In our interview series, we quiz future food investors about the solutions that excite them the most, their favourite climate-forward restaurant, and what they look for in successful founders.
Gil Horky is the Founding Managing Partner at Flora Ventures.
What future food technologies most excite you?
The usage of peptides to deliver new functional benefits in food and supplements
New sustainable and efficient cold-chain technologies to extend route-to-market and food freshness
Blockchain and its applications in food transparency
What are three future food verticals you are actively looking at for 2025?
Supply Chain: Supply chain resiliency within the food chain is increasingly important due to climate change, geopolitical disruptions, and the most recent, crazy tariff war.
Longevity: Longevity and nutrition are deeply intertwined, and we will see new food and supplement products tailored to promote longevity,
What do you consider the food tech sector’s greatest achievement in the past five years?
Globally highlighting the dialogue around the urgent need to fix our global system.
If you could wave a magic wand, how would you fix plant-based meat?
Sadly, I think that even a magic wand can’t fix it, because the majority of existing products have not delivered on the expectations of consumers and investors. There was just too much hype with overpromising (and underdelivering) products in this segment.
What’s the top trait you look for in a founder?
Grit, and the ability to fundraise.
The One That Got Away: What is the deal you wish you had gotten into, but didn’t?
Foreverland. I worked for many years in the chocolate industry for Mondelēz, and I love their carob-based ‘chocolate-like’ products – tasty and sustainable.
What do you consider your most successful future food investment so far?
It is a very exciting investment we made in a stealth startup in the GLP-1 space. The technology is cutting edge and led by a stellar serial entrepreneur.
What has been your most disappointing investment so far?
So far, none. I, of course, wish that some investments would progress faster.
What do people misunderstand/get wrong most about VC?
That it is not as glamorous as it looks like. Similar to entrepreneurs, fund managers are spending a significant amount of their time fundraising from LPs and managing the administrative aspects of running a fund (reporting, compliance, legal, etc.). More importantly, delivering outlier returns (which is what counts at the end) is damn hard.
What is the most ‘future food’ thing you have eaten this month?
Where is your favourite climate-forward restaurant/dish/place to eat anywhere in the world?
Noma Projects. Had the privilege to visit them last year – not only super tasty products, but also using a very thoughtful approach on the sustainable footprint of their ingredients and processes .
What’s your ‘why’? What motivates you to do what you do?
I truly love the food industry, I worked in it most of my entire career and cherished every moment of it. Food is ingrained in human culture and emotions, and everyone has an opinion or something to say about it. But it is also the industry with the biggest impact and potential return on human and planetary health.
Beyond Meat saw year-on-year revenue drop by 9% in what it termed “clearly a disappointing” Q1 2025, and announced a $100M debt financing deal to shore up its liquidity.
Following two consecutive quarters of year-on-year revenue growth, Beyond Meat’s revenues fell by 9% in Q1 2025, largely driven by “broader macroeconomic concerns and reduced consumer confidence” in the US.
The company netted $69M in the first 12 weeks of the year, while posting a gross loss of $1.1M (compared to a gross profit of $3.7M in the corresponding period in 2024). Its operating expenses, meanwhile, narrowed by $2M, and its net losses were down by 2.6%.
Beyond Meat said it was “experiencing an elevated level of uncertainty within its operating environment”, which has forced it to withdraw its full-year forecast and limit its outlook to Q2 only, where it expects net revenues between $80-85M.
Founder and CEO Ethan Brown said the quarter was “clearly a disappointing one” as the firm felt the effects of worsening category conditions and macroeconomic headwinds. He blamed the move by several retailers to shift plant-based meat from the refrigerated section to the freezers, which impacted the availability of some of its core products during the quarter.
Concurrently, the company secured $100M in debt financing from Unprocessed Foods, a wholly owned subsidiary of Ahimsa Foundation, a non-profit advancing plant-based diets. It is the latest in a series of investments and acquisitions made by the organisation or its affiliates lately, including Eat Just, Wicked Kitchen, Simulate, and Blackbird Foods.
“This facility provides us with additional liquidity as we advance our strategic priorities and invest opportunistically to help us drive our growth plans,” said Brown, whose firm has a $1.1M debt thanks to a convertible note that will mature in 2027.
“In addition to securing access to this substantial new financing, we are continuing to evaluate opportunities to further strengthen our balance sheet and best position our business for the future,” he added.
US sales slump a concern for Beyond Meat
Courtesy: Beyond Meat
In the first quarter, Beyond Meat’s largest revenue decline came in US foodservice, where its sales were down by 23.5%. CFO Lubi Kutua said while the company expect headwinds to continue in this channel in the coming months, its newly built foodservice team in the country will “begin to pay dividends soon”.
“We’ve done better historically in the non-commercial space – universities, hospitals, things like that. But we’ve now really started to focus on that commercial space again,” he said. “I don’t think you should expect us to pick up a massive name QSR in the US right now. But we’re focusing more on that smaller national account, and we are making some progress there. And you’ll hear some fun stuff or encouraging news as we progress through the year.”
Its performance in domestic retail wasn’t much better, as revenues shrank by 15%, primarily due to a decrease in product volumes amid “weak category demand”. Its distribution was impacted by the migration to the frozen section in several supermarkets.
Internationally, Beyond Meat’s sales sustained in retail, reaching $12.7M (a 1% hike from Q1 2024). This channel was affected by a decrease in volumes, mainly due to low sales of its ground beef products. Kutua ascribed this to a “packaging transition led to some disruption and limited loss of distribution for those items”.
Sales jumped by 12% in the company’s global foodservice channel, thanks in large part to increased sales of its vegan chicken to a QSR customer. Beyond Meat cited the same reason when explaining the 9% increase in this channel in the previous quarter too.
“In the absence of further worsening category and macroeconomic trends, we expect overall volume as well as the volume of our core products to improve as we gain back retail distribution and benefit from seasonality, putting us in a better position to actually realise the planned benefits of a more efficient and appropriately sized production footprint,” Brown told analysts in earnings call.
Misinformation drives short film and new marketing drive
The meat industry has used the tobacco playbook to spread misinformation | Courtesy: Beyond Meat
The Beyond Meat CEO highlighted two overarching factors behind Beyond Meat’s disappointing Q1 performance: distribution and misinformation.
“While Beyond Meat can always and will always seek to improve our products, we believe the central issue impeding our return to sustained growth is perception. Or more accurately, misperception,” he said.
“If we look inward, our highest priority is driving operating and margin improvements. Externally, our highest priority is on dispelling misinformation and empowering the consumer to make informed decisions around our products,” he added.
The number of Americans trying to consume more protein has been steadily increasing in the US, from 59% in 2022 and 67% in 2023 to 71% in 2024. Brown believes Beyond Meat “should be a central part of satisfying consumer interest for protein”, but it needs to reestablish itself “within their decision set”. “Beyond’s value proposition remains obscured in doubt and misinformation,” he said.
To counter that narrative, the company released a 10-minute short film, Planting Change, last month, featuring interviews with medical and nutrition experts like Stanford professor Dr Christopher Gardner (who was behind the famous ‘twin study‘ featured in Netflix’s You Are What You Eat) and dietitian Joy Bauer.
Now, the company has launched a new marketing campaign titled Real People, Real Results, which features the experiences of six people of different ages as they shift to a healthy plant-based diet that includes Beyond Meat. The programme is designed by Forks Over Knives co-authors Matthew Lederman and Alona Pulde.
“From lower total cholesterol, lower LDL cholesterol, to weight loss, better sleep, higher energy levels, and lower inflammation, Real People, Real Result participants reported exciting benefits of a plant-based diet that includes our products,” said Brown.
Beyond Meat escaping ‘intense pressure cooker’, says CEO
Misinformation has become a recurring theme in Beyond Meat’s earnings call, and not by choice. The rise of carnivorism and the manosphere has pushed a lot of crap about the food system on our social media feeds. Americans eat way more meat than they’re supposed to, and even though they recognise its ill effects on the planet, they spent more on it last year than ever before.
Combine that with the growing discontent with ultra-processed food, which has only magnified since the arrival of Robert F Kennedy Jr as the health secretary. All this has directly impacted the bottom line of plant-based meat producers. Beyond Meat isn’t an outlier – overall meat alternative sales fell by 7% in the US last year.
RFK Jr has also been an advocate of regenerative farming, which can have several benefits for soil and nature. Meanwhile, climate activists have sounded the alarm about the misuse of this term by the beef industry as a greenwashing tactic. Brown himself criticised this in the previous earnings call, suggesting that “any serious scientists around regenerative beef will tell you that’s just a non-starter”.
He remains optimistic about the “hard work” Beyond Meat has done to clear up misinformation. “If you think about where we were two years ago, it was kind of the height of this intense misinformation campaign where there’s something wrong with the ingredients, there’s the process and so on and so forth. And we still have some of that,” he said.
Beyond Meat CEO Ethan Brown in Planting Change | Courtesy: Beyond Meat
“But you can feel it waning a little bit and it’s more of the truth starting to come out,” he added, explaining how its products’ certifications around heart health and diabetes nutrition have helped it counter the negative narrative created “not [just] by the meat industry, but also by the pharmaceutical industry, who didn’t want to lose sales from selling antibiotics to livestock”.
“We kind of made it through that really intense pressure cooker,” Brown said.
Speaking of pressure, Kutua confirmed that the effects of President Donald Trump’s tariffs are, at the moment, “relatively minimal”. Beyond Meat, which last year had reportedly been in talks with bondholders to restructure its debt, continues to evaluate further deals to address the debt, and will benefit from the $100M loan by the Ahimsa Foundation.
“The overall macro environment is challenging for alt-protein, but we are confident of the leadership and the outlook,” the non-profit’s president, Shaleen Shah, told Bloomberg News. “This is the right side of the history. The way animals are grown and processed is unsustainable, and alt-protein is the way forward.”
Our weekly column rounds up the latest sustainable food innovation news. This week, Future Food Quick Bites covers the Science Museum’s future food exhibit, Beyond Steak’s UK debut, and a Dutch public-private plant-based partnership.
New products and launches
In London, the Science Museum will host a Future of Food exhibit from July 24, featuring Aleph Farms‘s cultivated beef steak, the oldest sample of Quorn‘s burger from 1981, Clean Food Group‘s yeast-derived palm oil alternative, and more.
Courtesy: Science Museum Group
British YouTubers James Marriott and Will Lenney (aka Willne) have launchedRodd’s, a dairy-free ready-to-drink brand featuring an iced latte, waffle latte, and a vanilla matcha latte, all made with oat milk. They’re available at 300 Sainsbury’s stores for £2.20 per 250ml bottle.
Rude Health has released a “clean deck” iced coffee range, with its Oat Latte Iced Coffee and Mocha Iced Coffee aiming to address ultra-processing fears. They’re available for £3.75 per 750ml pack.
In more oat milk news from the UK, new startup Via Nature has rolled out Oat Shaker, a line described as a “snack in a bottle”. It comes in Banana & Coconut, Matcha & Pineapple and Blueberry & Açaí flavours, and can be found at Sainsbury’s for £4 per 750ml.
Courtesy: Beyond Meat
Beyond Meat‘s vegan steak pieces have made it into the UK, rolling out at 650 Tesco stores to align with British Sandwich Week (May 19-25), priced at £4.50 per 160g pack.
Vegan chocolate maker NOMO has released Salted Popcorn and Birthday Cake flavours in UK supermarkets, which are available in 32g and 127g bars, respectively.
New Zealand-based Nutrition from Water has released a Ready-To-Bake Sponge Cake Premix from its Marine Whey 50 algae protein.
Courtesy: Maison Linotte/Meawnamcat/Getty Images
French luxury pastry maker Maison Linotte has unveiledPurely, a premium vegan butter for professionals and baking enthusiasts. Described as a clean-label product, it contains no palm oil and can be used as a 1:1 replacement for dairy butter. It has a neutral flavour and colour, and reduces emissions by 82%.
Italian almond-based cheesemaker Dreamfarm has debuted vegan Ciliegine, or mini mozzarella balls, at the TuttoFood fair in Milan. They will roll out at Esselunga stores, with each 120g pack containing 12 balls.
Also in the non-dairy world, Canada’s Daiya has reformulated its cream cheese and Deluxe Mac & Cheese lines with its new fermented oat cream. It has also added a Cinnamon Twist flavour to the former range.
Courtesy: Daiya
And in the US, Dr. Praeger’s is launching two frozen vegan snacks – Taco Stars and Ranch Crunchy Veggie Fries – at Target stores this month.
In the Netherlands, Wageningen University & Research, Jumbo, Intersnack Group, Alpro, HAK, and The Vegetarian Butcher have launched a two-year public-private partnership called Shifting Shelves, which aims to increase the uptake of plant-based meat and dairy, legumes, and nuts via literature reviews, consumer research, and virtual and in-store supermarket tests.
Courtesy: Jumbo
Berlin-based startup Cultimate Foods has received funding from the Investitionsbank Berlin, co-financed by the European Regional Development Fund, to scale up its cultivated animal fat.
Denmark’s Ferm Food has earned EU authorisation to sell its fermented rapeseed cake as a food ingredient. A byproduct of canola oil production, it contains 28-30% protein and can be used in bread, cakes, and plant-based products.
Courtesy: Ferm Food
Abhay Rangan, co-founder and former CEO of Indian plant-based dairy startupOne Good (now part of Nourish You), has joined German cultivated milk startup Senara as its chief business officer.
Finally, UK tempeh brandBetter Nature has hired Helen Atkinson as its new head of sales. She has previously worked at Dr Oetker, Noble Foods and Bel Group.
Embattled alternative protein firm Meati Foods is set to sell for just $4M after an unprecedented financial crisis that turned the business on its head.
Two months after a bank swept most of its cash reserves in an unexpected move, Colorado-based mycelium meat maker Meati Foods is preparing for a sale worth $4M.
The deal was disclosed in filings to the Adams County District Court on May 2, with CEO Phil Graves assigning the firm’s assets to attorney Aaron Garber. It’s expected to be sold to a new company called Meati Holdings, though the filing did not provide any other information about the buyer, according to BusinessDen, which first reported the news.
Garber wrote that the $4M sale would “preserve the operational value of the company, maximise recovery for creditors, and reduce collateral damage to stakeholders and interested parties when compared to a liquidation”.
Meati, which listed $158M in assets, has asked a judge to allow the buyer to run the company even before the sale closes. It is unclear how this affects its employees and facilities. Meati declined to comment when approached by Green Queen.
At the beginning of this year, Meati was cruising. It had raised the largest round in the industry in 2024, doubled its revenue, and expanded its retail distribution by 130%, with its mycelium steak, chicken and breakfast patty SKUs in over 7,000 stores.
In late February, its lender swept away two-thirds of its cash reserves due to a technical default, despite assuring Meati that it wouldn’t. Meati was in the middle of an internal fundraising round that would have extended its runway into 2026; while the company was current on its payments, it had breached a financial agreement relating to revenue and gross profit.
This legally forced the firm to issue a Worker Adjustment and Retraining Notification (WARN), informing all 150 employees of impending layoffs if immediate funding isn’t secured.
The notice suggested that should Meati fail to raise the capital it needed by May 6, it would cease operations at its manufacturing facility in Thornton, Colorado and permanently cut all jobs at the site, all the way from the warehouse and food production technicians to the R&D team and the CEO.
“Our lender unexpectedly removed cash from our accounts and took control of remaining cash reserves […] and the action was not reasonably foreseeable,” Meati’s WARN document read. “We would have liked to have given you more advance notice of this action, but we were unable to do so because our lender’s actions were wholly unanticipated and unforeseeable.”
Meati had been hopeful of securing the required investment. And this Monday, AgFunderNews reported that Meati had secured bridge funding that would allow it to continue operating for the time being.
Now, a judge is set to rule on Meati’s request, which, if approved, would give Garber control of its actions until the sale closes.
Uncertainty plagues alternative protein space
Courtesy: Meati
Meati’s impending sale comes at a curious time for alternative protein. Global investment in the sector declined by 27% in 2024; plant-based food (-64%) and cultivated meat (-40%) startups took most of the hit.
Fermentation startups, however, saw a 43% hike, surpassing the plant-based category for the first time. This was led by Meati’s $100M round. The company is actually one of the most well-capitalised in the industry, having raised $365M since being founded in 2017.
It has had its fair share of troubles. It has conducted multiple rounds of layoffs since 2023 – with the latest described as a right-sizing move to move the company towards profitability – and has been involved in an IP dispute and false marketing lawsuits over the last few years.
While meat alternatives also saw a 7% dip in sales in the US last year, Meati bucked the trend. Circana data for the 52 weeks to July 14, 2024 showed slowing sales of meat analogues, but Meati’s whole-cut steak was among the top 15 growth items. The company saw a $2.7M hike in year-to-date sales, thanks in large part to its all-natural ingredient list.
“Consumers shouldn’t have to decide between feedlot meats that are inhumanely raised, wreck the environment and lack nutrients, or ultra-processed plant-based options that have a long list of ingredients you can’t pronounce,” Graves told Green Queen in January.
As an established leader in the space attempting to decarbonise the food system, Meati’s impending sale is unfortunate and a further example of the uncertainty enveloping the sector.
French startup Faircraft has acquired the assets of fellow lab-grown leather maker VitroLabs in a bid to reach industrial-scale production of the alternative material.
In a major consolidatory move in the nascent lab-grown leather category, Faircraft has bought the strategic assets of San Francisco startup VitroLabs for an undisclosed sum.
The deal does not include VitroLabs’s staff, but gives Faircraft access to a technical portfolio of 30 patents to boost its efforts to industrialise the production of cell-based leather for the luxury fashion space.
