US fast-casual chain Smashburger has partnered with jackfruit meat producer Jack & Annie’s to debut a new burger across its locations nationwide, the latest example of a QSR embracing whole-food plant-based products.
With health and nutrition top of mind for consumers, whole-food plant-based products have been cropping up across the globe in the foodservice world. In the latest instance, Colorado-based companies Smashburger and Jack & Annie’s have linked up to launch a new burger spotlighting the latter’s jackfruit-based meat.
The collaboration marks the fast-casual debut of Jack & Annie’s – whose products are already available in over 5,000 locations across the US, including Whole Foods, Safeway and Target. Smashburger will add its jackfruit patty as a permanent menu item across its 235 locations nationwide.
“Plant-based alternatives have continued to show up on menus throughout the industry, so making sure we offer more diverse and plant-forward options was the natural transition to expand our menu,” said Smashburger’s chief restaurant support officer, Eric Marcoux.
Keying into health-conscious Americans with jackfruit
Courtesy: Jack & Annie’s
Smashburger and Jack & Annie first tested the partnership with a limited-time offering last summer in the chain’s Colorado, New York, New Jersey and Chicago locations. Following positive consumer feedback, it decided to make the jackfruit burger a permanent fixture on its menu nationally.
The burger patty itself is plant-based, but the default Classic Smash Veggie Burger contains American cheese, alongside lettuce, tomatoes, red onions, pickles, Smash Sauce (which isn’t vegan), and ketchup. It is part of a burger range that also includes Truffle Mushroom Swiss and Colorado Veggie burgers, as well as Bacon Smash, BBQ Bacon Cheddar, Avocado Bacon Club burgers (which are not meat-free).
So although the branding makes it seem like these are all veggie burgers, it’s important to note that Smashburger uses conventional bacon. But the jackfruit patty can be subbed in for any chicken, beef or black bean burger on the menu, which could be an appealing option for many health-conscious consumers, given that the Jack & Annie’s burger has 47% less fat than a traditional beef patty.
While not exactly what you’d call an entirely clean-label option – the Jack & Annie’s burger has jackfruit, soy flour, coconut and canola oils, alliums, spices, natural flavourings and colourings, and methylcellulose – it is a whole-food, plant-based meat rich in fibre and micronutrients like potassium, iron and calcium. Moreover, a 100g patty contains 8g of protein, just 9g of total fat (with 5g saturated fat), and 150 calories. Plus, being animal-free, it’s free from cholesterol.
Health is a topic entrenched in the American mainstream consciousness, given the alarming rise in rates of obesity and type 2 diabetes – over two-thirds (69%) of Americans are overweight and 36% are obese. Additionally, there’s greater sensitivity around ultra-processed foods and their impact on health. Last year, research revealed that more Gen Zers in the US want to go vegan for their health than the environment – a key target demographic for Smashburger.
A 1,022-person survey by the International Food Information Council (IFIC) found that health is the major factor behind Americans eating vegan or vegetarian diets, with six in 10 choosing it. In terms of plant-based meat products like Jack & Annie’s, ‘healthy’ is the most appealing labelling description to these consumers.
According to Jack & Annie’s – which has previously been ranked as the third-largest player in the frozen plant-based category – two in three fast-casual customers say a jackfruit-based menu item would make them more likely to purchase from a restaurant. There’s the environmental aspect too: the company’s independent life-cycle assessment has shown that jackfruit’s global warming potential is 94% better than beef, 87% better than pork, and 60% better than chicken.
“With jackfruit, we’ve found a path for consumers that is sustainable, healthier, and provides the tasty experience they are looking for,” said Jack & Annie’s namesake founder and CEO Annie Ryu.
Whole-food plant-based on the up
Courtesy: Smashburger
The IFIC poll also showed that when it comes to protein intake, whole-plant sources saw the sharpest rise among Americans between 2022 and 2023, with 28% eating them ‘somewhat’ or ‘much more’ now. These foods additionally had the second-lowest drop in consumption rates (behind plant-based meat and seafood analogues), with only 11% of consumers eating them less during this period. (In comparison, red meat consumption was down by 32%, and poultry 15%).
It highlights the growing importance of whole-food plant-based options for Americans, with protein choices ranging from tofu and tempeh to jackfruit itself. While Jack & Annie’s isn’t the only company working with jackfruit-based proteins – Karana (Singapore), Jack & Bry (UK) and Upton’s Naturals (US) are among a few others – it is the most well-funded, with $28M in total investments following a $23M Series B round in late 2021 after debuting its products in 2020.
Its partnership with Smashburger signals two opportunities. First, long-standing whole-food plant-based meat brands like Jack & Annie’s parent The Jackfruit Company (which was founded in 2011, the same year as Impossible Foods) might be able to find success with consumers looking for such options. This includes the likes of Upton’s Naturals, NoBull Burger and Big Mountain Foods.
Second, it’s a marker of the growing prevalence of the whole-food plant-based trend in foodservice. Just earlier this year, Dave’s Hot Chicken released its first meat-free options with cauliflower sliders and bites, and Hard Rock Cafe in Broadway introduced a Veganuary menu with cauliflower wings and a mushroom primavera pasta. Chipotle’s braised tofu (Sofritas) and Shake Shack’s veggie burger also come to mind, as does Chipotle founder Steve Ells’ new chain Kernel, whose menu is focused on whole foods too.
This is a trend being seen internationally as well. In the UK, Veganuary saw a whole-food plant-based boom. Burger King brought back its black bean burger, Wagamama and Pret A Manger spotlit mushrooms, Leon went all-in on gut health with a bhaji wrap, while Pizza Express introduced a veggie-packed calzone and Zizzi’s new Rustic pizza featured Fable Foods’ pulled shiitake mushrooms.
With the Smashburger partnership, Jack & Annie’s hopes to make 2024 a significant growth year, and close in on profitability. “We’re excited that consumers across the nation will get to taste what we have known all along: our jackfruit offerings make for delicious and simple plant-based, plant-forward food with naturally meaty taste and texture,” said Ryu. “We are thrilled to move the plant-based category forward.”
Singaporean startup TurtleTree has become the first precision fermentation dairy company to earn a vegan certification, with its animal-free lactoferrin protein LF+ now sporting the Certified Vegan logo by Vegan Action.
Called LF+, TurtleTree says its lactoferrin is the first precision-fermented dairy protein to be accredited as a vegan product globally, months after it earned self-affirmed GRAS status in the US.
This also marks the first time Vegan Action – the most recognised vegan certification body in the US, with over 15,000 accredited products in its catalogue – has provided its stamp to a novel protein in the 24 years since its launch. The accreditation confirms that TurtleTree’s lactoferrin protein is indeed free from animal products, byproducts and testing.
“As conscious consumers increasingly prioritise ethical choices, we aim to provide food and beverage brands with the unwavering confidence that our products align seamlessly with those evolving values,” said TurtleTree co-founder and CEO Fengru Lin.
Why vegan certification became important for TurtleTree
Courtesy: TurtleTree
TurtleTree said its vegan certification has “solidified its unwavering commitment” to animal welfare and meeting evolving consumer demands. While most precision fermentation products don’t involve any animals, their bioidentical nature and the genetic codes required in production can make interpretations complex, especially when adhering to standards originally designed for plant-based products, the startup explained.
There is certainly a case for clarity here. A 2022 consumer acceptance study by German precision fermentation company Formo, Mercy for Animals, and the University of Bath revealed that respondents wondered how best to categorise animal-free dairy, and whether they’re vegan, plant-based and free from animal involvement at all, or if they should be considered ‘real’ dairy?
“Preoccupation with broken rules of categorisation was a factor for many of the participants, and many called for regulatory bodies, labelling standards, and transparency in the production process to deliver clarity on these questions,” the authors wrote.
TurtleTree called vegan certification a “hot-button issue”, explaining that regulatory approval demands extensive safety testing, and some companies choose quicker, cheaper animal studies and preclude products from being accredited as vegan. The startup aims to set a precedent to help create a standardised definition of veganism in the context of precision fermentation.
Krissi Vandenberg, director of Vegan Action, said this sets a “clear benchmark” for the rest of the industry: “This certification demonstrates the tangible steps companies can take to validate and communicate their values to customers, underlining a collective commitment to ethical standards.”
Irina Gerry, chief marketing officer of US-Australian precision fermentation company Change Foods and vice chair of the board of directors at industry association Precision Fermentation Alliance, told Green Queen that while vegan certification is a great way to demonstrate a company’s product satisfies strict ethical standards, all companies in the sector might not want to go down this path.
Whether a food is vegan-friendly is separate from whether it should be labelled as vegan because it transcends just ethical factors. Until now, seeing a vegan product was a sure sign that it was free from dairy – and thus lactose – making it suitable for people with lactose intolerance, but with precision fermentation, the lines are more blurry. While TurtleTree’s dairy protein is lactose-free, that may not be the case for every producer in the space. Furthermore, for folks allergic to dairy proteins themselves, a vegan label may cause added confusion.
“Given that to date, consumers tend to understand ‘vegan’ as ‘plant-based’, and therefore not expect to encounter a milk allergen, labelling milk protein made via fermentation as vegan could lead to confusion around allergenicity,” explains Gerry. So should all startups aim for vegan certification? “It depends on the company, the specific molecule, and the target consumer.”
Disrupting the coveted lactoferrin market
Courtesy: TurtleTree
The startup argues that being the only vegan lactoferrin on the market, LF+ will challenge the dominance of bovine lactoferrin. One of the main whey proteins found in human milk and bovine colostrum produced just after birth, it is also known as ‘first milk’. It’s a highly sought-after protein, as it takes at least 10,000 litres of milk to produce just 1kg of purified lactoferrin and currently retails for $750-$1,500 per kg.
Due to its limited supply, lactoferrin is only used in a few essential foods and beverages like infant formula and supplements. But it is said to have many functional benefits, including antiviral, antibacterial, anti-carcinogenic, immunity-boosting, gut-strengthening and iron regulation properties. The latter is a major USP, with the protein earning its ‘pink gold’ moniker due to the colour derived from its rich iron content.
One estimate predicts a 15.8% annual growth for the lactoferrin market, growing from $772.3M in 2023 to $3.3B in 2033. TurtleTree has claimed that its animal-free version will be more affordable and that it has managed to scale up production of the protein, which allows the company to alleviate “the global shortage of lactoferrin”, and attract new consumers previously unable to access the protein due to cost and supply barriers.
The company has previously said its clients are interested in purchasing $500M worth of LF+ over the next five years. It claims its protein will be more affordable and that it has managed to scale up production to alleviate “the global shortage of lactoferrin”. This will help attract new consumers previously unable to access lactoferrin due to cost and supply barriers.
Apart from infant formula, multivitamins and supplements, LF+ could be used in protein powders, functional beverages, meal replacements for the elderly, and animal-free dairy products. Vegan Action’s Certified Vegan logo now appears on the product’s packaging, validating its animal-free claims through a third party.
“Producing milk proteins without farming animals is a big part of the value proposition of precision fermentation,” says Gerry, but she reiterated that whether every company would want to obtain such accreditation is a more nuanced matter. “I always look at it from the end consumer in mind. If a company is targeting a vegan audience, then obtaining vegan certification would be highly beneficial.”
“However, it may not be needed if a company is targeting a broader set of consumers, especially if these consumers have varied reasons for seeking animal-free products. For some, it could be animal ethics, for others, it could be dairy allergen avoidance… climate or targeted nutrition needs.”
Despite facing a tough time globally, Australia’s plant-based meat sector has proliferated in the last few years, with the number of products on sale in retail channels growing by 14% from 2022-23, according to alternative protein think tank Food Frontier.
Out with the burgers, in with the deli meats. That’s the way Australia’s plant-based meat sector has gone over the last few years, according to research by Food Frontier, which found that between September 2022 and 2023, the number of meat analogues on sale down under increased by 13.7%.
Ahead of the release of its third State of the Industry report in mid-2024, the think tank has released its analysis of audit results of major supermarkets in Melbourne and Sydney in mid-2023, revealing that the volume and types of plant-based meats have changed significantly over the last three years.
With Australia and New Zealand leading Asia’s alternative protein investments last year, garnering $20M in funding in the first half of 2023, the former country has bucked the global retail trend for plant-based meats, with a threefold increase in on-shelf products over the last few years, from less than 90 to just under 300.
Courtesy: GFI APAC
Where companies like Beyond Meat and Quorn have struggled overseas, brands like Heck have reduced their plant-based offerings, and labels like Nestlé’s Garden Gourmet have withdrawn from certain markets, the plant-based meat category in Australia has gone from fewer than five Antipodean brands in 2017 to more than 30 in 2023.
Food Frontier’s 2020 State of the Industry report revealed that plant-based meats alone could generate nearly AU$3B in sales and provide 6,000 full-time jobs by 2030.
Convenience takes over utility for Australia’s plant-based meat sector
Food Frontier’s analysis reveals a shift in product categories as well. While burgers and sausages were all the rage a few years ago, the growing need for convenience has seen formats like snacking and finger foods, deli slices and ready meals come to the fore.
Versatile, functional products that can be integrated into multiple dishes – beef strips and chunks, and whole-cut meats – have proliferated, although there are still fewer than 10 products of each format in the retail market. Between July 2020 and September 2023, the number of burger and uncrumbed seafood analogues has remained the same, while sausage products have just witnessed a 36% increase.
However, there are 132% products in the crumbed chicken pieces category (nearing nearly 60 on-shelf offerings), with even greater increases for ready meals (254%), whole cuts (350%), deli slices (400%), meatballs (1,000%), and snacking and finger foods (1,100%).
Courtesy: Food Frontier
“The market has seen a growth in interest in products presenting more options and greater versatility than the traditional utility products such as burgers and sausages,” Food Frontier CEO Simon Eassom told Green Queen. “Manufacturers have moved to meet the consumer with an increase in chicken-style products both as ready-to-use finished products, but also for inclusion in their cooking (for example, chicken-style strips and chunks), as well as in chicken-based ready meals.”
Asked whether he expected this shift in format popularities, he said: “We weren’t surprised to see the evolution from burgers and sausages to formats that are more flexible and adaptable to different cuisines. This again reflects a maturing of a market in which consumers are expecting more. The increased provision of deli meats has been interesting to observe, as well as the growth in utilisation of plant-based meats into convenient ready-meal formats.”
The report suggests that the number of meat alternatives in Australia peaked at about 350 in early 2023, which was followed by consolidation in a few categories. Eassom explained that when these products first appeared on retail shelves, they were utility foods, but with too many manufacturers of the same products, Australians have “voted with their tastebuds and their wallets”.
Local companies dominate the alt-meat market down under
The data indicates that formats beyond burgers and sausages that can be incorporated into a much wider range of dishes are gaining favour, and manufacturers are responding accordingly. “We know that the early adopters of plant-based meats in Australia and around the world are flexitarians – they are the cohort, used to centre-of-plate proteins or protein-based dishes, that are now looking for healthier alternatives to those conventional protein sources and for products that mimic what they’re used to buying,” said Eassom.
A November 2022 YouGov Australia poll revealed that 19% of respondents called themselves flexitarians, while a further 9% were vegan, vegetarian or pescetarian. Taste and health were the top priorities for flexitarians, indicating the challenges for plant-based food manufacturers. Meanwhile, a study from Queensland’s Griffith University in October found that nearly a third (32.2%) of Australians have reduced their meat consumption over the last year, with 71.3% eating either completely meatless diets, mostly plant-based, or having some plant-based dishes in an overall omnivorous diet.
Food Frontier also found that the lion’s share of the market is now dominated by a few strong brands. And there has been a marked rise in homegrown brands too. With at least 31 plant-based meat manufacturers and ingredient suppliers in Australia – including v2food, The Aussie Plant Based Co and Fable Foods – the companies now make up 56% of plant-based products in major retail in Australia – up from less than half in 2019. International manufacturers like Beyond Meat, Impossible Foods and Fry Family Food are "holding their own" too.
Courtesy: Food Frontier
"A number of factors have affected the decline of international brand products in relation to the growth of Australian manufactured products," Eassom told this publication. "First and foremost, the products from the big, well-known US brands have always been viewed as premium products with a price tag that has been difficult for consumers to meet under recent financial conditions. The relatively weak Aussie dollar has not helped.
"In addition, several major international food manufacturers have withdrawn their early plant-based meat offerings or are reviewing their strategy within the sector. At the same time, a handful of Australian brands have seized the opportunity to consolidate their position in the market and take advantage of the rise in demand for new formats, such as crumbed chicken-style products.
"v2food has been extremely successful in its brand positioning within the retail sector as retail buyers have sought to consolidate their relationships around suppliers that can provide the whole range of products; i.e., beef-style as well as chicken-style across a multitude of formats from mince to schnitzels."
Food Frontier expects the category to keep evolving, with changes in company integration and product formulations not out of the question. “This is a food industry that’s continuing to innovate and adapt to consumer tastes and budgets," said Eassom. "The availability of more sophisticated ingredients will help manufacturers improve products to meet expectations around taste and texture, as well as price."
A new 17-country survey says that 65% of Europeans are concerned about the health implications of ultra-processed foods, with over half of respondents avoiding plant-based meats because they are ultra-processed.
With an increasing focus on nutrition and health, the debate around ultra-processed foods (UPFs) and plant-based meat rages on with a new 9,787-person, 17-country poll by European research hub the EIT Food Consumer Observatory.
The survey has found that 65% of Europeans believe UPFs are unhealthy, and 60% think they’re bad for the environment. And when it comes to plant-based meat, their association with ultra-processing deters 54% of Europeans from buying them.
The study highlights a lack of awareness of what constitutes UPFs, as well as a misconception about the connection between UPFs and health – despite UPFs taking up a majority of consumers’ diets. In the UK alone, UPFs make up 57% of an average person’s diet, and up to 80% when it comes to children or people with lower incomes. And according to the survey, 55% of Europeans consume UPFs at least once a week.
“Whether it’s a pre-packaged pasta sauce for a quick meal at home, or a fast-food treat meal out with the family, ultra-processed foods are part of the day-to-day fabric of consumer diets across Europe. However, it’s evident from these findings that people have real concerns about the health and sustainability aspects of these foods,” said Sofia Kuhn, director of public engagement at EIT Food.
Europeans link UPFs to health conditions but continue to eat them
Courtesy: EIT Food Consumer Observatory
UPFs originate from the Nova classification. Established in 2009 by a Brazilian group led by nutrition and public health professor Dr Carlos Monteiro, it classed food into four subgroups: unprocessed/minimally processed foods, processed culinary ingredients, processed foods, and UPFs. The latter comprised industrial formulations and techniques like extrusion or pre-frying, combined with cosmetic additives and substances of little culinary use, like high-fructose corn syrup, hydrogenated oils or modified starch.
The discourse around UPFs has amplified since British infectious diseases physician Dr Chris van Tulleken‘s book, Ultra-Processed People: The Science Behind Food That Isn’t Food, came out in April 2023. Here, he suggested that large food companies are pushing consumers towards an increasingly processed diet.
Experts have found that UPFs can raise the risk of heart disease, stroke, obesity, type 2 diabetes, breast and colorectal cancer, and hypertension. Along these lines, the EIT Food Consumer Observatory survey found that a third of Europeans believe UPFs contribute to obesity, diabetes and other lifestyle-related health issues, while 65% think they will cause issues later in life.
Courtesy: EIT Food Consumer Observatory
Additionally, a third dislike it when their foods have ingredients they can’t recognise. But despite that, only 56% make special efforts to avoid UPFs. There are three key reasons for this: convenience, price and taste. The ease of preparation (or none at all) means 41% of Europeans find UPFs convenient compared to minimally processed foods, while an even greater 49% think the former are cheaper than the latter. Many also call UPFs like fast-food takeouts to be tastier than homemade food, while some see them as a treat or comfort food.
Nearly a third (31%), meanwhile, believe UPFs can be healthy, chiming with a study published in The Lancet last year, which based its findings on the dietary and disease history of 266,666 people in seven European countries to suggest that some UPFs can be good for you. However, 40% of consumers polled by the EIT Food Consumer Observatory don’t trust that UPFs are regulated well enough by authorities to ensure they’re safe and healthy in the long term.
The UPF link with plant-based meat
There is a lack of awareness when it comes to the world of UPFs, particularly with their links to healthiness, as well as what foods are actually ultra-processed. The survey found that 54% of Europeans avoid meat alternatives due to their status as UPFs, particularly those who don’t follow meatless diets.
The gap in education is highlighted by the fact that 61% of consumers correctly identified energy drinks as ultra-processed, but only 34% did so for vegan cheese and 36% for vegan chicken. A hyperawareness of UPFs towards the end of the survey project may have influenced consumers less familiar with traditional plant proteins like tempeh and tofu to label those as UPFs too.
Courtesy: EIT Food Consumer Observatory
More surprisingly, the climate impact of meat and plant-based analogues is not a persuasive argument for many, with only 27% of Europeans believing vegan alternatives to be better for the climate, and 57% feeling they have a worse impact. This is despite research showing that animal-derived foods like meat and dairy cause twice as many emissions as plant-based foods and vegan diets can reduce emissions, water pollution and land use by 75% compared to meat-rich diets.
Some have pushed back against a simplistic black-and-white perspective on UPFs, calling them necessary to feed the world and arguing that the lack of an agreed definition spurs confusion about what is or isn’t a UPF. Others have noted that the NOVA system is based on the degree of processing of a certain food but does not speak to nutrition.
“Some campaigns have deliberately chosen to make a link between plant-based meat and the term ‘ultra-processed’. Their communications suggest – incorrectly – that the term ‘UPF’ is a synonym for ‘unhealthy’,” Churchill Fellow Jenny Chapman told us earlier this month. These campaigns play into concerns some people have around foods that are new – often called ‘food neophobia‘… Some campaigns really hone in on this, by using words like ‘fake’ and ‘unnatural’ to describe plant-based meats (which are safe, nutritious foods).”
UPF recommendations for food companies and health authorities
The report offers some key recommendations for authorities, manufacturers and retailers around UPFs. Health institutions and scientists need to define UPFs and make more conclusive and substantiated statements about their short- and long-term healthiness. Health authorities also need to consider the best way to educate consumers about food processing, what it can look like, and its health effects.
National food recommendations need to emphasise the difference between whole foods and UPFs, and clarify whether plant-based substitutes are UPFs and if that matters for their overall healthiness. Policies can also include restricting UPF promotions, like the UK’s plans to ban two-for-one deals on junk food.
Manufacturers, meanwhile, can look into cleaner labels for processed foods with fewer “artificial-sounding” ingredients. Plant-based meat makers need to consider that their association with UPFs is hindering them, and thus should explore cleaner labels without additives or transformation of ingredients (like protein isolates).
Courtesy: Planted
As for retailers, they can bring attention to packaged foods that aren’t ultra-processed (like tempeh or tofu), while also deciding against promoting UPFs in discount deals, instead pushing minimally or moderately produced equivalents.
“The latest findings from the EIT Food Consumer Observatory demonstrate a clear knowledge gap in how consumers identify, understand and engage with how their food is produced,” said Klaus Grunert, director of the EIT Food Consumer Observatory.
“Giving consumers clearer labelling, guidance and education could help them to better understand and engage with this issue, but it’s also important that concerns over processed food are considered in the wider context of people’s diets and wellbeing. It’s also crucial that we continue to bolster our understanding and agreement of how we classify, evaluate and label foods, so that our advice to consumers is informed by the latest science.”
Kuhn added: “As a sector, we need to create an environment which empowers individuals to make informed decisions about their diets, and foster a dialogue that not only educates but also inspires positive choices. That way, we can drive forward a healthier and more sustainable food system for all.”
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 Dr. Praeger’s new veggie-forward offerings, Applewood Vegan’s reformulated cheese, and a landmark legal ruling for veganism in Denmark.
New products and launches
In Canada, Danone has launched a Silk Greek yoghurt made from locally sourced pea protein in vanilla and key lime flavours. The new products contain 12g of protein per 175g pack.
Courtesy: Danone
Championing the same ingredient, fellow Canadian manufacturer Louis Dreyfus has announced the construction of a pea protein isolate production plant for its Plant Proteins business at the site of its existing industrial complex in Yorkton, Saskatchewan
Protein Industries Canada, meanwhile, has partnered with Konscious Foods, Avena Foods and Canadian Pacifico Seaweeds to improve the nutritional credentials of existing vegan seafood products and develop new offerings.
In the US, Plant-based meat giant Impossible Foods will soon begin serving its new beef hot dogs to the Blue Devils basketball team and dining halls on Duke University’s campuses.
Next Level Burger and its now subsidiaryVeggie Grill have launched a new limited-edition Classic Steak sandwich with Meati’s mycelium meat.
Mycelium bacon producer MyForest Foods has expanded its flagship MyBacon into 57 Whole Foods stores in the northeast, which comes on the heels of a listing at MOM’s Organic Market. It means the product is available in over 350 locations across eight states.
Courtesy: Dr. Praeger’s
Dr. Praeger’s is celebrating its 30th anniversary with two new ranges spotlighting vegetables: Crunchy Burgers and Veggie Fries. The former is available in Southwestern Sweet Potato and Cauliflower variants, made with six vegetables in a gluten-free rice coating, while the latter is offered in California and Cauliflower Broccoli options.
In Israel, bioprinting startup Steakholder Foods has partnered with tofu producer Wyler Farms to use industrial-scale 3D printing tech to make plant-based steaks, with the former’s printer set to be installed at the latter’s facility between Q4 2024 and Q1 2025.
There could be an all-veggie KFC in India’s religious city of Ayodhya, where tourism is exploding after the unveiling of the Ram Mandir last month, with a local government official indicating the city would allow KFC to set up a fully vegetarian location, as it has done with Pizza Hut and Domino’s.
