Agrifood tech startups in Asia-Pacific saw an investment of $6.5B in 2022, a 58% fall from the year before – but agtech funding for farmers and primary novel food production increased by 24% year-on-year, according to a new report by AgFunder.
A new report by AgFunder – in collaboration with the Bill & Melinda Gates Foundation, venture capital fund Omnivore, and AgriFutures Australia – has revealed that downstream food tech funding in APAC has been hit by the global VC fallout from 2022. However, the financing of startups supporting farmers and primary production (upstream) has increased.
‘Upstream’ generally refers to agricultural biotech, farm management and robotics systems, as well as novel farming tech, while ‘downstream’ covers technologies removed from farms and primary production – i.e., food delivery, restaurant, meal kit startups, etc. The latter usually attracts much higher amounts of cash injections in the region, though that is no longer the case.
Meanwhile, companies working with midstream technologies – which connect farmers and food producers to retailers, agro-processors and other clients – raised $620M million in 2022, with India’s Waycool and China’s Mojia Biotech receiving big checks.
As for this year’s trends, the report found that total agrifood tech financing in the first half of 2023 ($2.6B) was down by nearly 50% from the same period last year, but the number of deals remains similar.
Overall funding decline
AgFunder’s analysis showed that agrifood tech startups received $6.5B in funding in 2022 – a 58% decline from the $15.2B they raised in 2021, which was a record-breaking year. A report published by AgFunder and Temasek earlier this year highlighted that the global agrifood tech sector saw record-breaking raises of $51.7B that year thanks to “cheap money” and “increasingly outlandish tech valuations”.
In terms of upstream startups, year-on-year funding grew by 24% from 2021-22, marking the first time in years that upstream funding ($3.2B) overtook downstream investment ($2.7B). This is a win for the over 450 million smallholder farmers who are responsible for 80% of APAC’s food production.
Courtesy: AgFunder
Within the downstream sector, e-groceries continue to be the largest category, attracting $1.6B in funding. Indian startup Blinkit – an app-based instant grocery delivery service – received an injection of $150M, before being acquired by restaurant aggregator and food delivery giant Zomato.
The decline in downstream deals mirrors global trends analysis by Pitchbook last month, which found that in Q2 this year, food tech VC funding dropped by 75.1% year-on-year, while the number of deals (1,207) was down by 39.3% annually. But while quarterly funding also dropped by 13.9%, the deal count grew to 268 in Q2.
Pitchbook suggested that this could indicate a “return of investment activity after a pause due to caution surrounding the closure of Silicon Valley Bank at the end of Q1”. However, the declining deal sizes “may reflect a new, more careful paradigm”.
According to the AgFunder-Temasek report, the global decline between 2021 and 2022 could be short-lived as many of the world’s macro challenges – including inflation, food insecurity and labour shortages – are driving interest in agri-food tech investments. “With more discipline from founders (and investors too!), the industry can capitalise on the growing interest in using technology to transform our food and agriculture system to be better for people and our planet,” read the report. “[2023] could be a vintage year to invest in agrifoodtech.”
Upstream on the up
Courtesy: AgFunder
Within APAC, upstream agtech companies attracted 1.6% more investment in the first half of 2023 compared to the same period the year before as well, reaching $1.7B.
In 2022, agricultural biotech startups received the largest share of upstream financing, commanding $813M of the total – that’s nearly half of the overall investment in this category globally. “While a couple of very large deals contributed to these totals, there was also greater deal activity in this segment, which includes on-farm inputs for crop and animal agriculture, confirming investors’ growing interest in this space,” AgFunder says. China’s Zhongxin Breeding – which provides breeding services for pigs – secured the year’s largest deal with its $327M seed round.
Meanwhile, Innovative Food – the segment that includes alternative protein – “bucked the global decline in funding to the segment”, with year-on-year investment increasing to $527M, albeit with a smaller deal count. This aligns with industry think tank the Good Food Institute APAC’s recent report that revealed that sector funding in the region grew by 43% from $293M to $562M – though the two largest funding rounds took place in Q1 2021.
Startups working with farm management software, sensing and IoT ($334m), farm robotics ($252m) and novel farming systems ($254m) – which include indoor farming, aquaculture and insect farming – brought in more investment across fewer deals as well.
Country-wide figures
Courtesy: AgFunder
Across APAC, India ($2.3B) surpassed China ($1.3B) as the country with the highest cash injection in this sector last year, largely due to the loss of downstream mega-deals that propelled China’s agrifood tech industry in 2021. These nations were followed by Indonesia ($716M) and South Korea ($461M).
But this looks to be short-lived, with China overtaking India to grab the top spot with $861M in investment in the first half of 2023. Indian startups have received $712M, followed by Hong Kong ($400M) and Australia ($146M).
Overall, Southeast Asian startups commanded $1.7B in funding in 2022, while Australian companies saw total investment reach $316M – a rate that was maintained in the first half of 2023 with $146M in financing. Meanwhile, agrifood tech startups in Japan brought in $212M in 2022.
Finally, while debt, early and growth-stage deals numbers have increased steadily since 2018, late-stage funding declined from 2021.
“Few readers will be surprised that funding for Asia-Pacific’s food and agriculture startups has fallen significantly over the past year and a half, much like the rest of the world,” said AgFunder Managing Editor & Head of Media & Research Louisa Burwood-Taylor. But she added: “Seeing the rise of categories like Ag Biotech, which haven’t typically been a strength across the region, as well as growing early-stage deal activity, is promising.”
South Korea becomes the second nation in the space of two weeks to announce a national plan dedicated to boosting local plant-based food production and promoting alt-protein consumption.
South Korea’s Ministry of Agriculture, Food and Rural Affairs unveiled its plan to foster the development of the country’s plant-based industry, with a comprehensive strategy set to be launched in December.
The national plan has a broad scope and covers various initiatives, including setting up a dedicated research centre for alt-protein and expanding the export potential of these products. It also lays out steps to use more locally produced ingredients in the production of plant-based alternatives to meat and dairy.
The Korea Institute of Rural Economics forecasts that South Korea’s vegan substitute market will reach ₩280B ($207.4M) by 2026, as these products become increasingly popular amongst Koreans in their 20s and 30s, according to Korea Bizwire.
South Korea’s expanding vegan industry
Courtesy: Unlimeat
The announcement comes a year after the country’s Ministry of Food and Drug Safety included official guidance for alt-protein in its National Plan 2022, which included a focus on the safety, manufacturing processes and regulatory approval of cultivated meat.
The Good Food Institute, which called the nation a “global hotbed of alternative protein innovation” in its latest State of the Industry report, pinpointed the government’s selection of Intake, a startup making plant-based pork belly, for technology commercialisation support as a sign of administrative support for alt-protein South Korea.
And according to the Korean Vegetarian Union, in 2020, there were around half a million strict vegans in the country – a threefold increase from 10 years ago. Likewise, 1.5 million Koreans followed vegetarian or plant-forward diets, while about 20% of the population (around 10 million) were flexitarians.
Companies innovating in its plant-based sector include Unlimeat – which makes meat and seafood analogues and has partnered with US vegan egg giant Just Eat to develop plant-based kimbaps. There are also vegan cheese producers Armored Fresh and Yangyoo, meat analogue maker Lotteria, and CJ CheilJedang, the maker of Bibigo dumplings. And last week, food giant Nongshim (which is behind the Shin Ramyun noodle brand) committed ₩10B ($7.4M) in venture funds aimed at incubating future food tech startups.x
Plant-powered policies across the planet
Courtesy: OmniPork
South Korea’s new strategy makes it the second country to introduce a national action plan to boost plant-based food production, following a similar announcement by Denmark two weeks ago. The Danish government detailed its goal to transition to a plant-based food system as part of its overall climate agricultural plan to cut food emissions.
It will involve training chefs in both public and private kitchens on the preparation of vegan meals, as well as a higher focus on plant-based diets in schools and the education system. The plan further outlines initiatives to increase the exports of locally produced vegan food, and invest more in R&D for this sector.
Last month, the European Parliament’s Agriculture Committee proposed implementing a strategy to increase the production of plant proteins in the EU, emphasising that these would increase the “circularity in the food and feed value chains” and benefit the climate, while it voted in favour of the Plant Protein Strategy last week.
However, the bloc has been the subject of multiple investigations – one revealed that some MEPs have deep ties with livestock lobby groups that are attempting to halt green legislation, while another found that intensive pressure from the meat lobby resulted in the EU abandoning its proposed ban on caged farming.
Other European countries that have earmarked plant-forward plans include Germany’s National Nutrition Strategy, the Netherlands’ six-year master plan to increase plant protein production and consumption, and Switzerland’s climate strategy to make its food system more sustainable.
Elsewhere, Canada recently changed its Food Guide to encourage greater consumption of plant-based over animal-derived foods, Taiwan is promoting plant-forward, low-carbon diets as part of its 2050 net-zero plan, and the UAE – which hosts COP28 next month – is promoting plant-based eating in the country as part of its Year of Sustainability.
The below conversation is the transcript of the first episode of the podcast miniseries Green Queen in Conversation: Cultivated Meat Pioneers featuring Josh Tetrick, founder and CEO of Eat Just and GOOD Meat, interviewed by show host Sonalie Figueiras. This conversation has been edited for clarity and length.
In the first episode of the Green Queen in Conversation podcast miniseries, Cultivated Meat Pioneers, I talk to Josh Tetrick, founder and CEO of Eat Just and GOOD Meat. I don’t know if you can have a conversation about cultivated meat without talking to Josh. This is someone who set himself a goal to be the first cultivated meat company in the world to gain commercial approval and who achieved it in a very short amount of time. I think that really changed the narrative and changed the game for the entire industry; it really brought cultivated meat to mainstream attention.
I’ve known Josh for a long time now. And he’s a force to be reckoned with, he’s extremely clear on his vision, and he’s unwavering in his execution. So, I’m really excited to share our conversation. We cover a lot of ground, including how it felt to make history, why he went for cultivated meat when he was already doing really well with plant-based eggs, and whether the industry has progressed enough. I’m sure you’re all going to love it. It’s hard not to be wowed by his dedication to the mission of creating a food system that is sustainable, nutritious, ethical, and slaughter-free.
Sonalie Figueiras: Hey, Josh, how are you? Thanks for joining me today.
Josh Tetrick: Hey, good to be with you.
Sonalie Figueiras: It’s been a really long time since we first met. I was thinking about it, I think it’s at least five or six years now.
Josh Tetrick: We met before the world commercialized cultivated meat before cultivated meat was ever sold.
Sonalie Figueiras: Absolutely, we met back in Hong Kong, and we were really meeting about Eat Just and all your work and plant-based eggs. So, I wanted to dive in on that front. Why did you decide to go into cultivated meat when you had Eat Just already, and you already had great traction? It’s a great product, I have it in my freezer at all times, and it seems like a big enough problem to solve. Why go for the cultivated meat challenge?
Josh Tetrick: “Why eggs?” – that’s a big enough problem to solve – about 2 trillion eggs were laid last year, and most of them were laid in a way that is not very good for our health, nor for the planet’s health, nor for the bird who’s laying the eggs’ health; but we thought we could do something else too. So, we wanted to have a “what’s next” after the egg and decided that making real meat without slaughter was a good “what’s next”, and we’d learned a lot about how to think about commercializing a food technology product. We’ve learned a lot about how consumers think about eating these different approaches to making everyday foods, and we thought those lessons about scaling up and consumer insights could put us in a place where we could make cultivated meat happen.
Sonalie Figueiras: Sure. Now, I want to dig a little deeper – when was the first time you came across cultivated meat technology?When did that moment happen where you went, “I think we can pursue this?”
Josh Tetrick: Well, probably the first time I came across it was 20 years ago. I think I was reading a paper about how NASA was exploring the technology for long-term space travel, and it was about six years ago that we decided to pursue it as the next product in the company; but it really just came from this understanding that people seem to like meat, they liked the taste of it, they liked the texture of it, they liked the smell of it, they liked the feeling of it. Is there a way to make that [meat] the same texture, the same taste, the same composition, but in a way that’s a lot better? Then we spent about eight months to a year talking to folks around the world about whether the technology was viable, about what needed to be done if we decided to pursue it, and then we decided to go after it and make it the thing that we focus on.
Courtesy: Eat Just
Sonalie Figueiras: How different is it to scale a plant-based egg versus pioneering a piece of cultivated chicken meat?
Josh Tetrick: The things that are similar are that you need food scientists, food engineers, product developers, and regulatory professionals, and people who are really smart with consumer insights, branding, awareness, and communications. That’s similar. The idea of making it is completely different. With a plant-based egg, you’re starting with a mung bean, then you’re separating protein from the mung bean, and you’re making the egg. With this, you’re starting with a cell. You’re identifying feed for the cell, think amino acids, vitamins and minerals, and salts and sugars, and then you’re scaling it up in a stainless-steel vessel. So, the kinds of talent that you need are pretty similar, but the whole process of making it is pretty different.
Sonalie Figueiras: So, the way you’ve explained it right there sounds really intuitive and makes sense, but when you first approached your board of investors, did they get it? Were they like, “Okay, yes, you were doing plant-based eggs, and now you’re going to do cultivated chicken, and these are different ways to solve essentially, the same broken food system problems?”
Josh Tetrick: I think some people did, some people didn’t. I think you can look at one hand and say, “If you want to do chicken or beef, why not just do plant-based chicken or beef? Why do cultivated meat? Our response is that we’re not a plant-based company. We’re a company that’s attempting to develop technology to displace conventional animal agriculture, and if that means that we’re going to separate protein from a mung bean, we’ll do it. If that means we’re going to cultivate meat, we’ll do it. If that means we’re about precision fermentation, we’ll do it. So, we’re not locked on a specific technology path, we’re more so locked on a specific effective path, and sometimes, I think plant-based can be a better approach, and sometimes I think cultivating can be a better approach. So that’s what we tell people.
Sonalie Figueiras: So again, that makes total sense intuitively; but what about consumers? Marketing is usually about distilling one idea, one product, one concept. Do you feel like there’s confusion, and especially as you get up to the point where you may eventually have your chicken in a store, or in more countries? Is it confusing to a consumer?
Josh Tetrick: Well, today, we don’t need to worry about it, because we just sell our cultivated meat, under our brand GOOD Meat in Singapore in a single butcher shop today. So, the only people that are buying it are people who live in Singapore, who are going to Huber’s Butchery. We’re still the only company in the world that has ever received regulatory approval to actually go on and sell it. Now, when we expand much wider – let’s say when GOOD Meat is in 40,000 points of distribution, when it is in thousands of Walmarts, Whole Foods, Shoprites, Publix’s, and restaurants all across the country, then I think you have a higher probability of confusion, but that’s why we decided to develop the GOOD Meat brand, and not call it “Just Meat”. So, it’s called GOOD Meat – it’s about cultivating meat, just like Just Egg is specific to what we’re doing on the eggs side. So, that’s just one way of differentiating the plant-based side from the meat-based side. However, it’ll be a good bit of time, I mean, you’re talking years out, until we actually have the manufacturing be able to get it across that many points of distribution. So, we’ve got some time to sort out how people think about it and whether they’re confused or not.
Cultivated meat comes to its first butcher shop in Singapore | Courtesy Eat Just
Sonalie Figueiras: It sounds like you have given this a lot of thought when you’re describing all the points of distribution. Do you have specific goalposts that you want to hit?
Josh Tetrick: It starts with what we want in the long-term, and what we want in the long-term is for cultivated meat to be the majority of meat that is produced on the planet. That’s the long-term [plan], and that’s not going to happen in 10 years. That’s a much longer lifetime, potentially a project over many lifetimes. Closer in, we want to continue selling products in Singapore at Huber’s Butchery, and we want to expand to more restaurants. As the year continues, and we already received FDA approval in the US, now it’s about USDA approval. Once we get that we want to launch with Jose Andres at one of his restaurants in DC [Editor’s Note: this already happened in July 2023, a few weeks after this episode was recorded]. And then as we build more infrastructure, meaning larger and larger vessels before the end of the decade, we want to make tens of millions of pounds of cultivated me at a cost that’s below conventional meat.
Sonalie Figueiras: So, tell me, for people who are not in the food industry. What percentage is tens of millions of pounds of cultivated meat compared to how much chicken is being consumed in the United States, for example?
Josh Tetrick: Much, much less than 1%? I would look at the trajectory of cultivated meat as being somewhat similar to electric cars. So, you can look at electric car production today, and depending on how you look at it, you can draw different conclusions. So, on the one hand, only 1% of the cars on the street right now are electric. That’s it, only 1%. With all the funding around electric cars, all the consumers and all your friends who might be driving around, globally, today, only 1% are electric cars.
However, double-click on that, and then you say – well, what about in certain areas like Norway and Sweden? So, over 60% of the cars on the road over there are electric. Then what about new cars that are manufactured? I think that’s roughly about 20% of new cars that are manufactured electric. Then, you look at announcements of big companies like Ford, GM, etc., and they say they’re moving entirely away from conventional gasoline-produced cars by 2032-2035. So, the seeds of change are being planted, and I think you’ll see the same thing with cultivated meat. So, even though by the end of the decade, we’re talking tens of millions of pounds, and even though that is a lot less than 1%, that’s how stuff starts, right? That’s how you build a foundation to ultimately cultivated meat being the only kind of meat that’s produced.
Sonalie Figueiras: Does it ever feel too daunting? When you think in terms of multiple lifetimes, for example? Do you ever think it’s just so hard, and will we ever get there?
Josh Tetrick: Well, it is very daunting. It is very hard. It is very challenging. It is very uncertain, and it is very long-term. If you don’t accept those things, you should not be in the cultivated meat business, that is for sure. Those things are very true.
However, what I think is also true is that the alternative is less palatable: The alternative where meat production continues to grow, and more and more people are eating meat. Now, I’m plant-based myself, except for the fact that I eat cultivated meat (I had a piece of cultivated chicken this afternoon), but we live in a world where I think the majority of people are eating meat. As much as I wish that they would choose beans instead of meat, which is so much healthier, and I wish that everyone would right now, and we wouldn’t even be needed, that’s a hard world to imagine.
However, yes, this is a very long-term, very uncertain project. Sometimes, when folks are asking a hard question where they’re criticizing it, they might say this is very challenging, very long-term, and very uncertain. So, what do you say to them? I say, “That’s right, I agree,” and they say “Therefore, what? We and others shouldn’t do it?” Then our response is, “Let’s give it a try. Let’s see what we’ve got. Let’s see what we can do.”
Sonalie Figueiras: Absolutely! You’re human, and it just sometimes might feel like this is really hard, but it sounds like you accept it as a part of the rules of the game, which I think is probably the way to see it.
Josh Tetrick: I wish you could build the infrastructure faster. I wish that instead of tens of millions of pounds before the end of the decade, it was billions of pounds before the end of the decade. I wish instead of costing billions to build the infrastructure, it was millions to build the infrastructure. I do wish all those things, but you know, that’s not the reality of it. So, we’ve got to deal with it and realize that just because something takes many decades, all those things have to start somewhere. And the sooner we get started, the sooner they’ll get done.
Chef José Andrés cooks GOOD Meat’s chicken | Courtesy: GOOD Meat
Sonalie Figueiras: What can make it go faster? Is it is it more money? Is it the government putting money behind this? If you had more billions, could you build the infrastructure faster?
Josh Tetrick: Yeah, a lot of things can make go faster. So, certainly, more capital invested in the industry, so if you had instead of hundreds of millions, you had hundreds of billions, you would go faster. You could build infrastructure faster, you could design and engineer the vessels. You could hire more people, you could accelerate research and development, for sure more capital would make it go faster, and that additional capital could come from private investors or certainly come from the government. So, I think governments getting behind it could also make it go faster: The US government, China, governments in the Middle East, those governments deciding that cultivated meat is more than just about mitigating climate change, it’s about food security, that could help it go faster. So yeah, certainly it doesn’t have to be, you know, many lifetimes.
Sonalie Figueiras: Okay, so more money and more attention and more governmental support would accelerate this, 100%.
Josh Tetrick: No question.
Sonalie Figueiras: This is not just a technology-specific problem to solve, it’s more of a resources problem as well.
Josh Tetrick: Yeah, I think the technology is here for simpler products. So, for our chicken that people eat at Huber’s Butchery: it’s good-tasting chicken, and people like it. Could it be better? Sure. Could it be on a bone? Sure. Could we have, you know, delicious Kobe steak instead of the chicken? Might that be better? Sure, but the chicken is good. So, we know how to manufacture meat and convert it into a finished product that people will like. So, for the simpler products, it’s here now, but for more complicated stuff – bluefin tuna, and more complicated textures, the technology is not here yet, but you know, roughly half the meat that is sold is simple stuff: ground beef, sausages, chicken nuggets, and chicken strips, you know, we can do all that now.
Sonalie Figueiras: You’ve mentioned Huber’s Butchery a few times and we’re talking about, you know, many lifetimes of progress to go, but you did do this one incredible thing: you made history in December 2020, just a couple of years after you announced that you were working on GOOD Meat, you got the world’s first cultivated meat regulatory approval! People in Singapore could go and buy chicken at that point, it was in restaurants, and even at hawker stalls. Now, it’s at the butchery. How did that happen? When did you decide that you were going to go for that, and did you consciously decide you wanted to be the first to get that regulatory approval and get that commercialization?
Josh Tetrick: Yeah, definitely, we definitely consciously wanted to be the first, and we thought about places that would be the most likely to approve it, and Singapore was at the top of the list, just knowing that Singapore is a very forward-thinking country who cares a lot about food security; they have an initiative called “30-by-30”, where they aim to get 30% of their food produced in the country by the end of the decade. So, knowing all these things, we felt that Singapore was a good first place to apply to. So, we applied sometime in 2018, and then we waited and answered questions from their regulatory body about, “where the cell came from?”; What do you feed the cell? How do you manufacture it? How do you ensure the safety? What is the microbiological profile? How is it different than conventional chicken? “How do you know it’s safe?”, and 90 other questions like that, and then we got the approval in November 2020. We went on to actually serve it at a restaurant in a restaurant called 1880, and that was the first time that cultivated meat had ever been sold in the world. We definitely wanted to be the first. We thought it would send out a message to the food industry, and to consumers around the world that this idea of making meat without slaughter is not science fiction, but it is on plates right now, even at that very small scale.
Sonalie Figueiras: So, you went in there, chose Singapore, and thought, that’s the country?
Josh Tetrick: We did. Yeah, we didn’t think the US was the place.
Sonalie Figueiras: Right, that was my follow-up. I mean, you’re American, you know, you’re from the US. So why not the US as the first country?
Josh Tetrick: It just didn’t seem like the USDA or the FDA at the time were really looking at this. In that way, it felt like Singapore was in a place where they were more than ready to address it. We ended up also applying to the FDA, but it just felt like Singapore was ahead of the curve, and we wanted to get to the market sooner.
Sonalie Figueiras: What do you think makes the difference between governments that are ahead of the curve, and others that are not so much? For example, seeing what’s going on in Italy where they’re thinking about passing a ban, or with the EU, where they are a little bit more conservative, even though the first cultivated meatball was actually created in the Netherlands, in Europe. How do you look at governments’ attitudes, and why are some governments just pro-cultivated meat and want to support the industry, and others are thinking of passing bans?
Josh Tetrick: Yeah. Well, I still think that we’re very, very early in the industry. So, it definitely is to be determined how a lot of these governments decide to look at it. I think that typically, when you have governments that are pro-innovative, and there’s a food security issue, they’re going to want to be the first to jump, and Singapore was the first to jump at this, right? They’re very pro-innovative, developing new technologies in the country, and they’ve got a food security issue. So, that’s the combination that’s going to get you cultivated meat regulated sooner.
The US has now been ahead of the curve on it too, the FDA has approved two companies, including ours, and the USDA is actively engaged in this [Editor’s Note: GOOD Meat received USDA regulatory approval a few weeks after this conversation took place]. So, I think sometimes people look at the US and think it’s behind the curve, but at least our experience with regulators, they’ve been ahead of the curve on this. I think it’s a mindset of people who are in government about how they think about innovation, how they think about tradition versus developing new things, and how open they are to new technologies.
Sometimes, you know, being conservative about new things is a good thing. There are a lot of food products that are not sold in Europe today that I think are rightfully not sold in Europe today, and that’s a good thing. However, I think you have to have a balance of really understanding when to lean into innovation and when to be a bit more cautious, but I think when we look at the regulatory landscape, even if we were approved by every country in the world today, we’re going to be producing exactly the same amount of cultivated meat this year. It’s not as if twenty more approvals mean millions of more pounds, we got approval in America, or at least the FDA and waiting on the USDA, and Singapore, and we have got our hands full with just those two markets, but I definitely want more countries to open up to it, and I think they will.
Sonalie Figueiras: What do you think people are getting wrong about the science of cultivated meat? Let’s talk about consumer perception because the media has been a little messy around this, and as you say, it’s human to question you and to be cautious. However, there’s also been, I would say, an unhealthy degree of misinformation to some extent. If you were talking to a sceptic, what are people getting wrong?
Josh Tetrick: Yeah, really good question. I think there are a number of things that people are getting wrong. So, in no particular order: Sometimes people think cultivated meat is plant-based meat, and I’m a big fan of plant-based meat, but cultivated meat is different from plant-based meat, and plant-based meat is different from conventional meat. Those are three different approaches to making to making meat. So, that’s one [thing people get wrong]. Sometimes I’ll do a whole presentation in front of a group of people, and they’ll ask what plants are we using to make this. So, it’s important to understand that cultivated meat is from a cell, not a bean. If you have a chicken allergy and you have our chicken at Huber’s, you’re going to have an allergic outbreak, it’s still real meat.
The second thing that people get wrong about it is that they’ll say it is this moniker of lab-grown. Now, when we make meat today, both in Singapore and when will produce it for the US market, we do lab research, but we don’t make our products in the lab. Just like Danone does research for yogurt in the lab, they don’t make yogurt in a lab. So, I think in the really early days of cultivated meat, and we’re still in the early days, this whole idea of, you know, taking it out of a petri dish and serving it on a plate was right. That’s not how it is today. Now, these manufacturing facilities I’m talking about are very small, but nonetheless, they are manufacturing facilities – the ones in the US that will be regulated by the USDA, those are not a lab, right? So, that’s the second thing I think people get wrong.