“We performed the acquisition because they did a great job of developing and protecting some key technologies for lab-grown leather manufacturing,” Faircraft CEO and co-founder Haïkel Balti told Green Queen.
“This helps us consolidate our position as leaders in the lab-grown leather segment… [and] accelerate our industrialisation process to bring these great materials to the market.”
Courtesy: VitroLabs
How Faircraft makes its lab-grown leather
VitroLabs was the first company to showcase the feasibility of creating high-end leather grown from animal cells, attracting $46M in a Series A funding round that involved Parisian luxury goods giant Kering and Hollywood actor and environmentalist Leonardo DiCaprio.
The firm’s research focuses primarily on tissue engineering, which has helped it develop patented solutions in cultivating multilayered skin structures, the use of synthetic or natural biological supports for cell cultivation, and the development and use of cells suitable for large-scale cell-cultivation.
Faircraft, meanwhile, was founded in 2021 by Balti and César Valencia Gallardo. It uses cellular biology to develop low-carbon materials for a broad range of applications, and its cultivated leather is derived from animal skin cells, which are made to replicate the structure and composition of conventional leather via cellular agriculture.
“We first take a harmless skin biopsy, then extract relevant cells from this biopsy,” explained Balti. “We then demultiply these cells using bioreactors. Once we get enough cells, we then seed them onto a scaffold that helps them organise in 3D, placing cells at the right distance from each other.
“We then feed these cells with nutrients made of water, minerals, vitamins, amino acids. Cells then begin to produce collagen and elastin in large quantities. After four weeks, we get a lab-grown skin, ready to be tanned using traditional tanning methods, [but] made much cleaner.”
The process uses a much lower amount of chemicals and water, and leads to much less waste than conventional leather production, which is an energy– and water-intensive process linked to deforestation and biodiversity loss.
Courtesy: Faircraft
Faircraft looks to set up pilot facility in two years
Faircraft says the takeover of VitroLabs and its decade of R&D work complements its scientific base and will help it get to market faster. “This acquisition is a great opportunity to accelerate our industrialisation process and the use of our great materials within our first market – luxury fashion and leather goods,” Balti said.
It has already partnered with several leading players in this space. While Balti is bound by non-disclosure agreements, he stressed that these are “top fashion houses we all know about”.
The firm is producing a few square metres of its lab-grown leather per month at its Paris facility, which has been enough to advance these collaborations. “We are looking to expand our manufacturing capability at our current facility, but the big jump will be made in two years with our first pilot manufacturing facility,” he said.
To aid this effort, Faircraft closed a $15.8M funding round in November, which was earmarked to expand its team and develop machinery for commercial production. It simultaneously released a handbag tanned using traditional methods and made by Parisian leather artisans.
Courtesy: Faircraft
Conventional leather production has a much higher carbon footprint, at 110kg of CO2e per square metre, compared to synthetic and plant-based alternatives. But synthetic leather mainly uses petroleum-derived plastic and can take up to 500 years to break down, while also shedding microplastics that can destroy marine life, the waterways, and our health.
Animal-derived leather additionally releases lots of health-harming chemicals during tanning. Faircraft’s cell-based version relies on master tanners who specialise in luxury leather to perfect the finish of its material, safeguarding the interests of those who make their livelihoods from the industry. And the material generates 90% fewer CO2 emissions and 95% less waste, and requires 80% less water to produce.
It is one of several startups innovating with lab-grown leather, including US-based Modern Meadow, UK startups Lab-Grown Leather Ltd and 3D Bio-Tissues, and Dutch players Qorium and Pelagen.
The Climate Bonds Initiative, whose certification programme helps mobilise finance for climate solutions, has introduced a criterion dedicated to unlocking alternative protein investment.
There’s no two ways about it: we need to change the way we eat, and we need to start with meat.
Farming animals takes up way too much land, water, and resources than we can afford to use, all while producing 57% of the food system’s emissions. In fact, livestock agriculture is responsible for as much as a fifth of all global emissions – that’s 10 times higher than the greenhouse gases produced by the aviation industry.
Despite the large amount of resources and pollution associated with meat and dairy production, these foods only provide 17% of the world’s calories and 38% of its protein supply. Global meat consumption is set to grow by 50% by mid-century, but we’re running out of land to meet that need.
We need new ways to produce meat, which is where alternative proteins come in. Scientists agree that plant-based options are the “best available foods” for planetary health, considering that the world breached its 1.5°C temperature threshold in 2024, and without immediate and tangible action, even keeping post-industrial warming under 2°C feels like a pipe dream.
While traditional plant proteins and novel alternatives might be the best way forward, investors don’t necessarily believe so anymore. The industry has taken several funding hits since the highs of 2021. Last year, financing for startups in the sector dropped by 27%, following a 44% dip the year before.
It is critical that this industry develops further to scale up production and drive down costs, which is why the Climate Bonds Initiative (CBI) has launched its Alternative Protein Criteria to mobilise capital for these future foods.
“It is essential that any investment aiming to address climate change and environmental integrity consider alternative proteins,” the non-profit says.
“The alternative protein market is poised for rapid growth – with global protein demand expected to double by 2050, the need has never been greater. And yet clarity on how to achieve the greatest return on investment for the global protein market has been elusive to date,” Joanna Trewern, director of partnerships and institutional engagement at ProVeg International, tells Green Queen.
“The newly launched CBI criteria is a comprehensive tool for certifying investments into alternative proteins, capturing everything from tofu to fungi and cultivated meat and seafood. Beyond protein type, it provides guidance on the most impactful strategies to scale the alternative protein market, including retail marketing, sustainable sourcing, and replacement and substitution,” she adds.
“This is vital information for start-ups and investors operating in the alternative protein space. This valuable tool brings clarity at a critical time for the sector and will help increase investor confidence and drive investment into the most impactful areas.”
What’s the focus of the Alternative Proteins Criteria?
Courtesy: Those Vegan Cowboys
Climate bonds are financial instruments designed to raise capital for low-carbon projects to advance the green economy – think solar power, electric vehicles, and mass transit. They can be issued by governments, organisations like the World Bank, universities, and even corporations.
CBI describes itself as the leading organisation mobilising global capital for climate action. It aims to drive the growth of the green and sustainable debt market through science-based frameworks, including the Climate Bonds Standard (CBS), which allows investors to assess the climate credentials and environmental integrity of bonds and other green debt products.
The new Alternative Proteins criteria are said to be the first tool for certifying investments in sustainable proteins, and follow two months of public consultations. They highlight key areas for climate mitigation: scaling up production of foods like plant-based, fermentation-derived, cultivated, and blended proteins, encouraging meat substitution, and improving manufacturing processes and sourcing.
Designed to provide procurement guidelines to align alternative protein production with a 1.5°C transition and enable stakeholders to issue credible green finance, the criteria focus on two main areas.
The first is replacing some of the production and consumption of animal proteins with lower-impact alternatives – swapping beef would provide the biggest gains here. The second involves mitigating the impact of alternative proteins themselves, with a focus on energy source and use, raw materials, and waste management.
CBI notes that most of the emissions for alternative proteins relate to energy use, so a switch to renewable energy is “significantly more effective” in attaining the potential emission reductions.
“In assessing sustainability in the food system, alternative proteins are one of the most impactful climate mitigation solutions,” said Rosie Wardle, co-founder of Synthesis Capital and a member of the framework’s technical working group.
“We must catalyse more capital into this sector to scale up the industry and to ensure the resilience of our food system, as without these solutions we cannot feed our growing global population within planetary boundaries.”
The eligible measures for alternative protein stakeholders
Courtesy: Aleph Farms
The criteria will focus on climate and land use impacts, and will be informed by other standards in the market and recent policy developments. They’re applicable to various financial instruments, including use of proceeds (UoP) for green bonds and sustainability-linked debt.
CBI’s framework only covers alternative protein sources intended for human consumption, so animal feed, pet food, and non-food applications are not eligible. It spotlights hybrid and blended products too, which combine different alternative proteins with each other or with animal-derived sources, with the latter needing to replace at least 60% of animal ingredients.
The Alternative Proteins Criteria targets producers, distributors, retailers and foodservice providers alike. In its list of eligible measures that companies could use for UoP certification, it mentions product and menu reformulation, chef and food prep staff training, and sensory tasting to increase the uptake of alternative proteins for foodservice and own-label retail brands.
Running cross-product discounts on alternative protein dishes and promotions like Meatless Mondays, matching the price of animal-free options with meat and dairy, recommending foods like beans in heart-healthy pamphlets in hospital canteens, redesigning stores to nudge consumers towards more sustainable foods are also among other measures eligible for UoP certification.
The criteria incorporate safeguards for other issues like water pollution, animal welfare, and nutrition. Crucially, CBI states that cultivated meat companies must move away from fetal bovine serum by 2030 – a shift already being seen across the industry.
Didier Toubia, co-founder and CEO of cultivated meat company Aleph Farms, and a member of the criteria’s industrial working group, called it “a timely and essential step towards aligning capital with food systems initiatives that serve both people and the planet”.
“This initiative marks a pivotal moment for sustainable finance. It empowers new investors to join a transformation already embraced by over a third of the global population identifying as flexitarians,” he says.
“It helps unlock critical funding to scale up new protein production systems like cultivated meat, transforming how we feed the world by reducing emissions, land use, and biodiversity loss, while ushering in a new era of culinary innovation and experiences.”
Some of the largest hotel companies in China have received an A+ rating for plant-based policy commitments in a scorecard released at Shanghai Climate Week.
Marriott Greater China, Langham Hospitality, IHG Hotels & Resorts and eight other leading hotel operators are leading the industry’s protein transition in China, according to a new report.
These hotel groups have received an A+ score for their corporate policies on increasing plant-based food offerings, the highest possible rating on the scorecard compiled by Lever China.
The Shanghai-based consultancy firm, part of the Lever Foundation network, presented the scorecard at Shanghai Climate Week, where hospitality executives and sustainability leaders committed to adapting a plant-based framework beyond hotels, and across corporate and campus catering, among other operations.
It comes at a time when China is eating more protein per capita than the US, and mostly from plants. Both national and local governments are promoting plant-based and novel foods, since projections show meat intake in the country – already the leading meat consumer – is set to grow further.
Courtesy: Lever China
Which hotels are leading China’s plant-based shift?
In the China Hospitality Industry Plant-Based Foods Scorecard, Lever Foods analysed hospitality companies’ food policy goals, whether they had set precise timelines and premier targets for protein transition, and if they’re engaging in action steps.
To bag an A+ score, a company is required to have publicly set a timebound target to make at least 30% of all meals plant-based or increase the percentage of non-animal foods served per guest by at least 20%.
In addition, hotel operators must be engaging in at least three action steps, which include making a sizeable portion of the menu plant-based by default in an F&B outlet at each hotel, introducing at least 10 new vegan recipes every year, offering a minimum of two professional development courses annually, and using signage or phrasing to encourage diners to choose meat alternatives.
Accor Hotels and Langham have pledged to make 50% of their menu plant-based by 2030 across all their global locations, while Orange Hotel and OctaveHotels are leading the immediate charge in Greater China, committing to a 30% transition to animal-free foods by this year.
IHG, Marriott, Dossen Group and Yee Hotel (a subsidiary of the White Swan Hotel Group), meanwhile, are aiming to make 30% of their menus vegan by 2025. Same goes for Ahn Lan Resorts & Hotels, Artyzen Hospitality Group’s Macau and Hengqin locations, Baiyun Hotel (all by 2026), and Ascott’s South China operation (by 2028).
“Plant-forward menu strategies are quickly becoming a hallmark of industry leadership in the hospitality sector, delivering measurable benefits to both business operations and broader societal goals of public health and environmental sustainability,” said Cecilia Zhao, sustainability head at Lever China.
Courtesy: Lever China
Plant-based eating on the rise in China
The commitments by the likes of IHG, Dossen and Orange Hotels have all come in collaboration with Lever China, which has been helping the industry ramp up its protein transition efforts.
Polling shows that almost all (98%) Chinese consumers would eat more plants if they were informed about the benefits of a vegan diet, just as research suggests that half of all protein consumption in the country must come from alternative sources by 2060, if the company is to decarbonise effectively.
Lever China has additionally signed a strategic partnership with the Low-Carbon Hotel Development Institute, a state-affiliated organisation, to boost the adoption of plant-based foods in the country’s hotel industry.
The Chinese government has been promoting plant-based foods, with the Ministry of Agriculture and Rural Affairs recently publishing a briefing with a call to action to “develop new food resources such as plant-based meat”. President Xi Jinping has also called for a Grand Food Vision that includes plant-based and microbial protein sources.
In China’s most populous region, the Guangdong province, local officials are planning to build a biomanufacturing hub to pioneer tech breakthroughs in plant-based, microbial and cultivated proteins.
The Lever Foundation, meanwhile, recently announced that it had supported 175 food businesses across Asia to commit to responsible sourcing, with 17 shifts towards improved production systems and five pledges to significantly ramp up the use of plant-based foods in the last year alone.
According to its website, it has helped shift 29 million corporate meals to plant-based and prevented 82 million kgs of CO2e from businesses each year.
Its work in China speaks to consumer demand, with 88% of local consumers holding hospitality and retail businesses responsible for managing the health and sustainability of their food supply chains, according to a recent survey. Another 77%, meanwhile, are more likely to visit establishments with specific policy goals to increase the use of plant-based food.
The Pack, a British startup making alternative proteins for pet food, has been acquired by Prefera Petfood, a premium manufacturer founded by industry veterans.
London-based alternative pet food maker The Pack has sold its brand to premium manufacturer Prefera Petfood, with the terms of the transaction undisclosed.
The acquisition comes just weeks after the startup co-launched the UK’s first cultivated meat product for pets, and follows Prefera’s deal to co-produce cultivated mouse meat with another firm in Europe.
The deal will see The Pack co-founders Judy Nadel and Damien Clarkson join the Prefera team to continue to grow their brand in Europe.
“In joining Prefera Petfood, The Pack is going to be able to create the next generation of highly nutritious products for pets,” says Clarkson, who will remain CEO of the brand. “We are excited to combine our skills with the world-class production talent assembled by Prefera and look forward to seeing the brand grow greatly in the coming years.”
He added that the deal would help The Pack develop innovative products and bring them to market much more quickly.
Courtesy: The Pack
The Pack sells brand after successful year
Clarkson and Nadel – the pair behind agrifood investment platform Vevolution – founded The Pack in 2021, and sell both wet and dry dog food, including Europe’s first complete oven-baked plant-based kibble.
Its products are made from pea protein, lupin beans, vegetables and herbs, and are rich in protein and micronutrients (with a digestibility rate of over 90%). Plus, the use of plant-based ingredients means its meals have a carbon footprint 17 times lower than meat-based dog food.
The company closed an £835,000 seed funding round in December 2022 to bring its total funding to over £1M, before embarking on a crowdfunding campaign last summer. At the time, its sales were up by 39% year-over-year, with the firm “on track for our best-ever financial year”, Clarkson told Green Queen at the time.
He had hinted at the company’s move past vegan products, and into cultivated meat. Building on that, The Pack co-developed oven-baked Chick Bites with London-based cultivated meat startup Meatly, the first company to be approved to sell these proteins in the UK.
The limited-edition dog treats were available at Pets At Home in 50g pouches for £3.49. Clarkson labelled it a “watershed moment”, noting: “Cultivated meat offers a tasty, low-carbon, and healthy protein source, which has the potential to eliminate farmed animals from the pet food industry.”
Pets account for 22% of the UK’s meat consumption, which is more than what British children eat every year. Meanwhile, labradors – the most popular pet dogs in the country – consume 70 million kg of meat annually, nearly 60% more than their owners.
But environmental concerns have pushed half of global consumers to switch pet food brands or products, a number that rises slightly for millennials and Gen Zers, who are increasingly opting to have pets instead of children.
These worries have only deepened over the year – in 2024, over a third (36%) of consumers said they were more likely to pay more for sustainable pet food than three years prior.
The Pack CEO Damien Clarkson, Pets at Home COO Anja Madsen, and Meatly CEO Owne Ensor | Courtesy: Meatly/Pets at Home
Prefera continues M&A trend in plant-based sector
Prefera, meanwhile, was formed in early 2024 by a group of industry veterans, with the team comprising former senior leaders from pet food giants, nutritionists, and veterinarians. The company is a specialist in premium wet pet food production, and sells primarily in Europe.
“The Pack has been one of the pioneering companies in the emerging alternative protein pet food market,” said Nicola Magalini, managing partner of Prefera. He is the former CEO of Lily’s Kitchen, and also worked as an executive at Purina, the pet food brand owned by Nestlé.
“Prefera are excited to add the brand to our growing portfolio of brands to work with Damien Clarkson and Judy Nadel, in growing the brand across Europe and expanding their range of products vastly,” Magalini added.
Last month, Prefera partnered with US startup BioCraft Pet Nutrition to co-manufacture the latter’s cell-cultured mouse ingredient on a commercial scale. The details about the length of the partnership, the production volumes, or the deal’s financials were not disclosed.
However, BioCraft co-founder and CEO Shannon Falconer told Green Queen: “We anticipate being able to offer meaningful volumes of our ingredient to pet food manufacturers in Europe in late 2025.” The firm recently registered its ingredient to sell cultivated meat for pets in the EU.
The UK government is planning to remove the exemption for sweetened dairy and plant-based milk from its sugar tax – what does this mean for non-dairy alternatives?
Sweetened oat and almond milk could now carry the same levy as Pepsi and Coke in the UK, according to a new government proposal.
The Treasury confirmed proposals to extend the soft drinks industry levy (SDIL) to dairy-based drinks like milkshakes, and non-dairy alternatives with added sugar, in a move first hinted at by Chancellor Rachel Reeves in the autumn budget last year.