German brand ChoViva‘s cocoa-free chocolate is part of private-label products by retail giant Rewe and its subsidiary Penny, with the innovations now available in select stores.
Barcelona-based plant-based butchery chain El Vegans has opened a new branch in Málaga, a first-of-its-kind butcher in the southern Spanish cities.
In the UK, Applewood Vegan has reformulated its plant-based smoked cheese ahead of its fifth anniversary, with the new recipe rendering a “creamier” product that better replicates conventional cheese.
Courtesy: Swiss International Air Lines
And if you’re flying business on Swiss International Air Lines, you can now get a vegan pumpkin and chestnut goulash with spaetzli (egg noodles) dish, made in collaboration with local plant-based egg producer EggField and Zürich vegetarian eatery Hiltl.
Funding and finance news
The US Department of Defense has announced a new funding opportunity for food tech companies to apply for biomanufacturing grants worth up to $2M under the new Distributed Bioindustrial Manufacturing Investment Program.
Netherlands’ Future Food Fund II has closed with a total of €40M, with the European Investment Fund investing €20M in the final close. It has already invested in precision fermentation and cultivated meat businesses like EV Biotech and Extracellular, respectively.
Austrian 3D-printed seafood producer Revo Foods is crowdfunding, offering a discounted valuation until Sunday, February 18. The startup has already raised €850,000 of its €1.5M goal.
Courtesy: Revo Foods
Ontario-based vegan ramen company Borealis Foods – which counts Gordon Ramsay as brand ambassador and shareholder – has commenced trading on the US NASDAQ exchange under the ticker ‘BRLS’.
US vegan shrimp producer New Wave Foods has ceased operations, with its assets now set to be liquidated and distributed after the company was unable to pay its debts in full.
In similarly sad news, fellow US plant-based seafood company Ordinary Seafood has wound down its operations and let go of its staff, with founder and CEO Anton Pluschke blaming the bleak funding landscape for food tech.
Meanwhile, after closing half of its UK stores last year, Lewis Hamilton-backed vegan fast-food chain Neat Burger has rebranded to Neat, dropping the latter word as it diversifies its offerings and prioritises health-focused options.
Courtesy: Neat
In New Zealand, Bruce Craig, owner of the county’s rights to Aussie vegan fast-food chain Lord of the Fries, has put the company up for sale for $1.2M after experiencing sales drops post-pandemic.
Research and manufacturing developments
Chicago-based Believer Meats has expanded its leadership team, appointing Heather Hudson as chief product and growth officer, Frida Grynspan as chief science officer, and Marc Shelley as chief legal officer. The company expects its commercial-scale facility in Wilson, North Carolina to be operational later this year.
Danone has completed the conversion of its dairy-based yoghurt plant in Villecomtal-sur-Arros, France to oat milk production for Alpro, in a €43M move that will see workers retain their jobs. It will be capable of producing 100,000 litres of oat milk daily, eventually rising to 300,000 litres.
Israeli startup ProFuse Technology has launched non-GM bovine cell lines optimised for muscle growth, demonstrating high efficiency in proliferation and differentiation and targeting cultivated meat manufacturers.
Fellow Israeli company Redefine Meat has revealed the technology and science behind its 3D-printed plant-based meat products in a new paper published in the Frontiers journal, focused on its tissue engineering approach.
Courtesy: Redefine Meat
A report by the European Scientific Advisory Board on Climate Change has advised that funding should be redirected from animal agriculture towards “lower-emitting products and activities”. Currently, farmers in the EU receive 50% of their income directly through government subsidies.
A new interdisciplinary study will assess the societal impact of cultivated meat, including production costs, commercialisation, safety and regulation. Funded by the British Academy, the Royal Academy of Engineering and the Royal Society with support from the Leverhulme Trust, the research has been selected for an APEX award.
In New York, UPSIDE Foodshosted an exclusive tasting for its cultivated chicken, which received a rousing endorsement from TED head Chris Anderson, who also took a shot at a New York Times piece targeting the industry.
Policy progress and awards
With Plant Based Universities launching in the Netherlands, over 200 Dutch academics have backed calls from students at several universities to transition towards fully plant-based catering. Total signatories – including academics, healthcare professionals, politicians and other public figures – number 1,200.
In Denmark, a lower court in the city of Hjorring has recognised veganism as a protected belief under Article 9 of the European Convention on Human Rights, in a case that sparked from a school denying a kindergarten child the right to plant-based meals and refusing to allow her to bring a packed lunch too.
Courtesy: Hungry Planet
Plant-based meat brand Hungry Planet has been nominated for Prince William’s Earthshot Prize, which added vegan experts to judge its 2024 awards, to be announced in November.
French whole-cut plant-based meat maker Umiami has achieved B Corp certification, ahead of inaugurating its factory in Alsace, eastern France later this year.
Finally, McDonald’s says it has reached its 2025 goal of 100% cage-free eggs ahead of time, with all locations in the US now featuring these eggs.
As more and more companies focus on whole-cut plant-based meats, some are relying on fat to produce highly desired marbled textures for consumers – could it be the new ‘holy grail’ for vegan steak?
Last year, scientists at Texas A&M College of Agriculture and Life Sciences explored how people eat and chew their food, with the goal of discovering what they really wanted in terms of mouthfeel. Dividing them into chewers, crunchers, smooshers and suckers, the researchers found vast differences in texture preferences among Americans.
They then dove into burgers to find out what the perfect burger for all kinds of eaters could be. Chewers didn’t want a soggy bun, crunchers resented overly dry or chewy burgers, smooshers didn’t care for any gristle, and suckers wanted a burger that’s seasoned before it’s cooked. The distinct tastes are perhaps why it was surprising that when it came to steak, there was a common aspect favoured by all eaters: marbling.
Even for different reasons – the ageing process produces big gaps among mouth behaviours – higher-marbled steaks were preferred by all respondents. And it speaks to a wider issue in the plant-based meat industry, where texture is highly sought-after. Whole cuts have long been touted as the ‘holy grail’ of meat analogues, but with a host of startups now making these products, we may need to look at what it is that makes these cuts so desirable.
Plant-based meat’s texture is important, but marbling is tough
Courtesy: V-Label
In marbled products like steak, the fat melts into the meat as it cooks, which results in a juicy, tender mouthfeel. Keying into texture is extremely important for plant-based meat brands, given that in the US alone, texture is the aspect of vegan food consumers dislike the most. In the UK, 51% of people say taste/texture is the biggest factor driving them away from meat alternatives.
Globally, too, plant-based meat’s texture is as important as their conventional counterparts for 75% of consumers, but only about 60% are actually satisfied with the former. “Consumers want a texture and mouthfeel that’s close to meat,” Shannon Coco, strategic marketing director at Kerry, told FoodNavigator last year. “Without this, the overall experience will be disappointing.”
But creating heterogenous products like marbled meat is a complex process, with companies facing difficulties “creating solid fat differentiated from protein and with a melting temperature gradient above room temperature”, as explained by the Good Food Institute.
Juicy Marbles’ whole-cut filet mignon
Courtesy: Juicy Marbles
So what do you do? Some are working on specific technologies to overcome this hurdle. When Slovenia’s Juicy Marbles launched its filet mignon in 2022, it grabbed headlines across the world for its trademark marbled texture, which is created with its patent-pending, 3D-assembled ‘reverse grinder’ technology.
“Our business is based around the concept of protein texture – this is the defining factor that draws people to steak, when compared to a cheaper cut,” the startup told TechCrunch in 2021. “In the plant-based meat vertical, there has not been as much innovation in the whole-cuts space, and no one has come close to inventing a steak that resembles anything high-end.”
Using a grinder it calls the Meat-O-Matic 9000, plant protein fibres are layered on top of each other to mimic animal muscle fibres, with deposits of hardened sunflower oil adding a realistic fat-marbling mouthfeel. But if you go by anecdotal evidence, for many, Juicy Marbles’ steak resembles more of a brisket, braised beef or even pulled pork – demonstrating the challenge plant-based meat producers face in satisfying consumers’ textural preferences.
Nourish Ingredients’ precision-fermented fat
Courtesy: Nourish Ingredients
So, the key is fat – which is exactly what some companies are trying to innovate with. At SXSW Sydney in October, Australian startup Nourish Ingredients unveiled a “breakthrough fat” called Tastilux, which is designed to help plant proteins deliver the same taste, smell and experience as conventional meat. The proprietary fat relies on naturally occurring lipids scaled through precision fermentation, and enables similar cooking reactions when used in plant-based chicken, beef, pork and other alternatives.
“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.”
Swiss scientist’s pea protein beef
Courtesy: ETH Zürich
In 2022, Swiss material scientist Martin Hoffmann developed technology to create marbled plant-based meat, using a combination of fats and pea protein to make innovative alternatives to meat dishes like steak. He processed the pea protein with biochemical engineering techniques, turning it into a plant ‘dough’ that is pushed through a proprietary attachment and combined with other ingredients like fat.
The quantity of the oil – added as an emulsion – could be tweaked to ensure flavour-comparable as well as health-forward alternatives to beef. “You have to imitate something highly irregular,” Hofmann said. “Because when we look at one half of a steak, it tells us nothing about what the other half looks like.”
At the time, he predicted the technique would be market-ready within one year, with his technology assisting B2B customers in developing more realistic meat alternatives to persuade “people to give up cheap, factory-farmed meat”. So far, though, this tech is still in the development stage.
Project Eaden’s fibre-forward tech
Courtesy: Project Eaden
Meanwhile, German food tech startup Project Eaden has also been banking on its technological prowess for its vegan steak, with a novel bio-fibre tech that’s similar to fibre-spinning for synthetic fibre, which is used across textile, aviation and automotive industries, among others.
Project Eaden is using the same technology for meat – and claims it’s highly scalable and affordable. It explains that these fibres can be designed with precision to meet technical requirements like elasticity, water-binding ability and strength. The ultra-thin fibres are bundled into strands replicating conventional muscle tissues and then blended with vegetable fats for a near-identical marbled plant-based steak.
“Both plant and muscle fibres are versatile building blocks with fascinating material properties, which is why so many of today’s high-tech materials are natural fibre-inspired,” said co-founder David Schmelzeisen. “For example, we use carbon fibre for rockets and satellites, and biomaterial-based implants for humans. Now, for the first time, we’re replicating meat, fibre by fibre, using proven and easily scalable textile industry technologies.” The company planned to go to market at the end of last year, but that hasn’t happened yet.
Planeteers and Handtmann’s novel solution
Courtesy: Planeteers/Handtmann
Most recently, German companies Planeteers and Handtmann teamed up to provide a way for plant-based manufacturers to develop meat analogues that feature not just marbling or fat layers, but also an authentic, fine fibrous structure.
Producers can merge a newly developed attachment for Handtmann’s filling and portioning systems with system solutions from Planteneers’ fiildMeat and fiildTex series. The latter is the basis for these meat and fat alternatives to steak, filet strips and bacon, which are produced with a flexible coextrusion system.
Manufacturers can adjust the size and shape and define the fat layers of the final products based on consumer needs. And depending on the fat ratio and the machine setting, asymmetrical fat marbling is possible. Plus, with a throughput of over a ton per hour, they can churn out large quantities of steak alternatives and meet the demands of larger trade partners.
Fat is crucial for marbled vegan steak
Source: Lypid
These are just a few examples of what companies are doing to meet consumer demands for texture and mouthfeel. Swedish startup Melt&Marble is leveraging precision fermentation to make realistic animal-free fats, while California’s Yali Bio uses the same tech to engineer alternatives to animal and plant-based lipids and fats for plant-based analogues, including meat.
Similarly, San Francisco-based Lypid has created a proprietary PhytoFat for plant-based meat, and is now launching meatballs to the US market. Sweden’s Mycorena makes fermented fungi-based fat to replace animal fats, while Barcelona’s Cubiq Foods is developing omega-3 fats for alternative protein. Hong Kong-based OmniFoods makes a vegan OmniNano fat to mimic the juiciness of conventional meat, and AI-led startup Shiru‘s OleoPro plant fat is geared at alt-protein applications.
And outside vegan applications, Silicon Valley’s Mission Barns is making cultivated animal fat, Dutch startup Upstream Foods makes cell-cultured salmon fat, while Singapore’s ImpacFat makes cultivated fish fat.
There’s a lot going on in the vegan marbled steak world, but the importance of fat is growing by the day. Can somebody claim the holy grail?
With leading beauty conglomerates announcing new beauty lines featuring recombinant collagen, the potential for China to be a leader in the synthetic biotechnology ingredient industry.
In December 2023, the leading international beauty brand, L’Oréal launched the second generation of its Age Perfect Collagen Royal Anti-Aging Face Cream, tailored exclusively for the discerning Chinese market. This groundbreaking release marked a pivotal moment for L’Oréal Paris skincare as it introduced the pioneering inclusion of recombinant collagen into its product line for the very first time, and also marks an important step in the commercialization of the recombinant collagen industry. The recombinant collagen incorporated into this formulation is said to feature an amino acid sequence that claims 100% homology to type III collagen found in human skin. Its touted unique triple-helix flexible bending structure purportedly allows this collagen variant to seamlessly interact with the skin’s natural collagen, potentially stimulating collagen production at its core.
L’Oréal’s launch of this product seems to underscore their commitment to capitalizing on scientific advancements and biotech innovations in skin care. More importantly, the entry of international brand L’Oréal has made China’s hot recombinant protein market even more topical.
What is collagen?
There are at least 28 identified types of collagen, classified according to homology and biological function, each characterized by distinct structures and varying prevalence in the animal body. Collagen is crucial for various functions, including skin elasticity, joint flexibility, hair and nail well-being, and overall tissue health. Its versatility is evident in skin care, where collagen is a common ingredient, potentially imparting anti-ageing effects and promoting smoother, resilient skin. The pharmaceutical field utilizes collagen in medical treatments, wound healing, and regenerative medicine due to its biocompatibility and bioactive properties. Collagen’s influence extends beyond healthcare into the food industry, where it plays a role in dietary supplements, functional foods, and beverages. This multifaceted protein serves as a cornerstone in addressing diverse health and cosmetic needs, highlighting its significance across healthcare, skincare, and nutrition. Moreover, in the culinary world, collagen is used as a gelling agent and thickener, particularly in broths and gelatinous desserts.
Collagen can be manufactured through two primary methods: natural extraction and synthetic biotechnology. In the natural extraction process, collagen is derived from animal sources like cattle, pigs, and marine animals. Typically, collagen is extracted from specific animal parts, such as the skin, bones, or scales. On the other hand, synthetic biotechnology employs genetically engineered microorganisms, such as bacteria and yeast, to express collagen. The resulting product, known as recombinant collagen, undergoes fermentation and downstream purification processes.
The ascent of recombinant collagen has captured significant attention, driven by its advanced biotechnological approach that ensures precise control over collagen characteristics and the production of high-purity products. Noteworthy advantages encompass enhanced safety features, such as heightened hydrophilicity, reduced immune rejection, and robust processability, addressing concerns linked to animal-derived collagen. Its positive environmental impact is evident in the elimination of the need for animal husbandry and fishing practices, thereby contributing to marine biodiversity conservation and improved animal welfare. This innovation also eliminates the requirement for cold chain transportation, facilitating easy storage and offering a more sustainable alternative. As fermentation preparation scales up, the economic viability of recombinant collagen increases.
Despite these advantages, challenges persist in the commercialization process, focusing on the expression of the triple helix structure, gene fragment selection, triple helix structure construction, and overcoming obstacles in cell transfection and protein purification. While recombinant collagen is still in its early commercialization stage, the current emphasis is on scaling up production and reducing costs to facilitate broader adoption.
Courtesy: L’Oréal China
The history of recombinant collagen in China
Research into recombinant collagen in China has a substantial history. In the 2000s, a research team initiated the exploration of synthetic biology technology for developing recombinant collagen. This effort eventually culminated in the establishment of the first publicly listed company in this domain, Xi’an Giant Biogene. Notably, in 2014, Nanjing University of Science and Technology collaborated with Jiangsu Jland Biotech to jointly undertake the “Key technologies for high-density fermentation of genetically engineered bacteria to express collagen, efficient separation processes, and their Industrialization” project as part of the China National High-tech Research and Development Program, commonly known as the 863 Program. This initiative has since led to the incubation of numerous research and commercialization projects in the field.
The start of 2024 brings optimistic developments to the industry. Jiangsu Trautec, a recombinant collagen company backed by Japanese beauty brand Shiseido and French luxury brand LVMH, initiated the process of registering for listing guidance with the Jiangsu Securities Regulatory Bureau on January 8. This marks a promising start for the sector. As of today, it is estimated that more than 30 companies are actively developing and commercializing recombinant collagen pipelines in China. Jiangsu Trautec, Jiangsu Jland Biotech, Shanxi Jinbo Biopharmaceuticals (a supplier of recombinant collagen ingredients to L’Oréal), and Xi’an Giant Biogene currently stand at the forefront of the industry.
Vegan Collagen Broth; courtesy: Liven Proteins
Recombinant collagen: the economic opportunity
According to research by Frost & Sullivan, the retail sales for China’s animal-derived collagen and recombinant collagen markets in 2021 are projected to be 17.9 billion yuan (2.77 billion USD) and 10.8 billion yuan (1.67 billion USD), respectively. The CAGRs from 2017 to 2021 of animal-derived collagen and recombinant collagen markets stand at 21.8% and 63.0%, respectively. The collagen market is anticipated to sustain a robust growth trajectory in the coming years. By 2027, the overall size of China’s collagen product market is estimated to reach 173.8 billion yuan (24.42 billion USD), exhibiting a CAGR of 34.3%. Within this, the CAGR for recombinant collagen is forecasted to be 42.4%, surpassing that for collagen derived from animal sources at 25.3%. The expected increase in the penetration rate of recombinant collagen from 37.7% in 2021 to 62.3% in 2027 is noteworthy, indicating a substantial market shift. Consequently, the market size for recombinant collagen is predicted to reach 108.3 billion yuan (15.22 billion USD).
Courtesy: Liven Proteins
The recombinant collagen startup landscape
For example, Liven Proteins is a Canada-based company focused on the production of animal-free collagen ingredients for China and the global market. Liven uniquely plays in the food and nutrition sector, particularly focusing on functional foods, beverages, and nutraceuticals to support healthy ageing. In comparison with collagen for skin, hair and nails, collagen ingredients for health benefits, such as Type II collagen for joint health, are premium ingredients with 10-100x price compared with commodity collagen. Odourless and completely soluble, Liven’s ingredients also offer adaptability for creating consumer-friendly products that meet the increasing demand for health-conscious choices.
Other recognizable international players in the field of recombinant collagen encompass Avantor, ProColl, Merck, ACROBiosystems, Geltor, and Jellatech. Still, with the fast development and commercialization in China, it will be difficult for China to be left behind, not only for collagen but in all coming applications in the recombinant protein space. As of today, there are numerous examples of Chinese companies’ successful commercialization of fermentation products and holding leading positions in the subsectors, such as hyaluronic acid, amino acids, and erythritol.
The development of the recombinant collagen market in China for skincare applications is indicative of the increasing power of synthetic biology to replace traditional animal-based sources. The application of recombinant collagen in the medical and cosmetics industries is just the beginning. We expect that with the development of technology and the expansion of production scale, recombinant collagen will soon be applied in other areas with lower cost structures, such as nutraceuticals, functional foods and beverages, and even bulk raw materials for food production.
This post was authored by Rouyu Wu, Director of Investment and Innovationat Dao Foods. For a more in-depth view of China’s developments in fermentation and new proteins, download The New Protein Adoption in China Report.
Swiss multinational Nestlé SA has debuted its first precision fermentation dairy protein powder, an animal-free and lactose-free whey isolate product dubbed Better Whey under the Orgain brand, which it acquired a majority stake in back in early 2022 to strengthen its foothold in the functional nutrition space.
The limited edition product was announced in a social media post by the company’s Research & Development team: “Developed in our R&D Center for Nestlé Health Science in partnership with Orgain the product includes a precision fermented whey ingredient that is bio-identical to whey protein, it is lactose-free and easier to digest.”
Customers can order Orgain’s Better Whey on the company’s website. It is priced at $29.99 for a 13.3-ounce tub, around $2.3 per ounce. The brand’s plant-based whey, which has the same amount of protein per serving, costs approximately $1.2 per ounce, close to half of the fermented whey version.
The whey comes in a Creamy Chocolate Fudge flavour. Other ingredients include alkalized cocoa, organic guar gum, and Orgain’s organic creamer base made from acacia, sunflower lecithin and sunflower oil.
According to Statista, the global whey protein market was valued at approx. $19.6 billion as of 2022 and pundits expect the sector to continue to grow as health-forward consumers in geographies like Asia Pacific drive demand for personal nutrition products. Most whey protein products contain lactose, a sugar found in cow’s milk that around 68% of the global population is intolerant to. There is a growing demand for lactose-free whey isolate powders such as Orgain’s Better Whey.
Nestle’s dairy decarbonization goals
Back in September 2022, Nestlé shared its plans to “explore emerging technologies for animal-free dairy proteins” via its newly launched US R&D Accelerator, promising that it would bring it to “the U.S. market later this year as a test-and-learn”. The new product was to be developed by its R&D teams in Switzerland and use Perfect Day’s whey protein. In December of that year, the company debuted two flavours of Cowabunga Animal-Free Dairy Beverages in select Safeway grocery stores. It’s unclear whether these products are still available today – they no longer appear on the supermarket chain’s website.
Joanna Yarbrough, head of Nestlé’s R+D Accelerator said at the time the company wanted to serve a more climate-conscious consumer: “While this category is still very young, we know consumers are looking for products that have a reduced environmental footprint, and we are evaluating this avenue as a future growth opportunity for our business.”
The announcement post for the new Orgain Better Whey made direct reference to the company’s commitment to reducing the carbon footprint of its dairy products, stating: “Through investing in initiatives to reduce the carbon footprint of dairy, launching more plant-based dairy alternatives, and exploring emerging technologies for animal-free dairy proteins, Nestlé will be able to transform its portfolio as a part of its broader commitment to provide food that’s good for people and the planet.”
Mandatory reporting of Scope 3 emissions under the EU Corporate Sustainability Reporting Directive (CSRD) Scope 3 emissions regulation will no doubt have played a role in the company’s foray into food tech innovations that can help lower the emissions footprint of mainstream food products. Conventional dairy products are one of the worst offenders in terms of greenhouse gas emissions. Multiple LCA reports have shown that precision fermentation dairy products, which involve using microbes to produce bio-identical dairy proteins without the need for animals, have a vastly lower impact.
On the Orgain website, the product description touts the Better Whey Protein Powder as containing “21 grams of sustainable protein per serving”, adding that it is “easier to digest compared to traditional whey protein” and is “10 times more sustainable” than traditional whey protein made from cows”. The page features fairly detailed additional information about the product’s environmental impact claims. The company does not specify if it partnered with a third party, such as Perfect Day, on the animal-free whey itself.
A ‘BIG deal” for the precision fermentation category
Irina Gerry, Chief Marketing Officer for US-Australian precision fermentation company Change Foods and Vice Chair of the Board of Directors at industry association Precision Fermentation Alliance, called the announcement a “BIG deal.”
She told Green Queen that “seeing a major brand like Orgain launch whey made via precision fermentation signals category transition into mainstream distribution.”
She said she was “particularly excited to see the dual benefit communication around nutrition and sustainability”, adding “We know consumers are seeing products that are both good for them and for the planet, and this product delivers on both with ease and simplicity.”
Christian Poppe, director of Global Public Affairs & Sustainability at German precision fermentation leader Formo and Founder & Policy Lead at industry alliance Food Fermentation Europe, told Green Queen it was brilliant to see Nestlé “join the mission all FFE members are on”, namely, to “developing bio-identical proteins that are better for the planet and humans alike.”
In addition, Poppe underlined that the significant environmental challenges facing global food systems could not be solved by startups alone. “Decarbonizing the food sector requires all hands on deck. We salute our colleagues at Nestlé and invite them to work with us on creating a European policy shift that helps accelerate the transition to an equitable and healthier food system.”
Precision fermentation dairy startups find limited commercial success to date
The precision fermentation dairy sector, which comprises a few dozen companies worldwide, most of which are still at pilot stage, has had minimal mainstream commercial success with a handful of limited edition trials but few long-term breakouts.
In November 2021, General Mills announced it was the first major food brand to debut a PF dairy product with Bold Cultr, a cream cheese spread made with Perfect Day’s animal-free whey protein and developed by its corporate venture studio G-Works. The product was discontinued in February 2023, with the company stating it had made “the difficult decision” to “de-prioritizing funding” for the project.
French dairy giant Bel Groupe invested in PF startup Standing Ovation in late 2022 and promised to work closely with the latter to bring precision fermentation into its catalogue of products including popular brands Laughing Cow, Boursin and Babybel but as of now, no product launches have been confirmed. Bel Brands USA collaborated with Perfect Day on a line of animal-free whey cream cheeses under the brand Nurishh in late 2022 but they appear to be no longer available. Similarly, in mid-2022 Mars said it was partnering with Perfect Day on CO2COA, a vegan chocolate bar targeted at millennials and Gen-Zs but as of today, the site still says coming soon.
While this marks Nestlé’s first fermentation-derived whey product, Californian precision fermentation pioneer Perfect Day had previously launched a line of fermentation whey protein powders under the brand California Performance Co, though the company has since ceased operations. Perfect Day’s whey protein also appears in MyProtein’s animal-free, lactose-free Whey Forward range, which is still available on the latter’s website and features in Unico Nutrition’s hybrid protein powder Apollo II.
Steve Molino, Principal at Clear Current Capital, a food tech venture capital fund that invested in Change Foods, told Green Queen that Nestlé’s new Orgain Better Whey was an “exciting development for the sustainable food space.” At the same time, he warned: “It’s a bit of a sobering wake-up call for the startup community, as it’s one thing for a large corporation to be doing R&D around a new technology and another to launch a product in the market. It shows that large incumbents won’t necessarily only innovate through acquisitions.”