The third thing is, one might say it’s too hard to scale as well, and when I hear that criticism my answer is it’s really hard to scale it up, but “really hard” is different than “impossible” to scale up. So, it requires a ton of investment, time, energy and technical knowledge to scale it up, but it is still very much within the realm of what is possible to do, it is just a big technical and epic capital challenge.
The fourth thing that people get wrong is they think fetal bovine serum or FBS is necessary to do it. It’s not. It was in the early days, and now we actually received approval in Singapore to commercialize our meat without it. We’ve removed it in our R&D facility over the last couple of years. It was a technical challenge, it’s not anymore. So, people should stop thinking that it’s this big barrier because it’s not.
Then maybe, finally, skeptics would say, well, consumers don’t want it. Unfortunately, the only consumer real-life consumer examples we have are in Singapore. I wish we had more, but that’s all we’ve got, and what we have found in Singapore is people say they would eat this instead of regular meat: When they buy it, they consume it, and they hang out with their friends as they’re eating it. They say, “You know what, I would choose this instead.”
So, those are some basic criticisms and how we would address them. Some of the things about cultivating meat, to an everyday person, would sound kind of strange. I think it’s not. We shouldn’t expect that someone hears about the process of making cultivated meat and immediately say, “Oh, that sounds amazing! I want to eat that!”
It’s not every day that you can make meat from a cell instead of slaughtering a live animal. So, I think you also have to be a bit patient with people and know that this is a brand-new thing, and you’ve got to explain it. You’ve got to be really open about it, and not everyone is going to like it right away because not everyone likes anything right away, but you’ve still got to go after it.
Courtesy: Eat Just
Sonalie Figueiras: Yeah, absolutely. I mean, it’s so interesting, because you did launch in Singapore, and the early data shows that Asian consumers tend to be more open to cultivated meat. There was also this really interesting study that was done in Singapore earlier this year about how people who have higher well-being tend to be more open to consuming cultivated meats. Do you think about why there seems to be a bigger openness in Asia? Or do you just think we don’t have enough information yet to really understand?
Josh Tetrick: I think we probably don’t have enough information yet. I’ve become really skeptical of data that’s not real-world consumers eating something because you can ask questions in a lot of different ways to try to get at things. Generally, I feel like you’re going to get a much better sense of how a consumer thinks about it when it’s widely available, when they’ve eaten it and when they have really experienced it. That’s why the data from consumers in Singapore who have actually bought GOOD Meat and eaten it is our most valuable data. I trust that data more than I trust, you know, surveying a million people, whether it’s good for us or bad for us, doesn’t matter, I just trust it more, because it is more like a direct experience. However, I think generally the younger you are, the more open you are to it. I think the more educated you are, the more open you are to it. I think the more urban you are, the more open you are to it. I think those things are correlated with an openness to it.
I used to be frustrated because I would have liked everyone to want it, you know, now, but again, no product is like that. No product that’s launched, do you suddenly have everyone on the planet wanting it. You always have to build from a base. You know, Coca-Cola was launched in Atlanta at these high-end social clubs and farms, right?
Sonalie Figueiras: Given everything that we’re talking about how consumers are thinking about it, and, you know, human psychology and consumer behavior, how should the industry be thinking about consumer perception, and is the industry doing enough? I struggle with this because as you’ve said many times, it’s super early, there’s only one country, one company (yours) who’s even making cultivated meat that anyone can taste. Should there be work being done now to open people’s minds, or is it too early? How do you think about that? How do you think the industry at large should be thinking about that?
Josh Tetrick: I struggle with that a little bit. I think I lean towards yes. I just think you have to do it in a way that you don’t delude yourself, because just asking thousands of people to fill out a survey without food in front of them can be a recipe for deluding yourself about, you know: “Here’s a description of what cultivated meat is, and here’s how it smells, and here’s that. So, do you like it? So, it is hard, but I think some data is probably better than not having any.
There are lots of important questions that are asked like – what don’t you like about it? We ask that question a lot, and often what we hear is: “Well, what I don’t like about it is I don’t understand it. What I don’t understand is, what do you mean you make meat from a cell? What do you mean you feed the cell? What the hell is a bioreactor? What does that look like? What’s in the bioreactor? What do you mean you harvest the meat? All these terms, I deal with every day, right, but to an everyday person, they’ve never even thought about that before.
So, I think asking people what it is about it that gives them a concern, what gives them the pause, what do they think it should be called. I think there’s been a lot of valuable work that’s been done in this area, and what we and others have found is that using the word “cell”, using words like “cell-based”, or “cell-cultured”, or certainly “lab-grown”, is not effective with consumers. Using words like “cultivating meat”, or “cultured” is typically number two and ends up being a lot better, and I think that’s valuable data, and we use “cultivated” in Singapore very much because of that data.
I think all this data is also really important, because governments look at it, and investors look at it. When a government is deciding whether they should fund this, they’re going to be looking at some data. So, I think having that data out there, again, even if it’s incomplete, even if it’s imperfect, I still think it’s important, but when the product actually gets out there in the real world, to many more people, that’ll be the most important kind of data.
Sonalie Figueiras: What about marketing? Should you be doing marketing campaigns? Should the industry get together and do a massive campaign about cultivated meat, and you know, what it means and what it is?
Josh Tetrick: I don’t think so yet. I mean, we do marketing in Singapore. So, we do marketing around our Huber’s launch, we do marketing whether it’s bringing influencers around, billboards, and other all sorts of different activations we do, and we’ll do marketing when we launched in the US with Chef Jose Andres. We’ll make a big deal out of it, we’ll have lots of media attention, maybe a billboard or two around it.
I don’t think we need a national kind of marketing campaign quite yet. I think most consumers will look at that, and be like, “It’s just too early.” Now, maybe in three, six, or nine months, once it’s in the market in the US more people are talking about it, then maybe. Maybe, but honestly, I don’t have that good a feel on how early it should start. I think the part of me that thinks it should start earlier is you don’t want opinions to get sort of solidified in people’s heads, and that can happen, you know.
Courtesy: Eat Just
Sonalie Figueiras: That’s my concern as a journalist, and seeing what’s going on in the media and the headlines, I’m wondering: “Should we be covering this narrative, or having a narrative of our own”? But again, as you say, food is real, food is tangible. So, I hear you on that, and I think you’re right.
Josh Tetrick: Yeah, it’s a hard one. I think there’s a case to be made for both because opinions can get calcified, but on the other hand, if I saw a cultivated meat commercial and I was sitting in my home I would think: “This is not even going to be available to me for another two years, like what are we talking about?
Sonalie Figueiras: But I mean, to some extent, it would be interesting to see how early there were EV (electric vehicle) commercials.
Josh Tetrick: True.
Sonalie Figueiras: Although, while I appreciate the EV parallel, food is not cars, unfortunately. There is a difference for people. I hear you on the marketing, but there does seem to be this kind of politicization of food choices that is becoming more pervasive, especially in the US, and it’s spilling over to Europe, and food really is this kind of identity topic for people, you know, it’s your grandmother’s baked cake, or it’s your mom’s lasagna. How do we navigate that, because “new” always seems to be on the other side of the fence when it comes to the ultimate food, that is, you know, pure, and from the land, natural, and home-grown?
Josh Tetrick: Yeah, that’s a hard one, you’re right. Food is different than a car. Food is much more about identity, and stories that we have about ourselves and where we’re from.
One of my food stories is about how my mom used to make me chicken wings when I got off the bus in middle school, and even though I know the horrible conditions of animals, viscerally I understand it, but when I think about the chicken wings, I think about how it’s a feel-good experience, because my mom was caring for me as I got off the bus, right? That’s, I guess, bizarre in a way, because I know what’s behind it, but on the other hand, I can’t take my mom and her love from me in that moment out of my story. So, the identity piece is a really significant one, and I think the ways that you can deal with it are trying to figure out how to serve and talk about cultivated meat in a way that speaks to identity.
One example of how we did that in Singapore is we launched this local hawker stall with a street vendor named Mr. Loo, and Mr. Loo has been making chicken curry rice for 60 years. Mr. Loo is not high-end, he’s an everyday person, but he makes super tasty food, and we wanted to launch with Mr. Loo, because we wanted to make a point about cultivated meat and the identity around it, that it could work with tradition. It could work with something that your father and his father had, and I think looking for opportunities to tap into the tradition piece plus forward-thinking cuisine, like what we are doing with Chef Jose Andres when we launch with him is important. I think about putting it in all sorts of more traditional dishes and having people and influencers representing that side of it, that is going to be important.
Another way you can get politicians behind this is to build stuff in their district. Biotech is a really good example of this. So, biotech is booming in North Carolina. North Carolina is…
Sonalie Figueiras: It’s a triangle.
Josh Tetrick: Exactly! As a Southern state, mostly Republican citizens, mostly Republican senators, and congressmen and congresswomen, but man, they are so into biotech, and it’s not about left or right, it’s about biotechnology creating jobs for the state of North Carolina. So, I think if you can show that this is creating real jobs, and it’s having a real meaningful impact to the economy, I think that’s a way to mitigate some of the sharper edges around about making it political. However, you’re not going to stop someone like Marjorie Taylor Greene, from getting involved. She’s gonna do her thing.
Sonalie Figueiras: “She’s gonna do her thing.” [laughter].
Josh Tetrick: No matter what, but she’s got to deal with it.
Sonalie Figueiras: Yeah, but I like that. I like the idea of looking for ways to communicate the traditional identity with the new technology. So, when you did that in Singapore, with the hawker and Mr. Loo, was it overwhelmingly positive? Did your thesis work, in the sense that people feel like, “Oh yeah, this is the kind of the food I love, you know, chicken satays, and it’s just made in a different way. It’s better for the planet and for our health!”
Josh Tetrick: Yeah, it did. I mean, the most important person was Mr. Loo. The guy has been running it for 50-60 years, and he felt that way. He went from resisting it, right, this is a new, weird thing made in a stainless-steel vessel to, “Wait, this works really well in my chicken curry rice dish, this sounds good,” and we’re not better than Mr. Loo, right? We work with what he’s doing, and this is not about making food that is too high-end for Mr. Loo, right? It has to work in that context. It has to work on a grill in a backyard in Birmingham, Alabama before a football game. I think the more that we and other companies can make it work there, the more we will win.
Sonalie Figueiras: That must have felt good, right, when he came around and liked it? I mean, being an entrepreneur is hard. Over the years with the GOOD Meat journey, specifically, what have been some of the days or moments that just felt likea really big win and felt really incredible?
Josh Tetrick: Well, definitely the day we got regulatory approval…that was November 2020.
Sonalie Figueiras: Where were you? What were you doing? Tell me the story.
Josh Tetrick: Yeah. I was in Boulder, Colorado, and I was actually laying on the floor, because I thought we were going to get it that night, and I was just waiting for a phone call from a person named “Kat” on the regulatory team. Then she gave me a call, I woke up, and that was incredible. When we actually launched in late 2020, on December 24th, we put it on the plate, and people ate it, and I saw a receipt. I really wanted to see the receipt, you know, when someone puts their credit card down, you’ve got a receipt, that’s not a sample anymore, that is a sale, and that was what I wanted. So, that was a really big moment. Then probably more recently, when we got FDA approval, that was pretty significant. That’s just about a month and a half ago.
Sonalie Figueiras: Yeah, that was really recent. That’s just now!
Josh Tetrick: Yeah, yeah, and I think the next one will be when we actually launch in the US, with Chef Jose Andres, you know, he’s such a leader in the world of food.
Sonalie Figueiras: Let’s talk more about that. I mean, he’s a food saint. How do you know him, and how did that happen?
Josh Tetrick: I’ve met him through the years at different conferences and things, and when we knew that at some point, we were going to launch in the US, I reached out to him and just began talking to him about what it would look like for him to be the person that we launched with. He’s always open.
Sonalie Figueiras: Was he initially skeptical? What was his take on cultivated meat, given he represents this idea of home-grown, artisanal, organic food?
Josh Tetrick: He wanted to know more about it. So, he wanted me to walk through the process with him. He wanted to know what it means to go from a cell to chicken. He wanted to know about what a bioreactor is. He wanted to talk to a research and development team. So, he didn’t say yes right away, he wanted to learn more. Right away, he wanted to know what the skeptics were saying, right? How are people criticizing it, and what do I agree with in terms of people criticizing it? So, we went through all that with him, and he made the decision that we needed to figure out a different approach to making meat for billions of people. That doesn’t mean, now I’m sharing his point of view, that someone who’s making some high-end lamb in Patagonia is now suddenly displaced. However, as we’re thinking about a growing population, and how the heck you feed so many people, given that we don’t have a bigger planet, I think he realizes that you need a different approach, and he thinks that this is a part of it.
Sonalie Figueiras: That’s awesome. He’s pretty special. I’d feel really awesome about that. He’s definitely someone I think that can really get consumers in. He’s just someone who really understands food and food culture, but he also is someone who has a really big social role with regard to food inequality, food access, and the quality of food that different types of people eat based on their socio-economic background.
I want to dig a little deeper on this because I know that in quite a few of your interviews, you’ve spoken about this idea that capitalism can create positive social change. The world feels very unequal in many ways, particularly with food access, in that there is less hunger, and there is better nutrition across the board, but there’s also rising inequality, and it does feel like there is a sort of elite population around the world that is getting access to better and better food, while mass available food becomes worse and worse, in terms of health and the way it’s produced with industrial agriculture.
Do you still think that capitalism is ultimately the force for good? Where do you see this, given where we are today? Also, in terms of cultivated meat, this idea that for some people, there’s a worry that cultivated meat is just going to slot into this kind of elite food structure and be something for the elites, because of its costs and barriers to entry?
Josh Tetrick: Yeah, well, I don’t think capitalism is in itself a force for good. I think capitalism is a system that can be a force for horrible things, and a force for really good things, depending on what the intent behind the company, the product, and the service is. Factory farming is capitalism. And plant-based milk is capitalism. Coal-fired power plants are capitalism, and the farmers’ market is capitalism. It’s a system to make a good or a service, and it just depends on what the intention is.
I don’t think it’s the only way to make stuff happen. I think you can do it through nonprofits and do it through the government, and I think in probably most cases it is the most effective, but again, sometimes that effect is a negative one. The most effective way to do something, I do often think, is through capitalism.
I think if someone is motivated to make cultivated meat, and they want to make as much as they can, at the lowest cost they can, so, as many people can buy it, and they can make as much money as they can. I would say, it sounds good because ultimately, you’re going to have a big impact on this planet; I’m gonna be a supporter of yours.
I think cultivated meat, just like electric cars to an extent, will be for people who have a lot of money and who are highly educated initially, there’s just no getting around it because that’s often the deal with any product. That was the deal with cereal. That was the deal with Coca-Cola. That was the deal with computers. That was the deal with the iPhone. That was the deal with the cell phone, right? It often is that initially, but can it cross that bridge from: “Alright, it’s this elite thing and a social club”, to something that’s available to the everyday person in Morgantown, West Virginia, and Birmingham, Alabama, where I was raised, and that will be determined by our company’s ability to actually make a lot at a low cost. If we’re able to do it, it will be out there, but if we’re not able to do it, then, you know, we’ll have fallen short.
Sonalie Figueiras: You sure have tried.
Josh Tetrick: Yeah.
Sonalie Figueiras: Well, on the back of that, then what keeps you up at night? For work, I mean.
Josh Tetrick: You know, it’s just more like mundane things. Like, you know, it could be like a particular technical challenge that we’re having. It could be a hire that we’re trying to make. Or, a restructure of a team
Sonalie Figueiras: So tactical stuff?
Josh Tetrick: Yeah, tactical stuff. I mean, I don’t stay up at night thinking about the lifetime project of cultivated meat, I sort of accept that it is what it is. It’s more of the tactical stuff and the chores that keep me up.
Sonalie Figueiras: What does success look like to you? Do you see yourself being the CEO of Eat Just and GOOD Meat for a good long while? Other than what you want for the industry, which is like, “In a few lifetimes, the majority of meat is made using cellular agriculture.” However, for you personally, what is success? What are you aiming for?
Josh Tetrick: It’s to do everything I can, through the people that we hire, technology that I’m pushing, capital that I’m raising, interviews that I’m giving, to increase the probability that cultivated meat as the main source of meat in the food industry happens sooner. Professionally, using my life in that way gives me a lot of fulfillment. Even though it is really hard, even when there’s only trying, even though it can be really frustrating, even though it can make you nauseous sometimes, I feel that to be useful, to feel like you’re doing everything you can to try and increase the likelihood of something so good happening- that’s what I want, and I hope to be doing this leading the company for a long time. This is where I think I could be the most effective, but yes, I feel like every day, I’m being useful in that way. Just from a professional sense, that is success to me.
Sonalie Figueiras: I love it. I agree. Thank you so much, Josh for an incredible conversation. I really appreciate it. Thank you.
Green Queen In Conversation is a podcast about the food and climate story hosted by Sonalie Figueiras, the founder and editor-in-chief of Green Queen Media. The show’s first season, Pioneers of Cultivated Meat, explores cultivated meat, a future food technology on a mission to produce animal protein sustainability. In each of the six episodes, Sonalie interviews the pioneers of the industry, asking the hard questions about one of the most exciting food + climate innovations of our time and sharing the personal story behind each founder’s journey.
Green Queen In Conversation is a co-production from Green Queen Media and Cheeky Monkey Productions. This episode was produced by Joanna Bowers and hosted by Sonalie Figueiras.
In our weekly column, we round up the latest news and developments in the alternative protein and sustainable food industry. This week, Future Food Quick Bites covers a bunch of vegan steak launches, the EU’s alt-protein commitment, and a new book on cultivated meat.
New products and launches
Apricot kernel cheese for the win! Austrian startup Kern Tec – which upcycles stone fruit pits into ingredients for dairy alternatives – has launched a Kesä vegan cheese line under its consumer-facing brand Wunderkern, available at 500 Blus Plus stores in pesto, tomato-olive and Mountain Fun. It will soon unveil alt-milk too.
Courtesy: Kern Tec
In the US, veteran oil brand Wessondebuted a range of vegan spreadable butters with a base of canola, palm and palm kernel oils. They come in Original and Olive Oil varieties, and will be available starting at Hannaford, Stop & Shop, and retailers in the northeast.
Further north, Canadian plant-based dairy company Bettermoo(d)entered a distribution agreement with United Natural Food Canada to place its functional oat milks in over 5,000 retailers nationwide.
Across the Atlantic, UK oat kefir maker Biotiful Gut Health has launched a line of yoghurts made from gluten-free oats. They will debut at Tesco with 350g pots in Vanilla and Cherry flavours.
Meanwhile, New York-based Culiraw has introduced seven raw vegan cheesecakes, available online and in select stores in NYC, Connecticut and New Jersey, including Green’s Natural Foods, Morton Williams, and Met Fresh Supermarkets.
Elsewhere, German cocoa-free chocolate producer ChoViva has partnered with bakery manufacturer De Beukelaer to release a vegan Cereola cookie, which is stoked at Rewe supermarket. It comes a month after it partnered with Kölln on a cereal range that used its oat- and sunflower-based chocolate alternative.
In the UK, Fruit-tellaannounced it will be launching vegan versions of its popular chewy treats (which contain gelatin) in Strawberry Mix, Duo Stix and Berries & Cherry flavours.
Courtesy: Dawn Foods
Staying in the dessert category, Netherlands-based bakery manufacturer Dawn Foods has unveiled a vegan sponge cake mix for its foodservice clients, which promises to provide the “same functionality, texture and taste experience” as its conventional counterpart.
And in the Netherlands and Belgium, McDonald’s has collaborated with Dutch dairy company FrieslandCampina to reduce GHG emissions from the fast-food giant’s dairy supply chain by 14% by 2025.
In more Dutch news, plant protein company Schouten has launched vegan nuggets for children. The Vegetable Bites contain 46% vegetables and come in kid-friendly shapes, and will be available in retail and foodservice channels.
Swedish furniture giant Ikea, meanwhile, has expanded its plant-based offerings with vegan nuggets too. The frozen wheat-based Slagverk nuggets are available at all Ikea stores in Sweden.
This is part of a wider trend, it would seem, given that the vegan snack category – currently worth 49.5B – is set to grow by 7.9% annually to reach $78B. Meanwhile, another report (using much different metrics, I’m sure) shows that the plant-based steak market was valued at $562.5M last year, and is bound to grow by 6.2% per yet to reach $1.02B in 2032.
Speaking of steak, Chunk Foods is deepening its ties with Lewis Hamilton, it seems. Last month, it established a partnership with Hamilton-backed vegan fast-casual chain Neat Burger. And last weekend, it appeared on the menu at Formula 1 in Austin (as well as the Pro Smoke Show).
Courtesy: Chunk Foods
In Germany, Veganz will begin selling a shelf-stable pea protein beef analogue in December, which can be rehydrated in 10 minutes. The plant-based steak will be priced between €3 and €4 per kg, much cheaper than both conventional and other vegan counterparts.
Meanwhile, Israeli producer Redefine Meat‘s 3D-printed flank steak, beef mince and burgers are now available to foodservice operators in Switzerland, with its pulled meat range and kebab mix to arrive next spring. Its New Meat is also available at vegan butcher shop Butch Bunny in Geneva.
Another Middle Eastern brand, the UAE’s Switch Foods, partnered with Lebanese restaurant chain Al Safadi to offer its plant-based meats on the latter’s menu, which will take shape in the form of fried kibbeh, kabab khashkash, lahem beajine and hummus with meat and fries.
Swedish cultivated meat brand Re:meat has partnered with ICA Gruppen, the largest grocery retailer in the Nordics, to explore consumer attitudes towards the former’s cultured meat.
And now there’s a new book about cultivated meat. Bryant Research founder Chris Bryant, cell ag expert Che Cannon and Mosa Met founder Dr Mark Post co-edited Advances in Cultured Meat Technology, published by Burleigh Dodds Science Publishing.
In the US, comedian and SNL alum Tim Robinson collaborated with Plant Power Fast Food to introduce vegan Coney hotdogs, which – like Robinson – hail from Michigan. These will be available at the latter’s locations through November, until supplies last.
Courtesy: Wagamama
More of a K-dog fan? Wagamama‘s got you covered, with a new Korean-inspired menu unveiled in its UK branches. The restaurant – half of whose menu is vegan – has introduced plant-based K-dogs, king oyster skewers, a tofu hot pot, and a silken tofu gochujang rice bowl, among other items.
Meanwhile, South Korea’s CJ CheilJedang has expanded its ready-to-heat vegan Bibigo dumpling range with Japchae and Green Chilli flavours, starting with the UK, Singapore and Australia.
And in the US, Zenso Labs is making upcycled precision-fermented booze. It reuses spent grains from breweries and distilleries and turns them into ingredients for alcohol and food formulations. It will soon launch a Pear Ginger hard seltzer and a ready-to-drink Moscow Mule SKU.
Funding, M&A and novel tech
In Germany, a three-year research project for cultivated meat has been funded by German cultured fish startup Bluu Seafood and the Federal Ministry of Food and Agriculture (BMEL). The former has poured in €760,000, and the latter has invested €500,000, bringing the total financing to €1.3M.
Canadian cultivated meat producer Evolved, meanwhile, has published a paper detailing how it created in-vivo-like tissues in vitro, capitalising on scaffold-free cell sheets.
Also in Canada, the Saskatchewan Food Centre is building an Advanced Food Ingredients Centre for precision fermentation and bioengineering R&D, with a potential capacity of 20,000 litres. It’s set to begin operations this quarter.
Courtesy: Daiya
Another fermentation facility that made the rounds recently was the one vegan cheese giant Daiya invested in, as it looks to develop a next-level version of chickpea-, oat- and coconut-based cheeses, slated for a North American launch by the end of this year.
In more cheese news, UK company Compleat Food Group (which was formed out of a merger between Addo Food Group and Winterbotham Darby in 2021) has acquired London-based artisanal vegan cheese maker Palace Culture.
Policy and petitions
Oatly‘s much-hyped Reddit AMA last Friday – where it invited a Big Dairy exec to co-host the session and answer questions about sustainability and carbon labelling alongside its sustainability director Caroline Reid – saw no one answer its call. But a Scottish dairy farmer did!
The European Parliament last week voted in favour of the Plant Protein Strategy, which calls on the EU – which has had a rocky week as some members have been found in cohorts with Big Ag to suppress green reforms – to boost the production and consumption of sustainable protein crops.
And its former member, the UK, saw a fourth borough endorse calls for a Plant-Based Treaty. London’s Lambeth council will join Haywards Heath, Norwich and Edinburgh in calculating and reducing food emissions and promoting plant-based food accessibility.
Awards, events and platforms
In Australia, SneakQIK, a shopping deals website, has relaunched as a vegan discounts platform, with expansions planned for India, the US, the UK and eventually globally.
Meanwhile, plant-based organisations have joined as strategic partners for a new event called Veg-net, whose first edition will be held on June 5 next year in London. The organisers hope to connect began brands with buyers and industry experts.
If you’ve had too much news and would rather just take a break, there are vegan-friendly rooms waiting for you at the NH Collection hotel in Dubai’s Palm Jumeirah archipelago. Animal-free bedding, plant-based snacks, compostable shower caps and sanitary bags, plastic-free packaging? Sign me up.
Elsewhere, Californian vegan seafood brand Impact Food has been nominated as one of 22 finalists for the 2023 Neptune Award by Ocean Exchange, which recognises sustainable solutions addressing ocean pollution and degradation.
Speaking of awards, TIME magazine has announced its annual Best Innovations list, which includes GOOD Meat‘s cultured chicken, which is one of only two companies to have received regulatory approval for sale in the US. There was also a special mention for Green Wolf‘s Vegami, which is a whole-foods plant-based salami sausage.
And PETA UK has also announced the winners for its 2023 Vegan Food Awards. Winners include M&S, THIS, VFC, Redefine Meat, Honestly Tasty, Sacred Grounds, Greggs, Asda and Flora.
And finally, another famous vegan organisation, Veganuary, has released the trailer for a documentary celebrating 10 years of the movement. It will premiere on November 17.
Want more roundups of alt-protein, plant-based and sustainable food? Stay tuned for next week’s Future Food Quick Bites, published every Wednesday, or get it in your mailbox by signing up for our Alt Protein Weekly newsletter.
Better Bite Ventures has announced investments in three APAC food tech startups as part of its early-stage First Bite initiative and has opened applications for the next funding round.