The recommendations have been put out for consultation, and include plans to lower the threshold at which drinks become subject to the levy from 5g to 4g of added sugar per 100ml.
Why is the UK adding non-dairy milk to its soft drinks levy?
Courtesy: Oatly
The SDIL was first introduced by the Conservatives in 2018 to tackle rising obesity in the UK, and has raised nearly £2B for the government. For the 2023-24, the tax revenue reached £338M, with most of this paid at the higher rate (for drinks with over 8g of sugar per 100ml).
It caused widespread reformulation within the soft drinks industry, leading to a 46% average reduction in sugar. Today, 89% of fizzy drinks sold in the UK are not subject to the SDIL, with most falling just below the 5g threshold.
Until now, milk-based drinks and dairy-free milks (with at least 120mg of calcium per 100ml) have been exempted from the tax due to concerns about calcium intake, especially among the youth. However, the government said that young people only get 3.5% of their calcium from milk-based drinks, so “it is also likely that the health benefits do not justify the harms from excess sugar”.
“By bringing milk-based drinks and milk substitute drinks into the SDIL, the government would introduce a tax incentive for manufacturers of these drinks to build on existing progress and further reduce sugar in their recipes,” the Treasury noted.
The move is geared towards improving the overall health of people in the UK, where obesity has doubled in the last 30 years (affecting 29% of the population). As of 2022, 37% of children aged 10-11 were overweight or living with obesity. The combined economic costs of adult obesity and associated lower productivity amount to £35B, which is around a third of the UK’s education spending. Meanwhile, British children consume more than twice the recommended amount of added sugar.
The government suggests that by lowering consumption of high-sugar drinks, the proposed changes to the SDIL could lead to positive health and economic outcomes, with calorie reduction equivalent to health and economic benefits of around £4.2B over the next 25 years.
How will plant-based milk be affected by the sugar tax?
Courtesy: Sproud/Green Queen
The current exemption included products like chocolate-flavoured soy milk too, as long as it contained 120mg of calcium per 100ml. This offered “parity with the current treatment of milk-based drinks”, the Treasury explained.
It adds that removing the exemption on plant-based milk will actually “have a negligible effect” on how it’s taxed, since this affects a “very small minority” of products. Only a handful of non-dairy milks on the market have sugars above 4g per 100ml.
For example, Alpro’s Original soy milk contains 2.5g of sugar per 100ml, while its No Sugars range contains none. Even most barista milks fall under the 4g threshold, such as Sproud’s pea milk (1.8g of sugar per 100ml) or Califia Farms’ almond milk (2.7g).
There is an important caveat with milk alternatives made from grain like oats and rice. These products contain natural sugars released during the manufacturing process, similar to how the human body converts starch to sugar during digestion. This, however, is not added sugar, but forms part of the total sugar content found on the nutrition label.
The UK government clarified that the “sugars derived from the principal or ‘core’ ingredient” will be excluded from the definition of added sugar in these plant-based milks. Take Oatly, for instance. Its core lineup contains 3.4g of sugar, all from the oats themselves.
Another good example is Rude Health’s range, which relies on rice milk as a base for most of its drinks – its almond milk has 4.7g of sugars, though none of this is added sugar.
Graphic by Green Queen
Flavoured plant-based milk in the spotlight
Under the UK dietary guidelines, unsweetened, calcium-fortified plant milks count as part of the ‘milk and dairy’ group in the Eatwell Guide, and can also be given to children aged one and above “as part of a healthy balanced diet”.
The only products in this category affected by the exemption are the sweetened flavoured non-dairy milks. Alpro’s vanilla soy milk contains 6.8g of sugar, meaning it would be subject to the new SDIL rules (should they be finalised).
That product currently retails for £2.10; once the levy is applied, this would rise to £2.28. Some critics have raised concerns about the impact of the SDIL on families, especially as the cost of living continues to remain significantly high. As health-conscious consumers look away from sugary foods and beverages, it could serve as a further incentive for them to switch to low- and no-sugar alternatives.
For brands like Alpro, it would likely necessitate a reformulation to bring the added sugar content in flavoured milks under 4g per 100ml. Others, whose products are already under the threshold, stand to win, such as Sproud’s vanilla pea milk, which only contains 3g of sugar and Califia Farms’s unsweetened vanilla almond milk, which has zero added sugar.
Danone’s Nutri-Score U-turn
Courtesy: Danone/Green Queen
The discourse around the sugar content in plant-based milks and comparing them with soft drinks got heated last year, after the classification system of the Nutri-Score label, which uses a five-colour, A-to-E rating to denote a product’s health credentials, moved non-dairy products from the ‘general foods’ category to the ‘beverage’ category.
It meant that only water got an A rating on the nutrition label in the beverage category, with some dairy and plant-based alternatives now being viewed in the same vein as soft drinks. The move led Danone, Alpro’s parent company and a former advocate of mandatory Nutri-Score labelling, to remove the label from its products.
“We have always supported consistent science-based, interpretive nutrition labelling and were pioneers in displaying, on a voluntary basis, the Nutri-Score on our packaging in Europe,” a Danone spokesperson told Green Queen last year.
“However, we do not agree with the revision of the algorithm, which switches drinkable dairy and plant-based alternatives into the beverage category,” they added. “This development gives an erroneous view of the nutritional and functional quality of drinkable dairy and plant-based products, not in line with food-based dietary guidelines in Europe.”
The company’s decision was met with backlash from nutritionists and consumer groups. “Danone’s U-turn on the Nutri-Score ignores consumers’ desire for clear nutritional information on packaging,” said Suzy Sumner, the Brussels head of consumer organisation Foodwatch. “It is unacceptable that Danone should decide to backtrack on the Nutri-Score because the products of some of its brands would score less well.”
Now that the UK government is targeting sugary plant-based milk, companies like Danone may have their hands forced. If they can revise product recipes to lower the sugar thresholds, it would result in a win for public health, consumers’ wallets, and businesses’ own bottom lines.
Swedish oat milk leader Oatly has slashed its losses by 73% and reaffirmed its guidance to become profitable this year, although health misinformation and the trade war could complicate things.
Oatly has recorded its second-best quarter since its Summer 2021 IPO, cutting its year-over-year losses by 73% in Q1 2025, reaching $12.5M.
While the company’s revenue was down slightly by 0.8%, totalling $197.5M, a lower cost of goods and the closure of its Singapore facility meant that its gross profit (up by 16%) and gross margin (up by 4.5 percentage points) have been the highest since going public.
It has led Oatly to reaffirm its outlook of a first full year of profitable growth in 2025. Its only profitable quarter came in 2023, when it posted a profit of $44M. However, “misinformation on health” and the ongoing tariff war could throw that plan into jeopardy.
“Key variables could influence where we would exactly land. That could be our sales guidance range. That could be our customer mix. That could be potentially foreign exchange and potentially, structure development on the tariff situation as we know,” said CEO Jean-Christophe Flatin told investors in an earnings call. “So, our plan is to continue to make this progress on our path towards our long-term gross margin target of 35-40%.”
Oatly outperforms the plant-based milk sector despite American decline
Courtesy: Oatly
In the Europe and International segment – Oatly’s largest market – revenue decreased by 2.5% to $108M, while volume rose by 4%, thanks largely to its barista oat milk lineup. However, with a 4.6% year-on-year growth in retail, Oatly still outperformed the overall oat milk (+2.8%) and plant-based milk (+3.5%) categories.
It’s unclear whether Oatly will be affected by the proposed change to the UK’s soft drinks industry levy, which will see milk drinks and plant-based alternatives with 4g or more of added sugar per 100ml get taxed. This excludes natural sugars that come from ingredients like oats, so the only Oatly products that would have been affected are its flavoured milks – though they contain 3.3% of added sugar, according to the ingredients on-pack.
As whole milk and raw milk enjoy a resurgence in the US, the firm saw an even bigger decline of 11% in North America, recording $60M in revenue in the 12-week period. This was accompanied by an 11% volume decrease too. “We’re navigating a change in sourcing strategy at our largest customer, and second, we’re going through an SKU rationalisation on certain frozen items,” explained COO Daniel Ordonez.
Here too, though, Oatly outperformed the wider category in retail, where its losses were at 4.5%, compared to 5.6% for all oat milks, and 5.5% for the overall plant-based milk sector. And when discounting non-recurring costs – also known as adjusted EBITDA – its performance in this region improved with a profit of $1.1M, compared to a loss of $400,000 12 months ago.
Meanwhile, the Greater China segment was the only region where Oatly recorded revenue growth in the first quarter of 2025, although this is the company’s smallest market by some distance. Revenues jumped by 38% to $30M, driven by sales to a new foodservice consumer and entry into the club consumer segment in retail.
One of Oatly’s ongoing priorities is to “aggressively pursue cost efficiencies”, with the business reducing its cost of goods per litre by 15% compared to Q1 2024, and 6% to the previous quarter. “Our teams have done a stellar job, leveraging our fixed assets with volume growth, finding additional efficiencies, renegotiating contracts, as well as rightsizing our network, including plant closures,” said Ordonez. “This translates into a year-on-year total cost of goods reduction of $10 million.
How Oatly plans to ‘ignite positive momentum’
Courtesy: Oatly/Malibu
Another priority for Oatly is to “ignite positive momentum” on a global scale, for which it has a three-pronged strategy. One pillar involves expanding the availability of its products, while another entails increasing its relevance to consumers by leveraging the growing momentum of its barista line in the coffee space.
“Relevance does not start and stop with the product – Oatly is a generational brand that maintains its cultural edge with millennials and Gen Z,” noted Ordonez. Over the last year, the company has struck several partnerships to drive “cultural relevance and conversion into oat milk”, including with Nespresso, Malibu, and British rapper Giggs.
The second strategy is to attack barriers to oat milk, primarily “preconceptions on taste and misinformation on health”. Ordonez said Oaty was dialling up its model of driving foodservice experiences and helping customers recreate those at home with retail purchases.
“There is a taste bonanza and a flavour bonanza going on in coffee around the world, and our teams are intimately woven into this community. So, whether in a coffee shop in Shanghai, Brussels, Mexico, Dubai or Boston, Oatly is uniquely positioned to bring the hottest emerging global taste trends to their menus,” he noted.
The company is working with its foodservice clients to revamp their menus and better cater to Gen Z and current and future trends, which would help it achieve 50% household penetration.
“Coffee is massively, drastically evolving from hot latte art a few years ago only, where millennials were driving the world of coffee, into Gen Z, who are driving beverages and cold beverages,” said Flatin, citing the “matcha phenomenon“. “Most of our very large customers are trying to evolve and catch up with that trend.”
Tackling dairy and oat milk misinformation
Courtesy: Oatly
Oatly is going big on tackling misinformation around the health impact of oat milk, mirroring a larger issue for the plant-based sector. Nowhere is the influence of the dairy lobby more clear than the US, where influential groups have pushed educational materials presenting milk as a healthy and necessary choice for students, following years of campaigns to make it an integral part of school meals.
Dairy associations spent $7.6M on lobbying in 2024 alone, and over the years have been targeting the same demographic as Oatly: Gen Z. In 2022, Dairy Farmers of America collaborated with YouTuber Sean Evans – host of First We Feast’s Hot Ones, where guests eat spicy chicken wings – to promote milk as a safeguard for spicy foods that can “also help keep the planet from getting too hot”. Evans’ content included a sponsored video on National Farmers Day to promote pro-milk facts.
Meanwhile, Dairy Management Inc tapped social media influencer Jimmy Donaldson – better known as MrBeast – to promote the National Dairy Checkoff’s #UndeniablyDairy campaign. He was chosen for his popularity with Gen Z to portray how dairy is a “wellness solution” produced in an “environmentally friendly” way.
Oat milk specifically has received bad press in recent months, with influencers and media outlets pointing to blood glucose spikes, its low protein content, the inclusion of ultra-processed additives like emulsifiers and acidity regulators, and its purported effects on bloating.
How does Oatly plan to combat that? “Instead of creating more noise, we have been systematically engaging with registered and renowned dietitians, nutritionists and key opinion leaders, arming them with science-based facts about our category and our products, so they can be advocates for the truth,” said Ordonez, who called the science behind Oatly’s offerings “unequivocal”.
He believes people are simply getting tired of the noise about, say, how many pimples you’ll get by drinking oat milk. “We are indeed building alliances, be it in Brussels or at The Hill, be it with some thinkalike partners of ours and… public education,” he said
“While there’s plenty more to do to ensure that the public is not being misled, our tracking data shows that negative media coverage has declined very significantly compared to last year. So, we’re making progress on ensuring the discussion on our category is balanced and honest.”
In our interview series, we quiz future food investors about the solutions that excite them the most, their favourite climate-forward restaurant, and what they look for in successful founders.
Christian Nagel is a Co-Founder and Partner at Earlybird Venture Capital.
What future food technologies most excite you?
Artificial intelligence (AI) is revolutionising food tech with entirely new approaches through generative models. For example, precision nutrition is becoming possible with hyper-personalised meal recommendations based on biomarkers and real-time data. In the lab, AI is accelerating synthetic biology, designing microbes that produce animal-free proteins.
Robotic kitchens powered by AI are moving beyond automation into culinary creativity, and supply chains are getting smarter with AI predicting demand and reducing food waste. Across the board, AI is making food systems more efficient, sustainable, and tailored to individual needs.
What are three future food verticals you are actively looking at for 2025?
AI is accelerating the design of microorganisms that can produce new proteins, vitamins, and fats, or even mimic complex animal products. This innovation will drive momentum in the most compelling foodtech opportunities: fermentation-based protein platforms, clean-label functional ingredients, and technology that enhances supply chain resilience.
What do you consider the food tech sector’s greatest achievement in the past five years?
The commercialisation of cultivated meat products, exemplified by regulatory approvals and first-to-market entries, such as Upside Foods and Eat Just’s cultivated chicken approvals in the US, Mission Barns‘s cultivated pork approval in the US, Eat Just’s cultivated chicken approval in Singapore, and our portfolio company Gourmey, which is in the approval process for fois gras in seven countries, representing a massive technological and regulatory milestone.
If you could wave a magic wand, how would you fix plant-based meat?
I’d significantly enhance the taste and texture parity with conventional meat, particularly around juiciness, flavour, and cooking experience. This would likely involve breakthroughs in fat formulations, texture scaffolding, and ingredient innovation to dramatically improve consumer adoption.
Like Nosh.bio’s Koji Chunks, addressing all the aforementioned points, with no additives, and now moving from the lab to mainstream shelves. This proves that sustainable, functional alternatives can deliver on taste, scalability, and consumer appeal in real-world markets without a magic wand.
What’s the top trait you look for in a founder?
We look for founders with the potential, both in grit and vision, to redefine an industry.
What do you consider your most successful future food investment so far?
When it comes to future food, impact can come from very different directions, and that’s exactly what we see in both our portfolio companies Gourmey and Nosh.bio. I wouldn’t pick just one because they represent two very different, equally exciting approaches.
Gourmey is redefining high-end cultivated meat with a focus on culinary excellence, while Nosh.bio is building a foundational fermentation platform with broad applications. Both are shaping the future of food, just from very different angles.
What do people misunderstand/get wrong most about VC?
People often think venture capital is just about chasing the next big thing, but after 28 years in this industry, the hype cycles become easier to spot. In reality, it’s about a long-term partnership. Being all in from day one is what we embrace at Earlybird, and that means being a sparring partner before the breakthrough and through the uncertainty so that you might get to celebrate the wins at the end.
What is the most ‘future food’ thing you have eaten this month?
Fois gras in Paris from Gourmey – this was an experience with cultivated meat, where it was even better than the original, also confirmed by Rasmus Munk, who was Chef of the Year 2024 and is now part of Gourmey’s culinary board.
Where is your favourite climate-forward restaurant/dish/place to eat anywhere in the world?
Besides having been catered with Nosh.bio’s products, Cookies Cream in Berlin is still my most favourite climate-forward restaurant, despite not being vegan.
What’s your ‘why’? What motivates you to do what you do?
Being part of the founding journey, from the earliest stage, is what keeps me inspired. There’s something deeply meaningful about being the first to believe in a founding team, sometimes before anyone does. That early conviction can make all the difference.
Our weekly column rounds up the latest sustainable food innovation news. This week, Future Food Quick Bites covers Gordon Ramsay’s partnership with Becel, a new vegan egg in Italy, and Spain’s plant-based school meal decree.
New products and launches
Celebrity chef Gordon Ramsay has taken his partnership with plant-based dairy giant Flora Food Group global, appearing in a replica Skip the Cow ad (minus the expletives) for its Canadian dairy-free butter brand Becel.
In the UK, Quorn has added two new flavours to its mycoprotein-based deli slices range. The tomato-basil flavour can be found at Sainsbury’s and Asda, and the garlic-herb variant at Tesco, both for £2.60.
As whole-food plant-based food surges in the UK, The Tofoo Co introduced a Thai Burger and Southern Fried Pieces, which will retail at Waitrose and Tesco, respectively, for £3.
Speaking of whole foods, vegan seafood player Happiee! has launched what it claims is the UK’s first ready-to-cook lion’s mane mushroom chunks. They’re available in original and teriyaki flavours, retailing for £4 per 180g pack at 240 Sainsbury’s stores.
Courtesy: Happiee!
Confectionery giant Mars has rolled out a new Honeycomb for its dairy-free Galaxy range in the UK. Combining cocoa and hazelnut paste with honeycomb pieces, the bar is available at Sainsbury’s for £1.50.
Ice cream maker Oppo Brothers has launched a better-for-you vegan sorbet range called Oppo Refresh, available in Sicilian Lemon & Strawberry, Alphonso Mango & Passionfruit, and Raspberry Coulis Swirl flavours for £3.75 per three-pack.