One Planet Pizza co-founder Joe Hill tells Green Queen about the company’s uphill battle in the face of Brexit, war and a pandemic; going on The Apprentice; his trouble with misinformation about veganism, and selling a million pizzas.
Friday night was always pizza night at the Hills’. Joe Hill and his sister made everything from scratch: the dough, the sauce, the works. Their dad Mike, however, was missing out on what is every kid’s favourite thing about pizza: the cheese. “He had always been a passionate and devoted vegan,” explains Joe, recalling how he himself was vegetarian, before Cowspiracy convinced him to make the switch to plant-based.
Soon after, though, Mike came to him with a “crazy idea”, as he puts it: he wanted to “set up a vegan pizza company together and try to save the world one slice at a time”. That was 2016, and since then, they have sold a slice or two – recently, Joe announced that One Planet Pizza has shipped a million frozen plant-based pizzas.
“It actually took me by surprise that we’d hit that number recently,” he tells me. “We’re still a small team, but we’ve always punched above our weight and aimed for the stars. Selling a million vegan pizzas has given us even more motivation to keep pushing forward and sell the next million.”
Courtesy: One Planet Pizza
Eight years since launch, One Planet Pizza is available in over 1,000 locations across Europe – from Gibraltar, Sweden and Spain to Iceland, Malta and Cyprus. But in its home country, the UK – a country that eats over 5,000 pizza slices per capita in their adult life – it has made a huge splash through Asda and Getir.
“We’re also listed with three major wholesalers who distribute our pizzas out to smaller retail and food service customers,” notes Hill. “The big volume for pizza comes from the major retailers and so my focus this year is to win that second listing here in the UK.” (One Planet Pizza has been campaigning to get onto Sainsbury’s shelves.)
Turning the tide with passion and pizzas
You don’t see many father-son duos in business leadership – at least in the alternative protein space. Wonder what that’s like? “Great fun,” Hill says of his dad, who turned 60 last weekend. “We have plenty of disagreements and heated debates as we’ve grown the business together, but we’ve always remembered to have a laugh and enjoy ourselves along the way,” he explains. “I’d like to think we’re closer than ever, but you’d have to ask him for his take on that!”
As a food company – especially a vegan one – One Planet Pizza has had its fair share of challenges, especially in the last few years. The company was launched the same year the UK voted to leave the EU, though that wouldn’t actually happen until 2020, the year all CPG brands had to pivot to online as the world shut down. “But I think 2022 was our hardest year to date,” says Hill.
“With a war in Europe, soaring inflation, ingredient shortages, staff shortages, nervous investors, [and] retailers reluctant to take on new brands, we hit rock bottom,” he recalls. “Within a few months, our outgoings had rapidly overtaken our income, and it was only going to get worse. Fellow vegan brands were collapsing around us and, if I’m being honest, we were pretty damn scared.”
Courtesy: One Planet Pizza | Graphic by Green Queen
It was sink or swim for the business. “The only way we could keep the company alive was to close down our family kitchen and office, and move our production out to a contract manufacturer in the Netherlands,” says Hill. He likens it to a chicken-and-egg situation: “Manufacturers always required the volumes that came from a major listing, but to get those listings we often needed the support and backing of a manufacturer.”
After pushing its Norwich facility to its limits with the Asda listing, One Planet Pizza quickly made hay out of Brexit, moving production overseas and ensuring an overlap to avoid any stock issues. “This was by far the hardest project we’ve ever tackled,” suggests Hill. “But now, it’s been over a year and we’re starting to see the many benefits: freeing up our time as founders, reducing our overheads, protecting our margins, and hugely improving our capacity. Not to mention opening up new opportunities abroad through our manufacturer’s existing sales channels.”
The move also allowed the company to achieve accreditation from the British Retail Consortium, certifying it is a supplier with high food safety standards in place. Plus, shifting operations to the Netherlands likely made the frozen pizza producer’s partnership with local vegan cheesemaker Willicroft. “This B Corp is 100% plant-based and they work with local farmers to incorporate white beans into their delicious cheezes,” he explains. “They can make cheeze better than we ever could and it pairs perfectly with our range of pizzas. Healthier, sustainable, and melts perfectly – what’s not to love?”
It’s this pragmatism that has propelled One Planet Pizza to its current heights. “As long as we’ve got air in our lungs, passion in our hearts, and pizzas in the oven, Mike and I have always believed in each other and our mission,” notes Hill. “It’s this unwavering belief that’s kept us going through all these years and against all the odds.”
Misinformation is confusing consumers and hurting the vegan sector
Courtesy: One Planet Pizza
The global vegan frozen pizza market was estimated at $854M last year, and is set to cross $1.9B by 2033. In the UK, even in 2021, 35% of consumers said they’d want to try vegan pizza toppings. Clearly, Brits want pizza, and as more of them eat plant-based – the number of vegans in the UK rose by 78% from 2022-23 – restaurants, companies and retailers have come up with an increasing number of plant-based options to satiate consumers’ wishes and appetites.
“We currently divide our competition into three groups,” explains Hill. “Supermarket own-label pizzas (cheap and not-so-cheerful), smaller brands (White Rabbit and Zizzi), [and] bigger brands (Chicago Town and Goodfellas). But we see our real competition as the big multinational corporations that fill the shelves with cheap and unhealthy meat and dairy pizzas that are harming our health and planet.”
Speaking of big multinational corporations, One Planet Pizza partnered with Unilever-owned ice cream brand Ben & Jerry’s last month for an Asda-exclusive bundle offer. “We’re always keen to partner with bigger brands to reach as many people as possible. And Ben & Jerry’s have always been a fun, exciting, taste-first brand that we’ve been inspired by from day one,” says Hill.
“After a couple of emails and a lot of favours, I was absolutely chuffed to get a call with the right person on their team. They have a fantastic dairy-free range of ice creams and were keen to work with a challenger brand in this space to show customers just how delicious and indulgent vegan food is and can be,” he adds, before teasing that more such meal-deal partnerships are incoming.
Collaborations like these will certainly build exposure for the vegan pizza startup, and – forgive the pun – help it make some dough. Hill says was the first UK vegan company to crowdfund, back in 2016/17: “Since then, we’ve gone through several rounds of investment and added a few major private investors to our board.” This includes a £360,000 ($490,000) funding round in 2021.
Courtesy: One Planet Pizza
One Planet Pizza is fundraising again currently to fuel its global expansion, supporting “a couple of new listings this year, one in the UK and another in the UAE”. Moreover, it will launch a new product to complement its four-strong pizza portfolio (which comprises Margherita, Peppernomi, Tex Mex and Hawaiian). Plus, Hill is appearing on BBC show The Apprentice this month (he has previously pitched the business on Dragons’ Den years ago, but the episode never aired).
“Expect more partnerships with big brands in frozen this year and plenty of embarrassing pizza costume stunts across social media,” he adds. Social media is a place where misinformation about alternative proteins is rampant. Hill has trouble with the narrative that the “plant-based bubble has burst”, which he believes confuses consumers and hurts the sector.
“Here in the UK right now, a government-backed campaign is targeting younger people and encouraging them to eat British meat and dairy for their own health,” he points out. “This goes against what many experts and scientists are saying and is leading to wide mistrust amongst consumers who are looking to make healthier and more sustainable food choices.”
Looking to the future, Hill hopes to see One Planet Pizza as a go-to vegan pizza brand available “in every freezer in the country”. “Mike may be retired and working on his animal sanctuary,” he predicts. “But I’ll probably still be handing out pizza samples to the masses and working on new products that will keep raising the bar for plant-based food.”
With agriculture’s impact on the climate becoming clearer than ever, there are distinct views on how best to tackle the problem and enable a healthy, affordable and sustainable food system. A new report looks at the most ideal approach.
With agrifood systems accounting for a third of all global emissions and awareness about climate change finally becoming starker by the day to more and more people, there is radical disagreement on the best way to fight the crisis. For example, food security stems from local production for some, while for others, it means raising demands to meet a Western-style diet.
The result of these contrasting opinions is stasis, according to a new report by British think tank Green Alliance. Titled Crossing the Divide, the report argues that policymakers are confused over the best course of action for agriculture, and end up doing little to nothing about it for that reason.
So how can we harmoniously agree to disagree and fix our food system? Green Alliance identified four competing worldviews, and how they can work together to create viable solutions.
The four differing worldviews for the future of agrifood
Courtesy: Green Alliance
The first worldview – and the most dominant in Europe – belongs to Traditionalists, who are resistant to fast-paced and large-scale changes. For them, farmers need to be valued as food producers and guardians of the countryside and traditions. They take a pragmatic, conservative approach to farm technologies and practices, and don’t see climate change as a specifically big issue for agriculture.
Traditionalists are largely opposed to meat and dairy reduction, arguing that they are nutritionally important and downplaying their climate impact by focusing on the role of ruminants in soil carbon sequestration. This group also believes in free trade for exports, as well as restrictions on imports to protect local systems. But the report outlines their approach – which regards changes to the food system as attacks on farmers – as defensive and resistant to shifts needed to address climate change.
The proponents of the next worldview are Agroecologists, who believe a complete restructuring of the food system is key to shifting power from big businesses to family farmers more in touch with nature. They promote food sovereignty, social justice, and low-intensity, chemical-free farming, alongside localised food systems and ‘slow food’ culture.
For Agroecologists, land sharing is the best way of preserving nature. Since agroecological systems have a lower yield, this group agrees that a significant reduction in meat consumption is needed to live off land without chemicals, and proposes a whole-food plant-based approach that uses meat as flavour instead of a centrepiece. They’re also capitalism-sceptic and reject free trade in favour of local food production, and are thus suspicious of Big Food and Big Agriculture – though their worldview is more comprehensive and demanding than the rest.
Then there are the Technovegans, who see food tech as central to tackling climate change by displacing meat and dairy with alternative proteins and eliminating food production from land and ecosystems. They favour high-tech, capital-intensive solutions, are strong opponents of land sparing, and are at ease with today’s trade and economic systems.
Technovegans don’t believe eating habits will significantly change, so find alternatives to meat, dairy and eggs as the only way to change diets and land use at the pace and scale necessary. This is a more scientific outlook seeing ‘natural’ food as marketing hype, but the idea of plant-based meats being ultra-processed food means they’re often seen as ‘Frankenfoods’. And their wish for Big Food to scale up their products could be seen as enabling corporate control.
Finally, Sustainable Intensifiers mirror the technophilia and land-sparing support of Technovegans, but champion innovations in farming rather than food manufacturing. The focus is first on maximising yield, and then on minimising climate impacts, using agtech solutions like genetic modification, marker-assisted breeding, and remote sensing to predict yields and precisely dose pesticides, irrigation and fertilisers.
This group thinks wealthy countries have a duty to feed the world, and promote the export of cheaply produced grains, dairy and meat to global consumers. Sustainable Intensifiers are okay with farming subsidies if they go towards yields, and promote a switch to “more efficient” livestock (like chicken over beef). But this cohort is split into two: those with strong eco credentials, and ‘true intensifiers’ primarily concerned with intensifying production with sustainability as a secondary goal.
Alliances between worldviews can lead to progress
Courtesy: Green Alliance
Very few people will fit neatly into a single category, and the report suggests an alliance between certain worldviews could drive forward environmental progress (though one such collaboration might lead to negative outcomes).
The first progressive alliance is between Technovegans and Agroecologists, whose strength lies in mirroring each other’s weaknesses. Agroecology needs radical dietary change to be scaled up, which Technovegans can provide, while the latter needs to avoid being perceived as ‘anti-farmer’, which would be helped by joining forces with the former.
There are three potential areas of agreement: the need to reduce meat and dairy consumption, restoring nature in a culturally sensitive way, and a shared enemy in the industrial meat lobby. However, there are some disputes that would need to be set aside, including the involvement of Big Meat in buying vegan companies to scale up plant-based products, and the fear that alternative protein products could displace agroecologically produced meat.
One possible solution is to encourage more diversity in the alternative protein industry and ensure that the protein transition follows a food justice approach (which could require significant policy change). “The simplest accommodation on both sides would be the understanding that, from an environmental and animal welfare perspective, ‘Big Veganism’ is preferable to the status quo of industrially farmed livestock,” the report states.
Another alliance that could bring about environmental benefits involves Technovegans and Sustainable Intensifiers, marrying their enthusiasm for food tech and land sparing. This could keep land use at low levels, especially in countries like the US, where less land is dedicated to agriculture as intensive farming is the norm.
There are some challenges here too, of course: Sustainable Intensifiers don’t believe widespread dietary change is required, suggesting intensive farming of more efficient livestock as a solution to meet increased demand, which runs counter to the worldview of the Technovegans who find animal agriculture as the most environmentally destructive activity. Plus, alt-protein products are directly competing to displace industrially farmed meat, and this partnership threatens any potential Agroecologist–Technovegan alliance – if it becomes dominant, it would be difficult to change course.
The best-case scenario is for Sustainable Intensifiers to capture the meat market that alternative proteins can’t easily replicate, like steak, while the latter could dominate the processed meat market and displace demand growth from the former, sparing more land.
However, there is one alliance that could make things worse for the environment. Agroecologists and Traditionalists are already loosely forming alliances in Southern Europe based on a shared enemy: Technovegans. Their interests lie in reducing the threat posed by the industrialisation of alt-proteins to keep demand for meet high, emphasising the role of livestock in rural culture and diet, and being sceptical of non-traditional foods or farming methods.
Why collaboration is vital among polarisation
Courtesy: Vaclav Volrab/Getty Images
The Green Alliance outlines that the current trajectory of food, agriculture and land use is not sustainable, and business as usual would result in the worst outcomes for all four worldviews, including for the Traditionalists, as well as make it impossible to meet climate goals.
“Polarised debates between different approaches to the future of food production and agriculture are leading to paralysis,” reads the report. “At present, the four worldviews we have characterised here are, mostly, uncompromising… Finding common ground between these different perspectives could provide a route forward.”
The study shows that the “current impasse in food and land use policy is pernicious, arising from a superficial agreement about goals which disguises deep division amongst people who hold very different worldviews”. Experts, advocates and philanthropists looking to make progress should explore ways to create alliances between these different worldviews to bring change, instead of focusing on promoting their ideal food and land systems individually.
US companies Bond Pet Foods and Hill’s Pet Nutrition have announced a milestone development in their partnership, trading two tonnes of precision-fermented proteins to create animal-free products for our furry friends.
Colorado-based Bond Pet Foods has made its first delivery to Kansas-based industry giant Hill’s Pet Nutrition, shipping two tonnes of its animal-free protein made from precision fermentation. The latter will formulate test products with this protein for market evaluation and regulatory review.
It represents a landmark moment for commercialising Bond’s fermentation tech for pet food applications. “Producing tons of product at the 45,000-litre scale is a major milestone in the Bond-Hill’s collaboration,” said Bond founder and CEO Rich Kelleman. “Additionally, Hill’s commitment to expand on our work together demonstrates the opportunity we collectively see in Bond’s ingredients for their and the pet industry’s food future.”
The need for alternative pet food
Courtesy: Bond Pet Foods
The companies have also announced a second joint development agreement, which will see them develop another animal protein for potential use in Hill’s products. This extends the link-up between the two brands, which began in late 2021 with the aim to create more sustainable proteins to fulfil the dietary needs of dogs and cats.
In the US, producing dry cat and dog food equates to between 25-30% of all emissions related to animal consumption by Americans. And globally, these two categories emit around 64 million tons of carbon per year – that’s the equivalent of more than 13 million cars. Research has also found that dogs and cats consume about 9% of all land animals slaughtered for food (numbering seven billion annually).
In fact, if all the world’s canines and felines were put on a nutritionally complete vegan diet, it could help feed nearly 520 million people, conserve land the size of multiple countries, and also save billions of animals from slaughter.
“Increasing concerns about environmental sustainability, farmed animal welfare and competition for traditional protein sources are driving considerable development of alternative pet foods,” suggested one study last year, which found that vegan diets for cats may be healthier than meat-based ones. It followed research published in 2022 suggesting that vegan diets are the healthiest and least hazardous choice for dogs.
Meanwhile, startups like BioCraft Pet Nutrition, Marina Cat and Bene Meat are making cultivated meat for pets. But the only other company developing precision-fermented ingredients for pet food is Belgium’s Paleo, which makes an animal-free, yeast-based myoglobin for these applications.
Preparing for market evaluation and regulatory review
Courtesy: Bond Pet Foods
Founded in 2017, Bond has raised $20M in total funding, including a 17.5M Series A round in 2022, backed by the likes of Agronomics, ADM Ventures, Lever VC, Genoa VC, Cavallo Ventures, and Plug and Play Ventures, among others. And Hill’s, a subsidiary of Colgate-Palmolive, recorded $1.11B in net sales in Q4 2023, up by 5% year-on-year, with $231M in profit.
According to the companies, 74 million dogs and 56 million cats in American households currently consume large amounts of animal-based protein. The former’s precision fermentation platform – similar to craft brewing – is looking to change that, with an ability to efficiently reproduce high-quality meats like chicken, turkey and beef for pet food applications.
Bond harvests these proteins to better meet the nutritional requirements of companion animals, and supplies the ingredients to manufacturers for pet food, treat and supplement applications. The scale of its delivery to Hill’s will allow the latter to develop a variety of products at its Pet Nutrition Center in Topeka, Kansas. Once this protein is evaluated, the data will be used for the ingredient’s eventual review by the FDA’s Center for Veterinary Medicine, and to prepare prototypes for market evaluation.
“Hill’s is known for its leadership in precise, complete and balanced, science-based nutrition,” said Dave Baloga, Hill’s executive VP of science and technology. “We are excited to continue our relationship with Bond and support their truly novel approach to produce animal proteins in a more sustainable way that meets our high-quality standards.”
Veganuary has been a great success, but after a decade of expansion, growth has plateaued. Dissecting the playbook of Dry January, the other global January phenomenon, gives us important marketing lessons we can apply to break into the mainstream and make an even greater impact.
Editor’s Note: This article is a collaboration with Unstuck, a thought piece platform bringing the missing consumer mindset and skillset needed to take sustainable foods mainstream; all views are the authors’ own.
Veganuary, a movement encouraging people to try a plant-based diet, has racked up impressive results since its birth in York ten years ago. The vision, passion, and dedication of the team behind the annual challenge has gotten 1.8 million people to attempt going vegan across virtually every country on Earth and has even gone to space. Over time, however, the movement has started to plateau, with its founder saying in a recent Guardian interview that “the pace of growth has levelled off; progress has slowed.” So how do we get it unstuck?
As luck would have it, we have a parallel example in Dry January, a movement that promotes alcohol abstinence. Both are cleansing rituals timed to start after a period of excess. Both were started in the UK about a decade ago, a mere year apart. And both have ambitions to expand their reach globally and affect longer-lasting behaviour change. But Dry January has been uniquely able to build on its growth, going from a niche phenomenon to an early majority of adopters.
We can see this in a crude measure like worldwide Google Trends search volume, with Dry January doubling over the past five years while Veganuary has declined in relative terms. We can also see it in self-reported participation data in key markets. The latest comparable data from You gov in the UK, the home market for both movements, shows 15% of Britons who drink planned to give up alcohol in January, while 3% of meat and dairy eaters said they would attempt to go vegan for the month. The picture in the US is less clear, with a range of “alternative facts” suggesting different participation rates. The consensus, however, seems to be that Dry January has crossed the 20% threshold taking it from a niche phenomenon into the early majority of adopters, while Veganuary is still somewhere in the single digits.
Let’s be clear on one thing – going vegan for a month is more difficult than laying off booze. Having to plan for breakfast, lunch and dinner every day, as well as take into account the fact that meals are shared, makes it a bigger behaviour change than ordering a mocktail or leaving the bottles in the cellar for a little while longer.
Despite this difference, there are core marketing lessons in comparing the two that Veganuary could benefit from and use to drive more traction. Imagine what 20+% of major markets going plant-based could do for the planet. Some disciplined marketing – we’re talking the fundamentals of targeting, positioning, identity, tonality and partnerships – could help us get there.
If you want to go broad, you have to target broad
All marketing strategy starts with segmentation and targeting. Dry January has excelled at this by identifying a broad but specific audience: social drinkers who see the new year as a reset button for healthier habits. Its inclusive appeal, avoiding the teetotaler label, invites a diverse demographic and has taken on a life of its own to become part of popular culture. Veganuary, to mirror this success, must refine its targeting. Currently, the main motivation for participation according to the movement’s own data is animal welfare followed by environmental reasons, suggesting a relatively narrow segment of conscious consumers. And let’s face it, the vegan label hasn’t won many friends among the general public. Veganuary should instead target health-conscious individuals curious about plant-based diets, a much broader starting point, especially after festive over-indulgence.
Make the positioning about them, not about you
A marked difference in the positioning of the two campaigns is the benefits they call upon. Landing on Dry January’s website you are immediately hit with the opportunity to save money, sleep better and have more energy. Where do I sign up? By contrast, Veganuary invites you to join their movement – vote for veggies, along with people from 228 countries. And if that hasn’t convinced you, they tell you 6,800 media stories were published last year about the campaign. Sounds impressive, but what’s in it for me?
Source: Company Websites
During the first week of January, the Netflix documentary You Are What You Eat garnered 639 million streaming minutes, demonstrating through a rigorous twin study that a plant-based diet is better for you than a healthy omnivore one on multiple metrics. Over four episodes this narrative was interspersed with stories of animal cruelty and the environmental impact of eating animal products, but the main takeaway was clear: plants are better for you, and can be just as tasty. Compared to previous Januaries, searches for plant-based recipes soared 300%. Veganuary needs to pivot its messaging to what’s in it for you, not the movement or the greater good of a vegan diet. Dry January doesn’t tell you that the cost of National Health in the UK would fall if you stopped drinking.
Use your design codes to drive desire
As we’ve talked about before, design codes are a strategic point of leverage for any brand. This is doubly true when it comes to movements that have limited marketing budgets of their own and rely on word of mouth without the accompanying controlled storytelling. Dry January has executed its positioning into a brand identity with a simple call to action and a welcoming sense of playfulness – you can swap out a cup of tea for a cocktail but don’t have to eradicate all fun from your life and still get to keep the cocktail umbrella. Veganuary, on the other hand, needs to broaden its appeal by toning down the activist shock & awe aesthetic and clarifying the awkward mouthfeel and ambiguous ask in the name (is it Vegan January or Vegetarian January?). A carefully crafted tagline locked up to the logo could help.
Source: Company Websites
You have to be liked before you can be heard
Veganuary’s 2024 campaign invites consumers to “vote for veggies” with a series of “a vote for us is a vote for…” promises: reduced emissions, improved health, lower food bill, protection of animals, a healthier eco-food system, new economic opportunities. All great promises, and you won’t be surprised we’re glad to see health and lower food bills in there.
However, the style in which it’s delivered is unlikely to have landed well. Trust and respect in politicians is at an all-time low. 63% of respondents in a recent global study on trust believe government leaders are purposely trying to mislead people by saying things they know are false or gross exaggerations, so why emulate their voice? Beyond that, who still believes political votes have much impact on their individual lives?
By contrast, Dry January’s tone is one of individual motivation: you’ve made it three weeks, Sunday evening reminder, Monday motivation! Alongside continual benefit messaging, interspersed with the occasional meme that keeps things light. Another call for Veganuary to focus messaging on what’s in it for the individual, and deliver those messages in a tone of voice that people engage with.
Source: Instagram Feeds
Real amplification comes when brands truly commit
Where a movement’s impact really takes off is when major brands align in a big way, seeing the opportunity for scale and bringing budgets the movement entity can only dream of. Media and PR campaigns, packaging changes and in-store activations drive consumer reach and message amplification at huge multiples. Veganuary has successfully engaged and inspired brand activity around the month of January and since it started, has seen hundreds of new product launches in supermarkets and menu offerings in restaurants. However, these brands are still operating in the realm of line extensions, compared to the major branding event Dry January represents for alcohol. Heineken, the world’s second-largest brewer, is on the record saying they would put 25% of their nearly $3bn annual brand investment into normalizing the alcohol-free category. They have followed through with Superbowl spots, footballer deals, and aggressive sampling that have made Heineken 0.0 the leading brand in the space.
No doubt this enables alcohol brands to solve for a historically slow sales month coming off their festive peak. The same could be true for many food and restaurant brands, but they’re not yet embracing it at the same scale. In 2020 Heinz took its hero product, the iconic beans can, and put a limited edition “Beanz Meanz Vegan” slogan on it for the UK market. Changing your branding on pack, even for a limited run, is a major step for an iconic consumer brand. Were this deemed a success by the Heinz brand team, the campaign would have gone bigger every year since. As it was, come 2023 Heinz participated in the UK by launching alternative plant-based versions of some of their best-selling products, but left the core versions untouched. For 2024, a low-key announcement about tomato ketchup being vegan was the only UK activity we could find.
Source: Company Websites
As per Heinz, there are plenty of mainstream brands now with vegan options, Veganuary should be an unmissable opportunity for them to commit to them with much bigger investments.
How do you get brands to go big in January? By following the steps above. Target a mass opportunity that doesn’t risk alienating core customers. Associate with ‘better for you’ messaging. Use your design codes and tonality to drive desire and likability, not political activism. Build a big tent and others will join.
From campaigns to lasting change
An effective beginning of the year ritual is a remarkable opportunity for the driving behaviour change we need towards sustainable food. It’s a moment when people are open to new ideas and there’s a real chance to overcome inertia. But to make it scale, we should use all the tools in our arsenal including a disciplined approach to targeting, positioning, identity, messaging and partnerships. In doing so, and adding a sprinkle of creative magic from time to time, we can build increasing participation and move from a month-long campaign into a catalyst for lasting change.
