Picture this: It’s late 2023, or perhaps 2024. Renowned Austin pitmaster and entrepreneur Aaron Franklin finishes up tending to his smokers after a long night of preparing to feed the onslaught of barbeque fans. Those queued up along Branch Street in East Austin are in for a surprise; that day, instead of the usual prime brisket rubbed with Aaron’s secret coffee-based rub, the star of the day is meat that comes from a place other than a ranch and slaughterhouse. Welcome to the world of cultivated meat.
In such a scenario, UPSIDE Foods is likely to be at the forefront of cultivated meat choices for restaurants and later consumers. Armed with an additional $400 Million in Series C financing, the Berkeley, Calif.-based company is among the leaders in the cultivated meat, poultry, and seafood industry. With these new funds, UPSIDE (formerly Memphis Meats), reaches the milestone of a $1 billion valuation. The funds will be used to expand its production footprint, additional R&D for the next generation of products, consumer education, and enhance its supply chain.
Yes, it is a gamble to fund companies in the cultivated meat space given the lack of governmental approval in the form of the FDA and USDA. Amy Chen, UPSIDE’s COO, admits she has no crystal ball, regarding when cultivated meat will get the green light in the U.S., but is confident the market demand will encourage governments-not just in the U.S.—to provide thoughtful oversight without becoming a roadblock.
“We have had years of extensive dialogue and collaboration with the regulators,” Chen told The Spoon in a recent interview. “We are fully confident that globally there is a market for it and there are eager governments that will pursue it.”
The Series C round is co-led by Temasek, a global investment company headquartered in Singapore, and the Abu Dhabi Growth Fund (ADG), a new investor. Other new investors include Baillie Gifford, Givaudan, John Doerr, SALT fund, and Synthesis Capital. They are joined by existing investors Bill Gates, Cargill, Cercano Management, CPT Capital, Dentsu Ventures, Singapore-based global investor EDBI, Kimbal and Christiana Musk, Norwest Venture Partners, SoftBank Vision Fund 2, SOSV’s Indie Bio, and Tyson Foods.
Chen is especially proud of the large cross-section of investors that represent varied interests from venture firms to companies entrenched in the agricultural space that produce conventional meat and poultry. It is that wide range of support, she believes, that will help in consumer education as well as a long-term presence in the new food chain.
That said, there’s a lot of work that goes into convincing consumers to bite into a new type of food that is, to say the least, unconventional. Chen suggests that there is a group of early adopters in place ready to sample something new that offers a premium taste while providing the start of a solution to creating a more sustainable global food supply.
“When I think about the adoption of any new technology,” UPSIDE’s COO commented, “There are always the cutting-edge early adopters. Folks who have two characteristics – one is they love food and are open to the next thing in food with an openness to innovation and new things. The other trait is being aware and an interested in addressing some of the challenges of conventional meats.”
The bottom line for Chen is the fact that her company’s cultivated meat has the taste of the real thing. “One of the things I am super passionate about, coming from the food world, is the taste of the Product,” she said. “Ultimately, if it doesn’t taste good when the consumer puts it into their mouth, we have lost the journey.”
UPSIDE is not alone in this quest to bring cultivated meat to the masses. There’s Brazil’s JBS, Israel’s SuperMeat, GOOD Meat, and Mosa Meats, just to name a few. There are also other companies offering technology to aid in the process that facilitates the cultivation process. According to the Good Food Institute, 21 new companies in the cultivated meat space launched in 2021, a 32% increase from the previous year.
Approval from the FDA comes in the form of a “no questions” letter from the FDA, followed by the USDA’s investment in plant inspection and labeling guidelines. Beyond those hurdles, there are other questions: will cultivated meat be considered Kosher/Halal (given there is no ritual slaughter)? And how will this new product be merchandised in stores? Does it belong in the current meat section alongside 80/20 ground round? Lastly, how will vegans react? No animal is killed, so how will those avoiding all things steak, hamburgers, et al react?
Only time will tell.
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