Also in the UK, oat milk brand Minor Figures has launched the Hyper Oat line it had unveiled at Expo West. Available in berry, turmeric, matcha, and mango variants, the milks contain adaptogens and nootropics. The berry and mango flavours are available at Waitrose for £3 per 750ml bottle, followed by a wider launch in the coming months.
Courtesy: Minor Figures
In Spain, plant-based meat leader Heura has rolled out a Fine Herbs chicken burger to cater to the country’s affinity for white meat, one of several products planned for this year.
Italian plant-based producer The Bridge has launched a vegan liquid egg called Veg Egg, which is made from soy milk and soy protein.
Across the Atlantic, South Korea’s Unlimeat has brought its flagship Korean BBQ Bulgogi and Pulled Pork Original products to 300 Kroger-affiliated stores in the US, including Ralphs, Fred Meyer, King Soopers, and Smith’s.
Courtesy: Unlimeat
Californian biotech firm Checkerspot has developed what it says is the world’s first high-oleic palm oil alternative made entirely via microalgae fermentation.
Company and finance updates
US animal-free dairy startup DeNovo Foodlabs has formed a 50:50 joint venture with Earth First Food Ventures called PFerrinX26 to scale up the production of precision-fermented lactoferrin protein. They will announce a manufacturing partner soon, and plan to build facilities to produce 300 tonnes of the protein within the next decade.
LoveRaw, the cult-favourite British vegan chocolate brand known for its Ferrero Rocher and Kinder Bueno copycats, has been rescued from administration by Bulgarian plant-based producer Smart Organic, after investment and supplier challenges disrupted the former’s operations and revenue.
Courtesy: LoveRaw
Mycelium Technologies, the French parent company of mycelium protein brand Mycfoods, has kickstarted its first fundraising round, with a €750,000 target. It plans a subsequent €4.5M round next year.
French plant-based companies Hari&Co, Accro, HappyVore, La Vie and Swap Food have formed InterVeg, a coalition aimed at accelerating the transition to a plant-based diet via constructive dialogue with policymakers and promotional campaigns.
Policy and research developments
In a big win for the protein transition, Spain’s Council of Ministers has approved the Royal Decree on Healthy and Sustainable School Cafeterias, which contains a provision to protect children’s right to a 100% plant-based menu in schools, as well as increase legume consumption.
Courtesy: New Wave Biotech
What makes a lean startup? Singaporean sustainable food production platform Nurasa and AI-based precision fermentation facilitator New Wave Biotech have released a whitepaper to help ingredient manufacturers “reimagine the five core lean startup principles” for the food tech world.
Researchers from the US have devised a new 3D printing process to make vegan calamari, using mung bean protein isolate, powdered light-yellow microalgae, gellan gum, and canola oil.
At the University of Florida, researchers are testing a new kind of cattle feed that could help dairy cows release less methane and use nutrients more efficiently.
Finally, in Norway, scientists are proposing kelp and other seaweed species, as well as plant residues, as an alternative to blood and other animal-derived inputs to use as culture media for cultivated meat.
The “addressable market” for plant-based meat and dairy in the US is large, with potential consumers largely omnivores. What does it say about the industry’s future?
Some 71% of Americans say they’re likely to eat products like vegan chicken and oat milk, forming an expansive “addressable market” for plant-based alternatives, a new survey has found.
Using data from a 3,000-person poll it conducted with Ipsos in 2024, alternative protein think tank the Good Food Institute (GFI) sought to find which consumers were and weren’t open to the animal-free category, and grouped them into six segments. The survey involved Americans aged 18-59, who had bought a plant-based meat or dairy product within the preceding month.
GFI divided them into the addressable market (those who see proteins as important for health and nutrition, and feel plant-based meat aligns with those needs) and the rejectors (who turn to protein for taste, satiety and muscle-building, while being more geared towards animal-based sources).
When asked about the role of meat or protein, around four in 10 Americans in the addressable market said they like the taste and find it good for their health. This group tends to be younger, living in urban areas (especially in the West), have a household income above $100,000, and have children in the home.
Meanwhile, 55% of the rejectors like the taste of meat/protein, and four in 10 said it’s filling and healthy. These consumers are more likely to be older, living in the Midwest and suburban areas, and have no children in the household. More than half of them agree that it’s natural for people to eat animals.
Courtesy: GFI
Which Americans make up the addressable market for plant-based meat?
For companies in the plant-based space, understanding the addressable market is vital to success. GFI found that these consumers fell into six segments with distinct attitudes, needs, and motivations. They are mostly omnivores – not vegans or vegetarians – looking to add meat analogues to their diets.
Four of these segments demonstrate higher engagement with plant-based meat and find it delivers unique benefits to them – they make up 57% of the addressable market and over 80% of current plant-based meat eaters.
Ethical Alternative Seekers
Accounting for 10% of the addressable market, these consumers care about sustainability and animal welfare, and are more likely to eat organic and less processed food. This group is diverse and skews younger, with people more likely to be non-white, women, and living in child-free households.
Two-thirds of Ethical Alternative Seekers have been reducing their meat consumption over the past year, while 57% have eaten plant-based meat in that period. And a large majority (81%) are very or extremely likely to consume them in the future, though they’ll be more motivated to do so if these products are less processed, healthier, and easier to find.
Health-Conscious Compromisers
As the name suggests, this group is all about health. They represent the largest share (28%) of meat alternative eaters currently, and 18% of the addressable market. Health-Conscious Compromisers tend to be older, female, and have no children – and while they worry about the potential risks of meat, they don’t want to compromise on taste.
For this group, avoiding processed food, losing weight and adding more fibre is important, and 60% of them say they’re likely to continue eating vegan alternatives in the future. Most of them (70%) agree that these products are healthy, though they are currently deterred by the gap in taste, texture and price with conventional meat.
Nutrition-Focused Integrators
Making up another 10% of the addressable market, Nutrition-Focused Integrators pay close attention to what they eat and how it tastes. They’re majority of Millennials, white, married, and have children at home. Conventional meat is a big part of their diet, while 10% have cut back, 20% have begun eating it more.
However, they do hold concerns around health and sustainability, which has pushed them towards plant-based alternatives. In fact, 85% have eaten these products in the last year (the highest of any segment), and 86% said they would continue to do so. To sway them, vegan meat analogues need to be more affordable, high in protein, and cleaner-label.
Protein Maximisers
These consumers value protein both as a comfort and functional food, and again, the majority of this group falls under the Millennial demographic. They’re more likely to exercise regularly and have emotional attachments to meat. They account for 19% of the addressable market.
Nearly six in 10 Protein Maximisers have increased their meat intake in the last 12 months, while half of them consumed plant-based versions in this time. This segment is the most likely to eat the latter in the future (89%) – to attract them, companies need to enhance the texture, reduce fat, and make the products easier to cook with.
Carefree Considerers
Gen Zers, Black and Hispanic Americans, and households with below-average incomes represent the key demographics of Carefree Considerers, who have relatively few health concerns and don’t care much about what they eat. They stick to what they know, and familiarity makes conventional meat a go-to.
Only 15% of them ate plant-based meat in the past year, and they’re the least aware of these products (63%). Two-thirds of them said they are likely to consume them in the future, with better texture, shorter ingredient lists, and lower calories than animal protein being the major purchase drivers.
Value-Driven Sceptics
Finally, the Value-Driven Sceptics represent the largest share of the addressable market (24%), with this group prioritising taste and price over health, and feeling that buying conventional meat is important to support farmers. They recognise that meat is expensive, but have little reason to stop eating it.
On the flip side, while they aren’t opposed to plant-based alternatives, their interest is low – only 29% are likely to consume them in the future. These consumers are most likely to eat vegan meat only if no other option is available, though they may be more attracted if these products are more affordable and tastier.
Insights for plant-based meat brands
Courtesy: GFI
Across the board, it appears that overprocessing, unsatisfactory flavour, and high prices remain the main purchase barriers of plant-based meat for American adults. On the other hand, those likely to consume these products tend to value their high protein concentration, versatility, and sustainability credentials.
Within the addressable market, 43% of consumers say health is a top benefit they seek from both meat and vegan alternatives, and a third of them believe the latter are better for heart health – a fact confirmed by tons of research, including a recent Harvard study.
Interestingly, 22% would also eat less of a food if they knew it was bad for the environment, highlighting the need for greater education about sustainability. Beef, after all, is the most polluting food on the planet, and animal agriculture alone accounts for 57% of the food system’s emissions.
And while taste and health are important factors, none are as likely to drive people towards a vegan burger as the price, a finding consistent with recent research.
“Some segments express more openness and recognise more benefits than others,” said GFI. “They provide the best near-term opportunity to increase plant-based meat consumption, and targeting them could enable the development of more effective and efficient strategies.”
A wave of ‘not milks’ is on the rise, attempting to replicate dairy instead of merely replacing it, but previous efforts have seen mixed success.
From Japan to the US, plant-based milk brands are hoping to tackle the resurgence of dairy with ultra-realistic alternatives that match cow’s milk on flavour and texture, branding them with monikers like ‘Not Milk’ or ‘Like Milk’.
It’s a concept that was first popularised by Chile’s NotCo, whose NotMilk – made from a blend of ingredients identified by artificial intelligence (think peas, pineapples, and cabbage) – took the US by storm for its likeness to conventional dairy.
The idea was that traditional plant milks didn’t necessarily deliver on flavour. Soy was too beany, oat too cereal-like, and coconut, well, too coconutty. Consumers were left wanting more. In 2023, research suggested that despite 44% of US households buying non-dairy milk, a third of Americans still hadn’t found an alternative that met all their needs.
A recent global survey found that among the people who don’t purchase plant-based milk, nearly six in 10 are open to making the shift if their needs are met. The problem? Unsatisfactory taste or texture, which remains the primary barrier and leaves 57% of consumers resistant to drinking dairy-free alternatives.
This is why some plant-based milk brands are now focusing on replicating the flavour of cow’s milk, as opposed to just offering a non-dairy alternative that may not taste similar. NotCo did it first, and Alpro followed soon after – but will this approach be successful?
Courtesy: Roland Berger
Replicate, don’t imitate
Last week, California’s Eclipse Foods debuted a Non-Dairy Whole Milk for coffee shops, bakeries, smoothie bars and other foodservice outlets.
“Unlike most plant-based milks that aim to imitate traditional dairy milk, Eclipse’s latest innovation truly replicates milk,” the company explained in a press release. Its team isolated proteins from peas and chickpeas to replicate the molecular structure of milk.
The new product focuses on “flavour, stability, sweetness, and whiteness”, which Eclipse Foods argued are the main categories where most non-dairy milks fall short. Its innovation is said to foam in both hot and cold temperatures, and hold that foam for as long as cow’s milk.
The brand says it’s inspired by Hokkaido, the dairy-famous region in Japan. So it’s fitting that in the East Asian country, another non-dairy company is hoping to reproduce the flavours of milk.
Courtesy: Asahi Group
Asahi Group, the holding company of the eponymous beer giant, this month began test sales of Like Milk, an animal-free milk made from yeast. The firm leverages fermentation to achieve this result, feeding yeast with sugar, powdering the extracted biomass, and mixing it with plant-based ingredients.
It contains an equivalent amount of protein to dairy and soy milk, and lots more fibre. In addition, it’s free from 28 common allergens, and positioned as a product that “can be used in every aspect of daily life in the same way as milk”.
Asahi’s technology boosts the yeast’s emulsifying properties and removes its unique flavour to leave a mellow-tasting vegan alternative reminiscent of dairy. Like Milk is set to be released nationwide next year.
Fermentation is also the star of Koatji’s Koji Oat Milk, which is crafted by Michelin-starred chefs. While the brand doesn’t specifically market the product as a dairy replica, it suggests that the combination of oat milk with the enzymes used to make miso imparts a depth of flavour to “create the plant milk of the future”.
It comes amid a resurgence of dairy consumption in some parts of the world. In the UK, while conventional dairy sales increased by 6% in January, plant-based analogues only saw a 1% hike. Across the Atlantic, sales of dairy milk grew by 2% in the US last year, with raw milk intake up by 18% (albeit from a smaller base) – in contrast, the country saw a 6% decline in plant-based milk consumption.
Can meeting the thirst for cow’s milk with ‘exact’ replicas help vegan brands attract more consumers? Companies like Eclipse Foods and Asahi are betting on it, though the category’s history to date shows middling returns.
NotCo’s Not Milk is no longer as widely available in the US, though that could be more to do with the firm’s shift in approach and the handover of its North American operations to Kraft Heinz.
However, some notable examples come from Danone. In the US, the dairy giant discontinued its Silk Nextmilk and So Delicious Wondermilk SKUs, both alternatives said to replicate the molecular composition and taste of cow’s milk. The company didn’t give a reason for the withdrawal, saying at the time it was “prioritising our efforts on innovation across our product portfolio to deliver on evolving consumer preferences, including functional and nutritional needs”.
Courtesy: Alpro
And in the UK, Danone recently pulled its This Is Not M!lk range under the Alpro brand, as revealed by Green Queen last month. “While ‘This Is Not M!lk’ was designed to create a more familiar dairy milk taste, our UK shopper research showed us that many of our consumers enjoy the taste of oat just as much, if not more so,” Tom Kerr, head of plant-based at Danone UK & Ireland, told Green Queen in a subsequent email.
“As such, we decided to focus on the great taste of our core oat range and discontinued This is Not M!lk in the UK towards the end of 2024,” he added. “We have no plans to bring this back to the UK at the moment… However, it continues to be enjoyed by consumers across several markets in Europe.”
Indeed, for many consumers, non-dairy milk simply tastes better. One global survey found that two in five respondents buy plant-based milk for its taste superiority. It’s why you see so many people who aren’t vegan or lactose-intolerant opting for an oat milk latte – and research shows one in five Americans who purchase vegan alternatives also put cow’s milk in their shopping carts.
So will products like Eclipse Foods’s Non-Dairy Whole Milk and Asahi’s Like Milk help turn the tide for plant-based milk? Or will they go the same way as Danone’s attempts? Only time – and consumers – will tell.
The Good Food Institute, an alternative protein think tank, has released its latest State of the Industry series of reports for 2024. Here’s how plant-based, fermentation-derived and cultivated proteins fared in 2024.
While investment in alternative protein continued to fall in 2024, global sales of plant-based meat and dairy alternatives are up, as is interest in whole foods, according to the 2024 State of the Industry reports by industry think tank the Good Food Institute (GFI).
The annual series of reports explores the challenges and opportunities for plant-based food, fermentation-derived proteins, and cultivated meat. This year’s editions reveal a complex landscape for alternative proteins, with sales in markets like the US still declining and public investment in the industry on the rise.
Alternative proteins are part of a polarising debate in many parts of the world, punctuated by high prices and taste concerns, and enveloped by the backlash against ultra-processed foods (UPFs). However, the global performance shows promise in the market at a time when it has been portrayed as anything but.
Global plant-based sales on the rise
Courtesy: GFI
You’d be forgiven for thinking that sales of plant-based foods took a giant plunge, given all the coverage and discourse around them. In actuality, global sales reached $28.6B, a 5% increase from 2023.
Non-dairy alternatives dominated the market, with sales up by 5% to reach $22.4B, while meat analogues hit $6.1B (a 4% increase). After milk, meat and seafood, vegan yoghurt is the most popular category.
Europe was the leader in 2024, recording $9.7B in sales of plant-based meat, seafood and dairy, followed by Asia-Pacific ($8.9B), and North America ($7.3B), where conventional beef sales reached a record high last year.
Meat and dairy alternatives decline in the US, while whole foods shine
Courtesy: GFI
In the US, overall plant-based sales reached $8.1B in 2024, a 4% decline from 2023. More than a third of the market (34%) was occupied by non-dairy milk alone, whose sales dropped by 5% to $2.8B. Likewise, meat and seafood alternatives saw dollar sales fall by 7% to $1.2B, though the rate of decline was slower than in 2023.
At the same time, the demand for protein led to an increase in sales of protein powders (11%), and growing interest in whole foods resulted in a 7% hike in sales for tofu, tempeh and seitan. The biggest windfall, however, came for vegan desserts and baked goods (13%).
Plant-based eggs, meanwhile, saw a 2% increase in retail sales as avian flu wrecked chicken egg supplies in the US. This was true for foodservice too, where vegan egg sales were up by 28%. The report authors note that the data on unit sales and price changes is somewhat skewed due to the leading product in the category shifting to a larger pack size and thus a comparably higher price point.
Still in foodservice, plant-based proteins suffered a 5% decline in sales, though non-dairy milk continued its climb with a 9% growth.
Price parity and consumer reach still hindrance for the plant-based sector
Courtesy: GFI
Plant-based meat and seafood were 4% more expensive in 2024, versus just a 1% price hike for their conventional counterparts, widening the former’s premium to 82%.
The price gap for chicken and milk remained the same, while widening for pork and turkey. On the flip side, rising beef rates mean plant-based versions are just 14% more expensive now. And chicken-free eggs, which had a 317% price premium in 2023, narrowed this to 110%.
Bringing down prices of plant-based food is critical for them to compete with animal-derived products, as is improving consumer reach and acceptance. In the US, 59% of households bought a vegan product in 2024, similar to the year before, though down from 63% in 2022.
Penetration of plant-based meat and seafood remains low at 13%, though encouragingly, 63% go back to the store for more. Further, almost all Americans who buy these alternatives are not vegan or vegetarian – 96% of buyers also put conventional meat in their shopping baskets in 2024.
Milk alternatives reached 40% of households, with a repeat rate of 76%. Almond milk continues to remain the most popular dairy alternative (capturing 54% of sales), but oat milk is on the rise (25%).