The three startups part of the latest First Bite funding round – which offers early-stage investments of between $50,000 and $150,000 – are Singapore’s Fattastic, Australia’s Pivot Eat, and South Korea’s Everything But.
“As part of the broader transition to a net-zero economy, we need new, more sustainable ways of making food,” said Better Bite Ventures founding partner Michal Klar. “But these new products must also be tasty – only then will consumers truly buy in.”
New fats, whole cuts and cultivated pet food
Courtesy: Fattastic
Klar added: “The startups we are announcing today are pioneering new solutions to improve the taste and texture of meat and dairy alternatives.” Fattastic, for example, engineers plant-based fats to improve the sensorial and functional attributes of vegan meat and dairy analogues. Its oil structuring tech transforms plant oils into solid states to resemble animal fats. It was founded by Satnam Singh, a former researcher at A*STAR agency in Singapore.
Pivot Eat, meanwhile, is working on a novel process to enhance the structure and accelerate the scalability of plant-based whole-cut meat. Founder Ann Limley is a food scientist with over two decades of food R&D experience across Singapore, Europe and Australia.
Finally, South Korea-based Everything But is Asia’s first cultivated meat startup for pet food. One study suggests that if cats and dogs were considered their own nation, they would rank as the world’s fifth-largest meat-consuming entity. To reduce the impact of our furry friends on the environment, the startup – founded by veterinarians and scientists and helmed by CEO Yoonchan Hwang – is developing more sustainable, protein-rich pet food with high taste, texture and nutritional quality.
Klar reiterated that sustainable food products need to have better taste and textural attributes for greater consumer adoption. “Hence [the] focus on solutions like enhanced plant-based fats replacing animal fat and better structure of whole cuts. With Everything But, it is about [the] important and growing climate impact of pet food.”
Building upon previous early-stage investments
Courtesy: EatKinda
Better Bite Ventures launched the First Bite initiative last year, with a focus on APAC startups tackling food system challenges with innovative solutions. To qualify for investment, founders need to be working on meat, seafood, dairy or egg replacements using plant-based, fermentation, cultivated or molecular farming technology, be based in the APAC region, and be at the idea or just-begun phase.
“Bold technology innovation is needed to reduce the climate impact of our current food system in Asia. The response to the First Bite initiative has been encouraging – to date, we’ve invested in seven food tech startups, and are now open for more,” said Better Bite Ventures founding partner Simon Newstead.
In April, it unveiled four investments in early-stage APAC alt-protein startups. These included Singaporean startups Allium Bio, which co-cultures microalgae and mycelium and turns them into functional ingredients like protein isolates, and Cultivaer, which is working on bioreactor-free tech to slash the costs and speed up the scalability of fermentation-derived protein. The other two startups part of the First Bite funding in April were New Zealand-based cauliflower ice cream brand EatKinda, and Klevermeat, which claims to be India’s first cultivated seafood startup.
Better Bite Ventures was launched in early 2022 by Klar and Simon Newstead as APAC’s first dedicated climate-centric food tech fund, with $15M in assets under management. It typically invests between $200,000 and $700,000 in pre-seed and seed rounds across the cultivated, precision fermentation and plant-based protein sectors.
It has already invested in over 20 food tech startups, including Aussie-American precision fermentation dairy maker Change Foods, Indian alt-meat brands Greenest and Liberate Foods, Indonesian plant-based giant Green Rebel, Australian mushroom meat maker Fable Food, Chinese cultivated meat company CellX, and Singapore-headquartered vegan meat producer TiNDLE.
Now, it’s opened applications for the next round of First BIte investments, earmarking between $50,000 to $100,000 for early-stage founders.
Disclaimer: Green Queen founder and editor-in-chief Sonalie Figueiras is a Venture Partner at Better Bite Ventures.
Andrew Arentowicz, CEO of blended meat startup 50/50 Foods Inc explains who his target consumer is, why blended meat has failed before, why the category has a marketing problem and his take on the animal welfare question.
This article is part of our content series exploring the world of hybrid and blended meat products – those blending cultivated or conventional proteins with plant-based ingredients, respectively, and why some think this is the future of reducing meat consumption.
Americans consume too much meat. This isn’t me trying to anger anyone – it’s a literal fact. The US population eats 233.3g of meat a day, which is almost three times the maximum recommended amount by the Eat-Lancet Commission to achieve the UN’s Sustainable Development Goals and meet the targets of the 2015 Paris Agreement.
While plant-based, cultivated and fermented meat companies have all been trying to get consumers to see the effect their diet has on the environment, many don’t. In fact, while vegan meat alternatives have undergone a sales and PR hit, the FAO – you know, the UN food body that deliberately censored data about livestock farming’s impact on climate change – says we will be eating 14% more meat by 2030.
So with plant-based meat still reeling from financial setbacks, cultivated meat in touch regulatory landscape, and fermentation-based proteins still a nascent category, where does that leave us? The answer might be going back to animal-derived meat.
At least a little bit.
Some are proposing blended or hybrid meats as a solution. Blended meat refers to a mix of traditional animal protein with plant-based ingredients, while hybrid combines the latter with cultivated meat. A bunch of companies are already working in this sector, hoping to influence people to reduce meat consumption by eating the same amount of meat products, albeit with less meat.
Consumer research shows taste is paramount
Here’s the thing. Consumer perceptions of these products are very much informed by traditional meat, and while price and health are important drivers, nothing beats flavour. Research has shown that taste is the number one factor for people choosing to eat or avoid meat alternatives. Last year, an 8,000-person survey covering the US, UK, France and Germany found that about half of respondents “greatly preferred” the taste of animal protein over plant-based analogues.
Similarly, a Kerry Group report published earlier this year – surveying 1,500 consumers in the US, UK, Australia and Brazil – suggested that people have greater taste expectations for plant-based burgers than conventional ones, adding that great flavour is key to the sector’s success.
For blended products, this is where the opportunity lies. A peer-reviewed consumer study published in March 2022 – using data from September 2019 with a relatively small size of 172 US participants – revealed that Americans still preferred beef a 100% beef burger over any other alternatives. But when it came to three substitutes – a pea protein patty, a yeast-based ‘animal-like’ patty and a blend of animal beef and mushrooms – consumers chose the blended burger in a blind taste test.
The blended burger was 70% animal beef and 30% mushrooms. One company proposing a different share is 50/50 Foods, Inc – no points for guessing its proportion. The Los Angeles-based startup says it’s the only USDA-approved 50/50 burger, which is comprised 50% beef and 50% vegetables (mushrooms, onions, cauliflower, broccoli and garlic), along with spices and seasonings.
This way, Americans can “have their meat and eat it too”, as 50/50 Foods founder Andrew Arentowicz puts it. “The global food system accounts for approximately one-third of total GHG emissions, with beef being the #1 emitter, by a country mile,” he tells me. “How you get Americans to eat less meat is the biggest question in need of an answer, and we think we have it.”
Arentowicz explains that cutting beef consumption in half can “actually move the needle” on climate change. The comment chimes with research showing that meat and dairy cause twice as many emissions as plant-based foods. And a study published last month found that replacing half our animal product consumption with plant-based alternatives could reduce agriculture and land use emissions by 31%, halt forest and natural land destruction, and double overall climates – although if you’re American, your meat intake needs to go down by 82% if you want to avoid climate disasters.
And it’s because, despite 95% of Americans continuing to eat meat, 74% don’t think eating less of it will help the environment. It’s these consumers 50/50 Foods is targeting. “Not to mention, moms who want their kids to eat more veggies,” Arentowicz adds.
Why blended meat hasn’t worked – yet
Courtesy: Fascinadora/Canva
It’s not like companies haven’t tried selling blended meat before – they’ve just… not worked? For example, German retailer Aldi got backlash for launching a BBQ Flexitarian Burger made from beef and beans in 2019 (it’s nowhere to be seen anymore). Tesco launched a Lean & Greens range combining chicken with vegetables in 2021 (the reviews are not great, either for taste or misleading messaging).
And sure, private-label supermarket products aren’t always the most flavourful. Well, Tyson – the world’s second-largest meat company – launched blended beef-pea protein burgers and nuggets under its Raised & Rooted range in the summer of 2019, only to pull the products in December 2020. “The Raised & Rooted Blend will be discontinued as we constantly evaluate products working alongside our customers and consumers,” a Tyson spokesperson said at the time.
So why would these products work now? Arentowicz has an interesting analogy. “You might remember that ‘search was dead’ before Google came along – InfoSeek, Ask Jeeves, Yahoo Search all failed,” he reminds me. “Sometimes, you need to get it right before consumers will buy it.
“Tyson’s Raised & Rooted blended burger said they were ‘beef and pea protein isolate’ burgers. Who wants to eat – let alone buy – pea protein isolate?” he wonders. “Additionally, timing helps. Processed plant [meat] like Beyond and Impossible is struggling, and cultivated meat is still decades away from viability. So I think the timing for a flexitarian category is now.” [Although only 6% of Americans followed a flexitarian diet last year, while 5% adopted a ‘low-carbon footprint/sustainable diet.]
Asked if 50/50 Foods has conducted any consumer trials, Arentowicz says: “Yes. Lots. People almost universally love our 50/50 burger because it tastes great.” Why, you ask? “Because we put flavour-enhancing toppings – like roasted mushrooms, caramelised onions, and roasted garlic – inside our burgers.”
In that consumer study where blended burgers came out on top in the blind taste test, people actually chose the yeast protein over the blended in an informed taste test, where they knew what the products were (the pea protein patty still came last). “When consumers know more about the ingredients of the blended burger, the demand decreases,” concluded the study.
As mentioned above, online reviews of Tesco’s blended meat range show that people are confused by the labels. This is a marketing problem, and Arentowicz says the solution might be in the name. “I don’t like the word ‘blended’ or ‘hybrid’, and I am hoping the leaders in this space – the handful of us – can rally around a more appealing category name. I don’t think we have it yet, but I think ‘flex’ or ‘flex meat’ (for flexitarianism) is the best we’ve got at the moment.” he says. “But I’m open to any suggestions, lol.”
The climate and animal welfare arguments
Courtesy: 50/50 Foods Inc
50/50, whose first product is a grass-fed Angus beef burger, plans to create half-and-half hot dogs and chicken nuggets too. Grass-fed beef currently makes up about 4% of US beef sales, and according to a 2017 report, 75-80% of grass-fed beef sold stateside is grown abroad (Angus beef itself is native to the UK) – this pushes up the product’s environmental footprint. One study estimates that grain-fed beef can have a 67.5% lower carbon footprint than grass-fed.
Arentowicz disputes these numbers, explaining that it isn’t “settled research”, pointing to a story explaining why (albeit by a meat company). But, like 50/50 Foods’ meat, he remains flexible: “We are beef-agnostic. Our clients dictate which beef they want to use. We currently use grass-fed beef in our retail product, but that’s a personal choice at this particular juncture of our business.”
Even if you put the climate argument aside for a second, how does blended meat fare with the animal slaughter question? “If animal welfare is your only issue, I have total respect for your position and argument,” he notes. “But asking everyone to turn into a vegetarian is an impossible goal. At least today it is, and we need bold solutions to big problems today.”
He adds: “I’m too practical to let perfect be the enemy of the good. Cutting beef consumption in half will save lots of animals, so we’re technically on the same team.” Arentowicz declined to go into specific details about how the company is funded, but offered: “Obviously, our investors are very bullish on our potential.”
So where can we find 50/50 Foods’ blended meat? Restaurants? Supermarkets? Both? On its website, the startup has a binocular-shaped graphic that serves as a future, ahem, vision for its footprint – which seems to be both in retail and foodservice. This is something Arentowicz confirms. “The mission is every menu, every shelf,” he says. “And our timeline is as soon as humanly possible.”
In the midst of conflict, vegan food companies, chefs and volunteers came together to feed Israeli Defence Force soldiers, their loved ones, and people who have been injured or displaced.
Like the rest of the world, Omer Tal woke up in a state of shock. It was October 7, Hamas had just launched over 5,000 rockets from Gaza on Israeli soil, and it sparked a war that would see over 5,000 killed, 15,000 injured and hundreds of thousands displaced.
Still processing, Tal realised that returning to routine was, unfortunately, a far-fetched fantasy. “I felt a deep-seated need to contribute in a meaningful way,” he recalls. So he called Dor Datner, the owner of 12 eateries in Tel Aviv, and his partner Gilad Harpaz to ask for help.
Israel is a nation known as an alt-protein hub, with investment in this sector accounting for 15% of the global total last year, surpassed only by the US last year. Recognising the food industry’s potential, Tal –the head chef at Redefine Meat, one of the leading vegan meat companies in Israel – wanted to mobilise the sector and feed soldiers on the frontline, their families, those who have been displaced or lie injured in hospital – and anyone without access to nutritious foods during this period.
Fulfilling vegan meals as battle rations in Israel
Tal posted a call for support on Facebook, asking for volunteers to help cook meals and support an army that counts over 10,000 vegans (over 5% of the country’s total population follows a plant-based diet). Within 12 hours, Datner and Harpaz’s central kitchen on Tel Giborim Street (which fittingly translates to ‘hero’s hill’ in Hebrew) saw a flurry of activity being sanitised to kosher and vegan standards.
“I reached out to the army bases via the group Vegan Friendly to find out how many vegan or vegetarian soldiers are in each,” says Liran Cohen, a private chef. As the largest vegan organisation in Israel, it arranges plant-based meals for soldiers with dietary restrictions.
Running over a week, the campaign saw food tech startups, food producers and 100 volunteers and private chefs converge to serve vegan and flexitarian soldiers. “We created meal kits each consisting of 20 portions,” explains Lilach Edman, a vegan pasta chef who managed the kitchen. “Each portion was composed of a 150g protein dish, a portion of carbohydrate and fresh vegetables, plus a plant-based delicious treat. We made sure they contained all the food elements. The typical battle rations that normally come in cans can’t provide vegan soldiers with the sustenance they desperately need.”
Several startups donated raw materials for the plant-based meals, including Redefine Meat, which provided three tons of its 3D-printed beef and lamb analogues. Green Butcher and More Foods also donated plant-based beef products. Meanwhile, YoEgg! Foods contributed with its vegan poached eggs, and Creative Pea offered its pea-based chicken and fish innovations. Plenty 4U, Mama Q and Utopia donated dairy alternatives like vegan cheeses, and E.Y.M. Israeli Tofu donated high-quality tofu.
The kitchen, which ran from October 8-16, produced about 6,000 meals with a diverse selection of protein-rich dishes curated by private chef Noam Carmon. These include vegan schnitzels, spaghetti Bolognese with meatballs, chicken skewers, fish patties, poached eggs in tomato sauce and cheese pastries, among others. Additionally, Ornat donated its dairy- and sugar-free JO-MO chocolates, and Panda Confections contributed its vegan chocolates, and Roy Chocolate provided pralines.
A sense of home and a glimmer of hope
“There were some complex logistics in getting the kits to all the bases and evacuated families,” says Cohen. “But the soldiers’ reactions have been deeply touching – many expressed that the meals provided them with both strength and a comforting sense of home. They were grateful not to have to rely on battle rations. Surprisingly, even some of their carnivorous comrades sampled our vegan dishes and were amazed.”
After a week of tremendous efforts, the kitchen has now closed, but the campaign is still going through smaller private kitchens and restaurants. It’s described as a “first aid ‘food commando’” that supplied meals until other kitchens and organisations were able to properly answer to the needs of soldiers. Now, four different kitchens – including Redefine Meat’s test kitchen – are host to hundreds of volunteers and home cooks serving 2,000 meals a day.
Vegan Friendly arranged an operation room for all the plant-based and vegetarian meals, held a big group of either home cooks or commercial vegetarian kitchens to supply the meals, and took care of the delivery with its own volunteers. Since the attack on October 7, all the kitchens have served a combined 2.5 million meals in Israel, with 250,000 of them being vegan.
Redefine Meat continues to provide raw materials for 70 meals a day. “The other companies and volunteers have pledged to continue their part until the end of the war,” says Tal. “Moreover, some of the kits are also being earmarked for evacuated families and the 5,000 injured survivors in hospitals.”
He adds: “In the midst of the suffering, sadness, anxiety, and pain that continues to affect us, the Israeli community has rallied together to support and strengthen one another. Among the volunteers that turned up were those [who] had just returned from the funeral of a beloved relative, while others were young survivors of the Nova peace festival that was the first line of attack by the terrorists.
“For them, volunteering served as a form of initial compensation for trauma, offering precious moments to breathe and connect back to life. For many, this project has provided a glimmer of light in these dark and challenging times.”
Konscious Foods founder and president Yves Potvin talks to Green Queen about microwaving frozen sushi, plant-based meat’s challenges, consumer reception of its rolls, poke bowls and onigiri, and creating new vegan seafood analogues.
People in Vancouver search for sushi more than anyone else in the world, if you’re to go by Google Trends data. In fact, Canadians top the list in terms of the share of the population (5.7%) looking for sushi on Google, followed closely by the US (3.4%) – though the latter has the most searches in absolute numbers. Japan comes third.
Sushi is incredibly popular in North America – and it’s no longer confined to high-end restaurants charging hundreds of dollars. You can get sushi in your grocery store. And why says supermarket sushi is bad? Not Americans, who drove a 72% rise in sushi sales at US retailers over the past year. US retail giant Kroger, which has been selling the dish since 1990, is now the largest sushi seller in the country.
It’s this success that Konscious Foods – the Vancouver-based brand by French chef Yves Potvin – is banking on. Launched in 2021, the company makes frozen vegan sushi, onigiri and poke bowls, using seafood analogues like plant-based tuna, salmon and snow crab.
Courtesy: Konscious Foods
Standing out from the crowd
The meat alternatives sector has undergone a period of turmoil over the last couple of years, with sales falling, workers being laid off, and companies shutting down. Potvin compares this to the proliferation of cars in the early 20th century, and the dot-com bubble in the late 90s “where everyone had an idea”, when the rapid growth of the Internet led to a stock market boom. “Dreaming is important,” he agrees, “but so is the bottom line. At some point, you need to show investors a return on their investment.”
He adds: “At the end of the day, knowing how to run a business and having the know-how in this industry is still very important.” And he certainly does possess the knowledge and experience – Potvin is the man behind established plant-based businesses in Gardein and Yves Veggie Cuisine.
According to the Good Food Institute, plant-based meat unit sales dropped by 8%, but vegan seafood saw a 40% year-on-year growth in pound sales last year. The sector has been a hub of activity recently, with product launches like South Korean startup Unlimeat‘s upcycled tuna analogue, Singapore-based HAPPIEE‘s vegan shrimp and squid in the UK, and Revo Foods‘ 3D-printed whole-cut salmon in Austria.
It’s becoming an increasingly crowded space – how does Konscious Foods plan to stand out? The freezer. Even in the conventional space, frozen sushi is still quite a niche market. In the plant-based sphere, Konscious Foods’ offering is the first of its kind. “Shelf life is very important – sushi and poke bowls otherwise must be eaten pretty immediately upon purchase to ensure safety,” explains Potvin. “Really, frozen food offers convenience.” And convenience is what Americans want, with 61% citing it as a purchase driver in one survey – up from 56% last year.
Courtesy: Konscious Foods
The importance of frozen
So which consumers fit this convenience bill? “Our target consumer is… everyone who loves delicious foods,” says Potvin. “While busy parents and lunchboxes are certainly a perfect fit for our patent-pending ability to thaw or go from frozen to fresh in minutes in the microwave, we are increasingly seeing flexitarian come into the mainstream.”
But it does seem counterintuitive to heat up sushi and poke bowls, I point out. “First of all, since we are plant-based, you can be relieved of any concerns that accompany microwaving traditional fish,” Potvin tells me. “But microwaving isn’t the only way to enjoy Konscious Foods – it can also be thawed at room temperature (this takes about two to three hours).”
He adds: “But whether you choose to let it thaw in your bag during the workday, or decide to zap it in the microwave, we’ve made sure there is absolutely zero sacrifice to taste or texture.” Even when it comes to putting ingredients like cucumber and avocado in the microwave? Yes, Potvin assures me. “There are some secrets a chef will never tell,” he says. “But if you choose to microwave them, eight rolls only go in for one minute.”
If you are still looking for your fresh vegan sushi fix though, all you need to do is head to Whole Foods. Konscious Foods has partnered with the retailer to develop two exclusive ready-to-eat rolls using its seafood analogues, which you can find at all Whole Foods sushi venues across North America. “Frozen will always be important to us, but we’ll absolutely look for additional ways we can meet our busy customers,” explains Potvin.
Courtesy: Konscious Foods
Konscious Foods’ frozen SKUs, meanwhile, will soon be available in the freezer aisles at 4,500 retail locations in Canada and the US, including Wegmans, Sprouts and Albertsons-Safeway, among others. And the brand is present in foodservice too. “We include the retail product in operator-friendly packaging that ensures culinary teams are able to offer on-trend, plant-based solutions to their menus with ease,” says Potvin.
He explains that the company’s lineup is adaptable to multiple foodservice formats, including catering, micro-markets, vending, in-flight service, sushi bars and quick-service restaurants – aided by its konjac-, pea- and rice-based salmon, tuna and ‘sno’ crab. “We also offer foodservice bulk packs of our maki rolls, onigiri stuffed rice snacks and poke bowls that provide ‘thaw and serve’ efficiency, without requiring any additional specialised training,” Potvin says.
Moreover, Konscious Foods is in discussions with foodservice providers across the US and Canada to expand its offering to the catering sector in institutions like schools.
Focusing on health, flavour and the planet
For Potvin, health and taste are equally important – just as they are for American plant-based meat consumers. “To change the way people eat and help people incorporate plant-based into their diets, you can’t just have ‘nutritious’ without ‘taste’, and you can’t just have ‘taste’ without ‘nutritious’ – it won’t work,” he says.
Many of the “high quality, clean” ingredients Konscious Foods uses are grown and processed in Canada, with a focus on non-GMO and organic certifications where possible. Its sushi rice is from California and accredited by the Non-GMO Project, and for its rainbow roll, it uses Organic Latin America rice and Thai Jasberry rice (touted to be one of the world’s healthiest varieties).
Potvin says the company has managed to offer its products at price parity with conventional supermarket sushi: “We know one of the biggest barriers to entry for plant-based food, which is often two or more times more expensive than traditional protein options. By keeping the price on par, we can help bring plant-based products to the masses.”
Courtesy: Konscious Foods
In August, Konscious Foods – which has largely been self-funded, other than receiving government grants – raised $26M in a Series A funding round that included the government-backed Protein Industries Canada, as well as Zynik Capital and Walter Group. The brand has used the cash injection to bolster production, expand its retail and foodservice footprints, and launch marketing initiatives. In addition, Konscious is working on more seafood analogues to expand vertically, with vegan shrimp and smoked salmon top of the list.
Potvin says all three of Konscious Foods’ current product lines have received a great response from consumers with its California roll nabbing the NEXTY Award for Best New Frozen Product at the Expo West trade fair earlier this year. “For me, it has been most rewarding to hear how many people are trying and loving it,” he notes.
Because, as he reiterates: “We are not just about being plant-based – our mission is to make good-for-you, good-for-the-world food that tastes good.”
Global food and drink ingredients giant Ingredion is partnering with its distributor Univar to showcase a range of plant-based, low-sugar, ‘natural’ products at the Gulfood Manufacturing conference this November.
According to Ingredion, 50% of consumers in the UAE are prioritising their food and drink’s nutritional content and naturalness. It adds to other global research done by the company, which has found that 78% of consumers would spend more money on products with ‘natural’ or ‘all-natural’ packaging claims.
To meet these needs, Ingredion will be showcasing a line of healthier and natural products – including plant-based and low-sugar formulations – at the Gulfood Manufacturing conference in Dubai next month (November 7-9).
Ingredion’s plant protein push
Courtesy: InnovoPro
Prepared by its principal culinologist Kevin Alder, the company will host a tasting menu featuring a vegetarian lamb kofta, egg-free tahini mayo (containing NEST, a citrus fibre), sugar-free chilli ketchup, fresh cream cheese with protein crackers, a chocolate dessert with no added sugar, a Crème Brulée, and reduced-sugar non-alcoholic beverages.
“We are thrilled to participate in the Gulfoods Manufacturing event and share our cutting-edge innovations with the world,” said Quentin Labbe, Ingredion’s MENA sales and technical services manager. “Our commitment to plant-based proteins, cost-effective formulations and sugar reduction capabilities reflects our dedication to meeting the evolving needs of consumers while helping manufacturers thrive in a challenging economic climate. We invite everyone to visit our booth to experience the future of food.”
Ingredion has previously launched a pea and rice protein blend for use in extruded snacks and drinks, as well as a low-viscosity pea and rice isolate for ready-to-mix drinks and protein bars with a clearer texture. And earlier this year, it debuted a chickpea protein innovation alongside Israeli startup InnovoPro – which it bought a stake in last year – at Chicago’s IFT First trade show.
The company, which has invested over $200M in plant-based proteins since 2019, saw its sales for these proteins rise by 118% in 2022, reaching $36M. In 2021, it also opened a dedicated facility in Nebraska, becoming the first North American manufacturer to make locally produced plant protein isolate, concentrate, flour and starch products.
Vegan wins in the Gulf
Courtesy: Switch Foods
The Gulfood Manufacturing event is taking place in Dubai, where Thryve opened what was the UAE’s first plant-based meat factory in March. The city’s government is now working with local and international businesses and organisations to clamp down on food loss and waste to boost food security and promote a more sustainable economy.
Months after Thryve’s facility was opened, Switch Foods unveiled its own manufacturing plant in Abu Dhabi to produce vegan kebabs, minced meat and burgers. And this week, the latter announced a partnership with Al Safadi, a Lebanese restaurant chain in Dubai run by a former butcher, which will see four dishes served with Switch Foods’ meat alternatives.
These developments come as the UAE prepared to host COP28 – described as the first food-focused UN climate summit – which will feature a predominantly plant-based menu. The decision to do so coincides with the country’s Year of Sustainability, which includes a push to promote plant-based eating in the country. This is in line with consumer sentiment in the nation – a YouGov poll this week found that more than half (55%) of its citizens identify as flexitarian (including pescetarians), vegetarian or vegan.
