Australian Plant Proteins, which went into insolvency last year, has been acquired by investment firm My Co and will resume operations next month.
My Co, the investment vehicle of the Paule Family Office, has taken over Melbourne-based manufacturer Australian Plant Proteins (APP), 10 months after it went into voluntary administration.
The move is said to support local farmers, protect jobs, and reinforce Australia’s status as a plant-based leader, with APP co-founder Phil McFarlane continuing as CEO. Fellow founder Brendan McKeegan has exited the company, according to information on LinkedIn.
“APP is a natural fit into our investment portfolio and complementary to our Biocheese and Meliora plant-based businesses,” My Co CEO Vicky Pappas told Green Queen.
She added: “APP will be fully operating in May 2025, and we will take the opportunity to first assess all areas of the business before embarking on further investment for exponential growth.”
Why Australian Plant Proteins went insolvent
APP, which was founded in 2020, was the first firm to develop plant protein isolates in Australia. It entered insolvency in June, with industry experts blaming a lack of government support rather than a company failure.
At the time, Simon Eassom, CEO of alternative protein think tank Food Frontier, called it “a warning that building a long-term sustainable industry takes time, ongoing investment, and commitment from government”.
APP’s insolvency, he said, resigned Australian manufacturers to “relying on the importation of soybean concentrates and protein ingredients, often of variable quality and suitability” and put the country at risk of deepening its reliance on imports instead of becoming a leading exporter of innovative foods.
“We hope that APP finds a buyer before it’s too late but, really, the support needs to come from government,” Eassom said in July.
My Co, which focuses on agrifood and biotech startups at seed and Series A stages, has now swooped in to do just that. Pappas said APP’s insolvency was caused by “a variety of contributing factors exacerbated by tough economic conditions”.
“The fundamentals of the business are sound with an exceptional, high-quality product,” she told Green Queen. “My Co has a long track record of successfully working with businesses like APP with a hands-on approach.”
In a statement in the announcement, she added: “The potential of APP is immense. Its game-changing technology aligns with our vision of fostering innovation in the food sector and contributes to a sustainable future. We are excited about expanding APP’s capabilities and enhancing its presence in both domestic and international markets.”
New products and capacity expansion planned
Operating the largest plant protein fractionation facility in Australia, APP manufactures protein isolates from locally grown faba beans, yellow peas, lentils, mung beans and other pulses.
It uses a proprietary membrane extraction technology to create the ingredients, which boast more than 85% protein content. The isolates offer superior functional properties, including enhanced fortification, solubility, and texture, plus a neutral flavour, and can be used in numerous plant-based applications like dairy, bakery, nutrition, beverage, and meat alternatives.
MacFarlane suggested that APP’s unique extraction process “differentiates it from other plant protein manufacturers” globally. “Unlike conventional methods that often rely on harsh chemicals or enzymes, APP extracts protein from pulses using a clean, non-solvent method,” he said.
The process allows APP to manufacture plant protein isolates at scale and help food and beverage companies tailor their plant-based alternatives, meeting consumer demand and bridging the sensory gap with animal proteins. Its plant protein isolate powder even won the Best Ingredient honour at the 2024 Hive Awards.
For My Co, integrating APP into its existing portfolio will enhance the latter’s operational efficiencies and marketing strategies, allowing it to double down on developing new products for evolving consumer needs.
APP already has plans to kickstart several projects – including establishing a fibre and starch processing facility – which will increase its production capacity and diversify its product offerings.
“This is more than just an acquisition; it’s about creating a sustainable future for food production,” said Pappas. “By acquiring APP, we are shaping the future of plant-based innovation in Australia and beyond.”
A topsy-turvy plant-based sector down under
APP’s insolvency last year came amid several stories of alternative protein startups – both locally and overseas – ceasing operations, or coming close to it.
Last year, New South Wales-based ProForm Foods – the company behind the Meet range of plant-based analogues – wound down after entering voluntary administration, and vegan burger chain Flave shut its doors too. Meanwhile, New Zealand’s Sunfed Meats ceased operations after nearly a decade in operation.
The Aussie Plant Based Co also went into liquidation in October, before being swiftly acquired by Queensland’s Smart Foods eight days later.
All this came amid a backdrop of a 59% hike in wholesale demand for plant-based meat in foodservice in 2023, and a 1% drop in annual retail sales between 2020 and 2023. Research by Food Frontier shows meat analogues are yet to reach 65% of Australia’s population. And of those who have tried them, only 22% say they’d buy them again, signalling a gap in consumer liking, and an uphill battle for brands in the space.
However, with two in five Australians identifying either reducing or not consuming meat at all in 2024 (with 22% identifying as ‘meat reducers’), the opportunity is ripe for plant-based companies to attract this market. Can My Co help APP do so?
The post Aussie Investment Firm Rescues Leading Plant Protein Manufacturer to Protect Jobs & Farmers appeared first on Green Queen.
This post was originally published on Green Queen.