VC investment slides, public funding a bright spot
Graphic by Green Queen
Alternative proteins did not escape the bleak landscape for climate tech venture capital in 2024, with total funding for the sector only amounting to $1.1B, a 27% decline from the year before.
Plant-based companies took the biggest hit, as venture capitalists backed away from foods linked to ultra-processing. These startups only raised $309M in 2024, a sharp 64% fall from the year before.
Cultivated meat, meanwhile, witnessed a 40% decline, securing only $139M, its lowest annual total since 2019. In fact, in the last three years, this sector has cumulatively raised less money than it did in 2021 alone.
The only bright spot for the category here is fermentation, where VC investment experienced a 43% increase last year, overturning a decline in 2023. This was led by Meati‘s $100M Series C round. Further, this category surpassed plant proteins in terms of the amount of public capital invested.
Speaking of which, while private investors remained cautious, governments continued to pour money into alternative protein, amid a push to meet their net-zero goals and mounting pressure from climate experts to diversify protein sources. Public investment in alternative proteins reached $510M in 2024, in line with the year before.
This was driven by the US, Denmark and the EU overall, while Asia-Pacific played a major role in the doubling of public funding for cultivated meat in 2024.
Courtesy: GFI
Legislative headwinds make for uneven regulatory progress
Meanwhile, cultivated meat continues to face threats of bans in the US and elsewhere. According to GFI’s calculations, 12 states attempted to restrict cultivated meat last year, with Florida and Alabama being successful – the former is now facing a lawsuit from California’s Upside Foods. Already this year, a host of other states have proposed similar bills, with Mississippi becoming the third to enact a ban.
Courtesy: Vow
Even so, cultivated meat regulation progressed in several other markets in 2024. Australia’s Vow was cleared to sell its cultivated quail and foie gras in Singapore (and later in Australia and New Zealand), and UK’s Meatly earned UK approval to commercialise cultivated chicken for pets, following Aleph Farms‘s greenlight in Israel in December 2023. Plus, regulators in the EU, South Korea, and Thailand received their first applications.
“Although some uncertainty exists due to shifting political winds around the globe, more approvals are likely in 2025,” said GFI. “These approvals will increase the number of cultivated meat products on the market while also generating new and more robust data on their safety and nutritional profile”
While most foodservice companies have outlined climate commitments that involve a protein shift, only some caterers are walking the talk, finds new analysis.
Only half of the US’s leading foodservice providers have commitments to reduce animal proteins or increase the share of plant-based food, despite many companies touting ambitious sustainability goals.
The gap between intention and action remains wide in the country’s catering sector, an influential cog in the transition towards low-carbon proteins and food systems transformation, according to the Humane World for Animals (formerly the Humane Society of the United States).
“It’s essential that companies be open about their sustainability goals and the progress they’re making towards meeting them,” said Kate Watts, director of foodservice innovation at the non-profit. “Customers increasingly value transparency and want to understand which businesses align with their values and which do not.”
The organisation’s latest Protein Sustainability Scorecard ranks 52 of America’s leading foodservice providers based on their food-related sustainability commitments, the impact of those promises, and the real progress being made. It found that only 27 companies have goals related to the protein transition, while 20 failed to report on their targets.
Who are the US’s most sustainable caterers?
Courtesy: Humane World for Animals
Guckenheimer topped the scorecard for the fourth consecutive year, banking an A+ grade for its ambitious goal of making 55% of its menu plant-based by the end of this year, with a 2027 target to reduce animal protein purchases too.
In addition, the caterer aims to reduce its foodservice emissions globally by at least 25% by the end of the decade. Apart from the above measures, it is doing so by making plant proteins the default choice, with the option to opt for meat and dairy if diners wish. Guckenheimer will soon begin adding carbon labels to its menus to allow people to see the impact of their lunches.
Metz Culinary Management and Sodexo USA had an identical score and an A+ grade. The former has a goal to make half its meals vegan by this year and cut animal protein purchases by 5% by 2027. It includes one plant-based menu option at each concept for each meal served. Sodexo, meanwhile, is progressing well on its overall goal to make a third of its entrées vegan globally, rising to 50% in the campus segment.
Rounding out the A+ list is HHS, which has pledged to make half of its retail dining meals plant-based and reduce meat and dairy purchases by 25% by 2027. “The company has one of the strongest plant-based menu commitments and the strongest goal to reduce animal protein purchases over the next several years,” the report states.
Fresh Ideas (with a goal of 50% plant-based menus by this year) and Elior North America (50% plant-based in new programmes, and 30% in higher education, healthcare and professional dining by 2025) were the only other caterers to get an A grade.
These top six are identical to last year’s ratings, indicating that the leading foodservice providers continue to do well, though others haven’t quite made the leap yet.
Who can do better?
Courtesy: Aramark
Four companies received a B+ grade. Whitsons retained its ranking from last year, but it was joined by Aramark, Epicurian Feats Cafés, and Southwest Foodservice Excellence, all of which improved from last year’s B grade. The latter set a new goal to reduce animal protein purchases by 2028.
A few others also improved their performance to reach a B grade. The world’s largest foodservice company, Compass Group, was elevated from a C+. Pomptonian Food Service, which had a C grade last year, set a new goal to have 30% plant-based meals available in its menu management system by 2027.
Meanwhile, SLA Management and AVI Foodservice made big jumps from their F grade last year, achieving a B in the latest report. Quest Food Management Services retained its B grade after achieving its goal of 36-40% plant-based offerings.
On the flip side, a lack of participation or shared supplemental data meant that Creative Dining Services lost its B+ grade and fell to C+, while Epicurean Group dropped from a B to C.
Like last year, the largest share of companies fell in the F grade category, with 20 providers receiving a score of zero and failing to report on their sustainability goals. These included Brock & Company, Healthcare Services Group, Sage Dining Services, Trinity Services Group, and Zest Culinary Services.
“In an era where greenwashing is all too common, honesty around sustainability is paramount – food companies must show, not just tell, how they are making a positive impact on animals, the environment and society,” said Karla Dumas, VP of farm animal protection at Humane World for Animals.
Fermentation has transformative potential for the future of the EU’s agrifood system – but industry leaders say they need regulatory and financial support from policymakers.
The EU must build its modern fermentation capacity to strengthen agricultural resilience and safeguard its future food system, industry experts have said.
In a new position paper, trade body Food Fermentation Europe (FFE) argues that technologies like biomass and precision fermentation can deliver resilient protein production, cut emissions, and boost the EU’s competitiveness, at a time when it is facing calls to greenify the food system.
“The recently unveiled Vision for Agriculture and Food sets the direction for the sector, emphasising sustainability, resilience, and competitiveness,” the FFE says, noting that fermentation can “offer transformative solutions that align with the EU’s objectives”.
In simple terms, precision fermentation involves using microbes to produce specific ingredients – such as recombinant animal proteins – and biomass fermentation entails cultivating microbial biomass as food.
Unlocking the full potential of this industry requires decisive and bold policy action, including clearer regulation and increased investment to help scale up production and bring future-friendly ingredients to market.
Why fermentation holds the key to EU’s future food system
Courtesy: GFI
Formed in 2023, FFE represents nine fermentation firms working on animal-free proteins and fats, including whey, casein and egg alternatives. Its position paper is a result of months of consultation between policymakers, think tanks, scientists, startups, and industry leaders.
It notes how fermentation tech supports some of the EU’s key agrifood targets, including the bioeconomy strategy, which outlines the need for innovative production models. The fermentation industry can create high-value jobs and attract investment – it was the only alternative protein sector to see an increase in financing last year.
The authors argue that the category can boost food security by providing stable, local sources of high-quality proteins and essential nutrients. And since these innovations require less land and water than animal proteins – and mitigate food waste by valorising agricultural side streams – they help optimise food production while reducing pressure on natural ecosystems.
In addition, precision and biomass fermentation can support the EU’s net-zero goal for 2050. The recently unveiled agrifood vision was criticised by climate experts for failing to highlight protein diversification; European Agricultural Commissioner Christophe Hansen has since promised to develop a comprehensive plan to diversify plant protein sources.
Courtesy: Nicolas Tucat/AFP
FFE suggests that fermentation, by virtue of its efficiency and scalability, is poised to be a “key pillar” in the EU’s food vision. However, there are several hurdles that need to be addressed.
One of the most urgent ones is the EU’s novel food regulatory framework, which has long been thought of as too complex and slow, pushing several alternative protein companies to look elsewhere to commercialise.
“Current approval processes under the novel food regulation are not sufficiently agile to keep pace with rapid innovation in fermentation,” the paper states. “While Europe’s rigorous safety assessment is a cornerstone that we fully support, the process can be made more innovation-friendly without compromising standards.”
There is also a lack of support for industrial scale-up, while the overall success of the fermentation industry depends on how well it’s integrated into the bloc’s food resilience and bioeconomy plans. “Ensuring that these technologies are considered in policy dialogues and that their strategic value is recognised by all stakeholders is imperative,” says FFE.
Regulatory clarity, investment, and consumer trust key to success
Courtesy: Formo
So how can the EU cultivate the right environment for fermentation tech? FFE believes the European Food Safety Authority must establish a clear, science-based regulatory framework for novel foods.
It’s important to approve products based on science and safety considerations alone, without any influence of “subjective perceptions of threats to traditions or culture” (which have been used as arguments to ban cultivated meat). “We urge the Commission to not deprive European consumers of their freedom of choice to adopt innovation,” FFE says, adding that Europe would otherwise not remain a world leader in this sector.
Further, the EFSA must speed up the approval process for fermentation-derived ingredients, and policymakers should recognise them as strategic assets in achieving the EU’s food resilience and climate goals, and reducing its reliance on external protein sources.
“Ensure fermentation-based food production is embedded within the EU’s bioeconomy and biotech discussions, aligning with sustainability, competitiveness and food security goals,” says FFE.
The bloc has already been investing millions into these technologies through initiatives like Horizon Europe, and is being urged to continue doing so. “Encourage risk insurance mechanisms to de-risk private sector investments in food biotech innovation,” the paper suggests.
Courtesy: Those Vegan Cowboys
Additionally, the EU should promote targeted R&D partnerships to bridge the gap between lab success and market viability. Here, public-private collaboration is key: this would help develop fermentation infrastructure and ensure integration into existing food and feed supply chains. Industrial symbiosis models – where fermentation facilities contribute to circular economy initiatives, such as waste valorisation and nutrient recovery – should be a major focus.
Finally, greater awareness is key to consumer acceptance and adoption, so the EU is being called on to launch campaigns that educate the public on the benefits of fermentation-derived proteins.
“By integrating fermentation technologies into the EU’s policy agenda, Europe can position itself as a global leader in sustainable food production, ensuring long-term economic and environmental success in the agrifood landscape,” FFE says, adding that “regulatory clarity, investment incentives, and consumer trust-building efforts must go hand in hand”.
AI protein discovery platform Shiru is producing its animal-free fat ingredient at commercial scale- CEO Jasmine Hume calls it a “turning point” for the food industry.
In a major milestone for the future food industry, a plant-based unsaturated fat discovered by artificial intelligence (AI) is now being manufactured at commercial levels.
Californian startup Shiru, which leverages AI to discover plant-derived and microbial alternatives to animal-based proteins and lipids, says it is now ready to supply finished ingredients to brands who need turnkey solutions, as well as license its technology to ingredient manufacturers.
The company’s flagship ingredient, OleoPro, is a structured fat alternative made from unsaturated oils and a blend of plant proteins called uPro, which mimics animal fats for plant-based meat, dairy and cosmetics applications.
During a time when the Trump administration is upending global supply chains, Shiru is aiming to solve challenges in nutrition, formulation, and manufacturing with speedy AI-powered solutions.
“This milestone is the result of years of creative problem-solving, late nights, perseverance, teamwork, and unshakable conviction,” founder and CEO Jasmin Hume wrote. “But it’s more than just a marker of company growth – it’s powerful validation that AI-driven product discovery can solve entrenched industry challenges with unprecedented speed.”
Shiru takes a big step to bring oleogels to market
Courtesy: Shiru
Experts recognise oleogels as an alternative fat with major potential. The process combines oil with gelators to form hard structures, giving unsaturated oils some of the functional attributes of harder saturated fats, without all the health issues.
However, low availability of food-grade gelators and certain regulatory restrictions around their use have impeded efforts to produce them at a commercial scale. This is where AI comes in. Hume believes that when “used with purpose”, this tech can simplify complex biological and chemical processes to “unlock solutions that seem beautifully obvious in hindsight”.
Shiru used AI to find natural oleogel structurants, which Hume described as “clean-label, sustainable, and entirely plant-based”.
“Our AI platform helped us identify the right proteins, but that was only part of the story. Our team then engineered a scalable and entirely new process for producing those proteins with the precise performance attributes required to succeed in real-world formulations,” she said.
She noted how Cargill recently issued a call for experts on scaling oleogel production, and how Nestlé’s new structured dairy protein ingredients boost the release of the GLP-1 hormone to manage weight loss. Shiru’s uPro is a plant-based version of similar technologies
The startup has already signed over 30 agreements from food and ingredient manufacturers for OleoPro and uPro. “This moment is a turning point not just for Shiru, but for the food industry,” said Hume. “While we’re delivering plant-based structured fats that match the functionality of saturated animal fat and environmentally demanding ingredients like palm and coconut oil, we’re also opening the door to entirely new food experiences.”
One of its prototypes is a solid olive oil made purely with olive oil and uPro. “The future of food isn’t just better, it’s also more creative,” she said.
A healthier, planet-friendly alternative to tallow and palm oil
Courtesy: Shiru
Shiru is scaling up OleoPro at the same time Americans shun seed oils and re-embrace beef tallow, which had gone out of fashion decades ago for its high saturated fat content. More than half of tallow is made up of saturates, mostly palmitic acid, which raises LDL (or bad) cholesterol levels, negatively impacts your metabolism, and can cause inflammation.
Americans eat too much saturated fat (it makes up 12% of their calories) – the American Heart Association recommends keeping this share under 5%, since historically, these fats have been linked with an increased risk of heart disease, the leading cause of death in the US.
Saturated fats usually have high smoke points, remain solid at room temperature, and last a long time, making them ideal for CPG applications. Plant-based versions include coconut and palm oil, though these fats generally cause vast amounts of tropical deforestation. OleoPro, though, is a climate-friendly alternative that can cut saturated fat content by 80%.
“We have the tools to simultaneously clean up labels, build more resilient supply chains, improve public health, and reduce our impact on the planet,” Hume said of Shiru’s ingredients. “This is just the beginning. Our pipeline is stacked with innovations ready to transform the food system and we’re breaking down barriers daily.”
The company is working on a protein-based alternative to methylcellulose, specifically designed for plant-based meat applications. Plus, it’s developing a vegan egg replacer that replicates the binding, leavening, and structural benefits of the chicken-derived version.
In addition, Shiru, which has raised $36M in funding, operates ProteinDiscovery.ai, an AI platform that hosts the world’s largest database of plant-derived and microbial proteins and enables corporate partners to swiftly identify and test highly functional, natural ingredients.
Its scale-up comes amid a boom in alternative fats. Australia’s Nourish Ingredients, California’s Yali Bio, New York’s C16 Biosciences and Sweden’s Melt&Marble use precision fermentation to produce fats and lipids, while Hoxton Farms, Steakholder Foods and Genuine Taste employ cell cultivation. Bill Gates-backed Savor, meanwhile, is fermenting carbon to produce animal-free butter.
Molecular farming player Moolec Science – known for its pork-producing soybeans – has announced a merger with Argentina’s Bioceres Group and two other firms.
Luxembourg-based Moolec Science has agreed to merge with three companies, including Argentina’s Bioceres Group, the agtech firm it spun off from as a seed startup in 2020.
The NASDAQ-listed molecular farming company has entered a Business Combination Agreement with Bioceres, precision fermentation player Nutrecon, farm equipment manufacturer Gentle Tech, and their subsidiaries in an all-stock deal.
Expected to close in the second quarter of this year, the transaction will see Moolec become the parent company of these entities, and issue up to 87 million new shares and five million warrants to their shareholders.
Following the announcement, Moolec co-founder and CEO Gastón Paladini announced that he had stepped down from his role, pledging his continued “support and collaboration as a shareholder and as a founder”. The company has not yet named a successor.
“The need to accelerate agricultural innovation to address current and future challenges, such as enhancing on-farm profitability and reducing environmental impact, is increasingly evident,” said Federico Trucco, CEO of Bioceres Crop Solutions.
“Bioceres is enthusiastic to be part of a larger, more ambitious Moolec, one that expands its focus from science in food ingredients to a comprehensive ‘cradle-to-cradle’ approach.”
Merger marks ‘new stage’ for Moolec
Courtesy: Moolec Science
Molecular farming enables the modification of plant cells to express animal proteins, which can be harvested from leaves or other plant tissues. It allows companies to scale up faster while keeping production costs low, since they’re using plants – not expensive bioreactors – as factories.
Research suggests it’s a market that could be worth $3.5B by 2029, and Moolec is one of the leaders in the space. It has already commercialised several innovations in the US, with three ingredients receiving regulatory clearance in the US in the last two years.
This includes a nutritionally rich GLASO safflower oil, Piggy Sooy (soybeans that contain pork proteins), and PEEA1 (peas that produce bovine myoglobin).
“Molecular farming, as exemplified by Moolec Science, offers a compelling solution to the challenge of balancing productivity and sustainability. For instance, what soybean yield technology can rival the direct production of 300kg of animal protein from a three-tonne-per-hectare crop?” Trucco pointed out.
The impending merger marks a “new stage” for Moolec, positioning it within a broader organisation with “synergies on multiple levels”, according to Moolec CFO José López Lecube.