Ingredion’s plant-forward launch is the latest example of an international company making a foray into UAE’s vegan sector. In 2021, US giant Impossible Foods made its Middle East debut at Dubai World Expo, while Singapore-based TiNDLE launched in this region for the first time at 20 UAE restaurants. Meanwhile, last year, Aussie-American precision fermentation leader Change Foods signed an agreement to build a first-of-its-kind commercial manufacturing plant in the UAE.
Last month, it announced an agrifood strategy to bolster the sector’s value to $10B and create 20,000 jobs by 2025, with regulatory advancements being one of the key pillars. While fellow Gulf country Israel is home to a host of alt-protein startups, industry think tank the Good Food Institute says the UAE is partnering “with foreign alternative meat startups, primarily US-based companies, to build commercial-scale production facilities and potentially fast-track regulatory approval” for cultivated meat.
In 2021, DisruptAD – the VC arm of Abu Dhabi’s sovereign fund ADQ – led the $105M Series B fundraising round for Israeli cultured meat leader Aleph Farms. And a 2022 study by PSB Insights – commissioned by US cultured meat pioneer Good Meat – found that while only 34% of people in the Middle East had heard of cell-cultured meat, awareness of the alt-protein was highest in the UAE.
Meanwhile, neighbouring nation Saudi Arabia is also actively promoting more plant-based foods – officials from the Saudi Ministry of Environment, Water and Agriculture have co-signed deals to develop alt-protein products with locally sourced plants.
Warwick-based startup Moolec Science, which makes animal proteins using plants through molecular farming, has raised $30M in cash and kind from investors via convertible notes. It comes months after the company unveiled soybeans that contained pork proteins.
Moolec Science has entered an agreement with Grupo Insud to issue a convertible note due in 2026 worth $21M, with a strike price of $6 per share. This will be issued against a cash payment of $10M and in-kind contributions to be made by Grupo Insud to Moolec, which include credits to access Insud’s state-of-the-art industrial capabilities. The two companies formed a precision fermentation joint venture in 2021.
It follows a deal with Bioceres Crop Solutions – which Moolec spun off from as a seed startup – which will secure the supply of about 15,000 tons of soybeans, paid for via a convertible note. In total, the convertible notes amount to $30M in cash and in-kind contributions, which include soybean inventories, operational services and the acquisition of joint venture equity.
“This capital raise strengthens our financial position and allows us to accelerate our business model in a challenging financial market. The notes provide healthy optionality for Moolec to convert into common shares or cash in three years’ time,” said Mooled CFO José López Lecube. “Cash proceeds will be used to continue funding key R&D projects and in-kind contributions will secure the needed working capital to ramp up our commercialisation plan and product development initiatives.”
Transforming safflower into dairy proteins
Courtesy: Moolec Science
Moolec, which began trading on Nasdaq in January via a merger with special purpose acquisition company (SPAC) LightJump, has a market cap of over $100M but has seen its stock drop from a nearly $20-high to under $3 recently.
Launched in 2021, the company is known for its molecular farming capabilities. It’s a process that produces proteins using plants instead of animals – plants are modified to replicate the desired proteins, and then harvested from the leaves or other tissues.
It bioengineers plants like soybeans and yellow peas to produce bovine and porcine proteins that enhance the flavour, texture, colour and nutrition of plant-based meat. But its most advanced innovations are a bovine chymosin protein (used in cheese) and a nutritional oil rich in GLA (an omega-6 fatty acid), both of which are produced through a strain of safflower using a patented tech called SPC.
The latter has already received a ‘no questions’ letter from the US and Drug Administration, which affirms its GRAS (Generally Recognized as Safe) status in the US. It has been approved by the USDA’s Animal and Plant Health Inspection Service too, which means Moolec can import, move between states and grow plants in the US.
Commercialising molecular meat proteins
Courtesy: Moolec Science
Meanwhile, Moolec’s Meat Replacement Program made a breakthrough earlier this year, producing soybeans that taste like pork. The tech yielded 26.6% of the total soluble protein in soy seeds via its newly developed Piggy Sooy, surpassing its initial projections by fourfold. The beans have a pink hue akin to that of pork, and Moolec is seeking a patent for the tech that will also help facilitate a smoother regulatory pathway.
“This achievement opens up a precedent for the entire scientific community that is looking to achieve high levels of protein expression in seeds via Molecular Farming,” Amit Dhingra, Moolec’s chief science officer, said at the time. “This platform has the potential to be used across a wide variety of proteins of interest for a broad range of industries, such as the pharma, cosmetic, diagnostic reagents, and other food industries.”
Moolec CEO Gastón Paladini told AFN that the company plans to focus on more meat molecules and proteins in multiple R&D projects. And instead of extracting and purifying the animal protein from these ingredients, it plans to sell the soy and pea proteins with the meat proteins embedded in the matrix.
“Moolec’s plan is not to purify and extract the target molecule the plant expresses,” he told AFN. “It makes sense for us to produce hybrid ingredients between plant and animal proteins, together. Affordability and functionality are our top priorities. And Moolec is targeting the whole processing meat market, not just the alternative protein market.”
The startup is working on developing meat proteins using yeast fermentation. It’s in talks with companies like ingredient processors for partnerships that could see Moolec license its IP, or work with them in downstream processing to recover and commercialise the proteins using their networks. But Moolec also has its own industrial facility in Argentina that could help it commercialise, with the ability to crush 10,000 tons of soybeans per year.
“We all share the common purpose to redefine the way we produce animal-based food, for good and for all. These engagements reinforce our vision and our shareholders’ long-term commitments while motivating Moolec’s Team to achieve the milestones to come,” said Moolec CEO Gastón Paladini.
South Korean food and drink giant Nongshim is investing ₩10B ($7.4M) in venture funds aimed at incubating food tech startups, particularly those working with cultivated meat.
Nongshim, the company behind the ultra-famous Shin Ramyun noodle brand, will pour the capital into helping discover and foster emerging companies working with the future of food in South Korea, particularly in areas like smart farming, digital transformation and cultivated meat, which it views as the closest and most viable alternative to conventional meat in the future.
The ₩10B ($7.4M) will be split equally into two Seoul-based two startup funds managed by Stonebridge Ventures and IMM Investment, with the food and drink giant aiming to champion trailblazing startups that can transform the food value chain.
Veggie Garden and ‘smart farm’ deals
Courtesy: Nongshim
Nongshim has its own alt-protein brand called Veggie Garden, which makes plant-based products ranging from bibimbap and bulgogi to grilled steak, dumplings and cheese. It also runs Forest Kitchen, a vegan fine-dining restaurant in southern Seoul, which opened in May 2022.
Additionally, the company – South Korea’s largest instant noodle maker – signed deals with the UAE and Saudi Arabia earlier this year to export smart farms to produce South Korean varieties of strawberries all year round. The latter project is worth a potential $30M, and Nongshim plans to generate business opportunities of over $100M with high-value-added crops.
It began investing in startups with the launch of its Nongshim techUP+ programme in 2018, and says the value of the stakes it has invested in has more than doubled. But while its ₩10B investment is a positive move, Nongshim’s sales and net profit in the first half of the year were ₩1.7T ($1.2B) and ₩99B ($72.9M), respectively.
“Investment in startups was decided following internal reviews,” a Nongshim spokesperson told Korea JoongAng Daily. “But we’re investing through specialised investment funds to conduct a more in-depth evaluation and to explore more deeply.”
Plant-based and cultivated meat focus in South Korea
Courtesy: CellMEAT
Cultivated meat is on the rise in South Korea. In February, 28 industry stakeholders signed an MoU to advance the country’s cultured meat industry, while a month later, the North Gyeongsang province opened the North Gyeongsang Cellular Agriculture Industry Support Center. The 2,309 sq m facility was built over six years with a total investment of ₩9B ($7M) with the aim to develop biomaterials and support companies in the cultivated meat sector.
These developments came after the nation’s Ministry of Food and Drug Safety included official guidance for alt-protein in its National Plan 2022, covering the safety, manufacturing processes and regulatory approval of cultivated meat.
And in terms of plant-based food, more and more consumers are adopting vegan food. The Korean Vegetarian Union said that in 2020, there were around half a million strict vegans in the country – a threefold increase from a decade ago. Similarly, 1.5 million people followed vegetarian or plant-forward diets, while nearly 20% of the population (around 10 million) estimated to be flexitarian.
Industry think tank the Good Food Institute, meanwhile, has called South Korea a “global hotbed of alternative protein innovation”, with companies like Unlimeat, Lotteria, Armored Fresh and Yangyoo some of the plant-based leaders joining the aforementioned cultivated meat players in building a thriving industry.
Andy Shovel, co-founder of UK plant-based meat brand THIS, talks to Green Queen about the company’s new TV ad, profitability plans, and why he’s optimistic about the vegan meat industry.
THIS has just launched its first TV spot starring British food critic Grace Dent, who appears to be fooled by the ‘hyperrealistic-ness’ of the company’s pea protein sausage. The two-month-long campaign is the brand’s biggest to date, with an investment of over £600,000 across TV, out-of-home, in-store, digital, social and influencer advertising.
The 30-second commercial sees Dent participate in a pork sausage taste test, where she says she can tell the difference between traditional and plant-based pork. But as she bites into what she appears to believe is a conventional sausage, Dent is told that it’s actually vegan.
She proceeds to walk off the set disgruntled, as on-screen tiles read: “83% less fat than pork sausage” and “Can really annoy a food critic”. It ends with a voicemail from her agent played back on the screen, where he says Dent is concerned about her credibility as a food critic.
Leaning into health
It’s a neatly packaged ad that sums up THIS’s entire brand appeal and mission to position health at the forefront of its messaging – something more and more plant-based meat brands are doing as they lean into consumer priorities. A 1,000-person survey published yesterday by Bryant Research and ProVeg International found that health benefits are the top reason for Brits to eat plant-based meat (39%), followed closely by taste (36%).
Courtesy: Bryant Research/ProVeg International
“Oh, the delicious deception!” Dent said in a statement. “Being tricked into savouring a plant-based pork sausage was certainly a revelation. The taste and texture [were] uncanny to the real deal.”
It’s important to note that despite the realness of the ad, THIS points out that this ‘deception’ was just an illusion. “Grace did actually know she was going to be trying plant-based sausages,” admits THIS co-founder Andy Shovel. “But, we’ve actually fooled a bunch of food critics in a previous social media campaign, which then spurred on the idea of entering into a partnership with Grace Dent.”
Reaching profitability and reading between the headlines
THIS’s new campaign comes just on the back of its announcement that – after four years of operations and over £38M raised in funding – it is on track for profitability by next year. Shovel told City A.M. that the company’s gross margins “massively improved” in the first half of 2023, following years of focusing on growth over profitability.
Asked how THIS got to this point, Shovel tells Green Queen it has been a huge undertaking. “We’ve looked at all parts of our supply chain to ensure we maintain THIS quality but drive a culture of continuous cost improvement, and it’s a journey that will continue,” he says.
THIS co-founders Andy Shovel and Pete Sharman | Courtesy: THIS
“[The] biggest driver of this has been rationalising our supplier base and focusing on a few key partners. We’ve also set up our own UK manufacturing site, which is now fully operational and have been working hard on ramping up our volumes. As a result of our growth, we’ve also been able to unlock better costs on raw materials and packaging.”
It’s a bit of positive news in an overall bleaker time for plant-based food in the UK. Despite being Europe’s second-largest vegan market – with Brits spending £964M on plant-based meat and dairy last year – sales have stagnated and total investment in plant-based protein R&D has been overtaken by cultivated meat in the last decade. According to the Good Food Institute (GFI) Europe, plant-based sales declined by 3% between 2021-22 in the UK, with meat alternative sales sliding by 8% in the same period.
Just last week, for example, mycoprotein giant Quorn announced a loss of £15.3M in its yearly accounts, citing cost hikes, stagnating sales and post-pandemic inflationary pressures. The UK market has seen a number of vegan brands pull some products from supermarkets, including the likes of Oatly (ice cream tubs), Innocent Drinks (smoothies), Nestlé (Wunda and Garden Gourmet), and Heck (most of its meatless range).
Courtesy: THIS
But Shovel believes the bigger picture isn’t as despairing. “If you step back and look at it through a less press-driven lens, stripping out increased in-home consumption driven by COVID, the growth has been nothing short of huge: 47% since 2020, compared to meat, fish and poultry growing by just 8% in the same time period,” he says, citing THIS’s managing director Mark Turner.
“There’s been a lot of doom and gloom in the headlines due to declines of a few players, when in fact better-tasting stronger brands like THIS have been able to grow – we are 50% up year-on-year at the moment,” Shovel adds. In the long term, he remains bullish about the segment, noting that health, environment and ethics are reasons that “matter loads and aren’t going away”.
Optimism for the category and Dutch focus
“I am actually really excited about the stage the market is entering,” he says. “For too long, there’s been too many brands with wildly varying product quality, that have put off meat reducers from truly believing in the category. It’s also been confusing to shop – no supermarket needs to list 15 types of plant-based sausage.”
But there are mixed sentiments regarding this, at least according to data from the Bryant Research/ProVeg International survey. It revealed that while 27% said there’s too much choice and it’s confusing to shop for plant-based meat in the UK, it was the statement most disagreed with in the study.
Courtesy: Bryant Research/ProVeg International
On the contrary, the research shows that along with health, taste is paramount to consumers in this category, with 51% citing taste and textural reasons for reducing their vegan meat consumption. It follows further analysis by the Kerry Group last year – covering 1,500 consumers across four countries (including the UK) – which revealed that flavour is key to consumer preference.
It’s along these lines that Shovel says: “We’re now at a stage where the sector is consolidating and poor-quality brands are coming out the market, with more brands consumers can trust and shelves that are way easier to navigate. Finally, I’m excited about finding other ways to service the 58% of UK consumers who are actively reducing their meat intake – beyond just meat alternatives.” [We haven’t verified this number.]
As for THIS, where next? It recently launched vegan roast chicken and chicken and bacon pie, and made its first splash into international waters by launching in the Netherlands. “It’s an interesting market as most brands there still cater to just vegans and vegetarians with very green branding and messaging – not too dissimilar [to] where the UK was when we first entered the market, so it feels prime for disruption,” explains Shovel.
Courtesy: THIS
But instead of “scattergunning into loads more countries”, it wants to dig deep into its Netherlands operations for now. “A recent GFI report revealed that the Dutch have the highest consumption of plant-based foods per capita. So for now, we really want to establish ourselves there as it’s no small project,” he says.
“Longer term,” he adds, “no region is off the table!”
Months after voting to ban the production and sale of cultivated meat in the country, Italy has withdrawn its notification of the proposed bill to the EU. But while this could spell a victory for alt-protein and a sustainable future food system, it may not all be rosy.
In March of this year, Giorgia Meloni’s newly appointed far-right government proposed a draft law to ban lab-grown food in Italy – which included cultivated meat – to “safeguard our nation’s heritage”. Anyone found to produce or trade these proteins risked facing a €60,000 ban and having their manufacturing plants closed down.
It drew criticism from activists and opposition politicians. Riccardo Magi, president of the left-wing party Più Europa, called it “a new crime” by the government: “They are taking it out on synthetic food and prefer to continue with their reckless prohibition, instead of doing research and developing a technology that could allow us to pollute and kill less.”
Good Food Insitute Europe’s policy head Alice Ravenscroft said the move would shut down the economic potential of this field, hold back scientific progress, and limit consumer choice. “Italy would be left behind as the rest of Europe and the world progresses towards a more sustainable and secure food system. And the 54% of Italians who already want to try cultivated meat would be banned from doing so,” she cautioned.
Courtesy: Wikimedia Commons/CC
Backtracking on proposed cultivated meat ban
Despite the backlash, the Italian senate approved this bill in July, with 60% of senators voting in favour of banning the manufacturing and sale of cultivated meat, claiming it would protect human health and national heritage. The bill still needed to be approved by the Chamber of Deputies, the parliament’s lower house. The proposal was in tandem with a potential ban on the use of meat-related terms on plant-based meat labels.
Italy had submitted what is called a Technical Regulations Information System (TRIS) notification to the EU, which is a procedure that aims to prevent the creation of barriers in EU countries. Essentially, if Italy wants to ban cultivated meat, it needs EU approval, with other members of the bloc having the opportunity to weigh in on the decision as well.
But according to the animal advocacy group Essere Animali, Italy withdrew its TRIS notification on Friday, in light of ongoing parliamentary discussions and potential changes. And while it may be seen as a softening of its stance on alt-protein, it’s likely a way to avoid official rejection from the EU, as it’s understood that Italy knew its proposed ban would be denied by the bloc, with some member states already reacting negatively to the draft measure.
There’s also the fact that due to EU trade laws, Italy’s bill still wouldn’t be able to ban future imports of cultivated meat products, as long as they obtain regulatory approval. The EU has stringent measures around the regulation of cultured meat – classed as “novel foods” – and no company has filed for regulatory approval in the region so far. But it has expressed support for alt-protein and sustainable food production: just last month, for example, the EU Parliament’s Agriculture Committee voted to implement a strategy to increase the production of plant proteins in the EU.
Courtesy: Upside Foods
Anticipating the EU’s rejection, Italy’s withdrawal is being seen as a halt to proceedings, but not necessarily a win for alt-protein. “We are happy to see that the ideological and anti-scientific approach of the Italian government is finding a difficult wall to overcome, so much so that it is forced to do a major about-face,” noted Essere Animali development manager Claudio Pomo.
But he added: “What happened is certainly an important result, but it is not yet a definitive victory, and we must not let our guard down. [Agricultural] minister [Francesco] Lollobrigida has already said that he wants to move forward with this battle, and there will certainly be other moves.”
Robert E Jones, president of industry association Cellular Agriculture Europe, similarly welcomed the news and cautioned that the Italian government will likely continue to pursue a ban. “While it is a positive sign that Italy has withdrawn its TRIS notification, the battle to protect complementary protein innovations is still ongoing,” he told Green Queen.
“We expect the Italian government will soon move forward with its national ban on cellular agriculture and meat terms for plant-based products while evading any scrutiny by the EU Commission,” he added. “As such a move will be a blatant violation of EU law, it is yet another sign that this is all political theatre to fulfil a campaign promise to a vocal minority, and a monumental distraction from the real conversation we need to have about creating a climate-resilient food system in Europe.”
Preserving heritage against food security
So where does that leave Italy and its national heritage? Stefano Lattanzi, CEO of Italian cultivated meat consortium Bruno Cell, told Time that Italy’s ban would damage local innovation, adding that the government’s “frontal attack” makes no sense. “Here in Italy, we are fanatics with our food,” he said. So when politicians use the word ‘synthetic’ – which is incorrect because cultivated meat is real meat – it is something like blasphemy for us.”
This idea of national heritage and pride in its culture was portrayed wonderfully by Marianna Giusti in the Financial Times in March. “There’s a dark side to Italy’s often ludicrous attitude towards culinary purity,” she wrote.
She explained how the archbishop of Bologna suggested adding pork-free tortellini to its San Petronio feast as an inclusive gesture for Muslim residents. Far-right League party leader Matteo Salvini responded by saying: “They’re trying to erase our history, our culture”. This is despite pork not being a tortellini filling until the late 19th century.
Courtesy: Eat Just
Now, as another far-right leader heads the government, Giusti wrote: “Italian food is as much a leitmotif for rightwing politicians as beautiful young women and football were in the Berlusconi era.” In this vein, Lollobrigida suggested that a task force be established to monitor quality standards in Italian restaurants globally, fearing that “chefs may get recipes wrong, or use ingredients that aren’t Italian”.
In a piece titled ‘Lab Meat Skeptics, Please Just Get Out of the Way’, Bloomberg columnist Amanda Little outlined why tradition might need to give way for innovation, with the planet burning and our food system being a primary contributor to it: “We have entered an era of disruption and adaptation that is understandably painful for the food-nostalgic, but unavoidably necessary.”
Let Italians decide what they want from their food
So where does Italy go from here? No one knows for sure yet. What we do know for certain is that the EU itself is lagging behind other governments when it comes to alt-protein regulation. Singapore and the US have already approved the sale of cultivated meat, and Switzerland and the UK are currently considering applications from Aleph Farms – with the latter said to be looking to fast-track the process.
“The EU already has a robust regulatory process in place for confirming the safety of new foods like cultivated meat, and regulators in the United States and Singapore have already found it to be safe,” GFI Europe’s Ravenscroft said. “The government should let Italians make up their own minds about what they want to eat, instead of stifling consumer freedom.”
And Italians shouldn’t worry. The UN’s Food and Agriculture Organization and the World Health Organization have both allayed fears and misconceptions about cultivated meat, playing down concerns about tumour formation, cancer and other health ill-effects caused by cell-cultured meat. The negative impact of GMOs and concerns about human infections have been eased in a joint report by the two bodies.
Courtesy: Mosa Meat
Cultural anthropologist and Follow the Future founder Dr Muriel Vernon reasoned how cultivated meat should be thought of as just another part of an animal – one that has never existed. “If we accept the fact that a single animal can be arbitrarily cut up into vastly different price categories based on equally arbitrary cut preferences, then we may not be so far off in adding a new cut that tastes as good as the top existing cut, but appeases our growing appetite for ethics and sustainability,” she wrote.
In another contribution to the tradition vs future debate, Cecilia Manduca, a VC at Talis Capital, compared the ‘BioRevolution’ to the Industrial Revolution. “SynBio allows society to move away from using centralised, huge, polluting factories as primary production facilities, towards a world where primary goods are produced locally, efficiently, sustainably and through waste or organic feedstocks,” she wrote. “Cells can enable us to produce whatever we want, wherever and whenever we need, potentially transforming manufacturing and supply chains as we know them.”
Ahead of the Chamber of Deputies debate last month, GFI Europe’s Italy policy consultant, Francesca Gallelli, said the alt-protein sector will create tens of thousands of jobs and offer opportunities for farmers to diverse and produce high-value proteins. “The government must ensure those jobs are created in Italy, rather than overseas,” she noted. “Without engaging in an open and fully informed debate, Italy will cut itself off from crucial opportunities for sustainable development and economic growth.”
As evidenced by developments around the world, cultivated meat feels inevitable – can Italy and its far-right government put its fork down?
How can we realistically shift away from animal agriculture, incorporate more plant-based foods in our diet, and ensure policies and funding go towards helping the environment and mitigating climate change? Two researchers put forth their ideas in a new study.
Over the years, especially in the last few, a ton of research has shown us time and again the huge impact our diets and eating patterns have on the planet. Our food system accounts for a third of all global emissions, while meat itself amounts to nearly 60% of all emissions from food.
Meanwhile, livestock farming has been found to produce between 11-19.5% of the planet’s overall emissions, and further research has shown that animal-derived foods like meat and dairy cause twice as many emissions as plant-based foods.
Studies have also shown that vegan diets can reduce emissions, water pollution and land use by 75% compared to meat-rich diets and that replacing half of our meat and dairy consumption with plant-based alternatives could cut agricultural and land use emissions by 31%, reduce the land used for livestock by 12%, slash water use by 10%, and halt deforestation.
But if we continue in a business-as-usual scenario, demand for meat will rise globally, with people set to be eating 14% more meat by 2030. A new study published in the peer-reviewed Heliyon journal argues that we can’t afford to continue on this path, as we only have seven to eight years to enact meaningful change to mitigate the climate crisis.
Courtesy: Svetlana V Feigin/Mad Ideas
It provides a roadmap based on three key strategic approaches: a shift to a plant-based diet with a gradual phasing out of animal agriculture, an ‘All Life’ approach, and a standardisation of environmental, social and corporate governance (ESG) measures. Here are the steps that could help move to a better future for humans and the planet alike:
1. Phaseout of industrialised agriculture
Despite animal agriculture’s climate impact, the authors say the reduction and phaseout of animal agriculture is often entirely overlooked in many climate change solutions. But doing so would provide 52% of the necessary net emissions reduction to limit global warming to 2°C by 2100, with 47% of the benefits of a phaseout of livestock farming accounting for by beef alone, while cow’s milk makes up 24%.
Importantly, a full phaseout of animals from the food industry would substantially cut emissions to a point that even a complete replacement of fossil fuels with clean energy couldn’t achieve. In fact, eliminating industrial animal agriculture could buy us time to develop tech that could affect a fossil fuel phaseout too.
To do so, the researchers say there needs to be a clear distinction between factory farming and other forms of animal agriculture – concentrated animal feeding operations (CAFOs) have a loose definition. In the US alone, most animals are factory-farmed, including over 98% of chickens, pigs, turkeys, hens and fish, and 70% of cows. “Our proposal for the global phaseout of industrialised animal agriculture encompasses factory farming of all land and water animals,” reads the study.
Graphic by Green Queen Media
2. Transition to plant-based and cultivated proteins
Simultaneously, a shift to plant-based and cultivated alternatives to meat, dairy and eggs is vital. “To achieve this, further developments and investment are required in technologies which allow for the creation of cheaper, more widely available, and tasty meat, dairy and egg alternatives,” the authors say.
They add that additional funding is needed towards plan-based agriculture, which would feed more people and use fewer resources while preserving ecosystems too, as the land freed from animal farming could be used to grow new crops. Investment is also needed to aid a smooth transition for farmers in this space.
3. Ending animal subsidies and introducing meat taxes
In the EU and the US, livestock farming receives about 1,000 times more funding than plant-based and cultivated meat, with the former obtaining up to 97% of all research and innovation spending to improve production. Public money spent on plant-based meat was at $42M between 2014-20 – just 0.1% of the $35B spent on meat and dairy. European cattle farmers receive 50% of their income through direct subsidies.
The authors propose ending these government subsidies for conventional meat, dairy and eggs, and introducing taxes on products to account for the true externalised carbon costs of these products. Taxes could be levied based on the type of food, with differentiated taxes on ruminant meat or milk (being the most climate-damaging), followed by non-differentiated charges on other meat and milk products.
But this could mean an increase in pork and poultry consumption – which, as mentioned above, are almost entirely factory-farmed – so taxes could be applied to all animal products produced via industrialised farming. These taxes would also need to be levied in high-income countries first.
“The taxes and money saved from government subsidies could then be used to develop technological innovations in alternative meat/milk products and aid farmers in their transition from animal agriculture to non-animal agriculture,” notes the study. “The goal is for lab and plant-based alternatives to become competitive with industrialized meat production.”