As always, let us know what you think, and subscribe to UNSTUCK for a bi-weekly update on the missing consumer mindset and skillset needed to take sustainable foods mainstream.
Military culture has always been a dominant driver of our food and cooking habits – by partnering with the US Army, can Impossible Foods bring about a new dawn for plant-based meat?
Today, Spam is a cult-favourite meat product in many parts of the world. It’s had some journey: it began as a military staple during World War II, created as a tasty, portable protein-rich food in lieu of hard-to-deliver fresh meat. That shot the inexpensive pork and ham blend to global popularity, with can sales eventually surpassing eight billion across six continents.
Spam was also looked down upon by the chef world for decades – but recently, they have embraced the product and come up with new ways to cook it. This re-evolution has travelled via social media, particularly YouTube and TikTok, putting Spam on the radar of both culinary enthusiasts and those previously indifferent to it. It’s a successful food product if there ever was one – and it all began with the military. Plant-based meat is undergoing a similar bout of confidence with the mainstream, as traditionalists look to keep it out and consumers question its prices and grapple with a mainstream media filled with “overprocessed” narratives.
If Spam’s journey is any indication, people will look past the processing eventually (especially if prices come down further) and take to meat analogues if authoritative and influential figures promote them. And that’s exactly what Impossible Foods’ partnership with the US Army could bring about.
The Californian company’s plant-based meats have already been available to troops in various food operations for the past few years, including at the Walter Reed Medical Center in Maryland. But its latest move – which the team says was three years in the making – marks the first time it’s working directly with the US Army Central, which coordinates foodservice at the army-wide level, to serve Impossible products in various dining facilities overseas in the coming weeks.
“Our troops in North Africa, the Persian Gulf, the Middle East, and Southwest Asia will be able to enjoy our nutrient-dense and delicious Impossible Beef and Impossible Burgers that provide high-quality protein, fibre, and iron, with no cholesterol,” Impossible Foods CEO Peter McGuinness said on LinkedIn. “This is a very proud moment for our team and company, and such an incredible win to start the year.”
Speaking to Green Queen, the brand’s foodservice sales VP Erin Reynolds added: “It’s a real honour to bring Impossible to our troops overseas. Our work with the US Army Central has been years in the making, and this is a major milestone for us as a brand and as a category.”
How the military has influenced food culture
Graphic by Green Queen
Impossible Foods will be hoping to be the new-age Spam with its US Army partnership. After all, the military has long been one of the most influential drivers of food culture globally.
It’s not just spam – bánh mìs, condensed milk, British curry, and even Coca-Cola are all staples because of wars and the military. For instance, condensed milk was developed during the American Civil War, using a vacuum operator to kill the bacteria in fresh milk and prevent contamination. And in 1941, Coca-Cola president Robert Woodruff promised that “every man in uniform gets a bottle of Coca-Cola for five cents, wherever he is and whatever it costs the company”, which led to the company’s proliferation in Europe and beyond.
It’s not just food either – many cooking and processing methods today are a direct result of technology developed by or for the military. Canned food was first invented to provide sustenance to troops, but its preservation and affordability led to it being popular with the masses. And the device initially designed for canning food, the pressure cooker, itself evolved into a household appliance. Similarly, microwaves exist because of World War II radar technology too. There’s also freeze drying, which was created to preserve medical supplies during the Korean war.
Even how food gets to you today is thanks in part to military applications of GPS technology which enables efficient tracking and transportation of ingredients, reduces waste and improves the freshness of produce. There’s a precedent for meat-free meals like Impossible Foods’ products can contribute to too: during World War II, rationing in Britain popularised dishes like mock goose (made from potatoes and sausages – though sometimes pork sausage was involved) and Woolton pie (a pastry filled with a mix of vegetables).
There are no vegan MREs in the US army
Courtesy: Wikimedia Commons/CC
Veganism in the military has been a topic that has taken more prominence in the last couple of years, thanks to the passing of the 2023 National Defense Authorization Act by the US House of Representatives in July 2022. One of the act’s requirements is that the Defense Logistics Agency (DLA) produce a report on plant-based Meals, Ready-to-Eat (MREs), which are dehydrated field rations for troops in the US.
The act asked the DLA to conduct a study determining the demand for vegan MREs among troops by September 2023, with results expected to include cost and feasibility analysis to produce at least two plant-based MREs, service member demand, and an implementation plan.
The details aren’t out yet, but David Accetta, a public affairs professional at DEVCOM, told the Military Times last year: “The services submit statements of need to the Combat Feeding Research and Engineering Program each year, which are used to drive innovation and research, development, test and evaluation efforts to modernise field feeding capabilities. After development, all new operational ration components are warfighter-tested and approved before being transitioned to DLA for procurement.”
MREs have historically been meat-heavy, with vegetarian meals only appearing in 1986. The current menu of 24 dishes also only contains four meatless options, all of which are some form of pasta: vegetarian taco pasta, macaroni and tomato sauce, cheese tortellini, and spinach, mushroom and cream fettuccine.
There are financial incentives attached to this, according to one vegan Navy officer, who told the Guardian in 2019 that many of the military’s decisions are linked to industries subsidised by the government, such as dairy and meat. In the US, livestock farming receives 800 times more public funding than alternative proteins like plant-based analogues.
How many US soldiers are vegan?
Courtesy: Mercy for Animals
“There may have been a vegetarian entree that was also vegan. To date, there has been no military service requirement for vegan MREs,” the DLA told the Guardian. But in January 2022, Mercy for Animals surveyed 226 American military personnel, finding that 3.5% are vegan. More tellingly, a total of 42% either didn’t eat meat, were flexitarian, or trying to decrease their consumption of animal products.
Likewise, 70% of the respondents said they choose climate-friendly food options if available, and 63% recognised that plant-based foods are more sustainable than their animal-derived counterparts. Many felt vegan food is healthier (52%) and provides more energy (51%) too, while two-thirds have noticed more people exploring this diet.
In terms of MREs, 81% would pick climate-friendly meals, and the same number of people feel the military should provide plant-based MREs. This is reflected by the fact that 63% would choose vegan over meat-based ready meals. It is unclear if Impossible Foods’ meat analogues will become part of a potential plant-based MRE, but there’s hope that the footprint of vegan foods will grow in the military.
Courtesy: US Army
In 2019, one vegan soldier successfully campaigned to include a plant-based main at every meal in a US Army dining facility. While there are no clear numbers for military personnel following a plant-based diet, the US could take inspiration from Israel, where over 10,000 soldiers are vegan, and organisations like Vegan Friendly arrange plant-based meals for soldiers with dietary restrictions.
“Now troops around the world, from the Middle East to the Philippines, have access to delicious, nutrient-dense meat from plants,” said Impossible Foods’ Reynolds. “That’s thousands of meals every day that can now be made with Impossible plant-based beef.”
So far, it’s been impossible to get much vegan food if you’re in the military – now, Impossible’s vegan food is serving up a solution.
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 Fortnum and Mason’s cultivated scotch egg tasting, a Dragons’ Den deal for carbon-negative ice cream, and a host of executive moves.
New products and launches
South Korean company Armored Fresh has launched its oat milk Cheddar cheese at US fast-food chain Bareburger, with two new menu items using the brand’s Armored Fresh Melt and Impossible Standard cheeses.
Courtesy: Armored Fresh/Bareburger
Israeli precision fermentation startup Phytolon is planning to launch a line of natural colours using genetically engineered baker’s yeast in the US this year (pending regulatory approval), following a breakthrough with partner Gingko Bioworks.
Speaking of breakthroughs, Californian startup Checkerspot has developed a fat analogue from microalgae fermentation, which it claims can mimic the human milk fat called OPO (Oleic-Palmitic-Oleic or sn-2 palmitate). It could help provide essential lipids to offer long-term nutrition benefits for infants.
Barcelona-based UOBO has introduced liquid vegan whole eggs for foodservice in a one-litre format nationwide, which can be used for applications like omelettes, scrambled eggs, pastries, custard and mayo.
Indian plant-based meat brand Shaka Harry is eyeing the foodservice segment with a range called Chefsclusive, which features starters, snacks, meals, and accompaniments.
Also in India, restaurant chains Social and Boss Burger have teamed up with Nestlé‘s across 82 outlets in six cities, using the FMCG giant’s frozen plant-based Maggi line for The New Irresistible Menu and The ImBOSSible Cheeseburger, respectively.
Courtesy: Magnum
In the UK, Unilever-owned Magnum has launched a new Chill Blueberry Cookie SKU, which is a vanilla-biscuit-flavoured ice cream with cookie pieces, alongside a core made from blueberry sorbet.
In another UK launch, plant protein bar maker Trek has linked up with Biscoff for a co-branded SKU with soy protein isolate, vegan chocolate and Biscoff spread, retailing in Sainsbury’s from Valentine’s Day, before a wider rollout in March.
If you’re looking to take vegan Valentine’s Day up a notch, meal kit startup Grubby has partnered with Redefine Meat to introduce the latter’s whole-cut beef flank for home cooks until March 22. Following this, a second Chimichurri steak dish will be introduced.
Also for Valentine’s, US chains Next Level Burger and its now-subsidiary Veggie Grill have partnered with Colorado-based mycelium meat producer Meati to offer a Sliced Steak Sandwich at all locations from February 9. Additionally, there are two new vegan sweet treats: a strawberry whoopie pie and a strawberry cookies and cream shake.
And San Francisco’s vegan fat tech startup Lypid has launched its plant-based meatballs for foodservice, which can be used in various cuisines, including American, Italian, and Asian fusion.
Courtesy: Lypid
Finance and corporate moves
UK plant-based meat company THIS is seeing a change in leadership, with co-founders Andy Shovel and Pete Sharman stepping back from their roles as co-CEOs and being replaced by former Ella’s Kitchen boss Mark Cuddigan. Shovel and Sharman will remain involved in the day-to-day business and at board level.
UK cultivated fat company Hoxton Farms has appointed former Impossible Foods chief strategy officer Nick Halla to its board, following other strategic hires in recent weeks to prepare for commercialisation and expand its team of 40 to 100.
North Carolina-based food tech company Tiamat Sciences, which is making animal-free recombinant proteins at a fraction of the cost, has an all-female executive team – a rarity in the biotech world.
Meati has appointed former Patagonia and Wild Idea executive Phil Graves as its new chief financial officer, who will oversee the capital expenditures needed for the company’s omnichannel expansion, and help deliver positive environmental and social impact alongside profit.
In Spain, food companies Familia Martínez, Capsa Vida and Helados Estiu, alongside startups Väcka, Wevo, Grin Grin Foods, Gimme Sabor, and Quevana, have formedThe Flexitarian Project to increase the availability of plant-based products to the market.
Greek company Plan(e)t Foods, which claims to be the world’s first carbon-negative vegan ice cream company, grabbed a deal on Dragons’ Den Greece for €42,000 for a 1% equity, which would rise to 3% if it goes to the NYSE.
German alternative oil startup Colipi has raised €1.8M in seed funding to accelerate the development of its precision-fermented, carbon-captured Climate Oil using organic sidestreams as feed.
NFL quarterbacks Justin Fields (Chicago Bears) and Daniel Jones (New York Giants) have invested in Chipotle founder Steve Ells’ new robot-powered vegetarian restaurantKernel, which will open its first location in the Flatiron District of New York City on February 12.
Cultivated meat developments
In London, Fortnum and Masonhosted a scotch egg tasting for journalists in collaboration with cultivated meat company Ivy Farms, which contained the latter’s beef made from cultured Angus cow cells.
Innovate UK and the Biological Sciences Research Council, meanwhile, have invested £15.6M to support a cultivated meat project by Campden BRI and cellular agriculture specialist Cellular Agriculture. It will be used to develop a hollow-fibre bioreactor system prototype and test production samples.
The EU Commission has closed the TRIS notification process about Italy’s cultivated meat and plant-based labelling bans because the laws did not comply with the procedure’s rules, rendering them unenforceable.
Courtesy: Finless Foods
Finally, Californian cultivated seafood company Finless Foods, has reduced its headcount in reportedly a fresh round of layoffs. It has also terminated its lobby farm in Washington, DC.
Policy, research and manufacturing news
In a major regulatory breakthrough, Israeli startup Remilk has become the first precision fermentation company to receive a Letter of No Objection from Health Canada, allowing it to sell its dairy proteins in the country.
Danish bioproduction leader 21st.BIO is granting access to its precision fermentation technology platform to ingredient manufacturers, helping them enable the production of sustainable dairy proteins at competitive costs.
Belgian precision fermentation startup Paleo has opened a new R&D facility in Leuven, expanding its lab facility to 500 sq m.
Courtesy: Paleo
In the US, fermentation startup Superbrewed Food has secured a patent for its proprietary Postbiotic Protein ingredient, which – alongside a self-affirmed GRAS status – will enable the company to accelerate its use in CPG applications.
Also in the US, the National Cattlemen’s Beef Association has endorsed the FAIR Labels Act (led by US Senator Roger Marshall), which aims to eradicate “deceptive labelling practices” on plant-based meat products.
Meanwhile, the City of Amsterdam has become the first capital city in the EU to endorse a Plant Based Treaty, targeting a 40-60% plant protein ratio in the city’s diet by 2030.
Finally, research funded by the Swedish Agency for Economic and Regional Growth and the European Cooperation in Science and Technology has found that consumers associate fungi-based foods with sustainability and wellbeing.
Dunkin’ is being sued for $5M under the Americans with Disabilities Act, with plaintiffs alleging that the surcharge on plant-based milk discriminates against people with lactose intolerance. Do their claims stack up?
The US’s second-largest coffee chain, Dunkin’, is facing a class-action lawsuit for discriminating against customers with lactose intolerance by charging extra for plant-based milk in its beverages. The plaintiffs argue that the surcharge for non-dairy milk violates the American Disabilities Act, mirroring a similar ongoing case levelled against Starbucks.
Filed on December 26 in a district court in Northern California, the complaint lists 10 named plaintiffs seeking $5M in damages on behalf of all of Dunkin’s customers who opt for dairy alternatives. The suit claims that between 2018 and 2023, Dunkin’ has charged consumers between 50 cents to $2.15 extra for soy, oat, almond and coconut milk (the latter was discontinued from the menu at the end of last year).
The plaintiffs cite the Americans with Disabilities Act (ADA) to support their suit, claiming that the surcharge of plant-based milks for beverages is discriminatory against people suffering from lactose intolerance, which is a disability under ADA, according to Bogdan Enica, an attorney representing the plaintiffs. “Being able to drink milk is a choice for some people, but it’s not for others,” he told NBC. But will this claim hold up in court?
Is lactose intolerance a disability?
Courtesy: Dunkin’
In the five years that the lawsuit covers, Dunkin’ earned $250M in revenue, and made significant profits after it “created a separate, higher-priced menu, aimed at customers who cannot ingest milk”, the lawsuit states. At the same time, the chain – which serves around three million cups of coffee daily – allows customers to modify beverages with whole or skimmed milk instead of the standard 2% milk at no extra cost.
Similarly, the lawsuit claims that Dunkin’ allows free substitutions to make drinks caffeine- or sugar-free for people with heart conditions, hypertension, diabetes and weight-control issues. In this vein, the attorneys argue that not only is the non-dairy surcharge a federal violation, but it also breaches anti-discrimination laws in the states where plaintiffs live, including Hawaii, California, New York, Texas, Massachusetts and Colorado.
The suit states that lactose intolerance and milk allergies are considered disabilities, noting that at least 12% of Americans suffer from the former, while over 15 million have a milk or dairy allergy. One estimate claims that between 80-90% of African Americans, Native Americans and Asian Americans are lactose-intolerant.
The complaint further notes the Dunkin’ allergen statement, which advises patrons to inform staff if they have a food allergy. However, the plaintiff argues that “they only accommodate those with lactose intolerance or allergies to milk by imposing a surcharge”.
“Once Dunkin’ asks about allergies, and someone with a disability requests a dairy-free product as an accommodation, they can’t impose a surcharge – as they don’t for caffeine-free drinks, etc.,” Arlene Kanter, founding director of Syracuse University’s disability law and policy programme, told NBC.
Additionally, there is “no material difference between the price of lactose-containing milks and the price of non-dairy alternatives”, according to the plaintiffs. But according to the Good Food Institute, gallon for gallon, plant-based milk was 87% more expensive than dairy in 2022 – though government subsidies no doubt play a part here. The lawsuit calls Dunkin’s surcharge “excessively high”, claiming that companies charge consumers more than what it costs them to provide it.
Could the ADA help abolish the plant-based milk surcharge?
Courtesy: Dunkin’
The lawsuit states that lactose intolerance and milk allergies are disabilities, and cites the ADA by saying: “[A] public accommodation may not impose a surcharge on a particular individual with a disability or any group of individuals with disabilities to cover the costs of measures, such as the provision of auxiliary aids, barrier removal, alternatives to barrier removal, and reasonable modifications in policies, practices, or procedures, that are required to provide that individual or group with the nondiscriminatory treatment required by the Act or this part.”
Essentially, a public entity like Dunkin’ must make “reasonable modifications” to its rules or practices when required, to allow people with disabilities to afford its goods or services – unless the company can show that these changes would fundamentally alter the nature of their offerings.
“If a person qualifies as a person with a disability, and they’re entitled to an accommodation or modification – which in this case looks pretty simple as non-dairy milk – they cannot be charged extra,” explained Kanter.
She added that allergies and intolerances can be disabilities if they substantially limit a major life activity, but people who are perceived to have a disability are also protected by the ADA, which came into law in 1990 and was expanded in 2008 to broaden its definition of a disability.
“Dunkin’s policy of charging all customers a surcharge for non-dairy milks disproportionately affects persons with lactose intolerance and milk allergies,” Enica told USA Today. “The only choice for this group of people is to pay the surcharge.”
The $5M sought by the plaintiffs is the minimum amount that lawsuits need to seek to fall under the jurisdiction of a district court. It could help them regain some of the money they have spent on plant-based milk options at Dunkin’, and force businesses like itself to eradicate the surcharge. It’s a strong sentiment: Enica has said that more than 50 people who are lactose-intolerant or have milk allergies have reached out to join the lawsuit.
Chelsea Garland, a lactose-intolerant woman from San Diego, joined the legal filing because she felt it was unfair she had to pay more for a coffee that wouldn’t make her sick. “The Dunkin’ surcharge for non-dairy milk directly affected me, and I believed it was wrong,” she said.
Enica’s firm previously filed a similar class-action lawsuit in 2022 against Starbucks, which has filed a motion to dismiss, which is pending approval by the court. As for Dunkin’, the company has filed a waiver acknowledging the suit, and has until March 4 to respond.
Corporate legal watchdog ClassAction.org reports that attorneys are looking at whether other coffee companies – including Peet’s Coffee (which trialled free non-dairy modifications last April), Caribou Coffee (which dropped the surcharge in May, but only for loyalty programme members), Biggby Coffee, Dutch Bros, and The Coffee Bean & Tea Leaf – could be sued.
But businesses would be wise to follow the lead of coffee chains like Blue Bottle, which made oat milk its default option at a third of its locations in 2022 and doesn’t charge extra for oat or almond milk, and Philz Coffee, which replaced 2% milk with oat milk and offers it for free alongside soy and almond milk.
Spanish plant-based meat startup Heura has raised €40M ($43M) in a Series B round, in what is one of the largest investments in a vegan company in 2023. The company is now on the path to profitability and will look to license its tech and accelerate expansion.
Heura has closed the second-largest funding round for a plant-based company in 2023 (only behind Japan’s DAIZ), raising €40M ($43M) in Series B financing. It follows a €20M ($21.5M) pre-Series B round in 2022, with total funding for the brand reaching €88M ($94.6M).
Participants in the Series B round included Upfield (owned by investment firm KKR), Unovis Asset Management, the European Circular Bioeconomy Fund, and Newtree Impact, which Heura says builds a huge plant-based alliance, with a “board that will focus on top-notch tech to set new industry standards”.
Kim Anders Odhner, Managing Partner Europe-Asia at Unovis and Board member at Heura, notes that “the investment from Upfield is a strong validation of the company’s positioning and prospects”.
A tech-forward, clean-label alt-meat lineup
Courtesy: Heura
Founded in 2017, Heura makes clean-label plant-based analogues for chicken, beef, pork and fish, with a 19-strong lineup available in more than 22,000 locations in over 20 countries. One of the newest products to make a wave is its York-style deli ham slices, which were launched in October in Spain and France. Since then, the brand claims it is already the top rotating cold-cut alternative in its home country.
The ham analogues were the result of Heura’s first patent-pending tech, led by its Good Rebel Tech division, which was unveiled in April. Leveraging a novel thermomechanical processing technique, it can create additive-free vegan products with superior sensory and nutritional values and fewer ingredients, using only protein, water and oil to structure the product.
This isn’t really AI, but the tech relies upon using mathematical models in a similar fashion. “The main difference is that we are basing our approach and models on new scientific understanding of plant proteins that we generate in the tech lab,” Heura co-founder and CEO Marc Coloma told Green Queen in October. “We can improve [the] accuracy of our predictions, limit biases and, most importantly, develop breakthrough technological solutions which are based on new scientific knowledge; rather than optimising technologies that already exist based on published existing data.”
The company’s CTO, Isabel Fernandez, added: “We use a transdisciplinary approach to scientific research to overcome the greatest challenges the industry is facing. Our goals are ambitious. We are not aiming for small, incremental advancements based on cumulative improvements on what already exists, but rather exponential progress from scientific discoveries yielding breakthrough technological innovations.”
Those innovations can be applied across multiple plant-based categories, including deli meats, breaded analogues, whole-cut meats and seafood, and dairy products. “This approach enables us to not only cater to diverse tastes, but also aligns with our commitment to providing healthier, high nutrition and additive-free alternatives for consumers,” explained Coloma.
Giving consumers – and companies – what they want
Courtesy: Heura
The latest funding round will allow Heura to “boost its impact in the food industry”, accelerate international expansion, and explore more collaborative models beyond its own meat alternatives. Most notably, it will drive the company towards profitability, allowing the brand to continue leading the alt-protein sector’s growth in Spain and consolidate its footprint across markets like the UK and France.
Moreover, the company hopes to expand its portfolio of products as well as tech patents, while reaching new audiences through tech licensing. Its current offerings already play to key consumer concerns – health has emerged to be an increasingly important consideration for Europeans choosing to eat plant-based lately.
The 2023 EU Smart Protein survey, which covered 7,500 respondents in 10 countries, revealed that 51% of Europeans are eating less meat, with health being the primary reason why (cited by 47%). Likewise, health was the second-biggest purchase motivator for vegan food (after taste), chosen by 46% of respondents. Moreover, concerns about nutritional inadequacies are one of the major deterrents, with 24% of consumers selecting that reason.
Even globally, an Ingredion survey found that 78% would spend more money on products with ‘natural’ or ‘all-natural’ packaging claims. So the demand for products like the ones Heura is making is clear. “This achievement uplifts Heura’s vision of being at the forefront of Europe’s protein transition,” Coloma says about the latest funding effort.
“To change the food system, we need to move the pressure from consumers to the food industry, placing health and sustainability as non-negotiable,” he adds. “This new chapter will drive us to profitability while allowing us to develop breakthrough technology to tackle the key challenges within the industry in a scalable way.”
It marks a departure from a tough financial landscape for plant-based meat companies, which have seen VCs desert the space over the last year. Reflecting on this, Odhner highlights that Heura’s strengths have enabled the company to remain on strong footing. “Responding decisively to the slowing economy, the company continues to capitalise on a really strong following and robust market share in the Iberian peninsula, and is showing strong growth as it expands into France,” he tells Green Queen.
“The major differentiator lies in the company’s products and its positioning – Mediterranean flavours, clean label offerings, and innovative technologies aimed at extending shelf life, improving nutritional density, and introducing popular new formats.”
Sparked by the infant formula crisis, the FDA is about to undergo a major overhaul that will transform its human foods programme and regulatory affairs teams – what does this mean for alternative proteins?
In February 2022, the US Food and Drug Administration (FDA) recalled infant formula products made in an Abbott Nutrition facility in Michigan, after finding they may have been contaminated with Cronobacter sakazakii, which led to four infants being hospitalised, and two dying.
The FDA was roundly criticised for its oversight, not least because it first found out about the issue five months prior to the recall when a baby was hospitalised in September. In fact, in October, a former employee at the Abbott Nutrition facility had flagged concerns about food safety violations with senior FDA officials.
But it took a while for the government agency to take action. When it first heard about the infant being hospitalised in September, its officials were at the plant for an inspection, but didn’t find any serious problems or evidence of the bacterial contamination. In January, however, they returned to find at least five different strains of Cronobacter sakazakii in the facility.
It led to a long review process that will lead to the largest reorganisation of the FDA in history. This will mean an overhaul of the Office of Regulatory Affairs (ORA), which will be renamed and – alongside the Center for Food Safety and Applied Nutrition (CFSAN) and Office of Food Policy and Response – will be bridged under a newly created Human Foods Program.
It is the CFSAN’s Office of Food Additive Safety (OFAS) that is responsible for dealing with regulatory approval of alternative protein products – including cultivated meat and precision-fermented proteins – as well as handing out Generally Recognized as Safe (GRAS) notifications. So how does the reorganisation of the FDA affect alt-protein, if at all?
FDA hopes to ramp up pace and implement changes soon
Courtesy: Sarah Silbiger/Getty Images
The slowness and dysfunction of the FDA’s food functions is of little surprise to experts. An investigation by Politico revealed that food regulation is no longer a high priority for the agency, with drugs and medical products dominating both the budget and bandwidth. This has only been exacerbated since the pandemic.