“Becoming part of a larger organisation will enable cost efficiencies and significant revenue increase as well as product portfolio diversification. It will also enlarge our investor base, providing the company with new stakeholders who support Moolec’s new and more diversified business,” he said.
Once the deal is completed, Moolec said it would be “uniquely positioned” in the agricultural value chain, with a proposition centred around modifying seeds and microbes to change how we use land and water resources and enhance human health.
Merged entity recorded over $500M in sales in 2024
Courtesy: Moolec
Moolec suggested that its technology discovery and development engine allows it to address multiple upstream and downstream needs in a cost-competitive way.
It will continue to develop its flagship molecular farming products, and will integrate Mycofood, the fungi protein technology developed by Nutrecon’s Eternal brand. Through Bioceres, it will now also offer upstream technologies for regenerative agriculture – a hot topic in the US – including biological inputs and climate-resilient seeds.
Moolec will offer R&D, contract manufacturing and regulatory services under brands controlled by Bioceres and Nutrecon Plus, it will expand its reach into emerging technologies for biomass and grain fermentation – especially for biomaterial production – as well as new concepts on equipment, integrating material science, electric mobility, and autonomy.
Finally, the merger is expected to result in “significant cost synergies” and create an integrated management structure. The combined entities will manage a portfolio of over 800 patents and 550 product registrations, together representing over half a billion dollars in sales in more than 50 countries in 2024.
Moolec – which raised $30M to fund R&D and scale-up efforts in 2023 – reported a revenue of $5.8M in 2024, compared to $1M the previous year, against a rise in operating losses to $9.3M. Its sales primarily came from the texturised soy protein flours developed by Valoraoy Food, a molecular farming startup Moolec acquired in 2023.
It’s a burgeoning space with a number of players growing everything from casein in soybeans to egg protein in potatoes. These include Alpine Bio, Mozza, Miruku, Tiamat Sciences, Bright Biotech, ORF Genetics, PoLoPo, and NewMoo are all innovating in this field.
In our interview series, we quiz future food investors about the solutions that excite them the most, their favourite climate-forward restaurant, and what they look for in successful founders.
Jenn Burka is the Principal at FTW Ventures.
What future food technologies most excite you?
Technologies that look at the future of food with a systems approach are the most interesting to me – things that aren’t a single product solution, but that can actually make an impact on the way we grow, transport, and get nourished by our food.
What are three future food verticals you are actively looking at for 2025?
Food as medicine
Cold-chain technologies
Farmer fintech
What do you consider the food tech sector’s greatest achievement in the past five years?
The advances we’ve seen in our understanding of the microbiome have brought the idea of a healthy gut into the mainstream and released some exciting first-generation products that will pave the way forward for more focus on how to utilise food to make us healthier.
If you could wave a magic wand, how would you fix plant-based meat?
In order to make these alternatives competitive with meat, there would need to be significant changes in how meat is subsidised. Otherwise, at current costs, it’s hard to see these products being adopted by a significant enough part of the population to have a true climate impact. It also has to taste good.
What’s the top trait you look for in a founder?
Product-founder fit is incredibly important, especially in food tech, which is such a complex system that really requires an understanding of how the parts fit together.
The One That Got Away: What is the deal you wish you had gotten into, but didn’t?
What do you consider your most successful future food investment so far?
Our fund is only two years in, so it’s a bit too early to say, but I’m really excited about our portfolio company VoltAir, which is looking at the impact that food has on other global emissions in the cold chain by creating a fully integrated software and hardware solution to electrify the refrigeration unit in diesel trucks.
What has been your most disappointing investment so far?
I’ve invested a ton of my time looking at microbiome startups, and I’m disappointed that I haven’t yet found the company that we’ve gotten over the finish line. Still waiting for the perfect blend of founding team, true technological innovation, and intelligent go-to-market strategy (we’re still rather hesitant about pure supplement plays).
What do people misunderstand/get wrong most about VC?
VCs are often startups too! Particularly emerging funds that don’t have cushy management fees that allow them to earn a lot of money and pay for a lot of resources.
We have to really love working with founders and believe in their outsized potential in order to keep doing what we do.
What is the most ‘future food’ thing you have eaten this month?
I found a craft beer that was brewed with Oishi berries…a bit gimmicky but I had to try it (and I do love a sour beer)!
Where is your favourite climate-forward restaurant/dish/place to eat anywhere in the world?
Probably my favourite climate-forward dish would be the one I make out of our backyard garden using peak summer produce. With tomatoes, peppers, basil, garlic, and eggs from our neighbour’s chickens (plus homemade sourdough with my five-year-old starter), it’s easy to sustain myself for a few months (plus more with what I freeze/can/preserve).
What’s your ‘why’? What motivates you to do what you do?
I’ve worked in the food system most of my career, and there are so many legacy players that haven’t changed in 100+ years. I believe that startups can be the catalyst for change in these industries, and change is what needed to make our system better for you and better for the planet.
Americans’ appetite for meat is increasing, with sales reaching record highs in 2024 amid a cultural shift and changing political landscape. Here’s what’s going on.
Meat is back on American plates – at least if you look at the numbers.
Despite experts warning about the health and environmental impact of animal proteins, Americans spent more on meat last year than ever before.
Sales of meat hit $104.6B in 2024, according to research by the Meat Institute and trade group FMI – The Food Industry Association. The average American spent $870 on beef, pork, chicken and other meat products last year, and only 22% said they wanted to eat less meat (the lowest share in five years).
According to NielsenIQ, volume sales of meat increased by 4% in 2024, against a 2% decrease for plant-based alternatives. “Retailers are responding to this trend by limiting their offerings of plant-based meats and focusing more on their core meat products,” the market research agency said.
It’s a reversal of industry fortunes from five years ago, as the New York Times points out, when vegan products were replacing meat everywhere from shopping baskets to Michelin-starred restaurants. In the two years since the pandemic, meat consumption dropped by 4kg per person. By contrast, plant-based meat was attracting record investment, and sales were soaring too. Now, though, there’s an anti-vegan backlash.
Now, though, meat, from animals, not plant, is resurgent in the US, to the detriment of the planet. There are several possible reasons for this, from a shift in culture to a new political dawn.
Courtesy: MAHA
Make America Eat Meat Again
The political changes that have drawn Americans back to meat are not partisan, though it’s hard to understate the influence of movements like Make America Great Again and Make America Healthy Again.
Fuelled by the return of President Donald Trump, a former (short-lived) steak entrepreneur, a renewed wave of Americana and right-wing influence has taken hold of American culture. Beef is cool again, as are attempts to ban companies from selling cultivated meat – so far, lawmakers in 20 states have brought forward such proposals, and three have been enacted into law.
The shift has been heralded by advocates of the carnivorous diet, who eat meat and practically nothing else, and encourage other Americans to do the same. Joe Rogan and Elon Musk – two of America’s most influential figures, on the public and on government, respectively – together championed beef on the former’s chart-topping podcast, and raised doubts over the scientifically established climate harms of animal agriculture.
Musk, the former environmentalist who turned into “dark MAGA” last year, has added information from a climate alarmism think tank on his Department of Government Efficiency website. He may be leaving government soon, but his influence and money will not.
Another former environmentalist, Robert F Kennedy Jr, is arguably one of the most prominent advocate of animal-based foods. Trump’s Health and Human Services secretary has brought his vaccine scepticism to seed oils and processed foods too.
It was only last month when he appeared at a Steak ’n Shake location in Florida to praise its switch from seed oils – which he says causes illnesses, despite evidence to the contrary – to beef tallow, which went out of fashion decades ago because of its high saturated fat content, a leading cause of heart disease that kills one American every 33 seconds.
Courtesy: Wikimedia Commons/CC | Composite by Green Queen
The bipartisan backlash to ultra-processed foods
The seed oil backlash isn’t just restricted to the right. Americans across the political spectrum have raised concerns about these oils, as conflicting studies shroud these fats in mystery and confusion. This is despite a recent Harvard University study suggesting that a switch from animal fats to plant-based seed oils can actually lower the risk of death by 17%.
This highlights the divisive nature of RFK Jr. While he is an anti-vaxxer who has peddled outrageous theories over the years, many on the left agree with some of his positions.
RFK Jr has been highly critical of factory farming – and rightly so. His solution is to scale up regenerative agriculture, echoing the thoughts of many crop and livestock farmers and experts who champion its benefits on soil and nature. However, the regenerative agriculture movement suffers from a lack of standards and definitions, and climate activists argue that this has allowed meat and dairy companies to exploit it as a greenwashing tool.
The other issue where Kennedy likely finds support from the other side of the aisle is processing. He has criticised ultra-processed foods (UPFs) as a cause of America’s obesity epidemic, and promised to ban them from schools. An example of the cross-party support for this cause comes from California, whose Democratic governor, Gavin Newsom, is investigating how to crack down on UPFs.
Plant-based meat has been caught in the crossfire. For many Americans, these products feel unnatural, with long ingredient lists and over-processing (though as many nutritionists point out, processing isn’t directly linked to nutrition). This has likely contributed to the slowdown in sales of meat alternatives.
On the other hand, more ‘natural’ (read: grass-fed or regeneratively farmed) meats – and raw milk – are now being heralded as the anti-UPF solution.
Courtesy: Anay Mridul/Green Queen
Corporate influence shapes America’s meat culture
The cultural shift has also been brought about by massive marketing campaigns by Big Meat, many of which seek to discredit the science proving the climate harms of livestock farming, and instead sow doubt on the environmental credentials of plant-based meat.
Lobbyists for the meat industry swamped COP29, the world’s largest climate conference, in the hundreds, as they sought to influence talks around agricultural reforms.
And if you needed any proof of the sector’s plans to influence policy, look no further than JBS. The world’s largest meat company, whose IPO has been delayed amid backlash from activists and politicians, was the single largest donor to Trump’s inauguration. The company contributed a $5M sum via its Pilgrim’s Pride division, dwarfing the much-publicised contributions of tech giants like Meta, Amazon, and OpenAI.
All this comes amid alarming climate denialism in the US. Trump is a long-time sceptic, but nearly a quarter of Republicans in the last Congress were identified as climate change deniers too. Public polls show that 15–25% of Americans are doubtful of the existence of the climate crisis, despite hurricanes and wildfires swarming the country.
A recent survey by Gallup found that only 14% of Republicans find climate change to be a “serious threat”, and this year, those who believe its effects have already started are fewer than last year. In fact, nearly eight in 10 Americans who vote red think the media exaggerates the impact of climate change.
This coincides with a shift away from ESG and DEI policies at a corporate level. They’re now out of favour, thanks in large part to Trump, who has likened these measures to “wokeism”, a tag that has also negatively affected meat alternatives.
Where the anti-woke, UPF-averse, pro-meat movement goes next remains to be seen. Will it sustain its momentum, or will Americans turn back to plants? A lot rests on the Trump era, and its aura.
US startup Compound Foods has expanded its tech platform to help food companies replace at-risk commodities like coffee and chocolate with bean-free alternatives.
Coffee and chocolate may go well together, but things are not going all too well right now.
Apart from red meat, no other foods generate as many greenhouse gases as cocoa and coffee beans. This accelerates climate change, which, in turn, hits these industries hard.
Crop failures and low harvests are becoming increasingly common, leading to shortages of two commodities whose demand keeps rising. That has caused massive price hikes too – in 2024, both coffee and cocoa futures broke all-time records, and the cost will continue to remain high this year.
It has necessitated food companies to look for alternatives. Take Barry Callebaut, for example – it’s the world’s largest chocolate supplier, but price and supply volatilities have pushed it to expand into cocoa-free alternatives. “Our non-cocoa solutions from precision-fermented sunflower seeds offerings… expand the portfolio of Barry Callebaut and offer all the variety of chocolatey experiences for our customers,” CEO Peter Feld told investors in its latest earnings call.
With climate change posing a long-term threat to both the coffee and chocolate industries, several startups have been selling bean-free alternatives.
San Francisco’s Compound Foods is one of them. Through its Minus Coffee range, the firm has been selling beanless brews in various formats – currently, it retails a functional instant oat milk latte geared towards women’s wellness.
But now, the startup is expanding its solutions to fellow food businesses – which now have “tighter margins, unpredictable supply, and urgent reformulation needs” – and adding cocoa-free chocolate to the mix.
Courtesy: Compound Foods
How Compound Foods makes its bean-free cocoa and coffee
Compound Foods is offering the same tech platform it uses for Minus Coffee to alleviate the pressures felt by other companies too. “When I learned how vulnerable the supply chain really was, I felt compelled to ask: could we recreate the experience of coffee using more resilient ingredients, lower emissions, and food science?” said founder and CEO Maricel Saenz.
It reverse-engineers the sensory and functional properties of at-risk crops like cocoa and coffee, and then reconstructs them through agricultural byproducts and underutilised ingredients – think seeds, cereals, and fibre. The firm has developed specific formulation and processing methods for each target ingredient, leveraging roasting, extraction and fermentation to attain the desired flavour and aroma.
“We mapped over 800 compounds in coffee and built our formulation layer by layer,” explained Swetha Mahadevan, head of product at Compound Foods. “Our approach combines upcycling, domestic sourcing, and microbial science to deliver a product that tastes great and performs well.”
But as the cocoa supply crisis became untenable in 2024, Compound Foods decided to fast-track the development of a cocoa-free alternative, which it claims delivers comparable taste and functionality with a more stable cost profile.
The new B2B platform can slot into existing manufacturing pipelines, allowing companies to incorporate planet-friendly beanless ingredients without a costly reformulation process. Its coffee alternative is made from date, sunflower and grape seeds, carob, and chicory. It comes in concentrate, cold brew or instant formats, and can be used in ready-to-drink applications, cocktails, functional beverage mixes, snack bars, and foodservice offerings.
Meanwhile, manufacturers can buy its bean-free cocoa as a powder to replace conventional cocoa entirely, or as an extender that can blend with it. Made from carob, mesquite, spent grain, sunflower lecithin, and cascara (the outer skin of the coffee fruit), it’s also mixed with vegetable fats to offer a chocolate compound.
While cocoa and coffee already suffer from price instability, President Donald Trump’s tariff war has made things more uncertain. But Compound Foods sources and processes most of its ingredients stateside, reducing the “geopolitical and logistics risks that plague commodity markets”.
Courtesy: Compound Foods
Can beanless coffee outperform conventional versions?
The startup, which has so far raised $10M in funding, says its ingredient platform offers custom builds for customers, with the ability to tailor the solutions to meet specific nutritional, labelling, or caffeine targets.
But do they live up to consumers’ taste expectations? If blind taste tests are to be believed, these products may just even outperform their conventional counterparts. In tests conducted by Purdue University, 60% of people preferred Compound Foods’ beanless coffee over premium brands like Blue Bottle and Stumptown.
“Our goal isn’t to replace the specialty coffee or craft cacao we love,” insisted Saenz. “It’s to offer a sustainable, cost-effective alternative to the part of the industry that’s most vulnerable, commodity crops grown at scale, traded anonymously, and increasingly exposed to environmental and economic risk.”
Global cocoa stocks have dropped to their lowest levels in a decade. Ivory Coast and Ghana – the two largest producers of the crop – have been the biggest victims, thanks to extreme weather, crop diseases, and reduced plantations in favour of illegal gold mining.
Meanwhile, the area suitable for growing arabica coffee – roughly forming a ‘belt’ between the tropics – is shrinking, and could be cut in half by 2050. This puts it among the 60% of endangered coffee species, with experts suggesting that arabica could become extinct in the next 60 years.
Courtesy: Compound Foods
At the same time, chocolate is linked to vast amounts of deforestation, excessive water use, and high greenhouse gas emissions. Coffee isn’t far behind – its GHG impact is worse than pork, chicken, farmed shrimp, and cheese, and producing a single cup requires up to 140 litres of water.
By contrast, Compound Foods’ beanless coffee uses 92% less land and 94% less water, while producing 86% fewer carbon emissions. It is among a number of players offering bean-free brews, including Atomo, Voyage Foods, Prefer, and Northern Wonder.
Our weekly column rounds up the latest sustainable food innovation news. This week, Future Food Quick Bites covers Purple Carrot’s partnership with Fable Foods, Gosh!’s new points-based packaging, and SimpliiGood’s spirulina-based salmon.
New products and launches
Plant-based meal company Purple Carrot has addedFable Foods‘s Pulled Shiitake mushrooms to its lineup, including the Bluff Bourguignon Stew and BBQ Burnt Ends kits.
Courtesy: Purple Carrot
US non-dairy creamer brand Laird Superfood has released a larger 750ml pack of its functional-mushroom-infused coffee creamers, which come in Unsweetened, Sweet & Creamy, Cinnamon and Vanilla flavours.
In the UK, ready-to-eat vegan food brand Gosh! has revamped its packaging with a new ‘Plant Points’ system aimed at supporting the goal of eating 30 plants a week. Each point denotes the inclusion of a fruit, vegetable, whole grain, legume, or seed, and each of the brand’s products has a minimum of six points.
Courtesy: Gosh!
To mark Earth Day (April 22), Dutch cultivated pork startup Meatable has joined forces with Food Tank, the United Nations Global Compact, and The Hunger Project to tackle climate change and global hunger through the food system.
Also in honour of Earth Day, Indian plant-based brand Blue Tribe – backed by actress Anushka Sharma and cricketer Virat Kohli – has launched an Eat Green Initiative to promote sustainable eating. The weeklong campaign (April 22-28) sees employees and influencers share recipes made with the company’s products.
At the ongoing Expo 2025 Osaka, members of Japan’s Cultivated Meat Future Creation Consortium are showcasing 3D-printed cultured meat and an at-home marbled meat maker, aiming to commercialise the products by 2031.
