Meati raises $100M investment to expand its rollout of mushroom meat
The US-based company’s mushroom-based steaks and cutlets feature the mushroom root superfood, with growing consumer demand now bringing product availability to more than 6,000 stores nationwide.
Credit: Meati Foods
A Colorado-based food company that produces meat made from mushrooms has raised over $100 million in its latest round of funding.
Meati Foods produces animal-free, whole-food protein that’s made from mushroom root. Its signature products include chicken-style cutlets and beef-style steaks.
The company’s trademarked MushroomRoot has been seen as one of the most exciting developments in the meat-free sector over the last few years, having received significant investment from funders as well as a growing consumer demand for its products.
Meati already raised $150 million in a Series C investment round back in July 2022, which saw contributions from the likes of Rockefeller Capital and brought its then-total funding to more than $250 million.
Now, the excitement around the company shows no signs of slowing down as Meati has announced that its latest C-1 round has raised another $100 million. The company said its latest funding will “help meet the growing demand” for Meati products.
The previous huge investments have already helped drive a rapid expansion that has increased production and attracted nationwide retailers to stock the product.
Credit: Meati Foods
Last year, the company welcomed its first “mega ranch”, a new production facility which will cultivate tens of millions of pounds of mushroom meat. The ranch’s projected output means it will produce animal-free meat at a scale that will match and often exceed that of the US’s largest animal-based ranches.
Consumer demand for the meaty mushroom-based product is growing too.
Alongside the funding announcement, Meati also revealed that its products will now be stocked by 2,000 Kroger Family Stores. The move means that Meati’s availability has expanded from only six retail locations to over 6,000 stores nationwide in just over one year.
Products on offer at the likes of Super Target, Whole Foods, and Wegmans include the Classic cutlet, as well as Classic and Carne Asada steaks.
Credit: Meati Foods
“Meati is on a mission to make MushroomRoot™ the undisputed leader of the center of the plate” Meati’s CEO Phil Graves, said in a statement. “The backing of our investors, the belief by retailers nationwide, the love from our customers and the commitment from our employees leave no doubt in my mind that we’re on the right path to get there”.
According to sales figures from the brand, 40 percent of Meati sales come from consumers purchasing animal-free protein for the first time. Repurchase rates are as high as 60 percent.
Increasing the amount of consumers who choose animal-free proteins instead of animal-based meats is projected to be an important step in helping fight against climate change and the mass industrial farming of sentient animals.
That’s because animal-free companies like Meati are able to produce tons of whole-food protein in just a few days, compared to animal-based protein which requires the resource-intensive production process of breeding, farming, and slaughtering animals over several months.
A recent scientific study found that by replacing 20 percent of the world’s beef consumption with fungi-based meat alternatives by 2050, deforestation rates would be cut in half. Beef farming is the largest driver of deforestation in every Amazon country, accounting for 80 percent of the current deforestation. Mushroom-based meat, however, can be produced with a fraction of the environmental footprint, and doesn’t require any animals to be slaughtered.
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