“The food programme is on the back burner. To me, that’s problem no. 1,” Stephen Ostroff, a former FDA senior official who twice served as acting commissioner, told the publication. “There are a lot of things that languish. There’s nobody really pushing very hard to get them done in the same way that you’re pushing very hard to get the Covid vaccines out there and authorised. We don’t have that imperative and that pressure to actually make things happen on the food side of the Food and Drug Administration.”
This slow pace can also be seen in the FDA’s reorganisation itself, which was announced last January, and will still take quite a bit of time. “As a federal agency, the FDA must adhere to the required processes and notifications for reorganisations. Although the proposal has been finalised by the FDA, there are several critical steps remaining before implementation of the new structure can commence,” an FDA spokesperson told Green Queen.
“These include review by the Department of Health and Human Services and the Office of Management and Budget, providing the House and Senate Appropriations Committees with a 30-day notification period, issuing a Federal Register Notice and engaging in all necessary negotiations with Unions representing impacted staff.”
They added that the agency hopes it can begin implementing the proposed changes now, once it completes all the necessary review and approval steps. “The FDA remains committed to keeping the public up to date as the proposal continues to be developed,” said the spokesperson. (They did not respond to specific questions about the OFAS or the regulation and importance of alt-proteins.)
A focus on field-based operations
Courtesy: FDA
The reorganisation will see the ORA renamed as the Office of Inspections and Investigations (OII), with an emphasis on lab testing, field-based inspections, investigations, and import operations. It means about 1,500 ORA staff will be reassigned to product centres to work directly on inspections and investigations, with the goal of preventing the duplication of functions at the ORA.
At a recent webinar, outgoing FDA principal deputy commissioner Janet Woodcock said: “We’re really trying to transform different aspects of the FDA to make them more efficient, more effective, and so forth… Our mission seems to continually be broadening and we really do need to be able to meet our mission as much as our resources allow.”
This could potentially mean more frequent and more efficient inspections, which would lead to quicker resolutions and increased vigilance from companies too. In fact, businesses will need to adapt to the structure, as the FDA will likely be better equipped with investigators who are more specialised in specific product areas. In-house regulatory affairs and quality assurance staff should be well-versed with the new setup, while companies need to be aware of any updated compliance expectations and identify any new points of contact.
As for the CFSAN, its cosmetics regulation and colour certification functions will be transferred to the Office of the Chief Scientist, a move that is said to recognise the evolution and innovation in this product space, and better align the agency’s cosmetics subject matter experts with the Chief Scientist, who is “focused on research, science, and innovation that underpins the agency’s regulatory mission”.
What this means for alt-protein
Courtesy: UPSIDE Foods
The implications for alt-protein are less clear. The FDA has previously issued GRAS notifications for UPSIDE Foods and Eat JUST’s respective cultivated chicken products, as well as ‘no questions’ letters to precision fermentation companies Perfect Day, The EVERY Co, Remilk and Imagindairy.
Shannon Cosentino-Roush, president of the Association of Meat, Poultry and Seafood (AMPS) Innovation – a US alliance dedicated to cellular agriculture – expressed hope that the reorganisation won’t lead to “delays or a departure from FDA’s leadership” in advancing novel food technologies. “The industry remains committed to supporting the agency and this transition by advocating for [the] FDA to receive the resources it needs not only to achieve its mandate, but to ensure the US stays at the forefront of innovative advancements that are critical for American competitiveness, food security, and sustainability priorities,” she told Green Queen.
“Key among this is ensuring that the cell-cultured consultative process is robustly staffed to reduce delays in the review process that could impede progress, especially when the industry is rapidly advancing from R&D to commercialisation and is fuelled by start-up companies aiming to demonstrate commercial viability for this technology. We applaud [the] FDA for making efforts to strengthen its food program, and we share the agency’s goal of providing safe products to consumers,” Cosentino-Roush added.
A spokesperson for the Precision Fermentation Alliance (PFA), the US-based industry association, said that while it’s too early to comment, they expect the agency to continue to be a global regulatory leader for novel foods.
It’s a common sentiment that the FDA is stretched for resources, given its wide remit. “We are very strong supporters of further funding the FDA,” said the PFA representative. “We would hope a significant portion of these funds would be directed to the Office of Food Additive Safety, which handles GRAS reviews for the agency so that it can continue to build its scientific teams and carry on the high-quality reviews and timelines that have made the FDA the gold standard.”
Along similar lines, Laura Braden, associate director of regulatory affairs at alt-protein think tank the Good Food Institute (GFI), added: “GFI appreciates the cooperative approach FDA has taken in working with companies in the alternative protein industry to bring their products to market safely. As the agency reorganises its food regulation structure, adequate funding for FDA that allows it to stay at the forefront of scientific research and regulatory approaches is crucial for fostering an environment where safe innovation in the food sector can thrive.”
Cosentino-Roush acknowledged that the FDA’s approval of UPSIDE Foods and Eat JUST’s cultivated meat products “sent reverberations globally”, signalling that cultured proteins moved “beyond theory and into reality”. “As [the] FDA embarks on its reorganisation and shift in leadership, AMPS Innovation underscores the importance of maintaining the momentum and prioritisation of the cell-cultured consultative process, which serves as the backbone of the regulatory pathway to market for this key, innovative, and advancing industry,” she said.
“In 2024, we hope to see additional ‘no questions’ letters issued for other cell-cultured meat and fish products, bringing a range of new choices to market.”
The restaurants serving cultivated meat in Singapore and the US have stopped doing so – as the industry enters a crucial year for regulation and commercialisation, what’s next for consumers hoping to taste cultured meat?
July 2023 was a landmark moment for cultivated meat. It was the month after Californian startups Eat JUST’s GOOD Meat and UPSIDE Foods received USDA approval to sell their cultured chicken nationwide, and became the month that saw the debut of these products in restaurants.
UPSIDE Foods’ chicken made its way onto the menu of Dominique Crenn’s Michelin-starred eatery Bar Crenn in San Francisco, while José Andrés’ Washington, DC restaurant China Chilcano debuted GOOD Meat’s product, which rolled out for public tasting weeks later.
“It represents a giant leap towards a world where people no longer have to choose between the foods they love and a thriving planet,” UPSIDE Foods CEO Uma Valeti said at the time, summing up the weight of the occasion. “I can’t wait for more people to get their first bite – it’s a magical moment that inspires an exciting world of new possibilities.”
Now, however, people can’t get those bites anymore, not in the same capacity anyway. UPSIDE Foods and GOOD Meat have hit pause on their restaurant collaborations for now. And that’s not just in the US – GOOD Meat’s products are no longer available in Singapore either, which was the first country to approve the sale of cultivated meat anywhere in the world.
In a year earmarked as a milestone for regulatory pathways and commercialisation of cultured meat – with Israel’s Aleph Farms becoming just the third company to earn clearance last month – where does that leave the industry?
Cultivated meat no longer on sale – but not for long
Courtesy: UPSIDE Foods
Last week, UPSIDE Foods announced that it had “wrapped up” its dinner series at Bar Crenn, and was taking its chicken “on the road”. “This was the close of the first chapter of our journey… A chapter filled with hope, predictions, aspirations [and] incessant scepticism,” Valeti wrote in a LinkedIn post. “All of these milestones were deemed as impossible and unachievable just a few years ago.”
This came after China Chilcano paused reservations for its tasting menu featuring GOOD Meat’s chicken in September. “Please check back soon for information on the next availability,” its website reads. Sales of GOOD Meat’s cultivated chicken in Singapore have also paused for the time being.
“The most important activities for GOOD Meat are related to process development and lowering costs long-term. We are focusing our efforts and resources on those tasks at this time,” Eat Just’s global communications director, Carrie Kabat, told Green Queen.
While the company couldn’t share figures like the number of dishes or diners served, Kabat said the dinners held at China Chilcano “went extremely well”. “Reviews from diners were overwhelmingly positive,” she said. These included snippets from the likes of Food Fix’s Helena Bottemiller Evich – “Tastes like chicken? It really does” – and the Good Food Institute (GFI) founder Bruce Friedrich – “The highlight of my year (no second place)”.
“Based on the feedback from diners, we learned that people really like eating cultivated chicken instead of slaughtered chicken,” added Kabat.
Courtesy: Eat JUST
UPSIDE Foods received similar feedback at Bar Crenn, where it completed seven services in total. Critics were impressed by the product, with the Washington Post describing it as “the kind of chicken that once was common in America, before the poultry industry sacrificed flavour for rapid growth” and Eater noting that “the meat itself was less sickly white than supermarket birds, and the taste evoked the kind of nostalgic, delicate meatiness proper chicken should provide”.
The company has hit back at the Bloomberg story, calling its claims “inaccurate and misleading”. “This occurred despite our team’s extensive efforts to educate Bloomberg’s reporters over many months and despite outreach to their editors, general counsel, and standards editor to express our concerns regarding the investigative and reporting process,” the company said. “They have refused to fairly reflect UPSIDE’s progress in the story, and the article reads more like an opinion p
Eat JUST, meanwhile, has been embroiled in legal battles with suppliers and experiencing financial troubles, while UPSIDE Foods has been subject to negative press from Wired and Bloomberg over its progress.
Eat JUST co-founder and CEO Josh Tetrick disputed allegations of financial stress, telling Green Queen in November that the business experienced huge EBITDA and gross margin growth last year. “we are focused on the daily execution of our zero-burn plan (i.e., cover operating costs through margin dollars) and serving our customers,” he said. “If we execute, the company and its missions win. It’ll be challenging and hard – and it’s up to us to get it done.”
Where you can try cultured meat next
Courtesy: Aleph Farms
These developments don’t really spell doom for public tastings of cultivated meat – quite the opposite, in fact. With a considerable amount of buzz generated, the focus for these companies is now on cost-cutting, “process development” (as Kabat touched upon), and creating “next-gen, larger-scale products” (which is what UPSIDE Foods is working on).
“We plan to resume tastings for the public this year,” said Kabat. UPSIDE Foods similarly aims to relaunch sales soon – it’s working with Crenn and other chefs to serve its cultivated chicken at events starting next month. “We are proud to have partnered with Chef Dominique Crenn to make history, from the first-ever US sale of cultivated meat to a series of UPSIDE dinners at Bar Crenn that delighted consumers with a delicious taste of the future,” a brand spokesperson told Green Queen.
In his LinkedIn post, Valeti said: “We look ahead to the next chapter of our journey as we go from first sale to significant scale. We are again ready to take on first-of-their-kind challenges [and] sceptics, including renewed attempts to ‘ban’ our progress.”
“We are still at the very early stages of cultivated meat’s entrance into the marketplace,” GFI’s senior VP of communication, Sheila Voss, told Wired. “As we saw in Singapore, the first country in the world to approve the sale of cultivated meat, the rollout to consumers migrated across fine dining restaurants, home delivery, and hawker stalls, highlighting the versatility of this product, and we expect similar introductory rollouts in the US.”
But it’s not just Americans who can look forward to trying cultivated meat products soon. After gaining regulatory approval in its home country, Aleph Farms is now undergoing final labelling and mark-of-facility inspections. Once passed, it will introduce its Black Angus Petit Steak under the Aleph Cuts banner to diners, offering exclusive tasting experiences curated in collaboration with select partners.
“At first, the product will be available in select restaurants,” Yoav Reisler, senior marketing and communications manager at Aleph Farms, told Green Queen last month. “Afterwards, it will become available at foodservice and retail locations.”
Courtesy: Fork & Good
Aleph Farms will hope to do the same in the other countries it has filed for approval in: Singapore, the US, the UK and Switzerland. The latter actually was host to its first cultivated meat tasting last month, when US food tech startup Fork & Good welcomed 40 diners at a pub in Davos to sample and tell the difference between conventional pork and its hybrid pork (a blend of 70% plant protein and 30% cultivated pork).
According to an informal poll, more than half of the tasters preferred the hybrid meat, while the group was split when asked to guess which dish contained cultivated meat.
Another hybrid pork company hoping to host public tastings for diners is the Netherlands’ Meatable. After holding two tasting events in Singapore in 2023 – where it plans to roll its product out later this year – the company has filed a dossier to the Cellular Agriculture Netherlands Foundation’s newly created independent expert committee. The panel is the final hurdle for companies hoping to give people a taste of their product, and would make the Netherlands the first EU country to make pre-regulatory-approval tastings possible.
With more regulatory approvals expected this year, it’s safe to assume that you’ll be able to try cultivated meat in a restaurant again soon – and it won’t just be from two producers.
The Islamic Religious Council of Singapore has issued a fatwa declaring that cultivated meat is generally halal, and Muslims can eat these products as long as they adhere to halal standards.
The Fatwa Committee of the Majlis Ugama Islam Singapura (MUIS) has announced that cultivated meat can be considered halal, and the country’s Muslims are allowed to consume it if certain conditions are met.
The sole entity with the legal power to issue halal certificates in Singapore, Muis’s fatwa ruled that cultured meat can be halal if the cells are sourced from animals Muslims are allowed to consume (for example, chicken but not pork), and there’s no mixing of non-halal components in the manufacturing process.
The ruling was issued at Muis’s Fatwa Conference on February 3, and marks an important next step for cultivated meat’s progress in a country that first approved its sale in 2020, and 15.6% of whose citizens are Muslim. Halal diets refer to food consumption in accordance with Islamic law – when it comes to meat, it means animals must be slaughtered in a prescribed way, and certain types of meat and byproducts – including pork and blood products – are prohibited.
The halal conditions cultivated meat must follow
Courtesy: GFI APAC
The fatwa comes after over a year of deliberation by the Islamic council, which – supported by the Office of the Mufti – consulted stakeholders like the Singapore Food Agency, industry bodies like the Good Food Institute (GFI) APAC, and scientists and other experts. Plus, Muis visited a local cultivated meat production facility, with scholars perusing the matter from all angles of the Islamic perspective, and taking into account Singapore’s “socio-religious realities”.
While presenting the results of the study on Saturday, the Fatwa Committee outlined the environmental and food security benefits of cultivated meat, finding that its pros outweigh any perceived cons. Muis said its fatwa was underpinned by the Islamic principles that it serves to preserve human life and protect the environment. “The fatwa also considers the Islamic legal principle that unless proven otherwise, whatever is beneficial is permissible,” it added.
The religious guidance on cultivated meat consumption was developed due to questions of permissibility for Muslims after the SFA approved the sale of GOOD Meat’s cultured chicken in 2020. Considering the global impetus to find alternative, sustainable food solutions and the emergence of novel food, it is necessary to establish a clear religious position from the outset in order to facilitate any future plans for the halal certification of cultivated meat,” said Muis.
The Fatwa Committee studied three inter-related aspects – the source of the meat, the production process, and the ingredients used – and outlined requirements stipulating that the cell lines should be from a species permissible to eat for Muslims, every ingredient making up the texture and composition of the cultivated meat should be halal, and the product must be clean and non-toxic. These guidelines largely align with those released by Shariah scholars in Saudi Arabia in September.
“Building a truly inclusive, efficient and secure protein production system requires making high-quality, nutrient-rich, and culturally relevant foods available to every facet of society,” said Mirte Gosker, managing director of GFI APAC. “With Muis’s precedent-setting announcement, Singapore is bringing that bold vision one step closer to reality.”
Halal consumers represent 25% of the world’s population, and the halal meat market is estimated to grow by 7% annually to reach $375B in 2031. Research has found that the most important consideration for Singaporeans around cultivated meat is that it must be halal before it is consumed, with some raising concerns about whether its production can be halal, especially if they’re located close to facilities making cultured pork or other prohibited meats.
The study further suggested that participants unanimously expressed trust in Muis to determine the halal status of cultivated meat, believing its opinion to be comprehensive. “They are doing the right thing as a Muslim authority and speaking on behalf of all Muslims in Singapore,” one respondent said.
Singapore to create halal certification for cultivated meat
Courtesy: GOOD Meat
Now, Muis plans to work with government bodies like the SFA and industry stakeholders to develop guidelines for halal certification of cultivated meat – a move that would be welcomed by the sector. A 44-company survey by GFI APAC last year revealed that complying with halal requirements was a priority for 87% of the businesses. But a lack of resources outlining how products can adhere to such religious certifications would prove to be a significant entry barrier, the study added.
Currently, no cultivated meat approved for sale on the market satisfies the council’s halal guidance yet, according to GFI APAC. While the timeline for the halal certification depends on the complexity of certifying the products, Muis explained that any locally produced halal-certified cultured meat would be available only for local sale and consumption – exports are only possible if other countries have approved the sale of these products (the US and Israel are the only others to have done so).
“Companies applying for Muis Halal Certification must have a facility producing cultivated meat products in Singapore,” the council added. “This is the same principle applied to conventional meat-producing facilities. The halal status of imported raw materials and processing aids from overseas which are used locally must be substantiated with the appropriate halal supporting documentation, depending on the risk category, and not the country of origin.”
The fatwa mentioned that the guidelines are intended to ensure that halal dietary rules are followed and maintained. But it added: “In all cases, Muslim consumers make their own informed choice whether to patronise any halal-certified eating establishment or consume any halal-certified food product.
“Similarly for cultivated meat, if it is halal-certified, Singapore Muslims can choose whether to consume or otherwise. Actual Muslim consumer acceptance of cultivated meat will also depend on other considerations like personal dietary preferences, taste, and cost.”
Gosker said: “More than a billion people around the world adhere to halal food standards, so for cultivated meat to make the leap from novelty to the norm, it is crucial that there are viable pathways to achieve this certification.”
Muis’ fatwa follows the aforementioned advice from three leading Shariah scholars in Saudi Arabia, which told GOOD Meat that cultured meat can be considered halal if it meets certain criteria. And in 2022, the Assembly of Muslim Jurists of America adjudged cultivated meat as provisionally permissible by default, provided Halal criteria are followed.
In terms of other religious guidance, Israel’s chief rabbi David Lau declared last January that local producer Aleph Farms’ non-FBS steak could be considered kosher and akin to eating a vegetable (parve). This wasn’t a kosher certification, however, and the company is now pursuing one for its facility from local rabbinate authorities.
Belgian food tech startup Bolder Foods has introduced MycoVeg, a functional mycelium ingredient that offers creamy and stretchy textures in non-dairy cheese. The biomass-fermented innovation is being trialled by dairy companies, and is set for a 2025 market launch.
Brussels-based Bolder Foods has announced the development of its newest alt-cheese innovation, MycoVeg. Made from mycelium, the functional ingredient leverages biomass fermentation to provide an end product with a smooth and stretchy mouthfeel and umami-packed punch.
The startup argues that existing toolkits for cheese manufacturers aren’t strong enough to truly meet consumer expectations around taste, texture and price on a mainstream level. To address that pain point, Bolder Foods has created a semi-finished product that can be used as a bulk ingredient, combining mycelium with plant-based elements to deliver better dairy-free cheese products.
“We’re not making end products ourselves – we sell MycoVeg to cheese manufacturers and dairy companies to make end consumer products,” Bolder Foods co-founder and CEO Ilana Taub tells Green Queen. “That said, MycoVeg enables the creation of clean-label and deliciously creamy soft, semi-hard and fresh cheeses (think brie, camembert, gouda, cheddar, mozzarella).”
Harnessing mycelium’s nutritional and functional prowess
Courtesy: Bolder Foods
Founded in 2020 by Taub and COO Michael Minch-Dixon, Bolder Foods specifically works on innovative cheese alternatives. Its first product line, Chizou, is a plant-based grated range made from cauliflower and chickpea protein, which is said to melt and brown like conventional cheese.
In 2021, the startup began focusing its attention on mycelium, an increasingly popular ingredient in the alternative protein space, owing to its nutritional, environmental and functional benefits. A study published in the Journal of Agricultural and Food Chemistry last December suggested that the mushroom root is rich in fibre and low in fat, alongside 20-30% of protein content in dry matter, which provides all the necessary amino acids. It’s also a source of essential micronutrients like iron, zinc and vitamin B12, which are typically found in animal-sourced foods.
Plus, a three-week early intervention trial found that 190g of mycelium per day can lower LDL cholesterol by 21% on average versus animal protein. And the fungi can sequester carbon (with certain strains able to store 70% more carbon in soil), some of which can be broken down into carbohydrates that act as nutrients for the soil.
The research focused on the flavour potential of mycelium in the context of meat alternatives, but found that foods made from mycelium usually exhibit bland or only slightly mushroom-like flavour profiles, which can be enhanced by spices and seasonings. Additionally, it’s possible to develop ‘in-process’ flavours through biochemistry and flavour chemistry, with different mushroom species able to produce various taste profiles, such as the aroma of beef bullion, curry or maple syrup, or the flavour and texture of chicken – the same can be applied to cheese too.
To produce its mycelium ingredient, Bolder Foods uses a naturally occurring, non-GM strain of fungi. “Our technology is based on biomass fermentation through a process that combines fungi and vegetable substrates. It’s a simple liquid fermentation process with minimal downstream processing, and the resulting product (MycoVeg) consists of a unique combination of biomass and fermented vegetables,” explains Taub.
The startup has created some prototype products to showcase the potential of its tech, using a mix of standard cheesemaking equipment and cheese alternative recipes.
Targeting taste and texture with mycelium
Courtesy: Bolder Foods
Taub argues that current manufacturing methods don’t allow cheese producers to create alternatives that have mass appeal. “Plant-based analogues made from coconut oil and starch have improved a lot in recent years, but they’re still quite average and nutritionally poor,” she suggests. “Nut-based analogues create an improved consumer experience, but they’re extremely expensive so again, can’t appeal to a wide group of consumers.”
She adds that all the dairy companies Bolder Foods has spoken to are looking for new approaches and technologies to solve this problem: “MycoVeg helps create delicious, unctuous alternatives with smaller (clean-label) ingredient lists, which do not require gelling agents or modified starches (such as currently present in many alternatives).”
The startup has described its ingredient as capable of having a spectrum of flavours, spanning neutral all the way to strong umami notes, as well as a texture that is creamy and elastic. In conventional cheese, the meltability and stretchability come from casein, which makes up 80% of the protein content found in dairy. Taub notes that while many companies are working on developing recombinant casein – such as Standing Ovation, Eden Brew, New Culture, Fermify and Zero Cow Factory – that is not the approach Bolder Foods is taking.
“Developing synthetic dairy proteins (such as casein) is part of the solution, but not all of it, as dairy and cheese [are] made up of much more than just protein,” she says. “With our unique approach, we’re able to create elasticity and bite that resembles dairy cheeses. Ultimately, when recombinant casein is available to the market, we see MycoVeg as the perfect ‘host’ for these proteins.”
It’s an important aspect to nail, given that taste and texture have long been the bane of non-dairy cheese. If you were to use Americans as a gauge, a study leveraging Kroger data from 60 million US households found that 73% of consumers are unhappy with the flavour (“plastic” or “unnatural”) and texture (“grainy”) of vegan cheese. They want cheeses that taste better, melt well and have a creamy mouthfeel – aspects that Bolder Foods has highlighted.
Teaming up with dairy companies with a targeted 2025 launch
Courtesy: Bolder Foods
Currently, MycoVeg remains in the R&D stage. “Our projected costs allow the development of end consumer products that are affordable (not premium). Our yield, fermentation time and minimal downstream processing mean all speak to favourable unit economics enabling significant inclusion rates and attractive overall ingredient costs,” says Taub.
“We’ve started our first trials with dairy companies,” she adds. “Once these trials are over, we’ll start scaling our fermentation process to reach commercial scale. We anticipate first sales of products made with MycoVeg to happen in 2025 on a small scale, and 2026 on a full commercial scale.”
A 2020 survey revealed that Belgium (alongside the UK) represented the highest penetration rate for vegan cheese in Europe (67%). Since then, the market has expanded, with a 27% rise in value from 2021-22 – thrice more than conventional cheese in the country. Unit sales for plant-based cheese also grew by 30%, just as its dairy counterpart saw sales drop by 4%. Still, vegan alternatives only represent 0.1% of the total Belgian cheese market, indicating that there’s a long way to go.
Bolder Foods has raised about €1.5M ($1.63M) in investment so far, and is currently fundraising. “We’re in discussions with several VCs and funds, but there is still room for more investors,” says Taub, who will hope to eventually become a leader in the $2.85B mycelium market.
In the 1980s, Willem van Eelen began working on the technology that produces what we know today as cultivated meat – now, his daughter, via RESPECTfarms, is extending his vision to help farmers take the plunge, beginning with the world’s first cultured meat farm.
If the whole world transitioned to alternative proteins like cultivated meat, what would happen to all the farmers? This is one of the most pressing questions surrounding the industry.
It’s an important one, too – how do you diversify the world’s protein intake without wiping out the livelihoods of a quarter of the global population, which forms the backbone of our food system? To answer it, Ira van Eelen, Ruud Zanders, Florentine Zieglowski and Ralf Becks came up with RESPECTfarms, presenting a way one could grow cultivated meat on conventional farms.
Van Eelen is the daughter of Willem van Eelen. Known as the grandfather of cultivated meat, he began working on the tech in the 1980s and led the first-ever public research project on these proteins in the early 2000s, funded by the Dutch government.
Founders: Ralf Becks, Ruud Zanders, Ira van Eelen and Florentine Zieglowski – courtesy: RESPECTfarms
The outcome of this research focused on how cultivated meat could be an additional business model for farmers. It’s the seed that sparked the idea to launch RESPECTfarms, which is hoping to decentralise cultivated meat production on traditional farms. Ira van Eelen calls this “the bare necessity”, viewing cultured meat as a solution to climate protection and food security.
“Not all farmers should make cultivated meat tomorrow,” she tells me. “But we need to diversify the current protein production for a more resilient agricultural system.”
Why not grow ingredients for plant-based proteins, then, like some transition projects are doing? “Not all plants are useful for cultivated meat production either (but rather for plant-based meats),” van Eelen responds. “Some others (including sidestreams) make sense in terms of processing costs or composition for cell culture media.”
