional counterparts sooner than other cultured meat companies. The company also says it wants to bring the cost of its products down even further, so that they actually become more affordable than traditional high-end meats. That idea is in keeping with recent comments entrepreneur/investor Jim Mellon shared with The Spoon, that meat made via cellular agriculture will eventually become more affordable than traditionally farmed meat.

Nor is Orbillion the only company veering away from the usual chicken, pork, and beef staples and developing premium cultured meats. Vow, in Australia, develops cultured meat products from a library of cells that includes kangaroo, alpaca, and lamb, among others. The company raised $6 million at the beginning of 2021.

For its part, Orbillion aims to get a pilot plant up and running by the end of 2022, which the company says will take roughly $3.5 million.

Alt-Protein Could Be a $290B Market by 2035. Parity Matters for That Growth

This is the web version of our Future Food newsletter. Sign up for the best news and analysis of the alternative protein market.

The market for alternative protein, including meat, eggs, dairy, and seafood products, could reach at least $290 billion by 2035, according to a new report from Boston Consulting Group (BCG) and Blue Horizon Corporation (BHC). The report, entitled “Food for Thought: The Protein Transformation,” was released this week and finds that the market for alternative proteins — including plant-, microorganism-, and cell-based analogues — will grow from its current 13 million metric tons per year to 97 million metric tons by 2035.

In a best case scenario, the report also said alt-protein will make up 11 percent of the overall protein market by that time. However, to hit that point, and to realistically compete with the multi-trillion-dollar traditional meat market, alt-protein sectors have more work to do when it comes to reaching parity, and not just around price, either.

Parity, both in terms of price and in the taste and texture of the products, is essential for alt-protein gaining wider acceptance among mainstream consumers, and “Food for Thought” sees the sector achieving it in three different stages: 

  • Plant-based alternatives, including meat, dairy, and egg substitutes, will achieve parity in 2023 or possibly sooner.
  • Alt-proteins made from microorganisms, such as fungi, yeast, and algae, will reach parity by 2025.
  • Cultured proteins are slated to reach parity by 2032.

Price parity comes up a lot in conversation these days. The plant-based protein sector, for example, is well on its way to achieving it, as evidenced by Impossible’s recent price slashing of its products and its chief rival Beyond Meat doing something similar last year.

For cultured meat, too, many are saying products will reach price parity with traditional meat sooner rather than later. Longtime investor and entrepreneur Jim Mellon, for example, recently told The Spoon he believes cultured meat will achieve price parity with traditional meat within five years. And we have seen a few announcements from cultured meat makers in the recent past about bringing production costs down. At the beginning of this month, Hong Kong-based Avant Meats said it had achieved a 90 percent reduction in the cost of producing cultured functional proteins. Earlier this year, Future Meat’s CEO Rom Kshuk told me his company has decreased production costs “by 1,000 times over the last three years,” with a quarter-pound serving of its cultured chicken breast now costing $7.50 to produce.

Lower production costs can lead to lower prices for consumers, but it’s important to reiterate that in the context of BCG and BHC’s new report, parity encompasses more than price. Speaking of the report, in it BCG managing director and partner Benjamin Morach referenced taste and texture in addition to price when discussing parity. “Alternative proteins must taste and feel as good as the conventional foods they replace and cost either the same or less,” he said.

Hence, cultured meat not reaching full parity until 2032, according to the report’s predictions. While this is definitely longer than five years, it’s actually shorter than the “north of 15 years” figure Eat Just CEO Josh Tetrick offered up last year when talking about the time frame for cultured meat being available everywhere and for a low cost.

Expect more, not fewer, predictions around parity as investment in alt-protein, and especially cultured protein, continues and more companies bring products out of the lab and into the consumer realm.

As to why we need all this alternative protein, the BCG/BHC report highlights some important factors, including its role around more environmentally responsible production and consumption. According to information provided to The Spoon by BCG/BHC, a $290 billion alt-protein market will free up 240,000 square kilometers of land, decrease the number of chickens in factory farms by 50 billion, reduce water use by 38 billion tons, and drop CO2 emissions by 1 billion tons. Producing more alternative protein is also in alignment with multiple of the United Nation’s Sustainable Development Goals.

The BCG/BHC report comes on the heels of recent numbers from The Good Food Institute, which found that $3.1 billion was invested in the entire alternative protein sector in 2020. That’s triple the amount invested in 2019, and an encouraging sign for a sector whose role in the global food system is no longer a nice-to-have but a must-have in order to feed 10 billion people while attaining net-zero emissions by 2050.

In Other Alt Protein News . . .

Netherlands-based cultured meat startup Meatable raised $47 million in Series A funding this week. It will use its new funds to advance small scale production at the Biotech Campus Delft and diversify its product lineup.

Eat Just closed a $200 million funding round and will use the new funds to build out its cultured meat products as well as accelerate research and development while expanding internationally.  

Alt-protein investment firm Big Idea Ventures is taking applications for Cohort Four of its startup accelerator program. Companies developing either alternative proteins or supporting technologies and ingredients are encouraged to apply.

Eat Just Goes Further Into Foodservice With a Major Canada Expansion

Eat Just, maker of both plant-based eggs and cultured meat, announced a major expansion today that brings its popular JUST Egg product into foodservice formats across Canada. According to a press release sent to The Spoon, that includes distribution at restaurants, hotels, universities, and government and corporate cafeterias.

Foodservice businesses in Canada can now order the JUST Egg — a frozen folded “egg” made from mung bean — through their distributors and sell the product on their menus. The move into foodservice follows Eat Just’s retail debut in Canada, which happened earlier this month. The launch also includes a partnership with Copper Branch, one of the largest plant-based restaurant chains in the world.

Today’s news is also the latest in a string of moves Eat Just has made in the last few months specifically around restaurant distribution. Since January, the San Francisco-based company launched the JUST Egg product at Peet’s and Starbucks in the U.S., and struck a deal with Discos in China to outright replace traditional egg offerings with Eat Just’s plant-based items. 

These partnerships are part of a larger trend happening in the restaurant biz right now as more brands expand the number of fully plant-based meals they offer in response to an uptick in demand from consumers. The ubiquitous breakfast sandwich — sausage, egg, and cheese — is a good example. Previously, only one component (usually the sausage) of that offering was plant-based. Now, restaurants like Starbucks and Peet’s are vegan-izing the whole sandwich, which means other QSRs and fast-casual chains will follow soon. It’s a similar pattern to the original rise of plant-based protein in QSRs that happened a couple of years ago.

However, Eat Just is also developing cultured meat products through its GOOD Meat line, and so clearly has bigger ambitions for the restaurant industry than simply selling its plant-based egg products. At the end of 2020, the company became the first in the world to be granted regulatory approval to sell cultured meat. Actual sale of GOOD chicken bites followed shortly after, at a restaurant in Singapore.

Restaurants will be a major part of cultured meat’s expansion from lab prototype to mainstream staple — a point Eat Just’s CEO Josh Tetrick confirmed to me at a talk last year. So while this rapid expansion into restaurants around the world is good for the company’s plant-based wares, it’s vital for the expansion of its GOOD line. 

That expansion won’t happen immediately, of course. Like any other company making cultured meat, Eat Just will have to gain regulatory approval for every single market it plans to enter with its GOOD products, and it is unclear how long that process will take. However, once said regulatory approval is granted, existing partnerships with major foodservice businesses could give the company a big head start when it comes to cultured meat.