Courtesy: Unsplash
4. More stringent animal welfare legislation and livestock ag divestment
Along the same lines, government intervention is key. The authors call for “more stringent legislation on animal welfare standards, legislative limitations on where factory farms can exist, as well as mass-media public information campaigns to clearly outline the benefits of vegan food, and the dangers inherent in livestock farming.
They add that corporate investment in animal agriculture is “becoming increasingly high-risk” due to its impact on climate change: “Divestment from companies engaged in industrialised animal farming is critical if we are to achieve less environmentally damaging food sources.”
5. All Life approach: recognizing that all life on Earth is connected
The study suggests the adoption of an all-life approach, referring to a confluence of the scientific community, government policy/action, and corporate behaviour and policy. A change in global mindsets can be achieved through education and awareness.
“An All Life approach recognises the profound interconnectedness of all life on our planet, its protection, and shifts away from a human-centric paradigm to an Earth-centric paradigm,” reads the study, touching upon the importance of collaboration and working together. It adds that this approach stresses that “our health and the health of our planet are intimately intertwined with the health and well-being of all living beings”.
Courtesy: Getty Images via Canva
6. Standardize ESG measures and create a regulatory body to curb greenwashing
Finally, the authors outline the importance of standardising global ESG measures, the lack of which impacts the “reliability and validity of ESG scores and rankings, affects the trustworthiness and transparency of company disclosures, and disincentivises companies from improving their scores”.
The study proposes the introduction of a regulator to help verify such measures and curb greenwashing, and to ensure credibility and avoid bias, it must be an independent and non-profit body. “Such measures will have a fundamental impact upon corporate and governmental performance, accountability and effectiveness while providing important guidance for individual and institutional investors,” the study notes.
“We must recognise that by solely focusing on reducing greenhouse gas emissions to limit global warming, we are treating the symptom of the cause, and the cause is major global unsustainability,” says lead author Svetlana V. Feigin. “To achieve long-lasting transformative change, which will benefit current and future generations (and save our planet), we need to change our mindset and behaviour as individuals, communities, businesses, governments, and global citizens.”
At this week’s South by Southwest (SXSW) Sydney tech conference, Australian plant-based meat companies v2food and Nourish Ingredients debuted new ingredients that change the colour of vegan meat alternatives and give them a more realistic texture, respectively. Can these appeal to consumers more concerned with flavour and health?
As the plant-based meat sector endeavours to overcome a difficult period, the key is to lean into what consumers want from their food. Surveys in different countries have shown that taste and health are more important than ever before when it comes to meat alternatives, with price and texture also playing a significant role.
One company is adding another component to that list of priorities: appearance. At SXSW, Aussie brand v2food unveiled its new colour system for plant-based meat, banking on visuals to rope in consumer interest.
v2food’s new bleeding burger ingredient
Courtesy: v2food
The brand, which makes meat alternatives including burgers, mince, sausages and schnitzels, is calling the ingredient RepliHue. It argues that most plant proteins remain the same colour before and after cooking, but its tech enables vegan meat to change colour from raw-looking to brown-grey at the same time and temperature as its conventional counterparts do.
The effect creates ‘bleeding’ alt-proteins – the storied effect achieved by Impossible Foods thanks to an ingredient called heme, which makes its burgers bleed and taste more akin to animal-derived meat. But unlike heme, which is a soy-derived genetically modified element, RepliHue is derived naturally from red algae and other plants.
v2food claims red algae can be produced sustainably as it has the ability to consume carbon dioxide and uses light for energy. The company calls the ingredient a breakthrough that will create an “authentic and more normalised experience for chefs and consumers cooking with plant-based meats”.
CEO Tim York said: “Our red algae is a breakthrough, natural solution that has been developed to create this highly desirable attribute that will play a major role in fighting climate change.”
What do consumers really want?
But while v2food is creating a more ‘realistic’ cooking experience with the colour-changing ingredient, it says RepliHue “incorporates multiple advances” in taste and texture too. And it’s those latter two factors that have been cited as a consumer priority in multiple studies.
Take YouGov Australia’s 1,039-person poll, published last week, which found that across the diet spectrum – meat-eaters, flexitarians, vegans/vegetarians and pescetarians – taste was the number-one factor influencing them to consume foods. This was followed by price for three of the groups, with health effects coming in second for flexitarians.
Similarly, an 11-country European survey by ProVeg in 2020 found that taste and health are the most significant purchase drivers for the 7,500 flexitarians polled when it comes to choosing plant-based products. In the US, the Plant Based Foods Association and insights firm 84.51° collated Kroger data from 60 million American households earlier this year, revealing that health benefits, animal welfare aspects, and taste were the things American shoppers like most about plant-based food, while texture, price and processing are the biggest detractors. Appearance didn't play a role in either study.
Courtesy: PBFA/84.51°
It did, however, appear in global research by vegan certification organisation V-Label, which revealed that while taste is important for 82% of consumers buying plant-based analogues, texture and appearance were key for 75% of consumers.
Courtesy: V-Label
Could fat be the key to consumer adoption?
This is what v2food may be cashing in on. It's certainly what Nourish Ingredients is hoping to do with Tastilux, as the team shared on the SXSW stage. It's described as a breakthrough fat to help plant proteins deliver the same taste, smell and experience as animal-based meats.
Tastilux is the result of three years of work and relies on naturally occurring lipids scaled through precision fermentation. The proprietary fat is said to provide the distinct taste and aroma of conventional meat fats and enable similar cooking reactions when used in plant-based chicken, beef, pork and other alternatives.
Courtesy: Nourish Ingredients
The company showcased the fat's features in a vegan chicken wing with edible bones made from calcium. “Tastilux represents a quantum leap in making plant-based meats live up to the rich, fatty taste and cooking performance consumers want and love,” said Nourish Ingredients founder and CEO James Petrie. "We saw an opportunity to revolutionise plant proteins by focusing on the power of fat. Most alternative fats simply can’t replicate the rich, authentic flavour of cooked meat."
He explained: "So rather than take a plant-based approach, we analysed the most flavourful animal fats in their uncooked state. Then identified where we could find these in nature, without the animal. By fermenting only the most potent fats, we’re able to recreate the authentic meat experience."
Given that its fat is produced via precision fermentation, it will need to obtain regulatory approval, with Australian legislation classing these as 'novel foods'. "We are actively engaged in the regulatory processes essential for our products. It’s important to note that not all of the solutions we are developing require extensive regulation, allowing us to expedite certain aspects of our work," Petrie told Green Queen.
"We are currently navigating the regulatory landscape, drawing upon our extensive experience in omega-3 oils. This background equips us with the knowledge and tools to effectively navigate the regulatory pathways."
v2food & Nourish Ingredients target 2024 launch
v2food aims to begin retail distribution for RepliHue – which can be used in beef, pork and chicken analogues – by 2024. "We are thrilled to be unveiling the latest game-changing technology in the plant-based protein market," said York. "RepliHue is the next generation of meat alternatives, that incorporates multiple advancements in texture, flavour and colour, making it only right to be revealing the breakthrough at the world-renowned SXSW conference."
Nourish Ingredients is looking to introduce Tastilux by 2024 aswell, and has already set up multiple collaborations. "We have established collaborations with several prominent plant-based protein companies, and we eagerly anticipate unveiling these exciting partnerships in the near future," said Petrie.
"We hold ambitious global aspirations, and our actions reflect this vision. We have a pilot facility in Singapore, and we’ve established numerous strategic partnerships in both the UK and the US," he added. "The challenge we are tackling is one that transcends borders, making it imperative for us to adopt a truly global perspective.
Courtesy: V2Food
The news comes months after a 3,016-person study by Queensland’s Griffith University found that nearly a third (32.2%) of Australians have reduced their meat consumption over the last year. Crucially, 71.3% said they either eat completely meatless diets, mostly vegan or have some plant-based dishes in an overall omnivorous diet – and 45.6% reported eating plant-based meat sometimes.
So the opportunity is there to appeal to flexitarians – who make up 19% of Australia's population, according to the YouGov survey – and it's exactly what ingredients like v2food's RepliHue and Nourish Ingredient's Tastilux are aiming to do.
In our weekly column, we round up the latest news and developments in the alternative protein and sustainable food industry. This week, Future Food Quick Bites covers Beyond Meat’s Madison Square Garden link-up, Kaufland’s price drops following Lidl’s lead, and a bunch of livestock farming developments.
New products and launches
Just after launching its new health-focused ad campaign, plant-based meat giant Beyond Meat has opened a concession stand at New York’s Madison Square Garden (MSG), part of a larger partnership with the group that will see its products available at the MSG garden during sports, concerts and other live events.
Courtesy: TiNDLE Foods
In further plant-based advertising news, Singapore-based TiNDLE Foodsis launching its first TV spot in Germany, after entering that market earlier this year- in June, the plant-based meat startup announced a media-for-equity deal with SevenVentures, the investment arm of ProSiebenSat.1, Germany’s largest media and digital company. TiNDLE also shared it is partnering with burger chain Peter Pane to introduce seven vegan meat dishes on the menu.
Meanwhile, French whole-cut vegan chicken maker Umiami – plant-based poulet, as we described it –has announced plans to break into the US market with a headquarters in Chicago. It comes weeks after the company extended its Series C investment with a $34.7M cash injection.
And in yet more whole-cut developments, Israel’s Chunk Foods launched into Philadelphia earlier this month, starting with the restaurant Monster Vegan, which will use the meat to make a Chunk Short Rib Ragu. Chunk launched into Charley’s Steak House in August, and on the back of that success, it’s now appearing on the menus of other Talk of the Town restaurants, which is Charley’s parent group.
Courtesy: Chunk Foods
Want more foodservice updates? Plenty more this week! Hong Kong-based OmniFoods is partnering with Neat Burger to add a fish sandwich and a fish and chips option to the latter’s New York City menu, featuring the Omni Golden Fillet.
Meanwhile, US fast-casual chain Veggie Grillunveiled its 2.0 avatar with a revamped menu and feel-good food. Think Sesame Tofu Supergreens Salad and Ranchero Bean Fiesta Bowl. If you visit one of its 17 locations this month, you’ll get a sweet two-for-one deal.
Elsewhere, after launching its York-style plant-based ham slices, Heura is hosting a charcuterie pop-up in Barcelona next week to try the new product. It will be open from 10am to 7:30pm at the Mercat de Santa Caterina on October 20.
In South Korea, Unlimeathas partnered with US plant-based egg giant Just Egg to launch a vegan kimbap delivery service in the Gangnam and Seocho districts. The collaboration began in August, with the new Kimbap items receiving overwhelmingly positive feedback.
Frozen food giant McCains has collaborated with F&B consultants The Culinary Edge (both American) to form a new plant-based appetiser brand called V’DGZ, starting with a portfolio of cauliflower wings, crispy corn ribs and crunchy Brussels sprouts.
In last week’s Future Food Quick Bites, we reported on Eleven Madison Park‘s Hong Kong residency in its 25th year. The mostly-plant-based, three-Michelin-starred New York City eatery is celebrating its silver anniversary with a retrospective menu looking back at its greatest hits from a meatless lens: grilled maitake mushroom skewer with juniper and pine, vegan ricotta tonburi with avocado and cucumber, and even bread and sunflower butter. Its chef-owner Daniel Humm has introduced Climax Foods’ artisan vegan blue cheese on the tasting menu, which runs till the end of the month.
Courtesy: Eleven Madison Park
Speaking of New York City, the city’s coffee festival saw molecular coffee startup Atomoserve its beanless caffeine drink to industry experts and aficionados – a big step for the coffee alternative space.
And what better to have with your alt-coffee than alt-milk? Singaporean oat milk brand Oatside, which has taken Asia’s plant-based milk space by storm, is launching its pocket-sized 200ml cartons at over 700 7-Eleven stores in Hong Kong. These will be available in coffee and chocolate flavours, as well as a barista edition.
Another brand launching across more retail stores is Minneapolis-based vegan brand Wicked Kitchen, which has expanded from its Tesco-only deal in the UK to now launch into Asda (the number of locations is unclear for now).
Another retailer, meanwhile, followed Lidl’s lead to bring its plant-based own-label range to price parity with animal-derived foods. German supermarket Kaufland is dropping prices of over 90 vegan products, with vegan cheese coming down from €1.99 to €1.39, soy yoghurt dropping from €1.39 to 85 cents, and plant-based mince falling from €2.99 to €1.89.
Funding, M&A and policy activity
Just calm down, you plant-based meat detractors. New research says the global meat alternative market reached $6.5B in 2022, and expects it to grow and cross $9.5B in 2028 – a 6.6% yearly increase. According to the report, Europe is the largest market here, and rising health consciousness among consumers is a key factor in this sector’s growth. Of course, this is just one market insight – let’s see how things pan out!
As for things that have panned out splendidly, French plant-based pork brand La Vie – which launched its ham alongside a crowdfunding campaign last month – says it’s the most popular French crowdfunding campaign ever, with 2,945 investors raising €2,172,890 ($2.29M).
Courtesy: La Vie
Also in France, vegan fast-food chain Furahaa has launched its own public funding drive, with a target of €1M and hopes to open 30 franchise stores in 2024.
Meanwhile, Spanish vegan ice cream brand Pink Albatross is opening a financing round too, aiming to raise between €1M and €1.5M to focus on new product development, increased marketing, recruitment and maintenance of working capital.
In Catalonia, the government has injected €7M into a Center for Innovation in Alternative Proteins, which aims to be a leading R&D hub for ingredients and feed alternatives to animal proteins.
Government spending on future foods was seen in the UK too, where 47 winners of the Innovate UK Better Food for All competition will each receive a share of £17.4M to improve food quality and nutrition, develop functional foods and new proteins, and extend the shelf life of healthy and fresh foods.
Talking about novel proteins, Australian company Wide Open Agriculturehas acquired German lupin protein company Prolupin for $4.12M to become the world’s largest producer of the protein and expand its footprint into Europe.
Australia’s $160M Food and Beverage Accelerator, meanwhile, announced a partnership with alt-dairy startup All G Foods to develop nature-identical dairy proteins and ingredients via precision fermentation.
Elsewhere, Berkeley-based precision fermentation producer Pow.Bioraked in $9.5M in Series A funding to bring down the production costs of these proteins. It uses what it claims is the first AI-controlled autonomous continuous fermentation platform.
Courtesy: Stuff
In New Zealand, New Conservative candidate Abe Coulter has been under the spotlight after it emerged that he mocked vegans on social media comments, harassing them, calling them abnormal, and mocking them about sex. The comments have since been blocked, but stuff like “suck it up you sissy” asking people to eat eggs or “veganisum [sic] is the millenial terminalogy [sic] for malnutrition” show that Abe might need to work on both his PR and grammar.
Across the Pacific, Californiabecame the first state government to ban four food additives linked to diseases, despite them being approved by the FDA. From 2027, food products sold in the state won’t be allowed to contain brominated vegetable oil, potassium bromate, propylparaben or Red Dye No. 3 – which have been linked to hyperactivity, nervous system damage and increased cancer risk.
Meanwhile, the 2023 International V-Label Awards announced its shortlist of 15 finalists from over 230 entries across the tangents of sustainability, innovation, and marketing and branding. Note: Green Queen founder and editor in chief Sonalie Figueiras was part of the judging panel.
Animal agriculture and manufacturing news
We had to add a dedicated section to this as there was so much – mostly not great stuff – happening in this space. For example, US pork producer Smithfields closed a North Carolina plant to “increase efficiency” and “better utilise existing capacity”. It will affect 107 employees – in total, the company has a workforce of over 10,000 in North Carolina, which represents a quarter of its entire staff.
Then there’s Monogram Meat Snacks, which has been fined over $140,000 by the US Department of Labor and has seen shipping restrictions imposed on account of child labour. At one Minnesota factory, 11 children aged 15-17 were found to be employed illegally, with at least nine operating hazardous equipment.
Courtesy: Tofurky
Meanwhile, as Thanksgiving approaches, turkey prices could be lower than last year, when the bird’s population suffered from an avian flu outbreak. But as turkey numbers have been restored, the virus has returned and could once again affect supplies.
In Australia, we’ve come to a point where farmers have too long of a wait time to slaughter their livestock, with feedlots and abattoirs overwhelmed by drier conditions low commodity prices and labour constraints.
In the UK, chefs are boycotting salmon – often called the “chicken of the sea” – over welfare and climate-related concerns. Overfishing and the use of antibiotics and chemicals have deterred Britain’s leading chefs, who cite ethical and quality concerns for keeping the fish off the menu.
In other salmon news, Icelandic singer Björk has collaborated with Catalan popstar Rosaliá on a new (untitled) song to save wild salmon populations in Iceland, donating proceeds to activists opposing the industrial farming of the fish in the country.
Speaking of protests against industrial farming, the Netherlands witnessed demonstrations from Greenpeace and Extinction Rebellion, who rallied in front of Rabobank branches across the country last week to ask the bank to cease its industrial agriculture investments and compensate for the damage caused.
In the vein of brands with shaky animal welfare commitments, a new report by The Humane League and Open Wing Alliance has called out brands that aren’t delivering on their 100% cage-free egg commitments. These include Shake Shack, Ikea, The Cheesecake Factory and Krispy Kreme.
Novel tech and research
US company MycoTechnology has released what it calls a Fermentation as a Service (FaaS) platform, helping companies overcome capacity bottlenecks and scale up their fermentation operations.
In Europe, Dutch food tech startup Vaess and UK’s Marlow Ingredients (a spin-off of Marlow Foods, which makes Quorn) have collaborated to develop binding systems for mycoprotein products. The brands say they will use each other’s experience to make high-quality mycoprotein-based meat alternatives.
Courtesy: Quorn
Germany’s University of Hohenheim, meanwhile, is developing plant-based fish products from microalgae, which would be naturally rich in omega-3 fatty acids. Miroalgae’s ability to bind carbon means and grow in multiple regions gives it bonus climate brownie points, and the researchers have developed a fermentation process using mushrooms to break down the often-undesirable flavour compounds found in the ingredient.
More on the fermentation front: Gingko Bioworks collaborated with Swiss food tech firm QL AG to develop alternative dairy proteins. QL AG will tap into Ginkgo’s strain engineering capabilities to help it produce high-quality, nutritionally equivalent dairy proteins.
In cultivated protein news, BioCraft Pet Nutrition has unveiled an AI and machine learning tool to accelerate R&D and achieve optimal cell proliferation and nutrient production. It can identify cheaper inputs and ingredients too, as well as those less likely to raise regulatory concerns – a big step for any cultured meat company.
Meanwhile, in South Korea CJ Foods – a business unit of food ingredients manufacturer CJ CheilJedang – has teamed up with medtech company T&R Biofab to develop 3D-printed plant-based meat alternatives.
And finally, in slightly left-field news, a survey by vegan dating app Veggly has found that 75% of plant-based people would date a meat-eater who is willing to transition to a vegan diet with some help from their would-be partner. See, we can “suck it up”, Abe.
Want more roundups of alt-protein, plant-based and sustainable food? Stay tuned for next week’s Future Food Quick Bites, published every Wednesday, or get it in your mailbox by signing up for our Alt Protein Weekly newsletter.
As Australians eat less meat, vegan companies All G Foods’ Love Buds and Fenn Foods’ vEEF have announced a strategic merger to form The Aussie Plant-Based Co. The two brands will see access expanded to 6,000 distribution points, while All G Foods will dig deep into its mission to reach price parity for precision fermentation dairy.
All G Foods, a portfolio company of VC firm and cellular agriculture investor Agronomics (which owns 8% of the business), will spin out its Love Buds brand to form The Aussie Plant-Based Co. with Fenn’s vEEF. As a result, All G Foods will own 49% of the merged company.
Love Buds makes plant-based mince, burgers, sausages, chicken nuggets and schnitzels, while vEEF makes beef and chicken burgers and pieces, as well as bacon bits. Both companies have products in retail and foodservice locations, with the merger combing the footprint to 6,000 stores across Australia. The move will also combine production at vEEF’s Sunshine Coast manufacturing facility, helping the brands expand into Asia and the Middle East.
Fenn, founded by Aussie chef Alejandro Cancino in 2015, claims it’s the country’s first company to introduce a certified carbon-neutral mince alternative under the vEEF brand. All G Foods, meanwhile, had multiple focuses: while Love Buds produced plant-based meat, its biotech arm focused on producing precision fermentation dairy proteins.
Courtesy: Veef
All G Foods doubles down on precision fermentation
The merger will allow All G Foods, which raised $25M in a Series A round last year to bring total funding to $41M, to focus solely on its precision fermentation research and development. The company is initially looking to create animal-free bioidentical lactoferrin, which is a component of whey protein. It has teamed up with Australia’s Food and Beverage Accelerator to speed up development as well as create dairy products that consumers are looking for.
“Since inception, we have always had one foot in the ‘deep-tech’ segment of precision fermentation and the other in the consumer-facing ‘plant-based meat’ business,” explained All G Foods founder and CEO Jan Pacas, who is chairman of the newly merged company. “This transaction represents a pivotal strategic move to allow the two different businesses to concentrate exclusively on their respective and unique needs.”
To advance its mission, the company invested in a 24/7 BioFoundry located in Sydney, which has an AI-driven ecosystem. All G Foods is working on lactoferrin first due to its prized antiviral, antibacterial, anti-inflammatory, prebiotic and probiotic attributes, according to Pacas.
Courtesy: All G Foods
While the company hasn’t conducted a life-cycle assessment to determine the exact climate benefits of its animal-free protein, De Novo Foodlabs, an Anglo-South African startup also making precision-fermented lactoferrin, has published an environmental impact report for its protein. It was potentially found to have a 99.9% lower GHG footprint and land use footprint, and an equal decrease in water use compared to conventional lactoferrin.
All G Foods isn’t just stopping there – it plans to make precision-fermented casein proteins too, which represent 80% of the total protein content found in dairy and are responsible for the key functional attributes these foods are associated with. The company has previously earmarked plans to launch in Singapore by the end of 2024 while looking at other APAC markets, the Middle East, and the US as well.
Eden Brew is another Aussie precision fermentation dairy startup, which is focusing on animal-free casein micelle, and earlier this month, it closed a $24.4M Series A round. Other developments in the sector down under include Cauldron’s $10.5M raise earlier this year to build APAC’s largest network of microbial fermentation facilities, and Aussie-American startup Change Foods’ award of two government grants last year to develop manufacturing plants and scale up its animal-free dairy production.
A key obstacle for startups like All G Foods is regulatory approval. In Australia, cellular agriculture products are classed as novel foods and require pre-market authorisation before being cleared for sale. Currently, no company has filed for approval in the country.
Catering to a meat-reducing Australia
Speaking about the merger, Pacas said: “I believe our team’s strong chemistry and dedication to success will help The Aussie Plant-Based Co to succeed [in] reaching new and old customers and consumers alike with a variety of taste-first plant-based meat products.”
He told Food & Drink Business: “There are significant synergies between the two companies we can leverage to accelerate growth for both brands. VEEF has superior manufacturing processing while we have stronger R&D and vEEF is in the retail market while Love Buds is strong in foodservice.”
Cancino, who is the CEO of the new brand, added: “This collaboration is a testament to our shared commitment to creating a sustainable, healthier and tastier future for Australians. By combining our strengths, we can accelerate the adoption of plant-based alternatives and contribute to a greener planet and more ethical sources of protein.”
Courtesy: Veef
It comes shortly after a study by Queensland’s Griffith University found that nearly a third (32.2%) of Australians have reduced their meat consumption over the last year. Crucially, 71.3% said they either eat completely meatless diets, mostly vegan or have some plant-based dishes in an overall omnivorous diet. And 45.6% said they eat plant-based analogues to animal foods sometimes.
It highlights an opportunity for brands like The Aussie Plant-Based Co, which should zero in on taste and health credentials. A YouGov Australia poll of 1,093 Aussies conducted last week found that 19% identify as flexitarians, and 6% as vegan/vegetarian – across the board, taste was the number one factor prioritised by consumers when explaining their food choices, with health coming in second for flexitarians and price for the rest of the groups.
Can The Aussie Plant-Based Co capitalise on these trends? We’ll find out soon enough.
When it comes to flexitarianism, Europe is leading the way, with Asia-Pacific catching up– but the US still lags far behind.
There’s no specific definition of what a flexitarian is. It could be a pescatarian who eats fish once a week, a vegetarian who consumes meat on occasion, or even a vegan who consumes meat or fish at times. It’s a – dare I say – flexible diet, and that’s exactly the point.
Amidst an ever-worsening climate crisis, the need to transition towards a more sustainable food system has never been clearer, and while getting the global population to go vegan is tricky, flexitarianism is crucial for a global transition towards a more planet-friendly food system. According to a global consensus of scientists, researchers and increasingly, policymakers, we need to get hundreds of millions of people to reduce their consumption of animal products, particuarly meat and dairy foods produced via conventinal livestock agrictulture.
The number of flexitarians around the world has been growing steadily, as people particularly look to reduce their meat intake for climate- and health-related reasons, and incorporate more plant-based alternatives that taste and feel similar to what they’re used to, all the while drastically lightening their impact on the environment.
But there are geographic divides when it comes to the number of flexitarians – some regions far outnumber or are outpacing others. A new study by the Stockholm Environment Institute calls for a more just transition towards plant-based diets, to ensure consumers, farmers, animals and the planet aren’t overwhelmed – read between the lines, flexitarianism could be the solution.
Europe leads the flexitarian race
Courtesy: Rewe Group
In 2021, an EU-wide study by the Smart Protein Project found that flexitarians made up 30% of Europe’s population, with the figure rising to 40% when including vegetarians and pescetarians. It meant that over a third of consumers don’t view themselves as predominantly meat-eaters (if you don’t count seafood), as 57% said they want to gradually eliminate meat from their diets.
That was two years ago, but the patterns are similar, if not more prominent. Germany – which is the continent’s leading plant-based food market – has one of the largest flexitarian populations in the world, with 55% of its citizens identifying as such. Additionally, only 20% of Germans say they eat meat regularly, while 53% have purchased vegan alternatives to animal foods at least one, according to the country’s 2023 Nutrition Report.
“The topic of sustainability is important to more and more consumers: they want to know what ingredients are in the food and that it is produced in an environmentally and climate-friendly way,” said Germany’s minister of food and agriculture, Cem Özdemir, whose government’s National Nutritional Strategy involves a focus on plant-based diets.