Why RESPECTfarms advocates growing cultivated meat on farms
Do livestock farmers really want to make the switch from something they’ve known all their lives? “It depends on why meat has been their entire livelihood,” she suggests. “Is this because they love to work with animals? Because they see it as a viable business? Is it because they are proud to contribute to food security and feed the world? Cultivated meat does not mean you need to give up on your motivation on why you are a farmer. They can still produce meat, just in a different way (and with some key additional benefits).”
And what might those benefits be? As RESPECTfarms explains in a hypothetical video, farmers would be able to produce more meat with fewer cows – and they don’t need to be slaughtered. It safeguards them against any disease risk to the livestock (and that transferring into the meat produced), because you’re essentially taking them out of the equation. Plus, there are the environmental benefits too – cultivated meat can mean 92% fewer emissions, 94% less air pollution, and 90% less land use than conventional beef, if produced via renewable energy.
The next question that springs to mind is why grow cultivated meat on a farm instead of at a manufacturing facility? As van Eelen explains in the video, the farm is a smart location for this, because everything you need is already there. You’ve got the animals and their cells, a place to generate energy, as well as the people who are adept at handling them, are familiar with following processes and know how to deal with hygiene. Farmers can play a role in feeding the cells, and process residual flows via recycling and waste management. “So why wouldn’t we do it in a place like that?” asks van Eelen.
“It will secure [farmers’] place in rural areas and secure food production,” she tells me, before adding: “But yes, for those farmers that aim to stay in the way they have always been practising agriculture, they might want to transition towards another form of agriculture.”
Addressing design challenges for existing farms
RESPECTfarms’ demonstrative video explains how farmers can work with experts (like architects) who can retrofit their stable with new designs that are fit for cultivated meat production and a farm of the future. It combines sustainable production with local agriculture to make a circular chain – hitting a key consumer concern.
There are other potential pain points too. What do farms do with existing animals, if not slaughter them the way they were raised to do? “Our proposition is that they can produce the same amount of meat that they used to produce, only with fewer animals needed. This opens up the opportunity to hold the few animals in an animal-friendly way,” says van Eelen. “What farmers do with their animals at a certain point is up to them to decide.”
Courtesy: RESPECTfarms
And in terms of redesigning stables, how do smallholder farms with limited space and facilities fit in here? Van Eelen explains they could still technically produce cultivated meat, with external inputs on the cell culture media. “Current agriculture already shows different strategy practices – from differentiating the farm practices (like income on feed, milk, and meat) to focusing on one practice only (such as specifically breeding sows). We expect this to happen also for cellular agriculture farms in the future,” she notes.
“Further, It is all about how we can design the process most cost-effective for farmers: What is the investment needed by the farmer? What is the input and output? What are the price points? This is still part of the research and will develop over time. Farmers are traditionally used to work in collaboration, so we expect [to work with] regional cooperatives.”
RESPECTfarms is working with 60 farmers in the EU
Van Eelen and her co-founders are working with farmers on different levels. This includes partnerships with the German Agricultural Society (DLG) and Swiss farmers’ union Fenaco, both of which are leading organisations in their respective countries with thousands of members, and have expressed support for RESPECTfarms’ concept. “We intend to expand on these engagements and conversations intensively in the next months,” van Eelen reveals.
Have farmers been receptive to the idea? “We have not experienced extraordinary negativity around cultivated meat by farmers. We have validation that there is a group of farmers that wants to produce cultivated meat,” she outlines. “There is also a group that does not want to tap into this field, but it is an assumption that farmers would not want this. And we focus on the ones that aim at transitioning with us.”
RESPECTfarms is part of the Horizon Europe programme, which helps fund the feasibility of farm-scale cultivated meat production. “We will research opportunities and key blocking issues [in] Spain, Portugal, Germany, and Norway,” she adds.
Courtesy: RESPECTfarms
Currently, van Eelen and her colleagues are having one-on-one talks with about 10 farmers in Switzerland and Germany, and 50 in the Netherlands. And it’s the latter where it is looking into the possibility of its first farm (planned for 2025), with Germany being an alternative. “The construction of a pilot farm represents a risk to investors and other private funders. Therefore, we see an urgent need for the public sector to support a first farm – both to de-risk and increase the value over time.”
RESPECTfarms began running an 18-month feasibility project in January 2023, armed with €900,000 in funding from European governments, NGOs, and industry partners like Rügenwalder Mühle, Fenaco, Rabobank, and the Belgian animal rights group GAIA. “Current agriculture is heavily subsidised,” notes van Eelen. “There are also subsidies to transition towards more sustainable practices. Farmers should be subsidised to transition towards this model in the future, too.”
Another aspect to consider is the expensive machinery and equipment required for cultivated meat production. “At the moment, bioreactors are still expensive. That is partly due to the design of these bioreactors that are not suitable for food production. We aim at developing a design that is feasible, viable, and desirable for farmers to invest in,” van Eeelen explains.
The need for regulatory support
Courtesy: RESPECTfarms
She calls on the public sector to “pave the way” in terms of regulatory frameworks to open up the possibility for cultivated meat farms. Currently, no country in the EU has received applications for approval, with the bloc’s novel foods regulation being the most stringent in the world. Within Europe, though, Switzerland and the UK are currently evaluating filings from Israeli cultivated beef producer Aleph Farms (which last month received clearance in its home country).
So how do farmers make money in the meantime? “Unfortunately, with their current agricultural practices – or [if] they have already transitioned towards plant-based alternatives,” notes van Eelen. ‘If we don’t work on this now, we will be too late for the farmers in need of another alternative, futureproof business model.”
Speaking of the future, RESPECTfarms is working towards fully optimising its first farm by 2029, in the hope to start a movement that can help scale out its process from 2030 onwards. “Our first long-term vision is the transformation of 1,000 farms in 2038, with a growing network to expand and sustain,” says van Eelen.
Buy-in from governments, farmers and consumers is crucial – can RESPECTfarms get the ball rolling with the world’s first cultivated meat farm?
In an exclusive interview with Green Queen, Wild Earth co-founder and alt-protein investor Ryan Bethencourt talks the death threats he’s received, his experience with Shark Tank and Mark Cuban, his investment criteria, learning from Tesla, media bias, and his company’s upcoming cat food and Basics lines.
“It was honestly pretty brutal,” says Ryan Bethencourt, recalling a trip he took with his father when he was 10. “I loved animals, cared for lots of our dogs and cats, and I then went to see a pig slaughtered in front of me.”
He recalls seeing the fear in the creature’s eyes – as if the life had been drained out of them. “They were sliced up in front of me,” he describes, noting the day he quit pork.
That was over 30 years ago now, a period since which Bethencourt has emerged as a leading scientist, entrepreneur and investor in the alternative protein industry. His trip to the farm provides a snapshot of a man who deeply cares about animals – he grew up with a bunch of dogs, cats and other “exotic pets” – and his company Wild Earth, which makes food for our furry friends, extends that image.
It took him until his late teenage years to go fully vegetarian, but it was really in his late 20s that he gave up animal foods altogether, after watching the 2005 documentary Earthlings. “I went vegan the next day,” the now-44-year-old tells me. “As Ursula Le Guin wrote in one of my favourite short stories, once I had seen the wrongness of our society, I chose to walk away from Omelas and go vegan.”
What Ryan Bethencourt the investor looks for in startups
A few years after taking the plant-based plunge, Bethencourt and a few friends co-founded Indie.Bio in 2014, a biotech accelerator based in San Francisco, which has funded dozens of leaders in the alternative protein industry. It marked the beginning of his journey as an investor.
Bethencourt calls his journey of becoming an angel investor accidental. “I wanted to keep supporting ‘future of food’ companies post IndieBio, and I started to invest tiny angel cheques to help founders just get off the ground (most were their first cheques),” he says, naming companies like cultivated meat leaders Shiok Meats (Singapore) and Newform Foods (South Africa). “Over time, I realised I needed more capital to support so many founders that were approaching me.”
Courtesy: Wild Earth
This is when he launched Sustainable Food Ventures with food and flavour scientist Mariliis Holm. It’s a rolling fund that backs 60 companies over three years (50% of which are first cheques). Over the last decade, Bethencourt has been involved in the angel or VC funding of more than 180 companies. Some of his favourites? Upside Foods, Mycoworks, NotCo, Geltor, Jellatech, Galy, Hoxton Farms and Farmless, among many others.
What does a serial investor like him look for in a company? The North Carolina resident has three simple criteria. He calls the first “missionary over mercenary”, indicating support only for people who deeply care about a sector. “They’ll keep going no matter what, and you need that when building a business. No company or industry stays hot forever, and when it gets brutally hard, that’s when missionaries shine,” he explains.
The next is a focus on new and interesting insights or technology, “ideally with a deep understanding of why others that have tried failed and why this time it’s different”. Finally, he asks the question: “Do I want to work with this person/team for the next few decades?” He believes this is his most unusual insight, as he views backing a founded as a lifelong commitment – it’s not just their first startup, but those that follow too. For example, he invested in Alan Perlstein’s Miraculex (now Oobli) years ago, and has since funded Perlstein’s latest startup, California Cultured.
“I still get founders of large commercial companies who call me and ask for my perspective on their companies or their next startup, and I love the fact they feel comfortable reaching out to me as the years roll on,” says Bethencourt.
Creating Wild Earth and securing a Shark Tank deal with Mark Cuban
It was at Indie.Bio when Bethencourt first became “obsessed about pet food”. There were a few reasons for this. The investor had learnt that 30% of the meat consumed in the US goes to feeding pets (which, to him, meant that 25-30% of factory-farmed animals could be replaced). He also realised that dogs, as omnivores, could “survive and thrive” on a plant-based diet. And he was even more shocked to find out that cats (traditionally seen as obligate carnivores) could similarly prosper on a nutritionally complete vegan diet.
Courtesy: Wild Earth
It sparked an idea that propelled Bethencourt to mainstream popularity. “I really believe in the saying: ‘Let food be thy medicine.” And most pet food is honestly horrible,” he says, invoking the dreaded 4Ds – dead, diseased, dying or downed animals – and referring to the contamination with euthanasia drugs and melted plastic.
“All of these contaminants have been found by the FDA in pet food, and that’s before you actually understand what our pets are being fed: ground-up chicken feathers, beaks and other horrible things,” he notes. “The great irony of this all is we can replace the entire rotten pet food industry with nutritionally compete plant-based and yeast-based proteins, clean and not gross.”
He took it upon himself to transform the pet food industry for all the animals, and started Wild Earth with his co-founders in 2017. Two years later, he appeared on national television with the aim of generating interest and investment in his company. Suffice it to say, he was successful in reaching his goal, and then some.
On Shark Tank, Bethencourt landed a deal with Mark Cuban, securing $550,000 for 10% of the company. (Since then, Wild Earth has closed Series A and A+ rounds to bring total funding to nearly $50M). “Shark Tank was a surreal experience,” he reveals. “A lot of people don’t know this, but there aren’t any redos on the show. When the doors open, you get one shot and that’s it, and the pressure is intense as they make sure you never meet the Sharks prior to the pitch.”
The Sharks went hard on Bethencourt after he revealed that Wild Earth had no commercial sales yet (with plans to launch its first product soon), despite essentially valuing the business at $11M. He expected that response. “We were trying our best to make sure we made the best dog food possible and it was taking a lot longer than I originally hoped,” he tells me.
“I hoped one of them would see the vision behind Wild Earth and why we had to bring change to the pet food industry, and luckily, right at the end when all the Sharks had declined, Mark looked at me and made me an offer. I honestly thought he was going to pass too, but he really understood where the future was going and was willing to take a chance.”
Bethencourt says Cuban and his team have provided “incredible support” over the years, adding that he speaks to Cuban every few weeks. “I think Mark also deeply understood the opportunity in the plant-based/vegan space,” he suggests. “After he backed us, I kept sending him studies on plant-based diets’ health benefits and strength/exercise benefits too. A few years back, Mark went mostly vegetarian, and I think it’s helped keep him in great shape on top of his commitment to lots of exercise.”
Exploring cultivated meat and health benefits of vegan pet food
Wild Earth didn’t stop at vegan pet food, though. In 2022, the company announced its foray into cultivated meat with a cultured chicken broth topper for dogs. A year and a bit later, it remains one of only a handful of producers working on cell-based pet food.
“I’ve spent a lot of time talking to everyone, including the biggest critics of the plant-based industry, cattle ranchers, self-proclaimed carnivores, and some of the biggest meat producers on the planet. I’m convinced that while many of us (at least 50% of us) are happy with plant-based and fermented protein options, there’s still a large group of consumers who want ‘real’ meat, and I think we can make those products for them too, [which] are slaughter-free, but real meat,” Bethencourt explains.
Did the company receive any concerns from its vegan consumer base? “Yes we did,” he confirms. “We had lots of conversations and as we’ve seen, this topic is controversial. It’s likely that we’ll launch a separate line of cultivated pet foods under a different brand to ensure that there’s no confusion.”
While all of Wild Earth’s consumer products will be vegan, this possible future line of cultivated products will cater to people who still want “real” meat for their pets, but want to skip the low quality and cruel use of animals in factory farming. “Our mission at Wild Earth is to make killer food without the killing,” states Bethencourt.
Courtesy: Wild Earth
Consumer apprehension over the health aspects of alternative proteins is a key challenge for the industry in 2024. The Wild Earth CEO says he’s seen a “dramatic change” in perception about the health credentials of dog food in the last seven years. This shift has occurred both in consumers who’ve noticed benefits for their pets when eating vegan, and veterinarians who are recommending plant-based diets for dogs to tackle food allergies, weight control, diabetes and other clinical applications, according to Bethencourt.
“We’ve also seen a dramatic shift in who the average Wild Earth consumer is: when we started, the majority of our customers were vegan/vegetarians, but today, the majority of our customers aren’t (over 70%). We’re seeing widespread adoption from consumers just looking for cleaner and healthier food, and they’re now comfortable with plant-based pet foods.”
That has given rise to an increasing number of vegan pet food brands and products. One estimate put this market at $26B in 2022, predicting it to double to $57B by 2032. Companies like The Pack, Omni, Hownd (all UK), Noochies (Canada), Paleo (Belgium) are all innovating in this space, and that’s without looking at the larger players launching dedicated plant-based lines.
“The vast majority of both vegans and vegetarians still feed their pets meat-based pet food,” asserts Bethencourt. “I know because I get lectured almost daily (particularly) by vegans who tell me that dogs can’t be vegan (after we’ve fed tens of thousands of dogs plant-based diets for many, many years and they’ve thrived).
“I’m thankful I no longer get the death threats though,” he adds, recalling people’s uproar over feeding dogs vegan food. “Those were weird.”
Courtesy: Wild Earth
He calls recent research about the benefits of plant-based diets for pets his “favourite new development” in the space, particularly the studies by University of Winchester professor Andrew Knight. In 2022, he published a paper revealing that dogs fed vegan diets were healthier and required fewer veterinary interventions. He followed it up with similar research for cats, showing that felines on a plant-based diet could be healthier than those fed meat.
Bethencourt believes the increase in such studies has led to vets getting more receptive of vegan pet food, and industry giants like Mars, Nestlé and General Mills experimenting with plant-based launches. “We’re still early, [but] I’m confident we’re starting to reach a tipping point in the US, Europe and the UK, and hopefully soon globally,” he says.
‘Plant-based industry can learn a lot from Tesla’
While Wild Earth did develop its lines of cultured chicken (and beef), it has been forced to pause their development due to the challenging financial environment globally, doubling down on its commercial plant-based products instead. “We’re now in conversations with other companies who have developed cell-based lines about partnering to produce future slaughter-free meat lines,” reveals Bethencourt.
It’s reflective of the wider challenges for alternative meat across the world, a slump he calls “brutal, but… inevitable”. “All industries move in boom and bust cycles. In the plant-based space, most funding has frozen, but – and here’s the important part – the customers are still out there, and across Europe, the US and Asia more customers are becoming open to plant-based products,” he explains.
“I think one of the biggest challenges for all of us is competing with some of the planet’s largest companies in the food category. Most plant-based food companies are tiny in comparison to today’s food giants, but if we focus on making incredible products, with great customer benefits and very competitive prices, we can win.”
Courtesy: Wild Earth
The narrative around plant-based hasn’t been helped by the attacks from some mainstream media outlets, which Bethencourt agrees are biased, given most of their advertisers still sell animal-based products, meaning they can’t be too critical. “In an era of AI and information warfare from both nation states through to large incumbents, we all have to think more independently and question everything,” he implores.
The Wild Earth CEO says the plant-based industry can learn a lot from the likes of Tesla, which launched with a premium line and has since aggressively increased product benefits and lowered prices. “People will want to buy tasty, healthier and cost-competitive products – we just have to push our industry harder to deliver on these, and that’s a hard challenge for us all,” he notes.
Going back to the media aspect, Tesla – a company that’s “probably the most hated by mainstream media” – is doing “an incredible amount of good”, despite governments and petrochemical giants being against it, according to Bethencourt: “They continue to win market share by focusing on innovation, their customers, and making better and increasingly more cost-competitive products.”
One company that’s doing it right in his eyes is Chile’s AI-led vegan startup NotCo. “From day one, Matias [Muchnik], their founder and CEO, has always said tastier products, healthier products and better-priced products will win, and they have all across Latin America.” (Most recently, the company’s collaboration with The Kraft Company bore fruit to a vegan version of the latter’s iconic boxed mac and cheese).
Wild Earth will launch cat food and a Basics line for dogs
Courtesy: Wild Earth
Since raising the half a million from Cuban on Shark Tank, Wild Earth has managed to release 14 products, feed tens of thousands of dogs, launch online and in retail nationwide, and sell over $42M worth of vegan dog food, treats and supplements. In the company’s early days, it was able to grow revenue by 25-50%, and last year, that figure crossed $10M. This year, the target is $15M, though the focus is on cost-efficient growth, keeping in mind the precarious economic landscape.
Its D2C business remains its most successful sales channel. “One of the hardest things for us was transforming from an R&D organization to a commercial organisation,” says Bethencourt. “It’s hard for any company but particularly for a mission-based company we’ve had to learn a lot of lessons, staying true to our mission means being effective and scaling sales.”
Now, Wild Earth is looking to expand into retail and diversify its product portfolio by launching a new cat food SKU, as well as an essential Basics line. The latter – set to launch later this year – will provide a lower-cost entry point for vegan pet food to cater to a wider audience. The company also hopes to return to India and Asia (where it was selling pre-pandemic), and enter Europe and Canada – international expansion is on the cards for 2025.
People aren't ready for us to turn carnivore cats vegan but I'm going to do it, it's e/acc after all
“We’re very optimistic about the future for plant-based pet food and think the first plant-based food boom and bust (for us and our pets) was just the end of the beginning of market adoption,” predicts Bethencourt, who foresees continued growth in the sector over the next decade.
“One of our guiding principles at Wild Earth is to be bold and push the pet industry to change,” he says. “We did this when we launched our plant-based dog food, treats and supplements, we’re doing that again with our vegan cat products and we’ll challenge ourselves again in the future to grow the space for cell-based meat to end the use of factory-farmed animals in pet food.
“It’s hard, but it’s something we believe is important to do for the world we want to see in the future.”
Amid a flurry of proposed bans on cultivated meat in the US and around the world, two senators have now introduced a bill that would prohibit the use of cultured meat in school meals.
Just as American schoolchildren are having to fight for even soy milk under the First Amendment, two US lawmakers are hoping to introduce a wider crackdown on alternative proteins in the education sector.
Senators Mike Rounds (Republican) and Jon Tester (Democrat) have proposed a bill to amend the Richard B Russell National School Lunch Act and the Child Nutrition Act of 1966 and ban the use of cultivated meat in US school meals.
Titled the School Lunch Integrity Act of 2024, the senators seek to prohibit cell-cultured meat from being served in schools under the National School Lunch Program (NSLP) and the School Breakfast Program (SBP).
“This common-sense bill will make sure our schools can serve real meat from our ranchers, not a fake substitute that’s grown in a lab,” said Tester, a third-generation farmer from Montana. “Montana ranchers grow the best meat in the world, that’s a fact – and our students ought to be getting the best in their school breakfasts and lunches every day.”
US senator promotes local beef over cultivated meat
Courtesy: Wikimedia Commons/CC, Jon Tester
Cultivated meat has already been approved for sale in the country, with the USDA granting clearance to Californian producers UPSIDE Foods and GOOD Meat last year. It made the US only the second nation to allow the consumption of these proteins – but Rounds’ office claimed that these actions “undermine the important work of American livestock producers”.
The USDA hasn’t yet issued any guidance over cultivated protein in the NSLP or SBP, but despite its approval of cell-based chicken from the aforementioned companies – which have also received a Generally Recognized as Safe (GRAS) certification from the FDA – Rounds questioned the safety of these products, citing a lack of research.
“It starts out with a piece of meat, a cell from an actual chicken and then it is developed artificially within the laboratory. We just want to make sure that’s not the stuff they are selling in our schools,” Rounds told local outlet Keloland.
In a statement, he said: “Our students should not be test subjects for cell-cultivated ‘meat’ experiments. South Dakota farmers and ranchers work hard to produce high-quality beef products. These products are often sold to South Dakota schools, where they provide necessary nutrition to our students.
“With high-quality, local beef readily available for our students, there’s no reason to be serving fake, lab-grown meat products in the cafeteria. I’m pleased to introduce this bipartisan legislation that benefits South Dakota producers and protects students from the unknown effects of cell-cultivated ‘meat’ products.”
Reflecting a wider disconnect between meat and climate change
Courtesy: Our World in Data
It’s a rhetoric commonly used by sceptics of cultivated meat, which – as mentioned above – has been cleared as safe for human consumption by the US government. Promoting beef serves the interests of the country’s livestock industry – which receives 800 times more public funding than alternative protein companies – and encourages the consumption of a product that is proven to be the worst-emitting food.
Rounds will argue that he’s supporting local farmers and beef, which will have a lower carbon footprint than meat produced elsewhere. This is a commonly held misconception, because transport accounts for less than 1% of beef’s GHG emissions. “Eating local beef or lamb has many times the carbon footprint of most other foods. Whether they are grown locally or shipped from the other side of the world matters very little for total emissions,” explains Our World in Data’s Hannah Ritchie.
But perhaps Rounds can be forgiven for the confusion – he is, after all, a lawmaker in a country that fails to connect meat consumption with the climate crisis. One study found that 74% of Americans don’t think eating meat is bad for the environment, while another put that number at 41% for red meat. But peer-reviewed research has revealed that, when produced using renewable energy, cultivated meat can account for 92% fewer emissions, 94% less air pollution, and 90% less land use than conventional beef.
Even studies that critics routinely cite – such as a 2019 University of Oxford paper – are misinterpreted. While that research was undertaken when cultivated meat was much less developed and heavily reliant on fossil fuel power, it still found that the worst-case scenario for cultivated meat’s GHG emissions is better than the “best” conventional meat production systems for at least the next 100 years.
Livestock industry questions the safety of cultivated meat
Courtesy: Aleph Farms
Nevertheless, the bill was welcomed by animal agriculture groups like the US Cattlemen’s Association, R-CALF USA, National Cattlemen’s Beef Association and South Dakota Pork Producers, who seemingly ignored the implications of the safety rulings for cultivated chicken – a marker that other foods produced this way can also be regulated the same way in the future – by the USDA and FDA. In January, Israel became the first country to approve the sale of cultivated beef, after the Israeli Ministry of Health (IMOH) issued a ‘no questions’ letter for Aleph Farms.
“Science experiments belong in the classroom, not the cafeteria,” said Justin Tupper, president of the US Cattlemen’s Association. “The long-term health effects of consuming foods produced using cell-cultured technology [have] not been established. These products are too new and untested to be considered safe for our nation’s children.”
Bill Bullard, CEO of R-CALF USA, added: “The claim that cell-cultivated meat grown in a laboratory is as safe and healthful as real, natural meat has not yet been definitively determined. So, subjecting children to this nascent, scientific experiment is bad public policy. We applaud Senator Rounds’ bill that will ensure our children and grandchildren will not be encouraged to consume this controversial and unnatural product while at school.”
“We just want to make sure that our livestock producers in the upper midwest aren’t ham-stringed by schools suggesting that because of liberals in the area or individuals that don’t like ag that they are suddenly then being challenged to compete with cultured meat, which we think has a long way to go and hasn’t been properly tested at this stage of the game,” added Rounds.
Joining a global trend of cultivated meat bans
Courtesy: UPSIDE Foods
The legislation is reminiscent of the amendment of France’s climate law in 2021, which banned cultivated meat in canteens, similarly calling into question the safety of the products and the threat to livestock farmers.
That wasn’t the end of France’s anti-cultivated-meat push, which last year introduced a bill to prohibit the production and sale of these novel proteins throughout the country – not just in the education sector.
It’s part of a wider trend that’s developing around the world. A month before France’s proposal, Italy became the world’s first country to officially ban cultivated meat. And one of the farming groups that lobbied prominently for the law is now in talks with Hungary to push forward similar legislation in the country.
Austria has also voiced its opinion against cultivated meat, presenting a note to the EU’s Agriculture and Fisheries Council last week alongside Italy and France. It garnered support from the Czech Republic, Cyprus, Greece, Hungary, Luxembourg, Malta, Poland, Romania, Slovakia and Spain.
Meanwhile, senators in the US have been jumping on this bandwagon as well. Before Rounds and Tester introduced their legislation to the Senate, Republican lawmakers in several states had already floated the idea of prohibiting the general production and sale of cultivated meat within state borders.
It began with Florida, where House representative Tyler Sirois proposed HB 435, which seeks to ban the production, sale, holding and distribution of cultured meat within the state, imposing criminal penalties – including facing misdemeanours of the second degree, fines of $500 to $1,000, and license suspensions or stop-sale orders – on anyone violating these rules.
