July 25, 2022

photo credit: Meati Foods

By Lynda Kiernan-Stone, Global AgInvesting Media

Mushrooms are the dark horse of the food world. Sure, there are foodies out there who can explain the nuances that mark one variety from another, but for the most part, it seems they have been quietly tolerated, but never widely embraced. 

But no longer. Today, mycelium, or the roots of mushrooms, are making a name for themselves and taking pole position in the food tech space. 

One of the clearest and most interesting explanations I’ve found of how mycelium intersects with the process of fermentation to create untold numbers of end-products was the article The Mycelium Revolution in Upon Us, by Eben Bayer, CEO and co-founder of Ecovative. 

Basically, Bayer explained that fermentation, which has been around for 10,000 years (think beer, bread, etc.), is a molecular process through which living cells transform sugar or starch into more complex molecules or chemicals.

In 1978, Arthur Riggs and Keiichi Itakura made one of the most powerful discoveries in human history when they determined that single-celled bacteria and yeast are micro-factories that can be utilized to create novel compounds, enabling them to use liquid fermentation to make the first biosynthetic insulin using a base of E. coli. 

Over the ensuing decades, researchers have worked to advance the science to the point where they can reprogram single-celled organisms, such as yeast, bacteria, and algae, to make fuel such as ethanol, foods, and life-saving drugs.

Technically, Bayer explained, mycelium acts as a type of yeast. But unlike yeast, mycelium is multicellular, enabling it to grow “macro-sized structures”, by taking sugar, or wood, or plant waste, and breaking them down using enzymes to create microscopic fibers, or the building blocks of mushrooms. 

It is at this point (before a mushroom begins to grow) where humans can step in and can redirect the microscopic fibers to build predictable alternate structures by precisely controlling factors such as temperature, air flow, humidity, and CO2 levels.

Of this discovery and achievement, Bayer stated, “Directing the growth of mushroom fibers may not sound like a big deal, but this evolution in biofabrication stands to transform the way we manufacture, consume, and live.”

Today, the potentials of these applications are still being explored by innovative food tech startups like Meati Foods, which just announced a $150 million Series C led by Revolution Growth and including new investors Grosvenor Food & AgTech, Canada Pension Plan Investment Board (CPP Investments), Wellington Management, and Cultivate Next. 

Chipotle Mexican Grill’s new venture fund is also including Meati Foods in its first cohort of investments.

“Meati Foods’ innovative products mirror Chipotle’s Food with Integrity standards and bring an exciting, new alternative protein to market,” said Curt Garner, chief technology officer, Chipotle. “Through Chipotle’s Cultivate Next venture fund we are investing in companies that align with our mission to Cultivate a Better World and Meati is doing just that with their clean processes and plant-based proteins.”

Founded in 2017, Meati Foods begins with the spores of mushroom roots, applying the ideal conditions and providing optimum nutrition to double volume every two hours, and allowing the team to grow whole-food protein equivalent to the meat volume of a steer in only four days. 

Meati stated it has set itself apart from its many rivals through its standard-setting composition of at least 95 percent mushroom root, earning its whole-food distinction and unmatched nutrition. The company’s whole-cut, plant-based meats deliver as much as 17 grams of complete protein, 12 grams of dietary fiber, 45 percent of dietary zinc, and 90 percent of vitamin B12.

“The continued growth and momentum that Meati is experiencing underscores how differentiated and scalable our products and vision are,” said Tyler Huggins, CEO and co-founder, Meati Foods. “Revolution Growth and our new and existing investors bring not just the financial firepower and ethos alignment, but deep and diversified expertise that will be instrumental in building a brand and organization that will truly change how people eat in a way that’s better for our bodies and better for our planet.”

This new funding will help the company expand the production and accessibility of its products as it works toward its goal of becoming the U.S. plant-based meat market share leader by 2025.

The capital will also support the completion of the company’s new 100,000-square-foot Mega ranch in Thornton, Colorado – a facility that is set to commence shipping products by the end of this year, and will ultimately have the capacity to produce tens of millions of pounds of product annually.

Meati’s growth strategy also includes a national omni-channel footprint by the end of 2023, diversification of its production portfolio, and breaking ground on its first “Giga Ranch” – a single ranch capable of producing hundreds of millions of pounds annually that can be replicated both domestically and globally.

“Meati is poised to be the leader in this large and growing category with a capability to produce plant-based meats in whole-cut form with a clean ingredient list,” said Fazeela Abdul Rashid, partner at Revolution Growth, who is joining the Meati Foods Board as part of this investment deal. “The company is meeting an unmet demand for products that are delicious, healthy, and good for the planet. We’re thrilled to partner with Tyler and the full team as the company expands its production and tackles real-world issues of food security and sustainability.”

~ 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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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