July 1, 2021

photo credit- Thai Union

By Lynda Kiernan-Stone, Global AgInvesting Media

Major seafood player Thai Union Group PCL has signed a memorandum of understanding (MOU) with Thailand’s V Foods to work together to expand their plant-based food businesses. 

The pair also intend to co-develop new products and expand their reach into both domestic and international markets.

This deal isn’t the first foray into alternative proteins for Thai Union, which is the world’s largest producer of shelf-stable tuna products with annual sales exceeding US$4.2 billion, and a global workforce of more than 44,000.

In October 2019 the group launched a $30 million food tech venture fund and made its first investment in Flying SpArk, an Israeli insect-based alternative protein startup.

“We are excited to collaborate with this leading multinational seafood company,” said Eran Gronich, CEO and founder of Flying SpArk at the time. “Thai Union and Flying SpArk see eye-to-eye on the need for future alternative protein products to offer high-value protein while minimizing the ecological footprint. This marks a significant step forward in bringing insect protein into the food industry mainstream.”

Under the terms of the MOU with V Foods, the two companies will explore the ability to utilize Thai Union’s manufacturing facility to produce both V Foods’ existing products, and new products in the future.

“At Thai Union, innovation is crucial in developing and growing our business, and alternative proteins are an important innovative product that we aim to deliver to meet the needs of consumers,” said Thiraphong Chansiri, CEO, Thai Union. “We are pleased to start our journey with V Foods, whose vision on innovation and food is a great fit for our core values. We look forward to working with them.”

Currently, V Foods’ ‘V Farm’ is the leading brand of ready-to-eat sweet corn and corn milk in Thailand with the largest market share. In 2020 the company’s V Corn brand name was changed to V Farm to allow for a greater range of products.

“V Foods puts innovation at the heart of its business, starting from research and development to quality sourcing from the farmer network, in order to offer quality food to consumers who are more focused on their well-being, are environmentally-conscious and therefore looking at sustainable food,” said Apirak Kosayodhin, CEO, V Foods.

“We are excited about the opportunity to collaborate with Thai Union on alternative proteins and ready-to-eat, plant-based food, and to drive growth in the Thai market while continuing to explore international markets.”

Global animal protein giants making moves into the plant-based alternative space is not new at this point.

In 2016 Tyson became the first key meat company to invest in a meat alternative startup when it became a stakeholder in Beyond Meat. 

Later, in 2019, Tyson sold its stake in the company, announcing plans that the company intended to launch its own line of meat alternative products.

That same year, Tyson invested in a pre-Series A for New Wave Foods, a maker of plant-based shellfish and shrimp alternative products. 

Cargill, too, has followed suit. In 2017 the company announced it had entered into a strategic partnership with Austria-based Delacon – the pioneering global leader in phytogenic (plant-based) feed additives – through an unspecified minority equity investment.

The following year, Cargill became a stakeholder in PURIS, the largest pea protein producer in North America, forming a joint venture to accelerate the production of plant-based foods. A year after this announcement, Cargill made another $25 million investment in the company.

And earlier this year Cargill invested in Dutch startup Bflike, a startup created by the incubator Blue Ocean Xlerator NV (BOX NV), that uses proprietary technology to evolve the meat and fish alternative categories.

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan@globalaginvesting.com