Shortly after, Texas governor Greg Abbott signed a bill requiring clear labelling of plant-based and cultivated meat, seafood and egg products, while Nebraska’s Real MEAT Act would mandate the word “imitation” on alt-protein if passed.
Then, in Arizona, House representative Quang Nguyen drafted HB 2244, a bill that would make it illegal to “intentionally misbrand or misrepresent” an alternative meat product as meat, while fellow Republican David Marshall went a step further with HB 2121, attempting to ban the sale or production of cultured meat.
And just this week, Wisconsin State Assembly representative Peter Schmidt – a Republican dairy farmer – proposed two bills against alternative protein, one of which put restrictions on the labelling of cultivated meat.
Rounds said it’s too early to tell how the bill will play out in the Senate. But really, the focus should be on finding ways to safeguard the environment, not promote food production methods that destroy it. Climate activists will hope these bills stop making the rounds.
Eat Just has relaunched its vegan mayonnaise and ranch lines, citing years of requests from consumers to bring back the products. The return of the SKUs, which were discontinued after major controversy and to focus on the Just Egg rollout, will help the business reach its profitability goals.
Five years after discontinuing its ultra-popular (and controversial) condiments, Eat Just has responded to consumer’s wishes. The Just Mayo and Ranch ranges are returning to supermarket shelves, as the Californian company steps up its efforts to become profitable this year.
The relaunched dressings will be rolled out in the refrigerated section of Whole Foods stores nationwide from February, before entering the ambient aisles of additional retailers in March. Both products have been brought back in two flavours: original and chipotle.
In a tongue-in-cheek statement, Eat Just’s global marketing head, Tom Rossmeissl, said: “Who would have thought? People who had a religious obsession with our mayo and dressings would be pissed when we cut them? I thought I’d get a few angry emails. But instead, we’ve seen almost four years of pseudo-online bullying and boxes of hate mail.
“We just wanted people to scramble some plant eggs, but I guess we could have let them continue to slather their bread and pizza too?”
Bringing back a fan favourite
Courtesy: Eat Just
The relaunch of Just Mayo comes after the company encountered calls from consumers “in the comments of nearly every @JUSTEgg social post over the last four years”. The company recently held a poll on Instagram asking users if it should bring back its mayo and ranch, where 87% of its followers responded with ‘Yes!’ (only 2% said no, with the other 11% selecting ‘What even is that?’, reflecting how the company has onboarded new fans in the last few years).
An Eat Just representative confirmed to Green Queen that the recipes for the returning condiments are the same as earlier. “The main ingredients in the mayo are canola oil, vinegar, and pea protein,” they said. Modified food starch, salt, sugar, spices, and fruit and vegetable colours also appear in the original flavour. “For the ranch, it’s very similar, but with additional seasonings like onion, garlic, and lemon juice.” Other ingredients include autolysed yeast extract, lactic acid, propylene glycol alginate, modified food starch, xantham gum, salt and spices. (For both ranges, the shelf-stable versions contain calcium disodium EDTA for preservation.)
Mayo is a lucrative market. According to Amazon Fresh, mayo is the top-purchased condiment in all but one of the US states it delivers in. Circana data reveals that dollar sales for mayo were up by 21% year-on-year in July 2023, reaching $2.6B, as unit sales crossed $592M stateside. One estimate put the global mayo market at $12.3B in 2022.
And this trend is reflected in vegan mayo too, with one insights firm valuing egg-free mayo at $4.3B last year. According to the Good Food Institute, dollar sales for vegan condiments, dressings and mayo increased by 47% from 2019 to 2022 (reaching $89M), and unit sales swelled by 32% in the same period.
This has been helped by a proliferation of plant-based mayonnaise options in recent years beyond Follow Your Heart’s Vegenaise, which came onto the market back in 1977. These include Primal Kitchen (owned by Kraft Heinz), Hellmann’s, Sir Kensington’s (both Unilever), and Chosen Foods, to name a few.
The relaunched Just Mayo is priced at $6.99 per 12oz jar. “The SRP for JUST Mayo and JUST Ranch is in line with, or even lower than, other plant-based mayos and dressings on the market,” the spokesperson said. “Given our fans’ consistent feedback that our products are superior to others they’ve tried, we feel our prices are fair and accessible.”
The new launch will hope to help the company on its path to profitability. Eat Just has been facing financial stress lately, with its cultivated meat division Good Meat involved in a number of lawsuits (it has just filed counterclaims against one of its suppliers). To date, the company has raised over $850M for its plant-based and cultivated businesses but has reportedly been facing a cash crunch.
But CEO Josh Tetrick – who was named in the TIME100 Climate list last year – told Green Queen in November that Just Egg, which makes up 99.9% of the company’s current revenue, experienced a 173 percentage-point improvement in EBITDA in the first half 2023 vs full year 2022, and an 80-point hike in gross margin in the same periods. “Our business plan is on track to achieve break even in 2024, with half of our current SKUs selling at a positive margin today,” he said.
Courtesy: Eat Just
Why the Eat Just mayo was discontinued in the first place
Eat Just had originally launched its mayo in 2013, when the company was still called Hampton Creek. The product was subject to a lot of press attention and consumer excitement and quickly became one of the leading vegan mayonnaises on the market, available at Whole Foods Market, Walmart, Kroger and more.
But the popularity led to Eat Just being sued in 2014 by Unilever, which admitted that Just Mayo was eating into the sales of its own Hellmann’s mayo). The lawsuit was filed “on the grounds that the term ‘mayo’ implied the use of eggs”, but the food giant withdrew it after criticism from the media and consumers, applauding Eat Just’s “commitment to innovation and its inspired corporate purpose”, before launching a plant-based version of Hellmann’s in 2016.
It was a win for Eat Just, but it soon followed a much larger controversy. In 2016, Bloomberg reported that the Californian startup had been directing employees and contractors to buy up “mass quantities of Just Mayo” as part of an undercover operation in 2014 that “made the product appear more popular than it really was”. Contractors were also allegedly asked to call retail store managers posing as customers to ask about the availability of the mayo, presumably in a bid to drive hype for the product.
“We need you in Safeway buying Just Mayo and our new flavored mayos. And we’re going to pay you for this exciting new project!” Caroline Love, the brand’s director of corporate partnership at the time, wrote in an April 2014 email to contract workers. “The most important next step with Safeway is huge sales out of the gate. This will ensure we stay on the shelf to put an end to Hellmann’s factory-farmed egg mayo, and spread the word to customers that Just Mayo is their new preferred brand.”
A March 2015 correspondence signed by the corporate partnerships team’s Melanie Myers read: “You will be calling Whole Foods Market locations as a customer to create buzz and increase demand for Just Mayo flavors and Just Cookie Dough in these stores, putting pressure on the Regional Buyer.” Eat Just provided scripts to these workers, asking them to pretend to be caterers or planning events for which they require “this new mayonnaise. I think it’s called Just Mayo.”
“We’ve always been transparent about what happened here,” the Eat Just spokesperson told Green Queen. The company “was trying to address a QA/QC [quality assurance/control] issue with our first shipments of Mayo and add shelf space, and it represented less than 1% of sales at the time.”
This is consistent with what the company had said, with Myers outlining that the project was carried out primarily for quality-control purposes, but admitted that “we also thought it might give us a little momentum out of the gate”. Tetrick added that it had cost the company about $77,000, representing less than 0.12% of its total sales.
Courtesy: Eat Just
Despite expanding its line mayo range with flavours like wasabi, truffle, sesame ginger, garlic, chipotle, and sriracha, Eat Just eventually withdrew the condiments range to focus on Just Egg, which has become incredibly popular and captured 99% of the vegan egg market. But now, it’s hoping to make amends to customers with “coupons, recipes, mayo-based holiday surprises and more via its Instagram account” in the coming months.
“Challenges, doubts, and unforeseen hurdles have not stopped Eat Just from continuing to drive innovation in plant-based foods to give consumers better choices and more ways to change the food system for the better every time they sit down to a meal,” said the brand.
The focus is to now become financially sustainable and break even. “It’s the most important objective of the company and the team is focused on increasing the probability of achieving it,” the spokesperson told Green Queen. Asked what its goals for the year were, they responded: “To sell healthier, sustainable products to millions of consumers in a way that enables the company to sustain itself in the long term.”
It echoes what Tetrick said in November: “We are focused on the daily execution of our zero-burn plan (i.e., cover operating costs through margin dollars) and serving our customers. If we execute, the company and its missions win. It’ll be challenging and hard – and it’s up to us to get it done.”
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 ton of alt-dairy developments, more discussions around banning cultivated meat, and vegan culinary tourism in Sri Lanka.
New products and launches
Canadian vegan cheesemaker Daiya has partnered with The Bear actor Lionel Boyce for Fromage Forgery, a campaign paying tribute to dupe culture. Boyce acted as salesman for the brand’s takeover of Downtown New York City, where over 350 customers tried its new oat-cream-based ‘dupe’ cheese.
Courtesy: Actual Veggies
Speaking of New York, Actual Veggies, which makes whole-food plant-based burgers, is launching a range of Super Fries in Classic Russet Potato, Sweet Potato and Purple Sweet Potato varieties, which will also contain ingredients like chickpeas and cauliflower. The Classic is available on Hungryroot now.
Fellow New York brand HIPPEAS has launched a new line of chickpea puffs called Flavor Blast!, available in Vegan White Cheddar Explosion and Blazin’ Hot flavours at Sprouts, Amazon and its e-commerce store.
Alt-meat leader Tofurky will soon launch a Plant-Based Pepp’roni in a 4oz pack at Tops Markets in the northeast and Hy-Vee in the midwest, starting this February.
Mycelium meat producer Prime Roots has collaborated with charcuterie and pâté maker Three Little Pigs to bring its Black Truffle Koji-Pâté, Harvest Apple Koji-Pâté and Koji-Foie Gras to customers in New York, Bay Area, and Portland delis.
Meanwhile, following its November announcement, plant-based children’s nutrition brand Kate Farms‘ Pediatric Blended Meals are now available. Eligible for insurance coverage, the vegan whole-food meals come in three flavours, are designed for kids aged one to 13, and can be used for both tube and oral feeding.
Courtesy: Kate Farms
In Florida, the Manatee County School District has rolled outImpossible Foods’ burgers and nuggets in student cafeterias at two high schools and three middle schools.
Illinois-based macadamia milk maker Milkadamia has released a new Organic Artisan line of refrigerated SKUs, in original and unsweetened varieties, as well as blends of macadamia with oat, almond or coconut milks. They were showcased at the Winter Fancy Food Show in Las Vegas this month.
Another alt-dairy innovation comes courtesy of Elmhurst, which has launched an oat-milk-based sour cream in a squeezable pouch format. You can find it on its online store and at Publix, with more to follow.
Chilean food tech company NotCo is expanding distribution for its Unsweetened Vanilla and Barista milks, with the former available at Whole Foods nationwide from February. The Barista edition is at grocers like Sprouts Farmers Market, New Seasons, Raley’s Supermarket, Hannaford, Haagen and Met Foodmarkets, and coffee shops like Joe Coffee and Daily Provisions.
If you’re flying to or from the UK, by the way, British Airways is now offering Glebe Farm’s oat milk aboard all its long-haul flights.
Three months after announcing price parity for its vegan own-label Vemondo in Germany, Lidl has expanded those efforts to Austria (as well as Denmark and Hungary), cutting prices by 52% on over 30 meat and dairy analogues.
Courtesy: Yumgo
Elsewhere, French brand YUMGO‘s egg alternatives – which come in powdered and liquid forms for whole eggs, whites and yolks – are now available in Japan, following a partnership with leading deli distributor Nichifutsu Boeki KK.
Indonesian plant-based meat leader Green Rebel has introduced its steak, Balinese skewers and Padang-style rendang SKUs to the frozen section of RedMart stores in Singapore.
And in Israel, Beyond Meat has launched chicken cutlets, nuggets and tenders, with help from distributor Diplomat Plant Based. The brand dominates the country’s alt-meat market share, accounting for 25% just four years after entry.
Financing and collaborations
London-based dairy alternatives company The Coconut Collab has closed a £1.5M Series B funding round from existing investors, which will help it scale production, launch new SKUs and expand internationally.
Courtesy: The Coconut Collab
Indian clean-label vegan nutrition startup Earthful, meanwhile, has raised $400,000, after witnessing a 5x growth over the last year.
Australian bio-based vegan leather company ALT.Leather has secured $100M in a seed funding round to produce the country’s first plant-based alternative to the material.
Belgian precision fermentation startupPaleo has opened a new R&D centre in Leuven to scale up production and accelerate its commercialisation plans, ahead of a fundraise later this year.
German catering service company Dussmann is doubling down on its Veganuary initiatives with a Vielfalt Statt Verzicht (Diversity Instead of Sacrifice) campaign in partnership with vegan startups Planted, BettaF!sh, BOONIAN, and Brew Bites, whose dishes are available at 60 Dussmann sites nationwide.
In more collaboration news, Canada’s Modern Plant-Based Foods has “received interest from a diversified multinational entertainment and media conglomerate”, which will see its Vegan Kaviar appear at select dining outlets across the latter’s properties. (While the tone of the release is coy, this is certainly the Walt Disney Company.)
Courtesy: Modern Plant-Based Foods
In Sri Lanka, sustainability non-profit SLYCAN Trust has partnered with Cinnamon Hotels & Resorts to launch Plant-Based Gastronomy: Tales of Sri Lanka’s Cultural Heritage. The initiative aims to showcase the country’s plant-based heritage and promote sustainable culinary tourism, with a dedicated vegan food corner at Cinnamon Grand Colombo’s restaurant and the introduction of a vegan chef.
Over in the US, after closing eight stores last year, vegan fast-casual chain Native Foods has converted its three remaining locations in Chicago, Palm Springs and Glendale into an employee ownership model.
Meanwhile, vegan seafood producer New Wave Foods has ceased operations after being unable to pay its debts in full to various creditors, and has entered into a general assignment agreement.
Cultivated meat developments
Researchers at Tufts University have developed bovine muscle cells that produce their own growth factors, which can significantly cut production costs for cultivated beef.
Following discussions about cultivated meat at the EU’s Agrifish Council last week, Hungary may be joining the bandwagon of countries hoping to ban cultured meat, with its agriculture minister meeting the head of Italian farmers’ union Coldiretti (which played a key role in finalising Italy’s ban).
In more alt-protein ban developments, Wisconsin State Assembly representative Peter Schmidt – who is also a Republican dairy farmer – has proposed two bills restricting the labelling of cultivated meat and plant-based milk, following in the footsteps of Arizona.
In the UK, cultivated fat producer Hoxton Farms has expanded its leadership by adding former Impossible Foods senior VP Nick Halla to its board.
If you followed the viral TikTok homemade butter trend of 2022, and were sad you couldn’t do it with vegan cream, fret not! Californian startup Savor – which makes animal-free fats from a combination of carbon, hydrogen and oxygen – has released a video showcasing how to make butter from scratch using its fat.
Israel’s Redefine Meat has now made it to the Premier League, with Crystal Palace footballers Chris Richards and James Tomkins taste-testing the 3D-printed plant-based meat in a new video.
After announcing its anti-Veganuary ad campaign Let’s Eat Balanced, UK livestock association the Agriculture and Horticulture Development Board is facing pushback from campaigners who have submitted complaints against the ad to the country’s Advertising Standards Authority.
Finally, a new report by ProVeg South Africa has revealed that vegans, vegetarians and flexitarians make up 10-12% of the country’s population and have driven the 33.1% rise in fast-food consumption since 2019. The researchers explore vegan options at QSRs and make recommendations to help the foodservice industry.
Since launching in 2014, Veganuary has boasted increasing sign-ups year on year. But what’s the evidence that the campaign that encourages people to adopt a vegan diet during January is really taking a bite out of the meat market?
More than 700,000 people signed up in 2023, and it’s likely that these figures – which only account for people who officially signed up on the Veganuary website – represent just a fraction of all those who took part without signing up.
Veganuary is a campaign which encourages people to try veganism in January. The Veganuary charity, a UK-based non-profit behind the campaign, counts Deborah Meaden, Joaquin Phoenix and Chris Packham among its ambassadors.
Official Veganuary signups have increased every year since it began in 2014.
In a paper we published last year, we highlighted Veganuary as the most well-known and participated-in meat-free challenge. More than three-quarters of British people have heard of Veganuary.
One in ten have considered taking part, and 6% claim to have taken part. That equates to around four million people – significantly more than the official participation numbers.
Three out of four British people have heard of Veganuary, and one in six have at least thought about taking part.
So why has Veganuary succeeded where so many other efforts to curb our problematic meat consumption have failed? There are two reasons, as outlined in our recent study.
First, Veganuary invites people to try a vegan diet at a time of year when people are often open to trying healthy new habits. Capitalising on an annual time of change can help to overcome any inertia that normally prevents people trying vegan diets.
Second, Veganuary is a social experience. People can connect with others attempting the same challenge. The sense of camaraderie and community is something that Veganuary participants frequently comment on having enjoyed.
Encouragingly, Veganuary’s survey of participants indicates that 98% would recommend the experience to a friend. Moreover, 78% of participants intended to cut their previous animal product consumption at least in half beyond the end of January, and 25% said they intend to stay vegan.
So, Veganuary makes sense in terms of social psychology. Lots of people have taken part, and plenty say they’ll cut down on meat in the longer term. But what evidence is there that Veganuary has made a real impact on dietary habits?
The recent increase in the number of people embracing meat-free diets in the UK is shown in the graph below – in particular, the number of vegans has increased 370% in the past five years.
The rate of veganism in the UK has increased by 370% since 2019.
So Veganuary came to exist and grew rapidly during a time of increasing UK interest in veganism. Could that have been a simple coincidence?
Researchers at the London School of Economics looked at more than 2 million meals sold in workplace cafeterias between 2016 and 2022. Crucially, the workplaces began their Veganuary campaigns halfway through this period, in 2019. The researchers estimated that Veganuary increased sales of vegan products by 86–113% in the 2019-2022 campaigns, and had a lasting impact on sales of vegan products
Sales data from 200 UK supermarkets indicate that, during Veganuary 2023, sales increased for plant-based foods which were on promotion, but not for those which were not on promotion, according to a University of Oxford study.
Veganuary has also increased sales of plant-based products at UK grocery stores. A team at the University of Surrey studied sales of plant-based and animal products at 154 UK grocery stores from November 2020 until March 2021 and found that Veganuary increased sales of plant-based products by a huge 57% during January.
Sales also remained 15% higher after Veganuary compared to before the month-long campaign. That said, there was no significant change in meat consumption observed during the same period.
Curious about Veganuary’s far-reaching impact, I searched Google News to estimate the number of published news stories about veganism during January compared to the rest of the year. In January, there was an average 66% increase in the number of media articles about veganism compared to other months between 2015 and 2020 – evidence that Veganuary increases public attention on veganism-related issues.
Media stories mentioning veganism were 66% higher in January between 2015 and 2020.
Next, I used Google Trends to investigate seasonal trends in the number of people actively seeking out information on veganism. The data in the graph shows some of the clearest evidence yet for the Veganuary effect, with clear spikes in search activity every January. Moreover, interest appears to begin rising right around the time that Veganuary began in 2014.
UK Google searches about veganism peak every January, and started increasing around 2014 when Veganuary began.
Finally, I tracked down the dataset from an unpublished survey of vegans conducted in 2019, because I knew it contained data on a very specific question. The survey, which the researcher kindly shared with me, asked more than 2,000 vegans when they changed their diet, to the nearest three-month period.
Using this data, I created this graph, which shows clear spikes, with more people turning vegan in the first quarter of the year, and an increase starting around (or slightly before) Veganuary began in 2014.
Self-reported dates of when UK vegans changed their diets shows clear peaks in January.
One piece of data stands out most of all. When Veganuary asked participants about their number one motivation for taking part, 18% said the environment and 21% said their health – but 40% said animal welfare.
Animals were the most frequent main motivation for Veganuary participants.
Indeed, the data indicates that the messages inspiring the most dietary change are not about carbon emissions, but about animal cruelty. Almost nobody in the UK views common animal farming practices as acceptable, yet while cow burps are within the range of acceptable dinner party conversation, knives in throats typically are not.
Meat consumption largely remains a social norm but that may well be about to shift. The social tipping point whereby enough people adopt a new norm for it to catch on is estimated to be around 25%. In the UK, the number of people consuming meat-free diets is now up to 14%. Veganuary could soon nudge us towards a vital cultural tipping point.
In a first-of-its-kind partnership, the Indian government is embarking on a project to create cell-cultured seafood with cultivated meat startup Neat Meatt Biotech.
The ICAR-Central Marine Fisheries Research Institute (CMFRI) has signed an MoU with New Delhi-based biotech company Neat Meatt to develop cultivated fish, in what is a landmark project for the world’s third-largest seafood consumer. The initiative aims to ensure India keeps up with international progress and tackle climate and food security issues.
The project aims to tackle India’s growing demand for seafood – fish consumption has swelled by 88% in just over a decade – reduce pressure on wild resources, keep up with global progress on alternative proteins, and provide solutions to climate change and food insecurity.
Proof of concept could be shown within two months
The partnership will initially focus on developing cell-cultured varieties of high-value fish species – like kingfish, pomfret and seer fish – which are extremely popular in India, especially among the coastal belts. Based in Kochi, CMFRI has entered into a collaborative research agreement with Neat Meatt, a cultivated meat manufacturer and solutions provider, to help develop these seafood products.
An MoU signed by the two parties reveals that CMFRI will conduct research into early cell line development of high-value marine fish species. This involves isolating and cultivating fish cells for further R&D. Additionally, the marine research organisation will handle genetic, biochemical and analytical work, equipped with a cell culture laboratory with basic facilities, providing a solid foundation for research in cellular biology.
Meanwhile, the project will leverage Neat Meatt’s expertise in cell culture tech, with the firm leading the optimisation of cell growth media, development of scaffolds or micro-carriers for cell attachment, and scaling up production through bioreactors. The company will be responsible for providing the necessary consumables, manpower and additional equipment required as well.
Courtesy: CMFRI
Neat Meatt co-founder and CEO Sandeep Sharma is confident that the partnership’s proof of concept could be established within a couple of months. But Kajal Chakraborty, principal scientist at CMFRI, told the Hindustan Times that the product may take a decade to reach the market. “Just like other meat, we will use cell line cultures to produce fish meat. It’s even more difficult to grow meat of higher vertebrates in laboratory settings,” she explained.
CMFRI director A Gopalakrishnan added: “This project aims to accelerate development in this field, ensuring India is not left behind in this emerging industry.”
Why India decided to invest in cultivated seafood
India’s seafood market is worth $57.15B, according to one estimate, and is set to expand by 7.6% annually. And last year, its seafood exports reached an all-time high, shipping out 1.7 million tonnes worth $8.09B. But with growing awareness about the seafood industry’s climate impact, there have been calls to switch to lower-carbon production methods.
While estimates suggest that carbon emissions of fish caught in India’s marine fisheries are 17.7% lower than the global average, in terms of overall climate change impact by 2050, the country remains in the medium to high category. The country has a burgeoning alt-protein sector, with 113 companies working across plant-based, cultivated and fermentation-derived meat, dairy, seafood and eggs.
But even though several alt-seafood startups exist in India (such as Seaspire, Mister Veg, VegetaGold, Veggie Champ and The Mighty Food), only two companies – Klevermeat and Myoworks – are known to be working on cultured seafood. So this collaboration between CMFRI and Neat Meatt holds promise.
“This public-private partnership [PPP] marks a crucial step in bridging the gap between India and other nations like Singapore, Israel, and the USA, who are already advancing cultured seafood research,” said Gopalakrishnan, who praised cultured fish’s “immense potential for environmental and food security”. He added: “This collaboration leverages CMFRI’s marine research expertise with Neat Meatt’s technological know-how in this field, paving the way for a sustainable and secure future for seafood production in India.”
Courtesy: Wikimedia Commons/CC
Explaining the reason behind this partnership, the Good Food Institute (GFI) India’s science and technology specialist, Chandana Tekkatte, told Green Queen: “There is a growing recognition that by enabling more large-scale international scientific and industrial collaborations (leveraging our decades-old bioeconomy expertise), India could become a production powerhouse in the emerging cultivated meat industry and pave the way for other emerging economies.
“The DBT-BIRAC is also encouraging such PPP models to help accelerate R&D breakthroughs in cultivated meat and seafood in India, similar to the momentum seen in Singapore, Israel, and the US. The Ministry of Science and Technology has also been working closely to advance research in cultivated meat and other smart protein categories within the nation’s priorities for high-performance biomanufacturing.”
In another instance of government support for cell-based meat in India, the Ministry of Science and Technology’s Science and Engineering Research Board included cultivated meat research under its Competitive Research Grant Programmes in 2021.
The rise of cultivated proteins in India
Tekkatte said India’s cultivated meat and seafood industry is still in its infancy but stands to benefit significantly from India’s thriving pharmaceutical sector, which is set to reach $150B in 2025. “This sector has a proven track record in affordable, high-quality manufacturing, and cultivated meat companies have the opportunity to tap into its vast infrastructure and resources,” she explained.
She added that key early-stage scientific advancements in cultivated meat and seafood have been led by startups in cell line development (Neat Meatt, Klevermeat, Clear Meat), media formulations (Clear Meat), and scaffolds (Myoworks) over the last five years. These have helped build the foundation of the sector and “continue to inspire future research endeavours”.
Previous GFI India research has revealed that one in four Indians would 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. Meanwhile, a three-country study from 2019 on consumer acceptance of cultured meat revealed that 56% of Indians are “very or extremely likely” to buy cultivated meat regularly. “Consumer education and perceptions will play an important role in advertising, marketing, and sale of cultivated meat,” said Tekkatte.