Company and finance updates
Indian plant protein manufacturer Proeon Foods has secured a €1M grant from the Province of South Holland, as part of the European Regional Development Fund, for its EGGcellent project. The startup is working with precision fermentation firmVivici, Applikon Biotechnology, and Planet B.io to develop an egg alternative for industrial baking applications.
Relsus, a Singaporean producer of functional plant-based ingredients, has opened a commercial-scale manufacturing facility in Ujjain, India.
Courtesy: Quevana
In Europe, cashew cheese maker Quevana has opened a 2,400 sq m facility in Segovia, Spain, which will double its capacity to over 400,000 units of fermented dairy-free cheese each month.
Swiss vegan seafood startup Catchfree has raised $1.45M in seed funding to scale up production and commercialise its plant-based shrimp, fish burgers, and fish bites this summer.
Elin Roberts and Christopher Kong, the co-founders and co-CEOs of British tempeh startup Better Nature, have been named in the Art & Culture of Forbes‘s 30 Under 30 list.
Courtesy: SimpliiGood
Armed with a $4M grant from the Israel Innovation Authority, AlgaeCore Technologies‘s SimpliiGood has secured European approval to commercialise its spirulina-based smoked salmon alternative. It is now pursuing clearance in the US too, has pilots with several companies, and will launch its first products as part of private-label brands within the next six months.
Alternative protein think tank The Good Food Institute is experiencing a change at the top, with CEO Ilya Sheyman departing in June. Jessica Almy, senior VP of policy and government relations, will take over as interim chief as the organisation hunts its next CEO.
Californian vegan frozen foods maker Sunday Supper has expanded its executive team, adding Spencer Oberg as CEO, Matt Williams as head of sales, and Chris Hays as CMO, as it kickstarts a $2.5M seed funding round.
Meanwhile, the Canadian province of Nova Scotia has invested $5M in the newly opened Neptune Bioinnovation Centre in Dartmouth. The 4,738 sq m facility will offer precision fermentation and spray drying capacity, and is set to create over 2,400 jobs and contribute $334M to the region’s annual GDP.
Courtesy: Government of Nova Scotia
Event organiser Emerald Expositions has acquired the Plant Based World Expo and its media platform, Plant Based World Pulse, from JD Events for an undisclosed sum. The deal includes both the North American and European editions of the show.
Research and policy developments
Amid the hike in dairy sales in the UK, plant-based milk is also on the rise for the first time since 2022, with sales volumes up by 2.1% between February 2024 and 2025. Oat milk is the leader, with a 7.2% growth in that period – it’s set to take 40% of the non-dairy market this year, according to Kantar.
In related news, British bakery chain Gail’s has dropped the surcharge on soy milk after a Peta campaign, offering the alternative for free from May 21. However, it will still ask customers to pay 40-60p extra if they want oat milk.
Courtesy: Gail’s
The US Department of Agriculture has cancelled the $3B Partnerships for Climate-Smart Commodities programme that aimed to promote environmentally friendly farming practices. The revocation of the Biden-era initiative is part of the Trump administration’s sweeping climate rollbacks.
In Canada, meanwhile, candidates from all four major political parties will participate in an election debate about animal protection today (April 23), organised by a group of animal welfare organisations, including Animal Justice and World Animal Protection.
Courtesy: Kai Kitschenberg/Funke Foto Services
In its TrendTracker 2024 report, food giant Cargillfound that 73% of consumers want their governments to set stricter environmental standards for the chocolate supply, just as European plant-based chocolates and desserts grew by 25% annually between 2019 and 2023.
Swapping out red meat for plant-based alternatives and choosing non-dairy milks can help cut the average Australian household’s emissions by six tonnes a year, research by the George Institute for Global Health has found.
Courtesy: Technical University of Denmark
Finally, researchers from Novonesis and the Technical University of Denmarksuggest that the bacteria in lactic acid could help reduce off-flavours and degrade anti-nutrients in plant-based dairy products, enhancing their taste profile and nutrient bioavailability.
Neat, the vegan burger chain backed by Sir Lewis Hamilton & Leonardo DiCaprio, has shut its remaining UK locations, after a spate of closures over the last 18 months.
Popular plant-based fast-food chain Neat has closed its two remaining sites in the UK, where it originated in 2019.
The celebrity-backed burger restaurant – which has had over a dozen locations in four countries – now only has two sites remaining in Milan, following closures in London, New York City and Dubai over the last 18 months.
The closure of the Camden and Wembley stores in London will potentially affect 150 jobs, and follows a challenging financial period for Neat.
“We have no further comment at this time, other than to confirm that the business has taken the difficult decision to close its UK restaurants,” a company spokesperson told The Sun, which first reported the news.
Neat’s UK closure marked by mounting losses
Neat at the 2025 Met Gala afterparty | Courtesy: Neat
Previously called Neat Burger, the chain opened to much fanfare in 2019, with Formula One legend Sir Lewis Hamilton an early backer, and actor Leonardo DiCaprio and footballer Thibaut Courtois joining as investors in subsequent rounds.
The company has raised over $25M and was valued at $100M in 2023, when it charted a path for expansion both domestically and outside the UK. However, this followed years of Covid-19-related turmoil for hospitality and foodservice businesses, and Neat wasn’t immune to the fallout.
In 2022, the company posted a £7.85M loss, up by 145% from the £3.2M loss reported in 2021. (Its 2023 accounts are overdue by a month, according to the UK’s Companies House.
This led to the closure of five UK restaurants in 2023, halving its footprint in the country. The chain also shelved plans to open four more locations here. The company attributed the losses to a drop in footfall in London’s financial district and West End due to the rise of post-pandemic hybrid working patterns, as well as a decline in demand for food delivery.
“We believe that sometimes, taking a step back is necessary to make a bigger leap forward,” Neat said at the time. “We remain deeply committed to our mission of providing delicious, sustainable, plant-based dining, and are excited about our future growth prospects.”
While it had earmarked more restaurant openings in the US and Middle East, over the course of 2024, its existing sites in these countries shut their doors too. This was followed by the closure of Neat’s outposts in London Victoria and Soho, and the departure of co-founder and director Zack Bishti.
Vegan restaurant closures continue
Courtesy: Neat
It has been tough going for the restaurant industry, and plant-based concepts haven’t been spared either. In the UK, restaurants are closing at the fastest rate in a decade – over 1,400 eateries shuttering between September 2023 and 2024, a 19% increase from the period 12 months prior. Rising ingredient, utility and rental costs have put more than 10% at an “imminent” risk of closure, experts say.
Since 2024, vegan fast-food restaurants The Vurger Co, Frost Burgers, Donner Summer, and JJ’s Vish and Chips all closed their doors, while Flower Burger exited the UK market. Bristol-based group Oowie, which had been expanding with a vegan-only approach, is now focusing on growing its diner-style restaurants with meat. In October, it turned a plant-based location into one serving animal products.
That trend is being seen in the US too, with Hot Tongue Pizza, Elf Cafe, Burgerlords, Margo’s, and Sage Regenerative Kitchen all adding animal proteins to their meat-free menus. The latter wound down earlier this year, becoming one of a number of casualties in Los Angeles’s restaurant industry.
Neat’s UK closure is the latest example that even celebrity backing may not be enough to survive in this landscape. In LA, Matthew Kenney’s VEG’D and Kevin Hart’s Hart House shut their doors in 2024, while in the UK, Made in Chelsea star Verity Bowditch and YouTuber Mikey Pearce’s Clean Kitchen Club closed its last remaining site in January, nine months after introducing meat on its previously vegan menu.
Meanwhile, Deliciously Ella also closed its Plants by DE eatery in Mayfair following its acquisition by Hero Group in September, despite retaining the restaurant in the deal.
But in an encouraging sign, two months after Unity Diner – the vegan fast-food restaurant co-owned by animal activist Ed Winters (aka Earthling Ed) – announced its closure due to rising costs, it successfully negotiated a new deal with its landlord and reopened in its original location in East London.
Confectionery giant Mondelēz International is facing a major lawsuit alleging that it falsely claims climate neutrality on Clif Bars, pushing offsets into further scrutiny.
As false marketing lawsuits on food companies continue to surge, Mondelēz International has found itself in hot water for the third time in just over 12 months over its claims on product packaging.
The CPG giant is facing a class-action lawsuit alleging that it falsely advertised its Clif Kid ZBar and ZBar Protein SKUs as “climate-neutral”, causing consumers to shell out extra money because they believed they were buying something sustainable.
Filing the complaint in the US District Court for the Northern District of Illinois, plaintiff Cynthia Salguero and her lawyers argue that Mondelēz’s claim is “false and misleading because the product’s manufacturing and distribution results in substantial carbon emissions, other greenhouse gas emissions, and harm to the climate”.
The complaint alleges that the manufacturing, marketing and transportation of the Clif Kid bars in question result in the emission of 54,000 tonnes of CO2e per year. According to the US Environmental Protection Agency, that equates to the annual emissions of about 12,600 gas-powered cars.
Mondelēz criticised for relying on carbon offsets
Courtesy: Roverto Castillo
A key issue is the use of carbon offsets and credits to rely on the climate neutrality claim. These instruments are highly controversial, with most offsetting programmes linked to greenwashing and deemed ineffective.
The eco messaging on the Clif Bars is therefore “unjustified” due to the “fundamental flaws in the offsetting market and the kinds of projects in which [the] defendant purportedly invests,” the suit argues.
Some of the “foundational issues” with this market include inaccurate accounting, crediting offsets for projects that would have occurred regardless of the investment, non-immediate speculative emissions reductions that would occur over decades (at best), and impermanent projects that are subject to disease, natural disasters, and human intervention.
“Inaccuracy and fraud are widespread within the offset industry,” the complaint reads. “[The] defendant either knew or should have known of the fundamental unreliability of offsets, yet chose to rely on offsets in making its ‘climate neutral’ representation.”
Last year, the Integrity Council for the Voluntary Carbon Market – a watchdog for the industry – ruled that a third of all carbon credit projects based on renewable energy methodologies are ineligible. Around the same time, the Science Based Targets Initiative (SBTi), the de facto regulator of corporate net-zero goals, described carbon credits as largely “ineffective”.
Lawsuit highlights lack of clearly defined standards
Courtesy: Mondelēz International/Green Queen
The plaintiffs aren’t just seeking compensation from Mondelēz, but are demanding a jury trial and requesting declaratory and injunctive relief.
This is because the company’s statements “exceed the scope of mere puffery or a trivial marketing ploy” – in this case, Mondelēz is being accused of charging a premium based on the purported eco credentials.
Salguero and other customers would have reasonably believed that the “climate-neutral” label meant the product “does not exert a negative impact on the environment nor contribute to climate change or degradation”. Had they known that the claim was “not true”, they wouldn’t have purchased the products or would have paid “substantially less”, the complaint contends.
Indeed, as more and more people express concerns about climate change, they’re willing to pay extra for greener products. Nearly half of consumers (46%) globally are buying more sustainable items, and 80% are happy to pay more for them, according to PwC.
It raises the big question around climate neutrality: how do you define the term? According to the UN, it entails balancing emissions so they are equal to, or less than, the emissions removed. The plaintiff argues that, unlike “carbon neutral”, the term “climate neutral” isn’t as concrete, and can be interpreted widely by those without extensive knowledge about the topic.
A tipping point for food packaging?
Courtesy: Mondelēz International
This is why Mondelēz’s label fell into the “difficult to interpret” category of “unqualified, general environmental benefit claims” that the Federal Trade Commission’s (FTC) Green Guides warn companies against making.
The FTC itself is looking to update these guidelines to help companies avoid deceptive marketing, and to provide clearer definitions and greater consumer protection around terms like “carbon neutral” and “net zero” – although some fear that these changes may not materialise under the Trump administration.
The case could end up setting a precedent for future lawsuits around sustainability claims in food marketing, which will only continue to grow in number. Such legal disputes have been surging for a while now – in 2011, 53 class-action lawsuits related to food packaging were filed, but between 2020 and 2022, this rose to over 200 per year.
Mondelēz itself has been subject to two major lawsuits since the start of 2024. Early last year, it was accused of knowingly relying on child labour and slavery and deceiving consumers with packaging that claimed it “supports” or “helps” farmers. Later in the year, the company agreed to pay $12M to settle a claim that its Clif Bar packaging contained misleading health claims.
It’s also one of 11 defendants named in a lawsuit accusing the food industry of causing illnesses in kids by engineering ultra-processed foods to be as addictive as cigarettes.
With consumers more wise to greenwashing and lawmakers, from the EU to the state of California, strengthening rules around environmental claims, could this new lawsuit usher in a food packaging overhaul for the better?
Atlantic Natural Foods, the plant-based company behind Loma Linda and Tuno, has filed for bankruptcy months after withdrawing from a takeover deal by Above Food.
In the latest example of the financial challenges facing the plant-based industry, one of the US’s foremost vegan food brands has filed for bankruptcy.
Atlantic Natural Foods, whose portfolio of brands includes Loma Linda, Tuno, Chick’n, and Neat, sought Chapter 11 protection in the Eastern District of Louisiana earlier this month.
It comes five months after the company mutually terminated an agreement to be acquired by fellow plant protein maker Above Food, citing rising food inflation, supply chain disruptions, and the impact of Covid-19.
Bankruptcy filing follows withdrawal from acquisition deal
Courtesy: Atlantic Natural Foods
The roots of Atlantic Natural Foods have been around for a long time. The company itself was founded in 2008, predating giants like Beyond Meat and Impossible Foods, but Loma Linda was first established in 1890 by John Harvey Kellogg, the founder of Kellanova.
Atlantic Natural Foods bought Loma Linda from its parent (then called Kellogg’s) in 2014, and has since expanded to over 25,000 stores in the US, plus 30 other countries.
It sells canned plant-based alternatives like hot dogs, steaks, tuna and chicken from Tuno, Chick’n and Loma Linda (an umbrella brand that also offers plant-based meals). Additionally, it makes vegan egg and meat substitutes via its Neat line and a caffeine-free coffee alternative through the Kaffree Roma range, and has a dedicated foodservice brand called Modern Menu.
The company – which has manufacturing plants in Nashville and North Carolina in the US, and Bangkok in Thailand – hasn’t provided a specific reason for its bankruptcy filing. But it plans to reorganise its business over the next few months.
In its petition to the district’s bankruptcy court, it listed $10-50M in assets and $1-10M in liabilities, with 100 to 199 creditors.
The development follows Atlantic Natural Foods’s decision to pull out of an acquisition deal with Above Food, which was first announced in 2021. It was ascribed to the former’s “strategic realignment following a comprehensive evaluation of the evolving business landscape”.
Had the $30M deal gone through, Atlantic Natural Foods would have become part of Above Food’s sprawling portfolio of 120 plant-based meat, dairy and baby food products and 17 unique grains and proteins, which are distributed at over 35,000 retail points in 29 countries.
Financial hurdles drive M&As in plant-based sector
Courtesy: Atlantic Natural Foods
“Operating in the industry’s ever-changing landscape has not been without its challenges, but we remain steadfast in our commitment to resetting the standards for the years ahead,” Doug Hines, chairman of Atlantic Natural Foods, said after the agreement was terminated.
“We are drawing on tried-and-true food preparation and supply methods that have withstood the test of time to meet the needs of our global consumers,” he added.
The two companies said they would continue to maintain their collaborative ties, with Atlantic Natural Foods keeping its shares in Above Foods, while the latter will retain its interest in the Loma Linda owner.
“This strategy allows us to reinstate our commitment to returning the company to its core principles, products and consumer while carrying out our mission of creating healthy food for the world in 2025 and beyond,” Hines said.
US food tech startup Perfect Day has been hit with a false marketing lawsuit for its FDA-approved, animal-free dairy whey protein.
Months after ending its lawsuit with a co-manufacturing partner, Californian precision fermentation pioneer is now facing another legal challenge.
This time, it’s about the company’s marketing rather than manufacturing, with the Organic Consumers Association and GMO/Toxin Free USA accusing it of “false, unfair and deceptive” advertising and “material omissions”.
Filed in the Superior Court of the District of Columbia Civil Division, the complaint targets Perfect Day’s ProFerm ingredient, a recombinant beta-lactoglobulin protein approved for sale by the Food and Drug Administration (FDA). ProFerm is the base of Bored Cow’s animal-free milk line, Strive Nutrition’s FreeMilk range, Myprotein’s Whey Forward protein, and Unico Nutrition’s Apollo protein powder, among others.
Trade groups describe precision fermentation as a combination of traditional fermentation with the latest advances in biotechnology to efficiently produce a compound of interest.
The lawsuit takes issue with Perfect Day’s claim that its “bioengineered protein product is identical to cow-derived whey protein and creates milk that is identical to cow’s milk”, citing a 2024 study (refuted by Perfect Day) claiming that there were 93 unknown molecules, plus fungicide residue, in a Bored Cow product.
Why Perfect Day is being sued
Courtesy: Perfect Day
Described the innovation as “the world’s first nature-identical dairy protein, without any animal inputs”, Perfect Day’s ingredient has been used by a number of industry giants, including Nestlé, Unilever, and General Mills. It can be swapped with conventional whey in a range of applications, and offers a higher branched-chain amino acid content than any other whey protein on the market.
Plus, it emits 91-97% fewer emissions, requires 29-60% less non-renewable energy, and consumes 96-99% less water than its cow-derived counterpart.
However, the plaintiffs accuse Perfect Day of “misrepresentation to the FDA”, adding that the case is about violating the District of Columbia’s consumer protection law.
“Perfect Day markets the ‘milk’ as ‘identical’ to cow’s milk. That’s what we’re going after them for. That kind of false advertising is illegal, and it’s something we can take direct legal action against,” Alexis Baden-Mayer, political director for the Organic Consumers Association, told Children’s Health Defense – this is the anti-vaccine disinformation organisation formerly helmed by Robert F Kennedy Jr, the US health secretary.