Similarly, in Switzerland, a study published last week found that 24% of its population identifies as flexitarian. It also revealed that 21% consume a plant-based meat or dairy product at least once a week – and of these people, 42% eat conventional meat occasionally or regularly.
In neighbouring France, meanwhile, despite the government clamping down on plant-based meat with unprecedented labelling proposals and its championing of factory farming, a 2021 Kantar World Panel study found that 49% of households had at least one flexitarian among them – almost double the 25% figure in 2015.
And in the Netherlands, while meat consumption hasn’t reduced too much – going down from 50% to 44% between 2019-22 – 44% identify as flexitarians. But in the UK, there’s still lots of room for growth, with only 14% identifying as flexitarian, and just a quarter in total not identifying as regular meat-eaters.
APAC is the fastest-growing flexitarian region
Courtesy: Shiok Meats
The situation is similar in Asia-Pacific, with an August 2022 study calling it the fastest-growing region for the flexitarian market. There were promising signs a year before, with research by the Kerry Group finding that 62% of people in this region are interested in buying plant-based meat, with 44% looking to increase their intake of these products. Additionally, 32% said they wanted to reduce their meat consumption, with 28% reporting to have already done so significantly.
In February 2022, research by FMCG gurus found similar results, with 28% of Asians identifying as flexitarian. It echoes recent findings from a YouGov Australia poll, where 19% of respondents called themselves flexitarians, and a further 9% were vegan, vegetarian or pescetarian. Taste and health were the top priorities for people who are flexitarian, indicating the challenges and opportunities for food manufacturers in this space.
Meanwhile, a study from Queensland’s Griffith University last month found that 32.2% of Australians have reduced their meat consumption over the last year. Crucially, 71.3% said they either eat completely meatless diets, mostly plant-based or have some plant-based dishes in an overall omnivorous diet. And while 45.6% said they eat plant-based analogues to animal foods sometimes, 32.8% prefer sticking to traditional plant protein like legumes, tofu, tempeh, etc.
More recently, the Good Food Institute India’s first State of the Industry report for the country found that flexitarians are among the early adopters of alt-protein, as 89% who have bought alt-milk buy conventional dairy too, and 72% do the same for meat.
There’s a wealth of opportunities in this region, as one report earlier this year pointed out. APAC alt-protein startups are eating into North America’s dominant piece of the pie, reducing the latter’s market share from 92% to 67% over the past decade. And with Asian countries having a high market potential for alt-protein – a quarter of Chinese identify as flexitarian and a third plan to reduce at least one type of meat, while 26% of South Koreans want to cut their meat intake too – it could open up export opportunities for manufacturers in Australia and New Zealand.
Moreover, just 12% of Americans are responsible for half of the country’s meat consumption, while a 2021 survey found that 59% of US citizens believe eating meat is just part of “the American way of life”. A Gallup poll earlier this year showed that the number of vegans in the country had hit a 10-year-low, while the figures for vegetarians dropped marginally from five years ago (note: the sample size was 1,000).
And in June, a US-wide survey by the International Food Information Council revealed that while 30% of Americans said they consumed more plant protein in the last year, and 23% and 32% reported eating less dairy and red meat, respectively, only 6% followed a flexitarian diet last year. Additionally, 5% followed a ‘low-carbon footprint/sustainable diet’ – but 40% never consume plant-based meat or seafood.
Meanwhile, poultry consumption has increased for over a quarter of Americans, while 43% said eco-friendliness didn’t have much or any impact on their buying decisions. Although, 35% said climate impact did influence their purchases, and 84% thought about it when buying food. But this needs to translate into action too – as one study revealed, Americans need to cut their meat intake by 82% if they’re to avoid climate disasters like the ones New York just went through.
The need for a smooth transition
Canva
Globally, one survey last year said one in four consumers are flexitarians. This demographic is an essential cog in improving our food system. The Stockholm Environment Institute research hints at the importance of this group by stressing that a transition towards plant-based eating must be well-planned.
The authors outline guiding principles to back up their theory, which touch upon phasing out policies and financial support for factory farming without worsening animal welfare and providing support to stakeholders to alleviate the impact of a transition through new job opportunities and economic diversification. As vulnerable groups might struggle to find jobs during the transition, governments should support these populations by addressing inequalities in the meat industry and involving these stakeholders in addressing these issues.
Flexitarians – and lowering how much meat and dairy we eat – could unlock a better and more sustainable food system.
Japanese plant-based meat company DAIZ, which uses a proprietary soy germination tech to make ‘miracle chips’ for vegan analogues, has raised ¥7.1B (about $47.4B) in Series C funding, which it will use to build a new 40,000 sq ft facility.
The investment round – which includes the Mitsubishi UFJ Capital, Roquette, Miyoshi Oil & Fat and Kagoshima Bank – brings DAIZ’s total financing to ¥13.6B ($87.6M), which it says is the largest sum raised for a food tech company in Japan. It had raised ¥650M (US$6M) in Series A funding in 2020, and ¥1.85B ($17M) in a Series B round last year.
The latest round involves a mix of equity and debt funding, the latter of which uses a combination of investment vehicles from Japan’s Ministry of Economy, Trade and Industry and the Ministry of Agriculture, Forestry and Fisheries.
DAIZ says it plans to use the Series C funds to build its new production plant in Kumamoto, which it claims will be the largest plant-based meat factory in Japan. The facility is planned for a February 2025 launch, with the first phase of construction having a capacity of 8,000 tons per year. Eventually, it’s expected to produce 20,000 tons of plant-based meat annually.
The company hopes to expand both its domestic and international footprints – it has collaborated with 7-Eleven Japan for two deli products, and is already working with partner companies in Europe, North America and Asia and is looking to speed up its strategy and contribute to the local economy with job creation.
Courtesy: DAIZ
Creating ‘miracle chips’ for vegan meat and eggs
DAIZ uses proprietary tech that involves a high-pressure process called Ochiai, where whole soybeans are germinated to activate enzymes and increase the number of free amino acids, which contribute to flavour and texture without requiring synthetic additives. The resulting ingredient is what DAIZ calls ‘miracle chips’, and these can be used to make a host of plant-based meat products, like fried chicken, burgers and tuna.
The company has already partnered with French ingredient company Roquette (one of the Series C investors), to produce a pea-based variant of its Miracle Meat, and says it has developed a Miracle Egg too, which extends its portfolio from just meat analogues. The introduction of eggs makes sense given that Japan is the world’s largest consumer of eggs.
Using soybeans is a shrewd move considering the ingredient’s prevalence in Japanese culture, where it is used to make foods like tofu, edamame, natto, miso and shoyu. And while Japan is home to seitan, one of the oldest and still widely used plant-based meat ingredients, its alt-protein sector has been booming of late.
Courtesy: DAIZ
Japan’s plant-based potential
Japan’s plant-based market doubled in size between 2019-22, with 2020 known as ‘year one’ for the country’s alt-protein industry, marking the time when the number of products significantly increased. Players like vegan egg maker Umami United, meat alternatives company Next Meats (which also makes eggs) and plant-based chicken and egg brand 2Foods are just a few of the leaders in this sector. In addition, a fair few larger corporations have moved into vegan products in Japan, including Marukome’s Soy Lab, Otsuka Foods’ Zero Meat, as well as meat producers Itoham Foods and NH Foods.
In October 2021, a survey found that 53% of Japanese respondents primarily viewed plant-based meat as having “low calorie and fat values compared to regular meat”, while only 37% of respondents thought of plant-based meat as “sustainable”. Around the same time, another poll found that less than 20% of consumers in Japan were aware of plant-based foods, of whom, 40% had tried these products.
Earlier this year, only 17.5% of respondents to another survey said they had consumed soy protein meat, with only 3.1% trying plant-based meat made from other ingredients. Interestingly, nearly a fifth of participants said they are intentionally eating less animal foods at least once a week and identify as flexitarians.
Courtesy: DAIZ
Government support for vegan food
This is where the opportunity could lie for brands like DAIZ, and there has been government support too. Policymakers have set up government departments to promote food tech, which includes alt-protein. In 2021, Japan released a white paper listing meat substitutes as a solution for its 2050 net-zero targets, while economic bodies like the Japan External Trade Organization are collaborating with alt-protein companies to grow the market further.
Last year, the government announced its intention to introduce new labelling conventions to remove hurdles for the vegan food industry, with minister Taro Kono calling the lack of guidelines a “shackle” for the industry’s development, In the proposed rules, statements like “contains soy meat”, “not meat” and “oat milk” would be acceptable terms – a far cry from labelling regulations in regions like France, the US and the EU.
Speaking about the latest financing, Tatsuya Koitabashi, director and chief financial officer at DAIZ, noted that while the current funding environment for startups is weak, it received investment from 11 companies, including existing shareholders, as well as debt financing from nine financial institutions.
“New industries are born from the edge of regulation, and by using the financing systems of the Ministry of Economy, Trade and Industry and the Ministry of Agriculture, Forestry and Fisheries, we will be able to procure long-term corporate loans at a low cost, which is unusual for startups,” he said. “I think we have succeeded.”
Oatly is calling on the UK food and drink industry to adopt mandatory carbon labelling on product packaging with a new campaign. As part of this effort, it is offering free ad space to dairy producers, challenging them to publish their climate footprint alongside ads displaying Oatly’s footprint.
Oatly is campaigning for mandatory carbon footprint labelling for food and beverage products in the UK, pushing for increased transparency to allow consumers to make more informed choices. As part of the initiative, it’s challenging dairy companies to disclose their climate footprints, with a view to providing clearer and more accurate comparisons to the public.
To do so, the Swedish oat milk giant is offering free high-profile ad spaces via billboards in London and Manchester across billboards, as well as print and radio commercials.
“We bought this billboard to tell you about the climate footprint numbers we’ve included on our products,” the posters read, referring to Oatly’s printing of its products’ carbon footprint in the UK since 2019. “And we’re donating this one to the dairy industry so they can tell you their climate footprint numbers too,” reads an adjacent billboard.
While the campaign is UK-focused, Oatly is offering one spot on a Berlin billboard too.
How dairy compares to plant-based milk
Courtesy: Our World in Data
The dairy industry is notorious for its high environmental footprint, water use and land use. A landmark study by scientists at Oxford University in 2018 found that, on average, cow’s milk uses 8.95 sq m of land per litre – over 11 times higher than the next on the list, which is oat milk (at 0.76 sq m). This is followed by soy (0.66 sq m), almond (0.5 sq m) and rice milk (0.34 sq m).
In addition, the research revealed that conventional dairy uses 628 litres of water for a litre of milk – almond milk, at 371.5 litres, is next, with rice milk raking up 269.8 litres, oat milk using 48.2 litres, and soy milk just 27.8 litres (22 times lower than cow’s milk). In terms of GHG emissions, dairy represents 3.15kg of CO2e per litre, which is nearly three times as much as rice (1.18kg). In contrast, soy milk emits 0.98kg, oat milk amounts to 0.9kg, and almond milk 0.7kg per litre.
Oatly, which uses climate intelligence platform CarbonCloud (a fellow Swedish company) to measure its product emissions from farm to store, claims its products emit as little as 0.43kg of CO2e per litre, with its Light Oat Drink coming top of the list. But the highest amount emitted by its milk alternatives is the half-litre Barista version, which amounts to 0.64kg of CO2e per litre – still nearly five times lower than the Oxford study’s estimates for dairy.
Extending its partnership, it’s offering a 50% discount code for CarbonCloud’s services to businesses that haven’t yet calculated their emissions, as part of its climate labelling campaign. Other food-focused carbon calculators include UK-based My Emissions and Californian company Planet FWD’s new AI platform.
Oatly’s ‘grey paper’
Courtesy: Oatly
To help make carbon labelling mandatory, Oatly has published a ‘Grey Paper’, referring to how “climate labelling isn’t a black and white issue, where certain foods are good and others are not”. The paper makes three key arguments to advocate for the cause.
The first builds upon scientific consensus about the food industry’s emissions. A third of all global emissions come from this sector, while livestock farming produces between 11-19.5% of the planet’s overall emissions. Further studies have shown that animal-derived foods like meat and dairy cause twice as many emissions as plant-based foods, and replacing half our meat and dairy consumption with plant-based alternatives can double climate benefits.
Oatly’s second pillar highlights how consumers already receive such information in other sectors. People look at Energy Performance Certificate ratings when buying houses, emissions data when purchasing cars, and Energy Rating data when buying electronic appliances. Oatly argues that the same logic should be applied to food and drink too.
The final argument relies upon public support for mandatory carbon labelling. Oatly conducted a consumer poll of 2,000 UK adults, with 62% expressing support for a policy-making the act mandatory. Additionally, 55% believe companies should be obligated to disclose this data, with the figure rising to 78% for under-35s. Meanwhile, 59% of Brits said they’d reduce or completely eliminate products with high carbon footprints from their diets if they were given accurate emissions data.
Consumers can see through greenwashing
Courtesy: Oatly
In 2020, similar research by Carbon Trust showed that 63% of consumers in the UK felt carbon labelling was a good idea, while 63% would feel more positive about a product that had reduced emissions. However, only 35% said it was important for them to know a company is taking action on its environmental impact before purchasing its products, while 51% said they don’t think about carbon footprints when buying products.
More recent data from last year revealed that 73% of Brits felt it was important for food and drink to have low carbon footprints, while 49% wanted to see carbon footprint labelling on products. But only 25% claimed to fully understand the meaning of the term ‘carbon-neutral’.
Earlier this year, accounting firm KPMG found that 54% of Brits said they’d stop buying from a company that has misleading claims about the sustainability of its products. Moreover, 45% have heard of the term ‘greenwashing‘, and 76% said false or misleading claims are the clearest examples of greenwashing.
This is part of what is driving Oatly’s campaign: transparency and accountability to help the public make greener decisions. “This is about giving consumers the freedom to make informed choices about what they’re buying and how it impacts the planet – from grower to grocer,” says its UK general manager Bryan Carroll.
And that’s not to say Oatly’s record is squeaky clean. In January 2022, the oat milk producer was at the receiving end of an ad ban by the UK’s Advertising Standards Authority (ASA), which accused it of greenwashing consumers with unsubstantiated environmental claims in its comparison of oat milk with conventional dairy.
For instance, one commercial – with the tagline “Need help talking to dad about milk?” – stated that Oatly generates 73% fewer carbon emissions than milk. The comparison was between Oatly Barista and full-cream milk, but the ASA said consumers would understand it to mean all of Oatly’s products. And in two newspaper ads, it stated that over a quarter of global emissions come from the food industry, with meat and dairy accounting for half of that. The ASA said Oatly included fish and eggs as part of meat and dairy, but people may assume it has a narrower definition.
And it’s not just the UK – the brand was hit by three lawsuits in New York after being accused of greenwashing by its investors in 2021. Oatly did introduce its carbon footprint labels in the US earlier this year, with a similar campaign to push for mandatory labelling.
Greenwashing legislation is key
Graphic by Green Queen Media
This is why policy intervention is key. The UK’s new Green Claims Code lays out a six-point checklist to help businesses make credible environmental claims. And in 2021, British startup Provenance launched its Provenance Framework, an open-source rulebook listing the criteria companies need to fulfil to make a true environmental claim, and avoid greenwashing and misleading consumers.
The EU, meanwhile, finalised a new law to curb greenwashing last month, banning terms like ‘carbon-neutral’ and ‘eco-friendly’ from product labels, unless businesses can provide “proof of recognised excellent environmental performance relevant to the claim”. One of its proposed sister laws, the Green Claims Directive, mandates businesses to assess and meet new minimum “substantiation requirements” for sustainability claims – but progress on this has stagnated.
Carroll says it is unreasonable to expect emissions cuts and consumer behavioural changes without providing people with the information they need: “Given the urgency of our climate challenge, we believe it should be as easy for shoppers to find the climate impact of what they’re buying, as it is to find its price tag.”
In this vein, Oatly is hosting a Reddit AMA (Ask Me Anything) session this Friday, where its sustainability director Caroline Reid will discuss and field questions about climate labels. The brand has put out a call for an executive from the dairy industry to co-host the event.
Oatly’s tough turn
Courtesy: Oatly
The oat milk giant has had a difficult couple of years, with post-pandemic supply chain issues and the cost-of-living crisis hitting its stock hard, which has crashed by as much as 94% since its US IPO in 2021, when it was worth $10B. This was exacerbated by leadership changes – with former CEO Toni Petersson moving into a co-chair role – and restructuring, as it reduced headcount by 25% across Europe, the Middle East, and Africa.
In November 2021, it saw a 20% fall in shares directly due to a warning about its products’ quality, as well as delivery delays, while five of its products were voluntarily recalled in August 2022 due to safety issues. It also withdrew its ice cream tubs from UK supermarket shelves as it faced increased competition, while its market share dwindled in Asia due to “a slower-than-expected post-Covid-19 recovery in China”. It led the company to eliminate SKUs and slow down on product expansion.
Now, as Oatly aims to reduce its products’ climate footprint by a further 70%, can Oatly turn a financial corner as well as help bring about labelling legislation? Its aim is to work with stakeholders over the next few months to exert influence on policymakers to introduce a mandatory carbon labelling system – “one that doesn’t cost the earth but helps preserve the Earth”.
“Together, we can put collective pressure on the UK government to make this happen and not get watered down like some other environmental policies have, sadly, been lately,” says Carroll, in a not-so-subtle reference to UK Prime Minister Rishi Sunak’s U-turn on the country’s climate commitments.
Marlow Foods, the Monde Nissin division that makes meatless brands Quorn and Cauldron, has announced a loss of £15.3M in its yearly accounts, owing to cost hikes, stagnating sales and post-pandemic pressures.
Marlow Foods is the latest company to be hit by a financially struggling meat alternatives sector, with retail sales of its Quorn mycoprotein-based products dipping by 4.3% to £192.9M last year across its global operations. This was partly due to post-pandemic pressures, as retail purchases rose in the second half of 2022, as well as inflation caused by the war in Ukraine, which the company says impacted its business significantly. Rising energy costs, as well as price hikes on ingredients like glucose and egg albumen, further impacted its costs.
While a 43.7% hike in foodservice sales to £28.3M and an 81.1% rise in the fast-food sector to £6.7M helped its total top-line revenue post a minor 1.3% increase to £227.9m, this growth is well behind current inflation rates, suggesting that the volume of products sold has fallen.
According to Nielsen IQ data published by the Grocer, the retail volume of Quorn and Cauldron products dipped by 10.9% and 22.6%, respectively – despite Marlow Foods growing its market share marginally by 1.5% to 31.7%, through new product launches, selling its meatless offerings at KFC across Europe, and adding 21,000 distribution points. The news comes months after its Philippines-based owner Monde Nissin – which acquired Quorn in 2015 – set up a B2B ingredients arm to sell to European manufacturers.
Marlow Foods recorded an operating loss of £12.9M last year – compared to £8.7M in profit in 2021 – with inflation squeezing its margins, with a full business review, the closure of part of a manufacturing plant, and one-off redundancies hitting it with £12.1M in costs. Further financing costs of £4.5M from interest on borrowings – up from £3.6M in 2021 – pushed its pre-tax loss to £15.5M, against profits of £7.4M.
“2022 was a year where we saw huge changes in consumer behaviour and turbulence in the global economy, but we were pleased to deliver sales growth and to consolidate our leadership in UK retail,” said Quorn CEO Marco Bertacca. “We always seek to insulate our consumers from the impact of higher costs and to protect the affordability of our food where possible, but these dynamics pushed our business into a loss for the year.”
US restructuring reflects wider trends
Courtesy: Quorn
Marlow Foods has depreciated the value of its £17.7M investment in the US to zero, months after Monde Nissin restructured its meat-free operations in the US by taking out a non-cash impairment charge of $370M and shifting spending away from Quorn. “The situation in the US has been very disappointing,” said Monde Nissin CEO Henry Soesanto earlier this year. “The plan that we had for the US was and it has been to really over-invest.”
It reflects the challenges faced by plant-based meat in the country. In August, plant-based giant Beyond Meat reported a 30% sales drop with a net loss of $53.3M, cutting its full-year revenue forecast and walking back its goal of becoming cashflow-positive in the second half of this year.
It followed job cuts by the company (affecting 200 employees) last year, with similar layoffs seen at fellow vegan meat companies Impossible Foods, Eat Just and Meati. Retail sales of meat alternatives in the US fell by 12.6% to $106.8M in the five weeks to July 2, 2023, with units down by 19.8% year-on-year. And for the year to July 2, 2023, sales declined by 7.3% year-on-year, while units saw a 15.6% drop. These figures coincide with a Gallup poll that found that the number of American vegans has hit a 10-year low.
Meanwhile, a report by the Good Food Institute (GFI) revealed that retail sales of plant-based meat flatlined in the US in 2022, but foodservice sales reached an all-time high of $730M – reflecting Quorn’s sales trends last year.
While the UK is Europe’s second-largest vegan market – with Brits spending £964M on plant-based meat and dairy last year – sales have stagnated and total investment in plant-based protein R&D has been overtaken by cultivated meat in the last decade. According to the GFI Europe, plant-based sales declined by 3% between 2021-22 in the UK, with plant-based meat sales sliding by 8% in the same period.
The UK has seen many brands pull their products from stores, including Coca-Cola-owned Innocent Drinks discontinuing a few of its smoothies, Heck reducing its meatless range from 10 products to just two, Nestlé dropping its Garden Gourmet and Wunda brands, and Oatly withdrawing its entire ice cream range. Late last year, sandwich chain Pret A Manger announced it was closing down most of its Veggie Pret stores..
GFI Europe says the UK must invest £380M in its alt-protein sector if it is to keep up with other countries and avoid losing startups to nations with better regulatory frameworks. Another report by Green Alliance found that, with the right combination of targeted investments and regulation, the UK alt-protein industry could be worth £6.8B annually and create 25,000 jobs by 2035.
Earlier this month, it was reported that the UK could be set to fast-track regulatory approval of cultivated meat with a bilateral deal with Israel. Israeli producer Aleph Farms filed the first such application in the UK in August.
As for plant-based meat, GFI Europe says much more can be done. Its UK policy manager, Linus Pardoe, told Green Queen in August: “While the UK has many of the right ingredients to play a key role in advancing research to make plant-based foods tastier, healthier and more affordable for consumers, most of the expertise in important fields like crop breeding and food science tends to be funded in a way that focuses on other, more established areas of research.”
Denmark has published an action plan detailing its goal to transition towards a plant-based food system, in what is a first by a national government. It’s part of the 2021-announced climate agricultural plan to cut food emissions and will involve plans to promote plant-based foods in school meals, via chef training, and by increased exports.
In 2021, Denmark introduced an unprecedented climate agreement arguing that vegan food must be a “central element in the green transition”. The plan saw the government earmark one billion Danish kroner (€168M) to advance the sector, with 675 million kroner (€90M) going to the creation of a new Fund for Plant-Based Foods, and the rest as bonuses to farmers who grew plant-based protein crops for human consumption.
The country’s new national action plan is part of this 2021 agreement, establishing how the government wants to boost its plant-based industry. The administration hopes to serve as an inspiration for the rest of the world when it comes to vegan food consumption and production. It also comes three years after it passed a climate law that outlining emissions and net-zero targets.
The Ministry of Food, Agriculture and Fisheries of Denmark’s plan involved training chefs in both public and private kitchens on the preparation of vegan meals, and a higher focus on plant-based diets in schools and the education system. It also outlines initiatives to expand the exports of locally produced vegan food through embassies, and invest more in research and development for this sector.
Rune-Christoffer Dragsdahl, secretary general of the Vegetarian Society of Denmark | Courtesy: Vegetarian Society of Denmark
That last point is key, as it’s in stark contrast to a report earlier this year that found that 97% of all research and innovation spending in the EU goes towards animal agriculture to increase production. This is despite the EU supporting two major research initiatives to help develop plant-based products last year, with a combined investment of €23.2M. In fact, between 2014-20, EU cattle farmers received at least 50% of their income through direct subsidies from the EU – which outnumbered the subsidies earned by the plant-based industry by 1,200 times.
This puts a spotlight on Denmark’s plan to incentivise farmers to grow vegan protein, as well as the introduction of its Fund for Plant-Based Foods, the first round of which has received 101 applications from startups, universities and others, requesting more than thrice the allocated €7.78M budget. The 2021 agreement followed the establishment of the country’s dietary guidelines a few months earlier, which called for a reduction in meat and dairy consumption, and higher intake of plant-based proteins.
While Denmark’s decarbonisation plan was the largest investment into plant-based R&D by any country, the Vegetarian Society of Denmark argues that the sector is still “severely underfunded”. Experts from several of the country’s universities have pointed out that funding must increase by at least sixfold, reaching 600 kroner (€80M) annually.
“Both we and many other dedicated forces in the plant-based sector are determined to make the mission succeed, but it also requires further investments throughout the value chain,” says Rune-Christoffer Dragsdahl, secretary general of the Vegetarian Society of Denmark. “And here, the money does not match the ambitions.”
This aligns with a recent report that found by the organisation – in collaboration with Greenpeace, Animal Protection Denmark and Green Transition Denmark – which found that Danish banks and financial sector lack the objectives and knowledge to invest in food and agricultural sustainability.
He adds that the national action plan lacks concrete objectives across the board: “There are a lot of great visions in the action plan, but it is unclear which goals will be achieved and how they will be achieved. If Denmark’s constructive path is to be a credible alternative to, for example, the Dutch approach – which led to large demonstrations in the country – the visions need concrete figures.”
Plant-based policies by countries around the world
Source: Luisa Brimble via Unsplash
The Netherlands – whose nitrogen emission plan sparked backlash from livestock farmers – has faced criticism from environmentalists, who allege that its tax rules encourage fossil fuel use. But it has proposed a six-year master plan to increase plant protein production and consumption, and approved cultivated meat and seafood tastings after investing €60M in cellular agriculture last year – plus, it set aside €25B to buy out livestock farms and limit the number of animals reared for human food.
Similarly, Germany’s National Nutrition Strategy involves a focus on plant-based diets, particularly in government-run establishments like hospitals and schools. Its Minister of Food and Agriculture, Cem Özdemir, says German meat consumption has declined, with only a fifth eating it daily. He adds that policymakers intend to build a comprehensive nutrition strategy to promote food system changes via early education and accessibility initiatives. The potential is there, given Germany is Europe’s largest plant-based market.