This will also be influenced by prices. “The cost of cultivated meat production will come down with scale — and the scale-up principles of cultivated meat biomanufacturing are sound and have been demonstrated in biopharmaceuticals and vaccine manufacturing industries,” explained Tekkatte.
Courtesy: Myoworks
She added that the Food Safety Standards Authority of India’s regulatory framework “needs to be made more dynamic and evolve in tandem with innovations”. Cultivated meat falls under the Food Safety and Standards Regulations (FSSAI) set out in 2017, which rules 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. “Early engagement with cultivated meat companies intending to apply for pre-market approvals under the Non-Specified Foods Regulations during the development process would enable the regulatory body to have oversight of the development process, leading to effective, timely guidance to the companies to ensure regulatory compliance and appropriate data submission to reduce approval timelines,” Tekkatte outlined.
“The significance of channelling resources into the cultivated meat industry is particularly relevant in India, with our unique vulnerability to climate change and public health crises. With this massive decrease in land use, additional opportunities arise for the diversification of crops towards direct food consumption,” she said. “As we funnel more investment towards R&D and infrastructure, there’s no doubt that the cultivated meat sector can grow exponentially in India and help cater to the increasing protein needs of the global population.”
San Francisco-based SciFi Foods has announced the successful completion of its first 500-litre bioreactor run in its recently opened facility in San Leandro. The startup now aims to complete regulatory approval and enter US foodservice by early next year.
Hybrid meat might be coming to your plate sooner than you think. SciFi Foods, which makes beef from a mix of cultivated and plant proteins, has completed its first commercial-scale production of its cell-cultured beef in a 500-litre bioreactor.
The company achieved this feat in its recently opened 16,000 sq ft pilot facility in San Leandro, California. It’s the same scale that SciFi Foods will be commercialising out once it receives the regulatory green light from the FDA and USDA.
SciFi Foods can produce 50,000 hybrid beef burgers a year
Courtesy: SciFi Foods
Backed by Silicon Valley VC Andreessen Horowitz (a16z) and other investors like Coldplay, SciFi Foods has raised over $40M in total financing. Previously called Artemys Foods, the company emerged from stealth in 2022 with a cultivated beef product slated to be used in hybrid meat formulations.
Hybrid meat is a blend of plant and cultivated proteins, and along with blended meat (animal protein mixed with plant-based ingredients), it represents a rapidly growing trend. The idea is to combine the superior taste credentials of cultured proteins with the cost-effectiveness and scalability of plant-based ingredients.
SciFi Foods uses a 90/10 blend of vegan and cell-cultured ingredients. The 90% plant-based composition is derived mainly from soy, and helps the company solve a major bottleneck of cultivated meat: scalability. Scaling up is, as the startup puts it, “a major risk factor” for commercialising these proteins. To overcome that, the company has developed beef cell lines that grow in a 100% serum-free process, using a defined media that doesn’t include any animal-derived ingredients.
Single-cell suspension lines come with a major benefit: they can be grown in any standard, stirred-tank bioreactor, without the need to try and scale up novel hardware. And that has helped SciFi Foods finish its first run on the 500-litre bioreactor. With its hybrid approach, this is enough to produce about 50,000 burgers a year at launch, reveals co-founder and CEO Joshua March. “We expect to be able to double this pretty quickly,” he tells Green Queen.
The company says it encountered no problems in expanding its cell lines from bench scale to the large bioreactor – in fact, it witnessed higher yields in the latter than the small-format bioreactors it was using previously. “We have really great cell lines that we’ve optimised for scale,” notes March. “We are confident we can increase yield significantly more over the next couple of years.”
Currently, SciFi purchases the plant-based ingredients in its hybrid beef from major supplies, based on its own unique formula. “Today, we do the blending in-house,” says March. “However, we’re in talks with various co-packers for our commercial launch.”
Plans for price parity, regulatory approval and market launch
SciFi Foods founders Joshua March and Kasia Gora | Courtesy: SciFi Foods
Speaking to Green Queen in November, March highlighted the issue with scaling up cultured meat production: “Scaling up a novel biomanufacturing process is always hard, but it’s especially hard if you are producing commodity products at competitive prices.”
This is where the single-cell suspension lines come in, given that they don’t require expensive substrates like microcarriers or scaffolding, which is crucial for cost control. In our last interview, March pointed to the industrial fermentation space for proof points that price parity for this sector is possible, but added: “There is only one reasonable blueprint for how to get there: a very simple process with minimal downstream processing and robust cell lines that grow well with low-cost inputs.
“Many of those cell lines are optimised through genetic engineering to approach the maximum theoretical performance for converting feed to product. We believe that all of the same principles apply to cultivated meat, which informs our unique strategy.”
In 2022, the company announced it had achieved price parity with conventional beef using a combination of its proprietary high-throughput cell line engineering and CRISPR technology. The latter is adapted from a genome editing system used by bacteria for immunity and has been touted as a potential embryonic treatment for several hereditary diseases (though some studies say altering the DNA of embryos or eggs and sperm could cause mutations that lead to other health threats).
At the time, March explained that the team had experimented with 10-20% cultivated proteins mixed with plant-based proteins to produce a burger that would cost under $10 to make at its facility, with scaled-up manufacturing potentially driving costs further down to $1 per burger. Now that it’s settled on the lower end of that share (at 10% of cultured beef), it will hope to be able to meet these numbers.
Doing so will be crucial, as the cost of living strains consumer wallets and shapes their attitudes around what they eat. In the US, a 1,018-person survey last year revealed that 46% of respondents are concerned about the rising costs of meat – but while 45% of them expressed interest in trying cultivated meat once it was described to them, only 4% would be willing to pay more for these novel proteins.
Proposed bans ‘profoundly un-American’
Courtesy: SciFi Foods
A larger global poll of 10,000 people last year, though, revealed that 62% of consumers are willing to eat cultured meat. However, there isn’t much research into consumer attitudes towards hybrid meats blending cultivated with plant-based proteins. A 2020 survey covering 1,000 Brits revealed that 35% would be open to trying these products – so while there is some acceptance, the room for growth is huge.
It’s also important because this will be how several cultured meat producers go to market, at least initially. It’s what Israel’s Aleph Farms – the latest company to receive regulatory approval, and the first for beef – is doing with its Black Angus Petit Steak, and Dutch startup Meatable plans to do with its cultured pork.
SciFi Foods hopes to get the go-ahead from the USDA and FDA by early next year, and is already in the consultation process with the latter. Then, it plans to launch into foodservice straight after. “We’re also exploring a number of B2B conversations,” March tells me. “We think that partnering with major food companies is a great way to scale up faster and to get into retail.”
Asked about the recent pushback against cultured meat in US states like Florida, Arizona and Texas – where Republican senators have been calling for a ban on these foods – March brushes them aside. “It’s clear that the proposed bans are for protectionist reasons, and [have] nothing to do with safety or anything else,” he notes. “This is profoundly un-American: consumers should be the ones to choose what products they want to eat, not regulators.”
Funding future food innovations is crucial. As traditional VCs look elsewhere, it’s for the sector to welcome new and diverse sources of investment, from blended capital to redeemable equity.
By Sonalie Figueiras, founding editor at Green Queen Media and advisor at Better Bite Ventures, Mucake and Alwyn Capital, and Maximilian von Poelnitz, Venture Partner at Ajinomoto Corporate Venture Capital
Over the past five years, we have seen a food tech hype bubble building as generalist investors entered the space in droves attracted by the promise of backing climate solutions, the realization that the current food system faces existential challenges, hundreds of passionate mission-led founders, a handful of IPOs that made global headlines because of outsized returns, social media-fueled foodie trends and the promise of helping make the world a better, more environmentally-friendly place. More simply put, food innovation became sexy.
Over time, a disconnect formed between R&D initiatives and go-to-market strategies, and while new money flooded the space, deep sector expertise and long-term track records were hard to come by.
This culminated in the easy money and public stock market euphoria of 2020 and 2021 especially with Covid-led government cash infusions. By 2023, the bubble had burst, and over the past 12 months food tech companies have seen their valuations slashed, dozens of startups have disappeared from the space and the generalist money has moved on to new pastures like climate tech, with funding rounds drying up.
The pendulum has now swung back in favour of cash-infused investors and companies that are actively prolonging runway and driving a clear path to commercialization and profitability. This is problematic for deep tech companies in sectors like cellular agriculture and precision fermentation where there is still a lot of work to do to drive bench-scale applications to industrial and commercial scale distribution; many companies will struggle to move from the lab to the open market without access to capital.
Foodtech investing today: burned by hype
So what went wrong? Ultimately, investors were led to believe that food tech could behave like a tech business and that distribution was simple. There was a sense of ‘build it and they will come’. In 2019/2020, CAGR calculations also made for easy math given that alternative protein markets were growing at over 15% annualized and in some sectors like dairy at over 50%. This led to further media hype and many new /generalist investors jumping into the sector feet-first. Ultimately both the production and distribution math was challenged as startups continue to struggle to move from pilot scale to commercial scale. Further demand for innovative products driven by taste and texture will contribute to additional adoption but not based on the timelines that investors were originally sold.
Foodtech as an investment class: one brush cannot apply to all types
One of the most important “resets” to have occurred over the past 12 months has been investors recognizing that food businesses are not SAAS or technology companies. The term food tech really should not be seen as a catch-all but rather spans a wide variety of industries that include biotech, CPG and/or ingredient-focused R&D houses. This ultimately requires investors with deep expertise in each and a much more niche focus, and in certain verticals, a far longer time horizon for exit.
Except for a few innovation-led plant-based companies like Impossible Foods (precision fermentation-derived heme), Climax Foods (plant casein IP), or EQUII (protein-enriched flour), most plant-based food/meat companies are CPG plays and should be classified (and diligenced) as such. A CPG venture capital firm ultimately has a different investment thesis than a deep-tech fund.
While there is a long history of successful investments and M&A in the food space, the reality is that a Danone will never be a Google or an Apple in terms of market share and revenues – the food business simply does not have the same unit economics as software companies.
Investor Daniel Gluck wrote about these differences in a social media post: “CPG companies don’t scale as fast as tech, typically. Like tech, CPG focuses on creating and changing habits. But customers are more adventurous with apps on their phone than food on their shelves. Most retailers take on new products only 1 to 2 times a year. Customer adoption takes time and growth is slow.”
Wired journalist Matt Reynolds reports further: “Food isn’t like the technology industry, Reams points out. Food companies—even ones with a cool technological edge—do not grow like a software company, he says. Food companies operate on razor-thin margins, prices are volatile, and customers can be extremely picky about what they’ll put in their mouths. There’s also a scaling issue. Software companies can scale rapidly because getting their product to new customers costs almost nothing. It’s just a matter of duplicating lines of code, or hooking up a user to a centralized database that already exists. Food isn’t like that. Every extra plant-based burger requires more soy and pea plants that have to be grown, plus labor costs and processing time. Bigger factories and more efficient production will reduce the cost per burger, but scaling is a slow process that requires expensive physical infrastructure, with no guarantee that customers will buy those slightly-cheaper burgers once they’re made.”
That being said, liquidity events exist every year as large incumbents such as General Mills, PepsiCo, Netsle, or Unilever continue to be active in the space. The takeaway here is that this makes for a completely different investor base as and life cycle.
Food is not ‘frivolous’
With the challenges facing the industry, there continues to be an existential need for food tech solutions and productivity gains. The recent hype cycles in the industry and the failures that continue to gain media attention do not change the fact that the industry is solving a core problem: the very real issues facing our global food systems, which are responsible for a third of global greenhouse gas (GHG) emissions. We cannot solve the climate crisis without evolving our food systems.
In a piece asking whether the venture capital model is broken, James Ledbetter writes of the sector’s frivolity problem: “Venture capital’s frivolity or lemming problem is not recently acquired. The Internet highway is littered with roadkill of venture-backed companies that would have been considered silly even if they had succeeded.” As we consider how the food industry can benefit from different funding structures and formats, it’s important to state that food, unlike many flash-in-the-pan apps, is anything but frivolous. Food is an essential part of human daily life and must be accorded the importance it merits.
Deeptech food: a longer game
Over the past five years, the term food tech has also come to mean a key focus on synthetic biology, precision fermentation, and even cellular agriculture. These represent sectors with very different capital requirements and investment horizons compared to a standard plant-based meat alternative product.
Deep-tech and cultivated meat/food tech companies have more parallels with healthcare technology given their long R&D cycles, some form of regulatory approval, and the need to plan distribution and supply chain effectively. More importantly, these businesses come with significant infrastructure needs whether through co-manufacturing agreements or a self-designed manufacturing hub. At each business milestone, the company or start-up requires different forms of capital that cannot be supported purely by the venture capital industry.
The key concern in the functional food tech industry is innovators moving from bench scale to pilot scale and then ultimately to commercial scale. Each stage requires a significant investment and technically the risk profile is reduced at each stage. In 2023, venture capital investors tend to shy away from deals where 50% of the capital is put into capex. Again, there are clear parallels with the traditional healthcare biotech inverter landscape. At pilot scale, food tech companies need access to other forms of capital as they begin to take what they created in a lab and bring it to market.
Ultimately, the industry is at a tipping point as it awaits better infrastructure, more project finance, and greater government support. Infrastructure projects do not lend to venture capital timelines. For investors, the next few years will involve increased consolidation and survival exercises by several larger startups. This will potentially be very good for a few early movers but still requires these businesses to find product market fit and commercial success.
Foodtech (esp deep-tech sectors like cultivated meat) has an investment horizon problem: VC exit timelines don’t match technology lifecycles. In the healthcare space, there is a mechanism for VCs to exit their investments as a new round of investors might join at the clinical trial stage. Ultimately food tech needs a milestone-driven approach that allows for other forms of patient capital to enter the investment pool.
So where do we go from here?
What’s clear is that the classic Silicon Valley VC model is not necessarily adapted to the needs of systemic food system change. To finance a transition to a less carbon-intensive, more resilient global food system that meets the needs of humanity ethically, sustainably and nutritionally, new types of capital are needed. Below we explore some of the possibilities.
Patient capital
Patient capital does not have a rigid definition, but generally, the term refers to long-term investments where investors are prepared to wait a considerable amount of time (3-5 years in some sectors, 10-15 years in others) before seeing any financial returns. For this reason, fund managers implementing a patient capital strategy will maintain their investments even if they’re seeing short-term losses for the fund. Pension funds and sovereign wealth funds are typical examples of patient capital. In recent years, patient capital has also come to be associated with impact investing. In this context, rather than maximising immediate returns for shareholders, the focus is on maximising the positive social or environmental impact of an investment, alongside financial gains. Non-profit investment fund Acumen, for instance, defines patient capital as “investment in an early-stage enterprise providing low-income consumers with access to healthcare, water, housing, alternative energy, or agricultural inputs.”
Both patient capital and venture capital seek a return on investment. Besides its longer time horizon, however, patient capital also has a higher risk tolerance than traditional forms of investment and can perhaps provide more follow-on investment in the event that a company enters a challenging capital environment.
Blended/public capital
Food is a commonwealth sector- we all need a better food system. Investing in food system solutions should involve commonwealth interests, including taxpayer money, and should be based on defined criteria around finding solutions to the biggest problems of our time such as bulwarking our global food system against the consequences of climate change.
We need more blended capital solutions, where public funds match private sector investment, effectively doubling funding rounds for young startups. Given food’s importance in society, governments should be actively participating in the future food sector and investing in innovation and talent. A great example of the successful deployment of blended/public capital is the Bpifrance story (Banque Publique d’Investissements France), the French government’s investment bank arm.
In an in-depth piece for Sifted, reporter Chris O’Brien writes about the success of ‘La French Tech’ being underwritten by Bpifrance:
“To understand the secret of France’s entrepreneurial boom, take a close look at state bank Bpifrance, an economic beast whose tentacles reach into every corner of this nation’s innovation ecosystem. Between direct and indirect investments, Bpifrance poured €1.6bn into French tech startups and venture funds in 2022 alone, up from €1.51bn in 2021…A closer look at the cap tables of the 120 companies reveals that 51 raised some kind of direct investment from Bpifrance, according to Dealroom…Even in Europe, where government investment in the economy is de rigueur, Bpifrance stands apart. And, a decade after its creation, its mission continues to expand with programmes to stop climate change and rebuild France’s industrial base.”
The ‘Shared Prosperity’ model and redeemable equity
Gutter Capital offers a model they dub “shared prosperity”, a model that “derives from 16th century maritime commerce…“Sailing crude vessels on treacherous routes from Europe to Asia and the Americas, early navigators risked death or capture on the high seas to deliver their cargo. As compensation, ship captains would take 20% of the profit from goods carried. Carried interest was born. Today, carried interest refers to how venture capitalists are compensated, taking 20% of the profits from the investments they make. Where sea captains risked life and limb to earn their keep, today’s venture capitalists enjoy the spoils of conquest while remaining safe on shore…The Gutter Infinity Fund will attempt to share the wealth by spreading both risks and rewards across the fund’s stakeholders…Our view is that founders are getting a raw deal,” Teran tells Fast Company, “so we’re putting our money where our mouth is and doing something about it.”
Food tech companies can also consider nontraditional equity structures such as redeemable equity. Can Atacik, founder of Alethina Impact Investments and Advisory, founding partner of ImpACTNOW Capital, and a venture partner of Venture Science talks about how climate entrepreneurs in particular can leverage redeemable equity to raise funding on alternative terms.
“Some climate founders may have a venture that doesn’t have a likely exit on a 10-15 year horizon (or exiting may not even be the right outcome). Keeping the business private long-term may lead to better business outcomes and climate impact, and founders may want to have the right to regain ownership over time.”
Redeemable equity enables founders to buy back ownership from VCs at pre-defined terms, which means investors can still have a compelling exit without forcing an IPO or acquisition. While the upside can be lower, a redeemable structure does mean greater downside protection than traditional VC.
An increasing (though small) number of startups are pursuing non-traditional equity models during fundraising. A German femtech team just raised a seed round that included the co-founder creating her own sustainable financing instrument, dubbed the Future Profit Partnership Agreement (FPPA). As reported here, she developed a “a mezzanine financial instrument that combines advantages of equity and debt capital and enables an appropriate return for investors…Instead of a conventional equity round, they offer a profit share. The agreement ends as soon as the return is achieved…Profits are a means to an end and are reinvested, used to cover capital costs or donated.”
Venture debt
With the collapse of Silicon Valley Bank (SVB), there has been a significant uptake in financial services and banks targeting venture debt (the higher interest rate environment has helped as well). This is a form of financing that allows Series A and B startups to finance capex or other working capital needs even when they are cashflow negative or only at pilot stage from a revenue standpoint. In addition, we are starting to see project finance firms put up the capital for equipment especially if that equipment can be moved or re-used in the event of a default.
However, this form of capital still does not solve for the physical space constraints of creating an industrial food ecosystem. It also does not provide enough capital to truly build large-scale infrastructure and ultimately venture debt is still bound to a startup’s ability to raise its next round. As such it certainly can help a startup as it begins to commercialize but won’t provide the capital required for the industry to mature.
Low-interest government-backed loans
At a cellular agriculture conference last week, alternative protein think tank founder Bruce Friedrich underlined the importance of government support for the cultivated meat sector and he specifically cited low-interest government loans as a key mechanism to boost innovation and help startups scale in a nascent industry, highlighting how vital these loans had been for electric vehicle pioneers.
“Elon Musk says they would have failed twice, if not for long-term low-interest government loans. There is no solar industry, there is no EV [electric vehicle] industry, there is no biopharma industry, if not for governments helping the companies that can’t qualify for standard bank loans, giving them long-term low-interest loans,” said Friedrich. Low-interest government-backed loans have been notably absent as an option for future food founders. One reason for this? Food has not yet reached mainstream consciousness as a key climate concern. This needs to change, given the importance of adapting food systems to reach net global zero goals.
One could argue that no other sector matters as much as food if humanity is to continue to thrive amidst an increasingly acute climate crisis. As such, it’s critical to explore new types of financing and new invested capital formats to support the food tech sector and its community of innovators and entrepreneurs.
Sonalie Figueiras is a journalist, serial climate entrepreneur, longtime food systems change activist and the founding editor of Green Queen Media.
Maximilian von Poelnitz is a venture partner with Ajinomoto helping to set up their new $100m venture capital fund. He has deep experience in food, bio, and climate tech investing following his roles as an investment director and managing partner at DSM Venturing and New Territory Ventures respectively.
German biotech startup Infinite Roots has secured $58M in Series B funding, which it claims is the largest investment in mycelium in Europe.
Hamburg-based Infinite Roots has closed a $58M Series B financing round, described as Europe’s largest investment in mycelium tech. Formerly known as Mushlabs, the startup uses biomass fermentation to grow micronutrient-rich, umami-packed mushroom mycelium, which can be used in applications like meat and dairy analogues.
The funding round was led by Dr. Hans Riegel Holding (one of the two holding companies of Haribo), with support from the European Innovation Council (EIC) Fund, German retailer Rewe Group, and Thailand’s Betagro Ventures. Meanwhile, returning investors include Clay Capital, FoodLabs, Redalpine, Simon Capital and Happiness Capital. It brings the company’s total raised to $73M.
The company will use the funds to scale its fermentation platform, turn to commercial activity and advance its launch plans.
Infinite Roots’ regulatory and production plans
Courtesy: Infinite Roots
Founded in 2018, Infinite Roots leverages submerged fermentation to grow mycelium, but since it only uses edible mushroom strains, it’s not considered a novel food, which eases the regulatory pathway considerably. Essentially, these are the roots of mushrooms consumers can buy at the supermarket, as founder and CEO Mazen Rizk told AFN.
“We’re not using mould, and I think that’s easier for consumers to understand,” he said. Education is key, if you consider a 10,000-person survey suggesting that nearly 80% of Americans didn’t identify a mycelium growing on a substrate as a mushroom.
The company already has a self-affirmed Generally Recognized as Safe (GRAS) status – which is determined through consultation from an independent scientific council, without the need for FDA review – and plans to notify the FDA of the same to receive a ‘no questions’ letter in the US. It’s in talks with the European Food Safety Authority too.
Infinite Roots plans to use the new capital to scale its fermentation platform and production capacity, expand commercial growth, and invest in launch activities globally. Rizk told AFN that the business doesn’t plan on building its own facilities, instead relying on contract manufacturers that can grow mycelium on pilot and industrial scales. “We don’t own production facilities because of the heavy capex that comes with it,” he said. “We have also been developing the technology to use [cheaper, more sustainable] sidestreams from the agrifood industry as feedstocks such as brewers’ spent grains.”
The startup’s patented technology can enable the creation of multiple mycelium-based food products, and showcases the fungi’s potential to diversify the world’s protein consumption. “Rethinking food production and consumption has never been more pressing, and requires our collective efforts,” Rizk said in a statement.
“We are in a unique position to define a new era of mushroom mycelium-based products. With Infinite Roots’ technology and products, we aspire to lead the monumental shift to a more sustainable and healthy food system.”
Mushroom root’s potential is coming to fruition
Courtesy: Infinite Roots
Mycelium is hot in the alternative protein universe currently, with many startups innovating with fungi to develop sustainable and highly functional proteins. One estimate values the market at $2.85B, and there has been a host of activity in the space lately: from innovations and breakthroughs to product launches and even more funding rounds.
And this is because of mycelium’s nutritional and environmental prowess, and ability to scale in a cost-competitive manner. In December, a study in the Journal of Agricultural and Food Chemistry – all of whose authors are involved in fellow mycelium startup Meati – delved into the ingredient’s potential.
Mycelium is said to be low in fat and high in fibre, with 20-30% of protein content in dry matter, which usually provides all of the essential amino acids. Additionally, it can deliver essential micronutrients – especially those usually found in animal foods – like iron, zinc and vitamin B12. The study cited research revealing the impact of mycelial extracts on the immune system, cancer, cirrhosis and glycemic response. A three-week early intervention trial has that 190g of mycelium per day can lower LDL cholesterol by 21% on average versus animal protein.
If more companies valorise agricultural sidestreams – the way Infinite Roots does – they can reduce a lot of food waste. Estimates reveal that a third of all food produced globally goes to waste, which accounts for 6% of global emissions. Moreover, mycelium sequesters carbon (with some strains able to store 70% more carbon in soil), some of which can be broken down into carbohydrates that act as nutrients for the soil.
For consumers, though, taste is key when it comes to alternative proteins. Mycelium excels here, with foods made from the ingredient usually exhibiting bland or only slightly mushroom-like flavour profiles, which can be enhanced by spices and seasonings to replicate the flavour of the meat. Developing ‘in-process’ flavours through biochemistry and flavour chemistry is an option too, since different species of mushrooms can produce various profiles, such as the aroma of beef bullion, curry or maple syrup, or the flavour and texture of chicken.
Infinite Roots takes a different approach, embracing the inherent flavour of mushroom roots. The startup heavily relies “on the tastes that the mushroom strains bring, rather than having to mask tastes, so we can create meat alternatives that are minimally processed with a very clean label,” Rizk told AFN.
His company – which plans to come to market this year – is in a burgeoning space backed by significant investment. Meati, one of the sector’s leaders, has raised $275M so far, while Nature’s Fynd has secured an even higher $510M. Fellow US brand MycoTechnology has brought in $208M. Over in the UK, Enough Food’s total funding amounts to $122M. But the biggest name in this industry internationally is Quorn, the brand synonymous with mycoprotein, which – despite a loss-making year – is comfortably the market leader in the UK.
“It is high time for consumers to be able to reconcile their appetite for good food and their willingness to act for the planet and for their health,” said Svetoslava Georgieva, chair of the EIC Fund board. The EIC’s Work Programme 2024, which falls under the EU’s flagship Horizon Europe scheme, recently also allocated €50M for precision fermentation startups. This strengthened its commitment to protein diversification, despite some of its member states objecting against another alt-protein pillar, cultivated meat.