Courtesy: Bored Cow
The argument is based on a study by the Health Research Institute (HRI), which analysed ProFerm and a Bored Cow product and claimed that the ingredient contained only 13% cow’s whey protein, the rest comprising fungal proteins. It suggested that ProFerm had 93 fungal compounds unknown to science, and missed 69 nutrients found in cow’s milk.
It alleged that Bored Cow is using the term ‘microflora’ to avoid calling its product ‘GMOs’, although the product website states that “there are no GMOs in the final product, because the microflora are carefully filtered out”. Additionally, HRI claimed that the novel compounds in ProFerm could be or become toxic, allergenic, disruptive to nutrition and biome function, and cause dysbiosis.
The complaint also suggests that Perfect Day hasn’t proven its protein as safe for humans or the environment, despite the FDA’s GRAS (Generally Recognized as Safe) decision disagreeing with that assertion. “Many of the fungal proteins and compounds have not been adequately studied for human consumption, and ProFerm’s production process itself may pose environmental risks,” it reads.
Plaintiffs question FDA safety process, but have vested interests
Courtesy: Perfect Day
The suit is seeking declaratory relief and an injunction to “stop the deceptive marketing of ProFerm” in DC, and the plaintiffs are demanding a jury trial.
In response to the study, Perfect Day told Green Queen last year that HRI hasn’t published or made its data publicly available, and questioned the “methods and materials used in testing the product”.
“Bored Cow does not contain microflora. All microflora are filtered out in the final step of Perfect Day’s fermentation process, leaving only the pure protein that Bored Cow uses in their multi-ingredient, kinder, greener product,” a company representative said.
“Additionally, this article contains inaccurate information on the FDA GRAS process. The FDA evaluation for our GRAS notification was very thorough and detailed on safety, nutrition, and quality. And, there are no fungicides used anywhere in our process for making whey protein from fermentation and, furthermore, no fungicide could be created as a result of our process.”
Diana Reeves, executive director of GMO/Toxin Free USA, said it was “deeply concerning” that a “nutritionally devoid substance composed primarily of fungal proteins never before consumed by humans” could be labelled as cow-derived whey: “Allowing this aberration into our food supply and classifying it as GRAS highlights the urgent need to reevaluate our regulatory framework for food.”
Courtesy: Perfect Day
It comes at a time when the FDA’s rule that allows companies to self-affirm ingredients as safe (based on independent scientific evaluations) is under threat, thanks to RFK Jr’s Make America Healthy Again movement. Perfect Day, however, would not be affected by the removal of this provision, as it holds a ‘no questions’ letter from the FDA, indicating it has undergone safety assessments from the government body.
It’s worth noting that the Organic Consumers Association has a vested interest here. The group has been described as engaging in “anti-science activities” and promoting anti-vaccine conspiracies, and counts anti-vaccine influencer Joseph Mercola as a donor.
Meanwhile, Perfect Day – much like the alternative protein industry it’s in – has had a rollercoaster couple of years. While it partnered with food behemoths and said it was raising $90M in Series E funding, it sold off its consumer brands division, The Urgent Company, and gave away half of its stake in Indian manufacturer Sterling Biotech. Co-founders Ryan Pandya and Peramul Gandhi left the company early 2024, and TM Narayan (who took over from Pandya as interim CEO) exited earlier this year. So far, a new CEO has not been announced.
Green Queen has contacted Perfect Day with a request for comment.
European future food startups saw a 25% boost in funding in 2024, making the region a global leader in the space – but economic uncertainty is keeping investors cautious this year.
While US tariffs keep business leaders and investors on their toes this year, 2024 was a bright spot for the food tech ecosystem in Europe.
Companies in this space attracted €4.1B, only a 2% decline from the €4.2B they raised in 2023. After a 57% drop from the highs of 2021 (compared to a 72% decline globally), investments are finally stabilising in the region, according to research by Paris-based food tech consultancy DigitalFoodLab for the eighth edition of its State of the European FoodTech Ecosystem report.
The firm suggests that 28% of global food tech funding flowed into startups originating from Europe in 2024, thanks in large part to the food delivery (accounting for a third of the total) and food science (30%) verticals. The latter includes alternative proteins like plant-based milk and cultivated meat, as well as climate-friendly foods like cocoa-free chocolate and beanless coffee.
Future food leads Europe’s charge
Courtesy: DigitalFoodLab
When it came to deal count, alternative proteins were the most well-funded subcategory in Europe last year. And even in terms of the capital invested, this category ranked second, behind only “new retailers”.
Globally, alternative proteins secured 27% less financing in 2024, according to separate research – though when combined with other climate-friendly innovations in chocolate, coffee and fats, this future food sector saw a 25% hike in investments last year, reaching €830M. That means they account for about a fifth of all food tech funding in the region.
“Europe was the most attractive region for alternative protein in 2024,” says Matthieu Vincent, co-founder of DigitalFoodLab, citing the firm’s unpublished data on other markets. This is despite the EU being host to a “more complicated regulatory framework” for novel foods.
“We have observed a surge in the number of grants and research programmes funded by the EU and the UK, which firmly position themselves to compete and have a leading role in the burgeoning bioeconomy,” the report notes. In fact, European research funding for alternative proteins reached an all-time high of €290M in 2024, according to the Good Food Institute Europe.
Vincent ascribes the future food success in Europe to a “focus on specific areas that have done extremely well this year, notably alternative chocolate and coffee”. Germany’s Planet A Foods, for example, closed a $30M Series B round in December to scale its cocoa-free ChoViva chocolate.
“European startups have always skewed a bit more toward B2B, [and] hence healthy ingredients, which are also doing quite well in comparison to B2C-focused alternative proteins,” says Vincent. “It confirms the main trends of the ecosystem: more B2B, a focus on health, and on supply chain solutions, rather than on new brands.”
Tariffs and economic uncertainty are a blight for European food tech
Courtesy: DigitalFoodLab
DigitalFoodLab’s report found that German startups lead investments in the food science category, which includes pet food, beverages, CPG firms, and cloud kitchens, in addition to functional ingredients and alternative proteins. They made up a fifth of the category’s total investment, reaching €250M.
This was closely followed by the UK (€240M), and then France (€130M), Switzerland, and Finland (€110M each). This mirrored the trend across the food tech ecosystem, with strong performances in Germany, the Netherlands, and the Nordic countries.
The main reason why these countries have attracted investment is that they already have “large consumer markets interested in these products”, according to Vincent.
“Lagging behind is all the rest of Europe, notably the southern part, where investment in alternative proteins is much more modest,” he points out.
Courtesy: DigitalFoodLab
The global economy faces a huge threat with the arrival of US President Donald Trump’s tariffs, which have plunged every industry into chaos. While things are changing on an almost daily basis, the EU was slapped with a 20% tariff before Trump’s 90-day pause on most such levies a day later.
However, talks between the bloc and the US are not going smoothly, raising fears of higher tariff rates for EU member states. Food tech investors are already advising founders to exercise caution, and for Vincent’s money, Europe’s progress from last year may be undone.
“I would have been much more certain about the direction a month or two ago. Now, things look very uncertain with the current economic situation, which is also impacting investments in food tech,” he says. “Uncertainties combined with a declined appetite for sustainability won’t be good for the European ecosystem.”
He adds: “At the start of the year, I would have predicted a stable year with neither a bounceback nor a decline. Now, as far as I can see, the year will be tough, with probably a decline in funding, at least for the first half of the year, while investors wait to see where things are going.”
In our interview series, we quiz future food investors about the solutions that excite them the most, their favourite climate-forward restaurant, and what they look for in successful founders.
Steve Simitzis is a Partner at Solvable Syndicate.
What future food technologies most excite you?
Contrary to the doom and gloom, I’m most excited by cellular agriculture and cultivated meat. The crash in funding has, in my opinion, been a good thing for the space, as it’s refocusing founders on building real businesses with B2B customers in mind (meat producers, pet food manufacturers, etc.) without impossible valuations hanging over their heads.
Where I’m most interested is at pre-seed and seed level, where founders are inventing high-leverage technologies to reduce costs. Keep a close eye on the Tufts University Center for Cellular Agriculture, which is building a new ecosystem around cell ag and, I expect, will have the next wave of breakout companies.
What are three future food verticals you are actively looking at for 2025?
Enabling technologies for cellular agriculture and bioprocessing that reduce costs.
Pet food! Always looking at pet food.
Future food replacements for ingredients, especially pigments and dyes, that have broad applications across food, beauty, nutraceuticals, textiles, etc.
What do you consider the food tech sector’s greatest achievement in the past five years?
The achievement of plant-based milk reaching almost half of US households is something I could never have imagined in a million years. I went to a Starbucks in southeast Missouri and had my choice of soy milk, almond milk, and oat milk. Seriously, that’s incredible.
If you could wave a magic wand, how would you fix plant-based meat?
By getting costs down to cheaper than animal-based meat. We could be headed in that direction already: startups are engineering new ways to drive down costs (Rebellyous Foods is leading the way here), while from the other end, pandemics and supply shocks are raising costs for animal proteins. Once they meet in the middle, that’s the tipping point.
Sales growth of vegan egg alternatives during the egg crisis has me convinced that food inflation is the central villain in the story of plant-based. It’s a rational choice: why pay 5x for a plant-based alternative when your grocery bill is rising? You’re going to cut the most expensive products first. Let’s make tastier and healthier products where we can, but without fixing the cost of goods sold, only vegans are buying them.
The other force at work, unfortunately, is the rise of trad culture, which is leading people to dangerous choices like carnivore diets and raw milk. So if I can be granted a second magic wand, it would be for America to re-embrace modern civilisation.
What’s the top trait you look for in a founder?
I love founders who are obsessed with the problem they’ve set out to solve. When you’re problem-obsessed, you’ll want to keep digging deeper and deeper into your problem, and you’ll never give up until you solve it. I would say that tenacity and curiosity are the top founder traits that are downstream from being problem-obsessed.
I also look for founders who embrace work-life balance, even as they’re thinking about their startup 24/7. (Still problem-obsessed!) I don’t think anyone is more effective without good sleep, food, exercise, and time spent caring for the people and animals in your life. If I sense that a founder is neglecting those (and there’s always a tell), they are, to me, not investable.
The One That Got Away: What is the deal you wish you had gotten into, but didn’t?
A startup from our old incubator in Berkeley. I had the opportunity to invest, but public markets were tanking and I was hesitant to pull out cash.
What do you consider your most successful future food investment so far?
It’s still too early to claim winners, but I’m very excited about Omni Pet, who just received investment and exposure on Dragons’ Den UK, and has had exceptional growth over the last two years. Great product, great founders, what’s not to love?
What has been your most disappointing investment so far?
Back in 2000, I invested in a bottled tea company based in Santa Cruz that was right at the beginning of yerba mate as a new beverage category in the US. Product and timing were perfect, but the team fell apart due to co-founder infighting.
What do people misunderstand/get wrong most about VC?
Founders should deep dive into venture economics and how VC funds work (and where the capital comes from) to understand all of the incentives at play. Once you learn about the mechanics of venture funds, you start to see what kind of businesses aren’t a fit for venture capital, and more importantly, you’ll understand why.
What is the most ‘future food’ thing you have eaten this month?
I was lucky enough to try the Mission Barns meatballs and salami, made with cultivated fat, at its FDA approval party during Future Food-Tech week. It was delicious and tasted like a real meatball without that uncanny valley experience you sometimes get with alternatives.
Even though I’ve been vegan for decades, the food you eat in childhood still resonates with you and unlocks old memories when you taste it again, and the Mission Barns meatballs were 100% future nostalgia.
Where is your favourite climate-forward restaurant/dish/place to eat anywhere in the world?
I would consider moving to Zurich just to eat at Hiltl every night. It claims to be the oldest vegetarian restaurant in the world (since 1898, but who can say if Pythagoras wasn’t running a bistro on the side?).
The food at Hiltl is served buffet-style, so you never run out of new flavours to sample. I still think about their cremeschnitte, which was fully plant-based yet had the most delicate puffy pastry and custard. A triumph of a dessert.
What’s your ‘why’? What motivates you to do what you do?
I have been vegan for almost 30 years. I originally went vegan for the animals, in the OG days of brown soy milk and TVP (which, to be clear, I still eat and love).
Over time, I thought more and more about food system transformation, and the absurdity of using most of our land to raise cows. The wildfires here in the Bay Area that tore through forests around 2018-20 were deeply unsettling, and I wasn’t able to stop thinking about the destruction of habitats for the animals who lived in those forests. So, the fires cemented for me that this would become my life’s work.
At one point I considered going into climatetech (back when it was “clean tech”), but I connect with food more than power grids and heat pumps. Food is so fundamental, and everyone (and every culture) connects with it in a different way. We’ll never run out of problems to solve in food, which is what makes it such an endlessly interesting space to be in.
Our weekly column rounds up the latest sustainable food innovation news. This week, Future Food Quick Bites covers This’s pasta partnership with Ugo Foods Group, Starday’s $11M Series A round, and a nomination for the Earthshot Prize.
New products and launches
London-based meat alternative startup This and Ugo Foods Group‘s vegan ravioli products are hitting supermarkets, with the Bacon & Cheese and Chicken & Pesto flavours now available at 250 Morrisons stores, priced at £6 for two packs.
Courtesy: This
UK plant-based milk maker Rude Health has introduced a clean-label iced coffee range in oat latte and mocha variants. The 750ml ready-to-drink Tetra Paks are available at Waitrose for £3.75, and Ocado at the end of the month.
Also in the UK, plant protein brand Tibah Tempeh has released a Smoky Block. It’s available for £3 per 220g pack at Ocado (from April 18), and Sainsbury’s and Waitrose at the end of the month.
Meanwhile, free-from snacking company Crave has expanded its lineup with a gluten-free, vegan Pink Cheetahs wafer biscuit, available at 480 Sainsbury’s stores for £2 per 100g.
Courtesy: Eurest
In more news from the island, Eurest – the corporate division of Compass Group, the world’s largest catering company – partnered with plant-based chef duo Bosh! for a new vegan smokehouse menu at Jaguar Land Rover‘s head office in Warwickshire.
Vegan meal kit brand Grubby has partnered with artisanal non-dairy cheese maker Julienne Bruno on a limited-edition Creamy Burrata-Topped Za’atar-Spiced Squash option for Easter.
Across the Atlantic, Fungi protein startup Nature’s Fynd, meanwhile, has launched Spicy Indian Fy Bites at Plantegalocations in New York City. They contain 14g of protein and 5g of fibre per serving.
Courtesy: Nature’s Fynd
Miyoko’s Creamery has rolled out a new flavour of its spreadable cashew cheese. The Jalapeño Plant Milk Cheese Spread can be found at Nugget Market stores for $6.99 per 8oz tub, with further retailers to follow this summer.
Vegan cheese giant Violife has partnered with James Beard Award finalist Dan Richer to launch the first-ever non-dairy pizza at his Jersey City pizzeria Razza. The Spicy Vegan Vodka Pizza is made with plant-based mozzarella shreds and on the menu until the end of the month.
Chilean food tech unicorn NotCo has expanded its partnership with Aeromexico to offer passengers in its Premier and Premier One classes a NotBurger with manchego-inspired NotCheese until May 31.
Courtesy: Vinker
Canada’s Vinker is bringing its vegan Korean Crispy Chick’n to the US, rolling out at Pop Up Grocer in Manhattan, New York.
Germany’s Loryma, a subsidiary of Crespel & Deiters Group, has launched Lory Stab, a stabilising compound of technically treated raw materials to replace eggs and dairy in baked goods.
Swiss plant-based meat leader Planted has announced former wrestler Christian Stucki as a brand ambassador for its upcoming BBQ campaign, alongside a new Paprika steak and listings at several new retailers in Europe.
Courtesy: Planted
In Hong Kong, plant protein producer Ferm by SpiceBox Organic has teamed up with food preservation specialist Ixon to launch a shelf-stable range of tempeh, vegan meatballs, and plant-based meat sauce for pasta.
And in India, Mumbai’s Bandra district is home to Pause Café, a new all-vegan 32-seater eatery serving continental dishes and desserts.
Company, policy and awards
Speaking of restaurants, US vegan taco chain Tacotarian has launched a franchise programme as part of its expansion strategy.
Courtesy: Starday
AI-powered plant-based snacking brand Starday has raised $11M in Series A funding to accelerate its retail expansion and partner with retailers and CPG brands to create bespoke products. It takes the company’s total funding to $20M.
Meanwhile, US precision fermentation manufacturer Liberation Labs has received a strategic investment from Saudi Arabia’s Neom Investment Fund to establish a local facility for Neom’s food company, Topian.
US manufacturing specialist SPX Flow has partnered with the Danish Agricultural Agency‘s Green Development and Demonstration Program’s LinkingOat project to advance oat-based product development.
Courtesy: Beneo
In Germany, plant-based functional food ingredient maker Beneo has opened a €50M pulse processing in Orbigheim. The 4,000 sq m facility also produces Palatinose, a ‘smart carb’ ingredient that promotes GLP-1 release.
Ramkumar Nair, founder and former CEO of mycoprotein startupMycorena, has established fungi protein firm Smaqo, with a direct-to-consumer focus.
In Spain, the National Centre for Food Technology and Safety‘s EATEX Food Innovation Hub has launched an Agrifoodtech Sandbox to offer companies a “controlled, forward-looking environment” to test breakthrough technologies and products operating at the edge of regulatory frameworks.
Courtesy: Opalia
Finally, Canadian cell-cultured milk maker Opalia has been nominated for the 2025 Earthshot Prize by Impact Entrepreneur.