Last month, Switzerland’s government launched a new climate strategy for agriculture to make its food system more sustainable and boost food security. This includes a recommendation to reduce meat consumption and adopt more plant-based food in people’s diets – 21% of the population already consumes vegan alternatives to dairy once a week.
Elsewhere, Canada’s Food Guide recently made changes to encourage the consumption of plant-based foods more often than animal-derived protein. And in the US, 1,400 mayors ratified a resolution in August to promote a shift to plant-based diets to address chronic diseases, climate change and national healthcare costs.
In Taiwan, meanwhile, the 2023 Climate Change Response Act promotes a plant-froward, low-carbon diet to fight the climate crisis and reach net zero by 2050. In China, the Ministry of Agriculture and Rural Affairs included a focus on future food tech like cultivated meat for the first time as part of its Five-Year Agricultural Plan in January 2022.
Additionally, 2023 is the UAE’s Year of Sustainability, part of which is a push to promote plant-based eating in the country. It’s also the host of this year’s COP28 climate summit, billed as the first food-focused edition, featuring a predominantly vegan catering menu – 44% of its residents are open to substituting meat and dairy with vegan alternatives.
The EU’s plant-based policy
Last month, five EU animal advocacy organisations, including the Vegetarian Society of Denmark, published a report suggesting 11 measures to unlock the transition towards a plant-based food system in the region. They called for a redirecting of public funding, a rethink of the EU’s protein strategy and mandatory carbon labelling.
The EU was further urged to lower VAT on plant-based foods – something ministers in Germany are also campaigning for in terms of alt-dairy – introduce a health tax on red and processed meat, and implement a meat tax with a higher VAT on animal-based foods, a measure that is currently being discussed by the Danish government.
The same week the report was published, the European Parliament’s Agriculture Committee voted to implement a strategy to increase the production of plant proteins in the EU, emphasising that these would increase the “circularity in the food and feed value chains” and benefit the climate. It came after the EU Parliament adopted a resolution to promote plant-based eating and reduce the overconsumption of meat in February 2022.
“Immediate action is necessary to mitigate the ongoing impact of meat production on climate change and biodiversity loss,” said Joanna Oliveira, project director at the Portuguese Vegetarian Association and coordinator of the coalition’s report. “Implementing these policies and initiatives, with consideration for gradual adoption in specific cases, will be crucial to achieving a more just, sustainable and resilient food system, benefitting both current and future generations.”
“Denmark is the first country to develop an action plan specifically for plant-based foods. Therefore, the plan itself is internationally groundbreaking,” added Dragsdahl. “We hope that politicians will set concrete targets in the coming period, and we are happy to offer our expertise in this area to ensure that this succeeds.”
Alt-protein think tank the Good Food Institute (GFI) India has just released its first State of the Industry report for the country and by all accounts, there is much to be optimistic about. We break down the seven key highlights from the country’s smart protein sector.
India is making strong progress when it comes to the alt-protein sector – and this is crucial, given the South Asian country now has the largest population in the world, one which is predicted to continue growing over the next three decades.
It’s also the Asian country requiring the second-highest increase in alt-protein production, with 85% of its protein consumption needing to come from alternative and traditional plant sources (like beans, tofu, tempeh, etc.) if it is to carbonise.
So where does its ‘smart protein’ industry stand, and how far does it have to go? It’s these questions that GFI India addresses in its State of the Industry 2023 report – its first dedicated to the country. Here are seven key takeaways from the research, highlighting early adopters, government support, alt-protein regulation, labelling conventions, and more.
Infographic by Green Queen Media using GFI India data
Plant-based dairy is king, but alt meat shows promise
Courtesy: Kingdom & Sparrow/The Alt Co
There are 113 companies working on plant-based, cultivated and fermentation-derived meat, dairy, seafood and eggs in India. Unsurprisingly – given the country has the largest dairy industry in the world – nearly two-thirds (65.8%) of plant-based businesses are focused on alt-dairy (with almond milk brands topping the list), and 30.1% on vegan eggs.
Meat alternatives only account for 4.1% of all vegan brands in India. There’s a large opportunity here, though, given that vegan chicken is the top product format across the sector (followed by alt-milk), and 77% of Indians consume meat daily, weekly or occasionally. Still, the current market landscape values plant-based dairy (₹250 crores/$30M) 2.5 times higher than meat alternatives (₹100 crores/$12M).
In terms of investment, alt-protein startups (across the three pillars) saw a modest investment of $17M between 2021-22, a small share of the $562M total that was injected into APAC companies in 2022. However, a survey of investors active in or entering the alt-protein sector by GFI showed that 99% of respondents are optimistic about the sector’s potential.
“I believe, with its world-class talent and proven track record of cost-efficient scale-up, India is uniquely positioned to be a smart protein innovation and manufacturing hub,” said Michal Klar, investor and funding partner at Better Bite Ventures. “This is especially relevant for technologies like precision fermentation that can benefit from talent and equipment currently used for biomedical research and production.”
Thanks to exports, India’s international presence is growing
Courtesy: GoodDot
While investment within India might not be too high, Indian alt-protein manufacturers are starting to make an international mark and contributing to the government’s $2T export goal by 2030.
Biotech firm Laurus Bio makes animal-origin-free growth factors, recombinant proteins, and cell-culture media supplements to cater to cultivated meat companies globally and help meet cost and scale requirements.
When it comes to plant-based, Greenest Foods shipped India’s first export consignment of plant-based meat from Gujarat to the US last year, while Wakao Foods shipped one of the largest-ever shipments (13 tons) of jackfruit-based products stateside earlier this year.
There were quite a few exports to Singapore, one of APAC’s alt-protein leaders. Blue Tribe Foods launched its line of burgers, tikkas and alt-meat products across Singapore supermarkets, while Shaka Harry will introduce plant-based meat products to the city-state’s Mustafa Centre. Evolved Foods, meanwhile, is exporting vegan meat alternatives to Singapore and Nepal.
More internationally, BVeg Foods supported Haldiram’s International’s launch of its Plant Perfect alt-protein range in the US, UK, EU and Australia, while shipping 22 tons of frozen vegan beef chunks to the UK in July. And as we reported last week, GoodDot – which has been exporting to Singapore, Canada, Nepal, the UAE, South Africa, Oman and Mauritius – entered the US market, with plans to move into the UK and Europe too.
Meanwhile, Kanpur-based Oatmlk became one of the first Indian plant-based dairy brands to export to the UAE and Singapore – which is significant as it isn’t based in one of the top three metro cities of New Delhi, Mumbai or Bengaluru. “New brands from tier-II and tier-III cities will play an important role in India’s export story in the coming decades,” says GFI India.
Bright visuals and ‘plant-based’ over ‘vegan’: how to nail product packaging
Courtesy: Greenest Foods
Since 2006, food and drink packaging in India has been labelled with green or red dots, signalling whether a product is vegetarian or non-vegetarian (which includes eggs in the country), respectively. But in 2021, the Food Safety Standards Authority of India (FSSAI) introduced a new vegan symbol to help consumers differentiate and identify plant-based products.
GFI India carried out a consumer study to identify packaging cues to help identify vegan food, finding that there’s a gap between comprehension and nomenclature – especially for plant-based dairy, which carries labelling restrictions. But there are certain things brands can still do to make their offerings easily identifiable.
Consumers prefer bright and bold colours with elements of green on the packaging, which they expect to be shaped intuitively (tubs for ice cream, blocks for cheese, etc.). Product imagery on the label is crucial in signalling the nature and taste of the food while mentioning the type of protein helps too. And similarly to global trends, most Indians prefer the term ‘plant-based’ over ‘vegan’.
Like many of their global counterparts, Indians value health above most other criteria when considering smart proteins. In 2021, a Kerry study found that health was the top motivating factor for Indians switching to plant-based food. This is especially true for alt-milk, according to GFI India’s research, with claims like “no added sugar” or “no preservatives” appreciated by consumers.
However, when it comes to meat, taste cues resonated more with consumers. But for both product categories, “high protein” was an important factor. Interestingly, claims about animal cruelty didn’t significantly motivate consumers to eschew animal-based food for vegan alternatives, which are primarily considered substitutes during religious events or festivals when meat consumption is prohibited.
Who is the Indian plant-based consumer, and what’s stopping the rest of the populace?
Courtesy: GFI India
To identify the profile of the early adopters of vegan food in India, GFI looked at consumers who were likely to regularly purchase alt-meat, dairy and eggs, as well as pay more for these products.
The result? Young (aged 25-44), higher income (monthly household income of over ₹50,000/$600), well-educated (college graduates and above), living in urban areas, and flexitarians are the early adopters of plant-based foods in India. Vegan eggs and dairy count vegetarians and non-vegetarians as their target audiences too – and while people aged 18-24 are keen on alt-meat, they’re deterred by the price premium.
Of these early adopters, one in four say they’d consider giving up conventional meat, seafood, dairy or eggs in the future, citing issues like hygiene, smell, ease of cooking and heaviness on the stomach, as well as animal welfare and impact on the climate.
While half of these consumers are aware of plant-based milk, only 30% are familiar with alt-meat and 20% with vegan eggs. And of the households acquainted with these products, 23% have tried milk alternatives (with 43% intending to buy in the future), while only 10% have tried meat analogues (with 33% likely to purchase at some point). Meanwhile, 82% of Indians who have bought plant-based milk in the last six months say they’ll consider buying it again, with repeat purchases of alt-meat coming in at 72%.
Flexitarians are key here: 89% who have bought alt-milk buy conventional dairy as well, and 72% do the same for meat, with protein being a key reason for interest in both product categories (and health is equally important for milk).
Among the barriers to consumer adoption are resistance from family, a perceived ‘unnaturalness’, lack of clarity on health benefits, and taste and price. People over 45 feel these products are not relevant to them and possess a synthetic taste, while product availability is a key hurdle for many Indians.
There is increased government support for alt-protein in India
Map of smart protein startups in India | Courtesy: GFI India
There are strong signs of administrative support and examples of public funding to help propel India’s smart protein sector to the next stage. Within India’s Ministry of Science and Technology, the Science and Engineering Research Board included cultivated meat research under its Competitive Research Grant Programmes and announced a funding call centred on making millet-based meat, egg and dairy proteins.
The Biotechnology Industry Research Assistance Council, meanwhile, has invested in multiple smart protein startups in India via initiatives like the Biotechnology Ignition Grant Scheme.
In March 2022, India’s minister of food processing industries confirmed that smart protein is eligible for financial assistance under the Pradhan Mantri Kisan Sampada Yojana, a central government scheme that provides monetary support to develop food processing and preservation infrastructure to set up food processing units.
A month earlier, a Ministry of Commerce department set up the Vegan Committee on Export Standards, Guidelines and Promotion for Vegan Food Products to aid the growth of the plant-based industry and set export guidelines. It’s part of the National Programme on Vegan Products, which aims to make India an export leader in the category.
As for state governments, Maharashtra (where Mumbai is located) included smart protein as a pillar to help each its $1T economy target by 2030. And its deputy chief minister signed a directive for manufacturing hubs that will focus on creating plant-based protein value chains.
“The potential for other state governments to chart a path for the smart protein sector is huge, especially since every state in India is uniquely positioned to benefit from various aspects of the innovation and production of smart protein food value chains,” reads the report.
No cultivated meat applications for regulatory approval yet
Sohil Kapadia and Parini Kapadia, founder of Zero Cow, one of India’s only precision fermentation dairy companies | Courtesy: Zero Cow
In India, the FSSAI is the body responsible for the regulatory framework of foods, including plant-based, cultivated and fermented proteins. The latter two fall under the Food Safety and Standards Regulations set out in 2017, which rule that if a product or ingredient doesn’t have a history of human consumption – or is obtained using new tech with engineering processes that significantly alter its composition – it’s classed as a non-specified or novel food product.
In 2020, the FSSAI formed the Working Group on Cultured Meat with regulatory and scientific experts to study the possible regulatory pathways for cultivated meat in India. So far, it hasn’t received any applications for the approval of cultivated meat or proteins made from biomass fermentation.
However, there has been progress on the precision fermentation front, with Californian pioneer Perfect Day obtaining premarket approval from the FSSAI for its animal-free whey protein after it purchased Sterling Biotech last year. Additionally, the regulatory body has approved the use of mycoprotein derived from Fusarium venenatum (the fungi strain used by Quorn).
There’s a lack of clarity when it comes to plant-based labelling in India
Courtesy: Blue Tribe Foods
Like the EU, the FSSAI prohibits the use of terms like ‘milk’, ‘cheese’ and ‘yoghurt’ on the packaging of dairy alternatives. The regulator has specified that alt-dairy products can’t be considered as milk or milk products.
But in June last year, it finalised its Vegan Foods Regulations, a separate framework for plant-based food in India. Producers must comply with these rules and obtain approval to even label their products as vegan. And while the FSSAI published a list of FAQs for further clarity, it mentions that plant-based dairy and cheese analogues are not eligible for consideration as vegan food.
This makes things confusing for plant-based brands, as many alt-dairy products fall under the confines of the Vegan Foods Regulations and satisfy the definition of a dairy alternative. So it’s not clear whether these analogues can be classed as analogues, leaving companies in a neither-here-nor-there dilemma.
The FAQs also mention that the term ‘vegan’ can’t be clubbed with meat-related terms on product labels, with companies not allowed to make claims comparing alt-meats to their conventional counterparts in any sensory manner.
So while a lot of progress is being made, there are some key challenges for India’s alt-protein industry to overcome. “Building trust in these safe, sustainable, and scalable alternatives to conventional proteins is paramount,” Subhaprada Nishtala, director of ITCFSAN, the FSSAI’s training centre, told GFI India. “We envision a future where innovation, safety, and sustainability coexist harmoniously, enriching the dietary choices of the Indian public. Together, we can chart a path towards a more resilient and diversified protein ecosystem in India.”
Read the full State of the Industry 2023 report by GFI India here.
Unilever-owned ice cream giant Ben & Jerry’s has announced that it will be reformulating its entire non-dairy range, switching from a base of almonds or sunflower seeds to oats. Starting with two trademark flavours that will be available this autumn, the rest of the lineup will debut in stores in spring 2024.
Ben & Jerry’s 19-strong vegan ice cream range currently contains a base of almonds and sunflower seeds, but the brand says the existing recipes change the overall flavour of the ice creams. The company sought to change its recipes two years ago, considering 10 different ingredient bases, including coconuts and rejigging the almond recipe.
Ultimately, the flavour team settled on an oat milk base, finding that it had the smoothest texture and most neutral flavour that would allow the core flavours of chocolate, caramel and vanilla to shine. The company adds that the change favours people with nut allergies – though using oats means that none of the frozen desserts are gluten-free either.
The reformulated versions of the Chocolate Chip Cookie Dough and Chocolate Fudge Brownie will be available this autumn in the US, while the 17 others will be launched worldwide in the spring. Ben & Jerry’s will also release a new flavour exclusive to the dairy-free ice cream range, specifically with the oat base in mind.
Ben & Jerry’s non-dairy history
Courtesy: Ben & Jerry’s
Ben & Jerry’s, which boasts a 33% market share in the US non-dairy ice-cream sector, first launched its plant-based range in 2016 with Chunky Monkey, Chocolate Fudge Brownie, Coffee Caramel Fudge and Peanut Butter & Cookies flavours. This lineup has expanded over the years to include options like vegan Chocolate Chip Cookie Dough, Cherry Garcia and Phish Food.
In 2019, it launched edible cookie dough bites that were available in a vegan variant too, and a year later, it introduced a sunflower-butter-based line of ice creams in the US, whose current flavours include Milk and Cookies, Bananas Foster and Mint Chocolate Cookie.
With the new oat-based recipe, Craig Koskiniemi – one of Ben & Jerry’s ‘flavour gurus’ – told Food Dive that it could backfire with die-hard fans of its current dairy-free lineup, but stressed that oat won out in consumer taste tests. Additionally, non-dairy only makes up 7% of the company’s total packaged business, so the threat of sales crashes isn’t as huge.
In a statement, Colleen Rossell, another ‘flavour guru’, said: “With this new recipe, Ben & Jerry’s fans can expect more: more flavour, smoother texture, and more dessert euphoria with the same signature chunks and swirls. This new recipe is so good, it’s even loved by our most discerning dairy fans who are used to eating [dairy-based] ice cream.”
A crowded vegan ice-cream freezer
Courtesy: Ben & Jerry’s
Plant-based products only account for a 2.6% share of the US ice cream market, with a household penetration rate of 11.8%. Despite the average American consuming 23 lbs of ice cream each year on average, dairy-free sales declined by 4% from 2021-22.
And in the UK – where Ben & Jerry’s leads the way in terms of overall tub and block sales – non-dairy products are said to make up 14% of new ice cream launches while accounting for less than 5% in take-home sales. Moreover, the British market saw a sales drop in vegan ice cream, with a 2% fall from 2021-22 (albeit a 14% hike from pandemic-hit 2020 levels).
It has led to a period of flux within the sector. Oat milk leader Oatly withdrew its entire ice cream range from the UK market earlier this year, citing increased competition and missed sales targets. The UK plant-based ice-cream aisle is getting increasingly congested, featuring brands including Häagen-Dazs, Magnum, Jude’s, Swedish Glace, Booja Booja, Northern Bloc and, of course, Ben & Jerry’s. And this is before you start factoring in supermarkets’ private-label brands.
It’s a similar scenario in the US, with So Delicious (owned by Danone), Häagen-Dazs, Wicked Kitchen, Van Leeuwen, Salt & Straw, Forager Project and Oatly – to name a few – combining with own-label brands to crowd the retail freezers.
Making a better product and exploring new tech
Courtesy: Ben & Jerry’s
Speaking about Ben & Jerry’s recipe change to Food Dive, Koskiniemi explained: “We compared it to some of the other products on the market and we were finding that actually, there’s really room to improve what we had. It really stemmed from this internal view, knowing that we’re not satisfied with what we have. We know we can do better.”
Despite the increasing number of players in this space, it feels like the demand may be there – over half of consumers in a global survey said they’d be more willing to buy vegan ice cream if more options were readily available, according to Olam Food Ingredients.
“We can really help grow the nondairy category by improving the quality of our product,” said Koskiniemi. “We took our time to make sure that we were getting the best possible product for our non-dairy.”
The news also comes a year after Ben & Jerry’s parent company, Unilever, began working with European startups to explore precision fermentation technology, specifically pointing out challenges in the non-dairy ice cream segment. “We’ve got some things coming [in precision fermentation] in the next year or so,” said Unilever’s chief R&D officer for ice cream, Andrew Sztehlo, hinting that it would probably come from one of its big global brands, possibly a North American one.
California’s Perfect Day is a pioneer in this segment – with its former consumer-facing brands Brave Robot and Coolhaus using its precision fermentation-derived animal-free whey for its ice cream range.
US precision fermentation protein manufacturer Liberation Labs is lining up a Series A funding round that could ink the brand as much as $75M, reports Axios. The financing will be used to build its upcoming $115M facility in Richmond, Indiana, which will have a capacity of between 600 to 1,200 tonnes of protein per year.
Months after it secured $30M in equipment financing for its biomanufacturing plant, which it broke ground on in June, Liberation Labs CEO Mark Warner told Axios that the company’s Series A funding will largely be equity, but could involve more equipment financing or even government investment.
He added that investors could include traditional VC firms as well as infrastructure and climate funds, and the funds may end up being a blend of debt and equity. The Series A round is set to close by the end of the year and could bring its total funds raised to $126M (including a $20M seed round last year and a $1M funding round).
Building commercial-scale facilities across the globe
Liberation Labs will use the cash to fund the Richmond plant, which is a commercial-scale facility built to meet the growing demands of proteins from precision fermentation. The factory – which is set to cost around $115M and become operational sometime next year – will be capable of producing between 600 to 1,200 tonnes of protein annually, and bring in $40M in yearly revenue.
Warner previously told AFN that the plant will have downstream processing capabilities and support clients ranging from well-funded precision fermentation startups to established ingredient firms and CPG companies: “Our facility in Richmond will be the first fit-for-purpose precision fermentation food protein manufacturing facility in the world, to my knowledge.”
If all goes well, the company will then look to build another factory five times the size of this one, which is estimated to generate $160M in revenue each year and will be funded via more traditional project financing. “Long term, we’re looking at six geographies worldwide,” Warner told AFN in April. “In each one, we expect to build initially a 600,000-litre launch facility, and ultimately a four-million-litre commercial facility.”
“This type of company and industry is a perfect fit for the Hoosier state given Indiana’s strong agriculture and manufacturing sectors,” Indiana Governor Eric Holcomb said in a statement. “We love to see innovative new technologies creating quality jobs and career pathways for both today’s and tomorrow’s workforce.”
Reducing costs for futureproof proteins
Courtesy: Rimmabondarenko/Canva
Warner told Axios that while billions have been poured into working out how to produce cell-cultivated proteins, scale remains a question mark. With precision fermentation, that isn’t as much of a challenge, as it can already be scaled up. “Despite strong consumer interest in bio-based ingredients, the industry has yet to fully deliver on their promise,” Warner said in a statement after breaking ground on the Richmond facility.
Liberation Labs aims to address the capacity bottleneck and lower the costs attached to precision fermentation. “Something like lactoferrin, which has a high dollar value, is certainly attractive, but once you get to the 50 to 100 bucks a kilo range, that’s where it starts to get difficult,” he told AFN. “Really, anything that currently sells for less than 50 bucks is a challenge, although it also depends on how much you use in a given application.”
He added: “As you really get into what I would consider bulk products, there’s going to need to be additional development on the process to reach viability.”
Independent life-cycle assessments carried out on behalf of precision fermentation dairy companies Perfect Day and Bon Vivant found that their animal-free whey proteins have 99% less water use and 97% lower emissions than conventional dairy. And non-company assessments have found that precision-fermented proteins can have a 53-100% lower environmental impact than animal-based proteins.
Touching upon these futureproof aspects, Warner said in June: “We believe our purpose-built biomanufacturing facility will fill the gap and help usher in a new era of advanced bioproducts that will make our lives better, including foods, materials and yet-to-be-discovered breakthroughs.”
Funding and facilities for fermentation
The global fermentation sector has raised about $3.7B in total funding, with over $840M coming in just last year, according to industry think tank the Good Food Institute. It reports that there are at least 62 companies working in the precision fermentation segment across the supply chain, including Perfect Day, Formo, Remilk, Imagindairy and Aqua Cultured Foods.
In terms of production facilities, Remilk – which is worth $325M after a $120M Series B round in January 2022 – had broken ground on what it described as the “world’s largest full-scale precision fermentation facility last year but has put construction on hold for now as it focuses on increasing production at its existing plant. Meanwhile, fellow Israeli company Imagindairy has secured a total of $28M in seed funding so far.
Courtesy: Change Foods
In the UAE, American-Australian producer Change Foods – which has secured $15.3M in total funding – signed an agreement last year to design a first-of-its-kind commercial manufacturing plant, with a capacity of 1.2 million litres.
In Australia, Cauldron Foods raised AU$10.5M ($6.74M) earlier this year to build Asia-Pacific’s largest network of precision fermentation facilities. Fellow Aussie company All G, meanwhile, reeled in $25M in a Series A round last year to take its total funding to $40M. Meanwhile, China’s Changing Biotech secured a $22M Series A round last year and is building a 9,000 sq m facility in Qingdao – its current facility has a capacity of five tons, and it’s working on designing six 50-ton lines.
In India, Sterling Biotech was acquired by Perfect Day last year, which took over its three facilities across the country. The company, which has raised a total of $750M and was worth $1.5B in 2021, has plants in Berkeley and Salt Lake City (60,000 sq ft), and in addition to the Indian factories, it has four commercial-scale co-production facilities globally, giving it the capacity to produce thousands of tonnes of its animal-free whey protein.
Courtesy: Formo
Elsewhere, German precision-fermented egg company Formo raised a record-breaking $50M in Series A funding in 2021 to bring total financing to $54.7M, while Californian counterpart The Every Co closed an oversubscribed $175M Series C round the same year.
Meanwhile, New Culture, which produces precision-fermented casein, is the only company that has claimed it can manufacture animal-free casein at scale, with the capacity to produce up to 25,000 pizzas’ worth of cheese with each batch of its protein.
Earlier this month, Aussie producer Eden Brew, which has developed what it calls a “world-first” animal-free casein micelle, closed a $24.4M Series A funding round. Just today, French precision fermentation company Bon Vivant (which works on both whey and casein) announced a €15M ($15.9M) seed round to accelerate the production of its beta-lactoglobulin protein.
German retailer Lidl has announced that it will be introducing price parity for the majority of its plant-based alternatives to animal-derived foods via its own-label brand Vemondo. The grocer will also place these vegan products directly next to their conventional counterparts across all its stores in Germany.
Lidl introduced its Vemondo range in 2020, which now boasts over 100 products (the retailer stocks a total of 650 vegan items across seasons). Now, most of the products under this label – which include plant-based milk, yoghurt, ice cream, cheese, meat products and ready meals – will be priced on par with their animal-derived counterparts.
The retailer says it wants to “bring equality on the plate”, explaining that widespread “conscious and sustainable consumption” is only possible if these foods are “affordable and more easily accessible for everyone”.
Plant-based price parity to match market trends
Courtesy: Lidl
It comes on the back of research last month revealing that 43% of consumers in Germany would buy more vegan products if they were cheaper – not only is it Europe’s leading plant-based market, it has the second highest per-capita spend on plant-based foods. Meanwhile, 29% would purchase more if there were a higher number of plant-based options to choose from.
The survey was carried out by BVLH, a federal association of German retailers, which found that 43% of the country’s population identifies as flexitarian, while 9% are vegetarian and 3% are vegan. Similar research has found that meat consumption has dropped to a record low in the country, which ranks top when it comes to plant-based meat sales in Europe.
Attitudes towards plant-based dairy are along similar lines. The country is the leading European market for vegan milk, cheese and yoghurt, with sales of the former growing by 20% between 2020-22. Additionally, research by the University of Hohenheim has revealed that Germany has the greatest potential for alt-milk in the continent, with purchases already growing by 62% between 2020-22.
Lidl’s move to introduce price parity will be a win for German MPs Tim Klüssendorf and Bruno Hönel from the Social Democratic Party and Green Party, respectively. In August, the two politicians proposed a change in the country’s tax laws to reduce the VAT on plant-based milk to better reflect consumer needs. Currently, alt-milk carries a 19% levy, compared to 7% for traditional dairy.
