Dutch startup Vegan Finest Foods, which makes plant-based seafood, meat and sauces, has declared bankruptcy, citing softening demand and post-Covid difficulties.
Vegan Finest Foods, the company behind brands like Vegan Zeastar and Beastie Plants, has become the latest casualty in the plant-based meat industry.
The Dutch startup has been declared bankrupt by a court six years after it first burst onto the scene, with its owners and insolvency firm working to find solutions that can keep its brands on the market.
“We are investigating the cause of the bankruptcy. According to the directors, this is due to several factors, including a decline in market interest in alternative plant-based products and the aftermath of the Covid-19 pandemic,” said the bankruptcy trustee of Fyrm Advocaten, according to AD.
Vegan Finest Foods fell victim to post-pandemic struggles
Vegan Finest Foods was founded in 2019 in partnership with Dutch restaurant chain Vegan Junkfood Bar. It rose to popularity after a video of one of its initial products went viral, and the brand quickly found its way into supermarkets and eateries both in the Netherlands and overseas.
Its products have been sold in the UK, Spain, Germany, the US, Canada and Australia. It’s best known for its flagship Vegan Zeastar brand, which sells an extensive range of seafood alternatives. These span tuna flakes, calamari, breaded cod, shrimp, king crab, tuna and salmon sashimi, crab cakes, and sushi rolls.
On the other hand, the Beastie Plants line is focused on plant-based analogues of land animals. Think bacon, chicken wings, burgers, shawarma, and bitterbal.
Vegan Finest Foods also sells a five-strong line of egg- and dairy-free sauces under the Vegan Junkstar brand, such as sushi mayo, remoulade, and truffle, garlic, and Cheddar cheese sauces.
Early signs of trouble for the startup came during the Covid-19 pandemic, which brought about its first significant financial setback. Stores were buying less product, which meant it had an overload of inventory languishing in the factory.
These issues were compounded by the slowdown in sales of plant-based meat and seafood. Though they make up the largest share of vegan food sold in the Netherlands, retail revenues fell by 7% in 2024. Things were even worse in North America, where sales of vegan meat alternatives slimmed by 9.5%.
Alternative protein faces a sea of headwinds
When asked by AD to comment on the bankruptcy, co-founder Rosella D’Angeli said: “It’s still too painful to talk about.”
The trustee of the company is evaluating potential options for a restart of the business, with a sale remaining a realistic possibility. “Anyone interested in the business operations and inventory can contact me,” said D’Angeli.
Building and sustaining a food tech startup in the current landscape is far from easy, but alternative seafood is an especially unforgiving category. Seafood analogues make up just 1% of both the plant-based meat market and the overall seafood industry. Despite consumers viewing fish as a healthier, more sustainable alternative to other meats, plant-based versions can still be lacking in protein and omega-3s.
For Robin Simsa, founder of Austria’s Revo Foods, consumers have no inherent desire to switch to fish-free seafood or think they “really need an alternative”. “The plant-based industry had a dogma that if you replicate meat 100%, consumers will come, and I don’t think this is true anymore,” he told Green Queen in April, shortly before his mycoprotein startup diversified from seafood analogues to standalone proteins.
Over the last year, several alternative seafood startups have reached the end of the road. In France, plant-based seafood startup Olala! ceased operations in March, and Waginengen-based cultivated fish fat player Upstream Foods shut down last month. Meanwhile, in the US, vegan sushi chain Planta filed for bankruptcy this summer.
Closures have become increasingly common in the alternative protein sector. In the last couple of weeks, a host of producers have made similar announcements. Scottish oat milk liqueur maker Beastly Brews has gone into insolvency, English cell culture tech firm CellRev has also called it quits, and legacy plant-based meat brand Yves Veggie Cuisine has been discontinued by owner Hain Celestial.
The post Vegan Finest Foods: Dutch Plant-Based Meat Brand Goes Bankrupt, Eyes Rescue Deal appeared first on Green Queen.
This post was originally published on Green Queen.