Australian plant-based meat firm v2food is going global, having acquired leading US vegan chicken maker Daring Foods and partnered with Japanese food giant Ajinomoto.
v2food, the leading manufacturer of plant-based meat in Australia, is setting its sights on the international market with two key deals.
The Sydney-based firm has snapped up US vegan chicken startup Daring Foods for an undisclosed sum, and signed a strategic partnership with Japan’s Ajinomoto to develop next-gen food solutions for Asia and Africa.
Daring, which holds a 45% market share in the US unbreaded chicken category, will continue to operate under its own brand and serve as a platform for v2food to launch its own products across the country.
“For several years, v2food has been the number one plant-based meat company in Australia, and through the acquisition of Daring, we are excited to be able to introduce our world-class product range into the US market,” said v2food CEO Tim York.
The collaboration with Ajinomoto, meanwhile, will leverage the MSG maker’s “century of food science expertise” to expand v2food’s protein transition efforts. Alongside Daring’s brand identity, the three entities will create a “powerful platform for innovation”, v2food noted in a press release.
v2food looks to build on Daring’s US retail strength
Founded by Ross Mackay and Elliot Kesses in 2018, Daring is one of the most well-known alternative meat brands in the US. It capitalised on the category’s investment boom at the turn of the decade, raising over $120M in a 13-month period from 2020-21.
It has a line of vegan chicken pieces and nuggets (made from soy protein), as well as frozen entrées (both 100% plant-based or vegetarian) featuring its signature meat alternative. Daring products are available in over 15,000 stores across the US, reportedly generating $30M in annual revenue.
“Daring has built an incredible, consumer-loved brand with strong reach across the US, and combining that with our food technology creates immediate opportunities to accelerate our mission to be one of the global leaders in plant-based protein,” said York.
The acquisition will combine Daring’s strong retail penetration and consumer loyalty with v2food’s established manufacturing networks and proprietary food technology.
“With v2food’s technology platform and Ajinomoto expertise supporting us, we’re in the best position yet to deliver on our consumer promise at both pace and scale. In my view, this is how the space should have been built from the start: thoughtfully, profitably, and as healthy as possible,” said Jeffrey Gendelman, who took over from Mackay as Daring CEO last year.
He added that the companies had a cultural alignment: “Daring was built on a commitment to clean-label plant protein that never sacrifices taste or experience. Together, we see an opportunity to shape the future of our space in a way none of us could have achieved alone.”
v2food, Ajinomoto and Daring will create clean-label frozen meals
The company says the Ajinomoto deal allows v2food to rapidly scale up its plant-based innovations to meet the global demand for sustainable proteins. It has strategic expansions earmarked for emerging markets like Africa and Asia, which will be home to a majority of the world’s population growth in the next 25 years, and where Ajinomoto already has commercial operations.
The partnership is targeting flexitarians with chicken, a popular protein, by making plant-based eating accessible and appealing. Through Ajinomoto’s Green Business Development Department, the collaboration backs the companies’ sustainability goals and aims to unlock new revenue streams in the meat-free sector.
Shigeo Nakamura, president and CEO of Ajinomoto, noted that the deal focuses on “innovation, sustainability, and co-creation in technology and business development”.
Now that Daring is part of v2food’s operations, the three entities will together speed up the development of clean-label plant protein products, including a range of frozen meals with short ingredient lists and a focus on taste, nutrition and affordability.
v2food has already been working on clean-label solutions, having developed methylcellulose-free formulations and natural colour-changing technology with algae. And last year, two studies found that v2food’s plant-based mince can have the same protein quality and digestibility as conventional ground beef, but is more filling and better for gut health.
The firm, which has raised around $137M to date, has been busy expanding its ready meal portfolio through M&A deals. In early 2024, it announced the acquisition of local ready meal makers Soulara and Macros, forming a new entity called Flexitarian Meal Solutions, which it said would sell between 50,000 and 100,000 meals per week.
Plant-based meat industry to ‘rationalise’ over the next five years
The announcement comes amid a difficult period for the plant-based sector. In the US, retail sales of meat alternatives fell by 7% in 2024. Chicken is the second-most popular product type in the vegan category, but its sales also declined by 8%.
It comes amid an animal protein boom in the US, with meat sales reaching record highs and only 22% of consumers looking to cut back on it (a five-year low). That has hurt plant-based companies, who have been forced to rethink their strategies, consolidate, or in some cases, cease operations.
Beyond, for example, dropped the ‘Meat’ from its name to highlight traditional plant proteins, ahead of a new fava bean mince that doesn’t aim to mimic an animal product. It comes on the back of a 19% drop in year-on-year sales in Q2. Impossible Foods, another major player, has suggested that it may foray into the blended meat category to attract a wider set of consumers.
And in May, legacy plant-based business Atlantic Natural Foods, the parent company of Tuno and Loma Linda, filed for bankruptcy (it is now in talks for a potential sale).
Consolidation has ramped up in the sector. In the US, Wicked Kitchen, Simulate, and Blackbird Foods have all been acquired by Ahimsa Companies in the last year or so. And in Australia, Aussie Plant Based Co was taken over by Smart Foods after entering liquidation (making a comeback this year), while investment firm MyCo rescued Australian Plant Proteins from insolvency.
“Our strategic move into the US market, especially with a strong brand like Daring and the backing of a global powerhouse like Ajinomoto, is a logical next phase of growth as the market consolidates,” said Jack Cowin, founder of Hungry Jack’s (the franchisee of Burger King in Australia) and an inaugural investor in v2food.
“Over the next five years, we expect to see a rationalisation of the industry with various best-in-class plant-based meat companies (such as v2food and Daring) coming together to gain scale and provide technical solutions that meet or exceed consumer requirements for great-tasting, affordable and nutritious food that also happens to be better for the planet.”
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