Germans spent an average of €6.60 on alt-milk last year, with 28% consuming it once a week. This is why Lidl’s decision to reduce their prices to match them with cow’s milk is such an important step. “By adjusting the price of our Vemondo products, we would like to increasingly invite customers to try out the plant-based alternatives – without the price being the decisive criterion,” said Lidl Germany’s chief buyer Christoph Graf.
“Price is a key lever in nudging people to transition to a more plant-based diet, particularly in times when household budgets are being squeezed,” Jasmijn de Boo, CEO of alt-protein non-profit ProVeg International, said in a statement. “This is also the first time we are seeing a long-term, permanent pricing measure by a large retailer to promote plant-based nutrition and we hope other retailers will follow Lidl’s example and make similar adjustments to their pricing.”
Positioning vegan products in the meat and dairy aisles
Courtesy: Lidl
Lidl isn’t just aligning its vegan product prices with animal-based food: it’s now putting them together. It will place plant-based products in the traditional aisles of all 3,250 of its stores – so plant-based meat will go alongside conventional meat, while plant-based milk will be positioned next to cow’s milk, for example.
It follows a trial by the retailer in June, where it placed its four bestselling meat analogues in the meat aisle for increased visibility. It’s a strategy that has been known to be successful in creating more awareness and increasing consumer adoption of these products across different countries.
A 2020 trial by US retailer Kroger and the Plant Based Foods Association (PBFA) showed that when sold in the meat aisle, plant-based meat sales rose by 23%, with one consumer explaining that their first thought is that these products will be in the meat section, while another said this makes buying vegan a lot easier.
In 2021, a UK-wide report by the Institute of Grocery Distribution (IGD) found that 57% of respondents strongly agreed that moving plant-based products into the meat aisle would make it easier for them to follow healthier and more sustainable diets. Although it could be important to have a segregated bay within the meat aisle, as opposed to placing products right next to the meat, Asda found the latter saw a 30% sales decline versus the former.
It’s important to make these changes permanent, as Lidl is doing. IGD reports how, in one European study, meatless spreads and sausages were moved alongside their conventional counterparts (as well as remaining in their original positions). While sales increased initially, they came back down once the trial had ended.
Additionally, a 2021 poll by Attest found that a fifth of US and UK consumers never visited a dedicated vegan aisle, with 28% doing so rarely. Meanwhile, 16% of non-vegans said they’d never buy from these sections.
Replacing meat and dairy with plant-based alternatives
Courtesy: Lidl
Lidl – which was the first retailer to introduce the V-Label on price indicators on shelves in Germany – claims that it is the first German supermarket to disclose data on the proportion of animal to plant-based protein in its product range. The grocer has found that vegan to animal protein has a ratio of 11% to 89%, while for dairy, this changes to 6% to 94%, respectively.
The retailer says it’s the first to set concrete goals around these foods. It will endeavour to increase the proportion of plant-based protein sources in its German stores by 20% and alt-dairy by 10% by 2030. The company adds that it will advocate for a cross-industry methodology to calculate protein ratios. The move comes months after Lidl announced it will be cutting back its meat offerings in favour of more plant-based food as there is “no second planet”.
“Only if we enable our customers to make ever more conscious and sustainable purchasing decisions and fair choices can we help shape the transformation to sustainable nutrition,” said Graf. “For us, this also includes remaining in active dialogue with our partners in German agriculture and continually developing our animal range in terms of transparency and husbandry methods.”
Plant Sifu, Hong Kong’s first locally produced plant-based meat brand, has made impressive strides since launching in late 2021. Now, the food tech company has extended its partnership with the city’s flag carrier, Cathay Pacific, bringing its tasty plant-based pork range to even more travellers across the world.
The consumer-facing brand of Hong Kong foodtech company Good Food Technologies, Plant Sifu, made waves last year when it introduced its next-gen plant-based pork with patented AROMAXTM fat technology after the parent company closed an oversubscribed HK$12.5M ($1.5M) seed funding round in early 2022.
Since then, the brand has entered multiple foodservice locations in Hong Kong, showcasing its products at seven of the city’s most reputable Chinese restaurants, before extending its footprint with a partnership at Cafe de Coral-owned Shanghainese chain Shanghai Lao Lao in April. The soup dumpling and fresh noodle chain launched a green plant-based menu featuring Plant Sifu’s pork in all 12 of its locations, marking the first fully vegan menu by the restaurant. The four dishes were so successful that they have become a permanent addition. Additionally, the Asian plant-based brand launched with Fairwood (Hong Kong’s second largest Chinese fast-food chain with 100+ outlets), Nosh (the city’s leading meal delivery service provider), and recently returned to IKEA in Hong Kong and Macau in the form of plant-based siu mai.
Photo copyright @ Plant Sifu
But perhaps Plant Sifu’s most notable link-up is with Cathay Pacific, Hong Kong’s national carrier and a pioneer in food innovation in the airline industry. In July, the two companies collaborated to debut in-flight meals containing Plant Sifu’s plant-based pork.
Plant Sifu in the sky
“Cathay Pacific is not only a global top 10 airline, but also one of Hong Kong’s best-recognised enterprises for culinary innovation and quality,” Joshua Ng, co-founder of Good Food Technologies, told Green Queen in August. “Our ‘taste-first’ and localised approach in product development separated us early on to secure this key partnership,” added co-founder Dr Andrew Leung.
Now, the two brands have extended their link-up with a six-month trial that will see more meals containing the vegan pork appear on the Economy and Premium Economy menus of select long-haul Cathay Pacific flights. These include routes departing from Hong Kong and rotating across North America, Australia, Europe, the Middle East, and Africa.
Photo copyright @ Plant Sifu
Chefs from the carrier’s Culinary Design team created Chinese and Asian dishes by using all formats of Plant Sifu’s pork, including mince and bites. Think braised egg tofu with pork mince and shiitake mushrooms, and wok-fried mince with Thai basil, morning glory and vegetarian sambal.
“Plant Sifu is proud to be Cathay Pacific’s selected partner to serve their Premium Economy and Economy class globally,” said Ng. “This is also a first for Hong Kong food innovation with global impact.”
The collaboration is part of Cathay Pacific’s wider Greener Together strategy, which aims to achieve carbon neutrality and battle climate change. In August, it worked with Hong Kong vegetarian restaurant Veda, part of the Ovolo Hotel Group, to create 16 meat-free dishes for the carrier’s in-flight menu.
Photo copyright @ Plant Sifu
It was part of Cathay Pacific’s ‘The difference is in the detail‘ campaign, which aims to elevate its in-flight dining experiences and improve its wellness and sustainability credentials, as well as supports its long-term partnership with Hong Kong environmental charity The Green Earth, helping travellers “make better lifestyle choices for the planet”.
In February of this year, Cathay Pacific launched a First and Business Class menu with Michelin-starred Cantonese restaurant Duddell’s, also one of Plant Sifu’s partners.
Contributing to a healthier, more sustainable planet
Photo copyright @ Plant Sifu
Plant Sifu began by focusing on cleaner plant-based alternatives catering to Asian diets and cooking applications, starting with pork and dim sum. All Plant Sifu products are free from MSG, preservatives, refined sugar, and genetic modification. The secret to its superior juiciness and texture? The company’s fat tech AROMAXTM. “After extensive research with chefs, it was clear that pork fat and lard are quintessential ingredients in Chinese and Asian recipes,” said Leung.
“However, they come along with health hazards of high fat and high cholesterol commonly associated with heart disease, diabetes, and obesity. Therefore, our team went on to invent AROMAXTM – using konjac gelatin structures locked with flavours and aromas to mimic fatty pork.”
In terms of sustainability, the brand claims that independent life-cycle assessments have shown that its meat products use at least 75% fewer resources compared to their conventional counterparts, and are hence more planet-friendly.
Working with Cathay Pacific extends its mission to “feed the world sustainably”. Plant Sifu truly is soaring – both figuratively and literally.
German alt-meat company Esencia Foods hosted Europe’s first tasting of mycelium-derived seafood at the Anuga gastronomic fair in Cologne. The startup makes whole-cut whitefish like seabass and cod comprised of just two ingredients using solid-state fermentation.
The startup, which was founded in August 2022 by Hendrik Kate and Bruno Scocozza, began by creating mycelium alternatives to scallops and salmon and how now finalized prototypes for whitefish species like seabass and cod.
Esencia leverages a proprietary solid-state fermentation process that involves growing microbes atop an inoculated solid surface. The core ingredient for this process is a strain of edible fungi often used in the food industry. And unlike many “plant-based processed products”, the company claims its biomass is composed of two ingredients only, and adds that its mycelium alternatives are high in protein, fibre and omega-3, though it is not disclosing the exact ingredient list (previous coverage suggested the final product has 5-6).
Biomass fermentation uses considerably less land, water and energy, and produces a fraction of the greenhouse gases associated with traditional animal husbandry, for an equivalent amount of protein, according to food scientist Dr Martin Wickham.
Courtesy: Esencia Foods
‘A new generation of protein’
Esencia’s mycelium-derived whitefish was on display for tastings at Anuga – which takes place biennially and is one of the world’s largest food industry trade show fairs – with the company looking to ink partnerships with restaurants, foodservice distributors and food corporations at the event.
“Tastings at selected industry-focused events will help us to win important partners, but also to fine-tune our products and learn which dishes can be most successful at the market,” said Kaye. “The number of samples is limited. Tasters should be prepared to try not just seafood alternatives, but the start of a new generation of protein to feed humanity.”
Esencia, which raised $500,000 in a pre-seed round last September, isn’t the only company that will be exhibiting alt-seafood products at Anuga. Spanish brand Zyrcular Foods will showcase its plant-based tuna and salmon alternatives, alongside a Smashburger at the event.
Courtesy: Esencia Foods
Mycelium meat and alt-seafood on the rise
While the alternative seafood space is increasingly crowded on the plant-based side and boasts a handful of cultivated startups, Esencia’s only other major whole-cut mycelium seafood competitor is US company Aqua Cultured Foods, which says it’s the world’s first whole-cut microbial-fermented seafood producer, makes analogues to whole-muscle ahi tuna, whitefish, shrimp and calamari, among others. Earlier this year, the startup raised $5.5M in a seed funding round to accelerate production and scale up.
In July, California’s The Better Meat Co and Israel’s Oshi (previously Plantish) signed an MoU to develop a salmon alternative – the former is known for its B2B mycelium ingredients. Last year, scientists in Copenhagen began working with two Michelin-starred restaurant Alchemist to develop mycelium-based seafood.
Other companies working in the mycelium meat space include Meati, Libre Foods, Prime Roots, MyForest Foods and Adamo Foods, among others. Meanwhile, Canadian brand Seed to Surf is also making vegan whitefish but with a whole-foods plant-based approach- celeriac is the base ingredient.
Courtesy: BlueNalu
The seafood analogue sector has seen a flurry of developments this year. Vegan startups like Konscious Foods and Hooked Foods have secured funding, and two European brands received a €1.5M grant to create 3D-printed mycoprotein to replace seafood, which debuted last month. Other product launches include South Korean startup Unlimeat‘s upcycled vegan tuna and Singapore-based HAPPIEE‘s vegan shrimp and squid in the UK.
In our weekly column, we round up the latest news and developments in the alternative protein and sustainable food industry. This week, Future Food Quick Bites covers Eleven Madison Park’s Hong Kong pop-up, UK environment secretary Thérèse Coffey’s anti-alt-meat comments, and a host of alt-seafood developments.
New products and launches
Eleven Madison Park, the three-Michelin-starred restaurant once named the world’s best, turned (mostly) vegan in 2021 – but for the milk and honey in its tea and coffee service. Now, it’s crossing continents in its 25th year, partnering with Hong Kong luxury hotel Rosewood on a five-day-long vegan pop-up at its Asaya Kitchen, led by EMP chef-owner Daniel Humm. And in true EMP fashion, the eight-course tasting menu will cost HK$3,998 ($510) plus 10% per person. Go figure.
Also in the restaurant world, popular vegan sushi chain Planta has opened its second outpost in Los Angeles, following the launch of the first one in Marina Bay earlier this year. The new Brentwood location is its 14th across the US and Canada. Another new vegan restaurant in Los Angeles is Ubuntu, a West African restaurant, whose chef is behind the New York vegan soul food eatery Cadence.
Courtesy: Planta
Speaking of plant-based sushi, Konscious Foods has collaborated with Whole Foods Market’s sushi venues on ready-to-eat sushi rolls, which feature the brand’s vegan seafood. The Tuna California and Spicy Sno Crab tolls are available at Whole Foods stores nationwide.
Whole Foods in the UK, by the way, will now feature products from Danish brand PerfectSeason, which makes whole-food plant-based meat, including beetroot patties, mushroom patties, and dill cakes. They come in 200g packs of two patties, with the aim to make vegetables the main dish.
The UK has actually been a hotbed for plant-based news this week. Swiss startup Planted has secured a listing for three products in Tesco: a vegan kebab, and lemon and herb chicken, and a new duck SKU that is exclusive to the UK. The B Corp-certified brand’s products will be available in 350 Tesco stores, joining Holland & Barrett, Morrisons and Planet Organic in its retail roster.
Meanwhile, British chef James Taylor has partnered with Hodmedod’s, a grains and pulses supplier, to include British pulses on the primary school menus he creates. He’ll be using ingredients like carlin peas, flamingo peas and coral lentils (among others) in dishes such as lasagne, shepherd’s pie and chilli. If you have any more suggestions, there’s an open call!
Courtesy: Beyond Meat
And on the heels of its new US ad campaign highlighting its health credentials, Beyond Meat is finally releasing its heart-healthy Beyond Steak in the UK, which will be available for restaurants and chefs to order. There’s no announcement about a retail launch, however.
In the US, frozen food giant Dr. Praeger’s is making a texture play with a new crunchy veggie burger line. Available in Crunchy Cauliflower and Crunchy Southwestern Sweet Potato variants, they’re made from six vegetables and can be found at Whole Foods, Shoprite, HEB, Sprouts and Publix nationwide, after debuting on telemarketing channel QVC last month.
Speaking of frozen foods, Indian plant-based meat company GoodDot is entering the US via a partnership with food exporter and distributor Regal Kitchen Foods. Its vegan chicken tikka curry and butter chicken are currently available via the latter’s website, and will soon appear on supermarket shelves in the US.
Meanwhile, upcycled food producer Supplant Kitchen has updated the recipe for its ultra-popular shortbreads, which contain its Sugars from Fibre ingredient claiming 30-40% less sugar than regular shortbread. Available in classic and chocolate formulations, the packaging has been updated to highlight the health and eco credentials too.
Courtesy: Meati
And Colorado-based Meati – which has had tons going on recently – has now joined the snacking category with a shelf-stable mycelium meat jerky in Original, Peppered and Sweet Chile flavours. It comes just weeks after the company opened its D2C online marketplace and subscription service, promising never-seen-before products.
If you’re a keen ocean traveller, Princess Cruisesis launching several vegan menus across its fleet of 15 ships in response to “surging demand”. Passengers can request plant-based options ahead of the trip – these would include Baja-style cauliflower tacos, green goddess salad with tofu and endive, and “walkaway” ratatouille.
Going back to the seafood realm, US producer Plant Based Seafood Co. has partnered with premium wholesaler Sam Rust Seafood to introduce the former’s vegan range to Sam Rust’s foodservice and retail customers.
Courtesy: Zyrcular Foods
In Europe, Catalan plant-based brand Zyrcular Foods is exhibiting its vegan tuna and salmon, as well as a smashburger, pulled pork and pulled chicken at the ongoing German trade fair Anuga 2023 (October 7-11).
Elsewhere, Singapore’s OnlyEg, owned by Float Foods, is making its Australia debut, seeking foodservice partnerships in Sydney. It makes plant-based egg yolks, poached eggs, tamagoyaki, omelette wraps, egg shreds and patties.
Funding and M&A activity
Superlatus, the new company that recently agreed to acquire Perfect Day’s consumer-facing brand The Urgent Company, has now entered an agreement to purchase plant-based dairy and egg company Spero, which will join Coolhaus, Modern Kitchen, Brave Robot and more under The Urgent Company umbrella. Next year, Spero will launch mozzarella sticks and shreds, as well as Cheddar shreds.
Courtesy: Spero Foods
Meanwhile, months after confirming its exit from the dairy category, Finnish company Fazer is considering changes to its plant-based dairy production due to a ‘slowdown’ in the sector’s growth. It’s looking to make its Sweden factory the hub for oat milk manufacturing, while its Finnish facility would focus on oat yoghurt – this could affect 133 employees, with 93 positions possibly being terminated.
Also in the dairy category, Spain’s Pascual Innoventures and Eatable Adventures have launched the third edition of Mylkcubator: More Than Mylk, an accelerator for cellular agriculture companies. Startups that were part of its previous editions include Novo Dairy, Zero Cow Factory, Miruku and Maolac, and have generated a total value of $107M. It has opened calls for this year’s incubator programme.
And in Barcelona, Japanese tofu maker Someno’s Tofu Co. – which opened its first overseas branch in the city in February – has reported a sales growth of 179% in the last eight months.
Speaking of soy-based protein powerhouses, UK tempeh maker Better Nature has launched a crowdfunding campaign on Seedrs with a £1M goal. It comes months after it launched a £3M Series A round – and yesterday, it emerged that the brand is the UK’s top-scoring meat-free B Corp, with an impact score of 99.7 (20% higher than the sector average).
Another company celebrating a milestone is Omni, the UK vegan pet food company, which says it has served over a million plant-based dog meals since its founding in 2020 and has seen a sales rise of 60% since the beginning of the year.
Courtesy: Omni
New Zealand-based NewFish, meanwhile, which has developed an 80%-concentrate marine whey protein from microalgae, gained investment from Oslo-based VC firm Katapult. It will join 22 startups in the latter’s accelerator programme, after being in the top 1% of 2,500 candidates and valued at NZ$10M ($6M).
In other startup news, the Vegan Women Summit Pathfinder competition has just announced its top 10 finalists for this year with startups working on everything from alt-fats to mushroom-centric meat-free ranges. The founders of Liven Proteins Corp, Kula Foods, Big Mountain Foods, Nud Fud (all Canada), Lypid, Tiamat Sciences, FoodNerd (all US), Alver (Switzerland), Poseidona (Spain), and Time Travelling Milkman (the Netherlands) will be pitching to the jury on November 1.
Policy and research
Did you hear that plant-based is good for you and the planet? Well, now, even one of the EU Commission’s scientific advisors is saying that. Eric Lambin, co-author of a study earlier this year that highlighted how the meat and dairy lobby are blocking the rise of alt-protein, is calling on the EU to adopt policies that will help drive this shift towards a more sustainable food system.
And speaking of people who used to be in the EU, the UK’s environment secretary Thérèse Coffey recently attacked plant-based meat at a Conservative Party Conference, saying they “might be okay” for astronauts. In an open letter, Plant Based News co-founder Robbie Lockie criticised her remarks: “Your dismissive attitude towards plant-based meats is not only misinformed but incredibly irresponsible… Your lack of environmental foresight is not merely disappointing; it’s a dereliction of your duty to both the public and the planet we inhabit.”
Courtesy: World Economic Forum/CC
Elsewhere, Chinese impact investment firm Dao Foods has released a new report highlighting the potential of fermentation in novel protein adoption in the country, examining its history of biomanufacturing infrastructure development, supportive government policies, and the opportunities and challenges faced by the sector.
In Asia, the industry think tank the Good Food Institute APAC has published its first Korean-language State of the Policy report, highlighting how the South Korean government is accelerating the development of cultivated meat and other alt-proteins via strategic investments and collaborations.
And in further Asian news, alt-protein advocacy non-profit ProVeg International has opened a new office in Malaysia, its 12th branch across the globe. The organisation is also introducing V-Label to the southeast Asian country.
Novel tech and manufacturing news
SIngapore-headquartered plant-based meat company TiNDLE Foods, which has made a wave of headlines over the last year, recently opened an R&D centre in Nijkerk, the Netherlands, complementing its existing Chicago and Singapore. The company announced another milestone, its TiNDLE Nuggets, Wings, or Tenderslanded at Whole Foods in the UK.
On the other end of the spectrum, US meat giant Tyson Foods has laid off a reported 250 employees at a poultry processing plant in North Carolina in response to weak consumer demand, inflation and fluctuating prices. Prior to this, Tyson had already announced the closure of six poultry processing plants this year.
In new tech developments, Israeli nutri-tech startup Novella is unveiling its new line of berry-derived bioactive at the Las Vegas trade show SupplySide West (October 23-27). It’s in the advanced stages of making intact-cell berry compounds grown outside of the plant using “novel, precision-controlled-environment technology”.
Courtesy: Veg of Lund
Meanwhile, Sweden’s Veg of Lund – the company behind the Dug potato milks that caused a stir upon launch in 2021 – has received a notice of intention from the US Patent and Trademark Office, which is set to approve its application for a “vegan potato emulsion”, clearing the way for launch stateside. The company already holds similar patents in Sweden, Europe and Canada, and has active applications in Australia, China, India, Japan, Thailand, South Korea, Hong Kong, and the UAE.
Finally, Chilean food tech startup NotCo – the company behind the AI-powered range of plant-based milks, mayo and burgers – has been named a Climate Tech Company to Watch by the MIT Technology Review for its potential to reduce emissions and address the challenges posed by global warming.
Want more roundups of alt-protein, plant-based and sustainable food? Stay tuned for next week’s Future Food Quick Bites, published every Wednesday, or get it in your mailbox by signing up for our Alt Protein Weekly newsletter.
Wanda Fish, the Israeli startup making cultivated whole-cut bluefin tuna, has raised $7M in a seed funding round to accelerate production and scalability. The company is planning for regulatory approval in the US in 2025, and says it will launch in the market the year after.
The latest cash injection brings Wanda Fish’s total financing to $10M. The latest funding round was led by Dutch aquaculture investment fund Aqua-Spark and joined by returning pre-seed investors The Kitchen Hub by the Strauss Group, Peregrine Ventures, LLC, Pico Venture Partners, MOREVC, and CPT Capital, LLP. The announcement came the same day BlueNalu, a fellow cultured bluefin tuna maker, announced its $33.5M Series B raise.
Founded in 2021 as a joint venture between Israeli food tech incubator The Kitchen Hub and biotech innovation expert Daphna Heffetz, Wanda Fish makes whole-cut filets of cultivated seafood. The company started with bluefin tuna, a fish species that is sought-after for its flavour, texture and nutritional attributes. The premium product is used in high-grade sushi and sashimi restaurants across the world– with Asia responsible for over 80% of its global consumption.
But bluefin tuna supply can be limited and extremely variable in quality, and it faces declines in stocks due to overfishing and illegal, unregulated and unreported fishing, according to BlueNalu. Wanda Fish adds that further demand is driving the species towards endangerment and has led to governments placing quotas to limit its fishing. Moreover, tuna is one of the most polluted fish in the oceans, often contaminated with plastic debris and extremely high levels of heavy metals like mercury.
How Wanda Fish makes cultured bluefin tuna
CourtesyWanda Fish
Wanda Fish, which is still in relatively early stages, says it has made progress on several key breakthroughs to develop a cell-cultured whole-cut bluefin tuna prototype. This includes forming a 3D filet structure using bluefin tuna cells, differentiated into both muscle and fat tissues. The startup is using animal-free growth mediums and custom bioreactors as they will be instantly scaleable, when appropriate, and allow for costs to remain palatable.
With its proprietary tech, the company can control fat levels (which is key as the fish is renowned for its balance of fat and protein). This can help develop a diverse range of filet cuts, including the premium tuna belly cut called toro that BlueNalu is working on (which plans to open a commercial-scale facility by 2027).
In March 2022, Wanda Fish entered a licensing agreement with Tufts University, gaining exclusive access to the latter’s IP surrounding cultivated fish development, created by cellular agriculture expert David Kaplan. As part of the collaboration, the company will support a two-year research programme by the university into the production of fish cells.
“We start with a single, one-time sample of a real native fish muscle and fat tissues,” Kaplan said at the time. “We then pursue the replication of the biological growth of fish, with the nutritional attributes, including protein and omega-3 content, as well as the flavour and textural properties.”
Price parity and regulatory approval
“By integrating innovative proprietary applications from multiple disciplines, including cell culture, biotechnology, food tech, and culinary design, we will produce a versatile range of fish species to satisfy all preferences, at affordable prices, and with uncompromising quality,” Wanda Fish CEO Heffetz had added. It’s worth noting that while cost continues to be one of cultivated meat’s biggest challenges, bluefin tuna’s premium position means it wouldn’t carry the same price differences as cultured alternatives to beef, pork or chicken.
Heffetz told TechCrunch that Wanda Fish expects to obtain regulatory approval from the USDA and other agencies in early 2025, and plans to enter foodservice by 2026. “We will now scale up production and work on the cost parity. We will also collaborate with big food companies for distribution. Our core technology is being done in-house, but we need to collaborate to get to market as fast as possible.”
“We are excited and feel incredibly fortunate to collaborate with Aqua-Spark in propelling our venture forward,” Heffetz said in a statement. “We are on a shared mission to improve the global food value chain, creating a tasty, more sustainable future for all. This financial backing by leading global venture funds gives us significant leverage to make sustainably cultivated, cruelty-free, and ocean-friendly bluefin tuna a reality.”
Chen Galili via Wanda Fish
Growing investment in cultivated seafood
“Wanda Fish is transforming visionary ideas into a tangible, cutting-edge product that is just steps away from reaching its prototype,” said Jonathan Berger, CEO of The Kitchen Hub. “This is credited to a skilled and ambitious multinational team led by Daphna Heffetz that is undoubtedly poised for a resounding success story in the thriving alternative protein space; this spells good news for an overburdened marine ecosystem.”
Wildtype (from California) secured the largest-ever cultivated seafood investment with a $100M Series B for its cell-based salmon in 2022. Meanwhile, China’s Avant closed a $10.8M Series A round the same year, while in 2021, Singapore’s Shiok Meats closed an oversubscribed bridge round that brought its total financing to $30M – the cultured crustacean player counts Aqua-Spark as a backer too. Earlier this year, Berlin-based Bluu Seafood secured $17.5M in a Series A raise with the aim to launch in Singapore next year.