October 11, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

San Diego-based cellular seafood company BlueNalu has reportedly closed on a $33.5 million Series B round backed by new and existing investors, according to Agronomics, a venture capital firm that has invested, in aggregate, $8 million across BlueNalu’s Seed, Series A, and pre-Series B rounds. 

Due to overfishing and the depletion of wild-caught fish stocks as well as concern over the ecological ramifications of wild catch fishing, and health concerns surrounding mercury and heavy metal levels found in some seafood, consumer demand will drive a definitive shift in how seafood reaches their plate. 

The first ideation of this shift has already been seen in the adoption of plant-based seafood alternatives, but with the advances in cellular protein production and the ability to create exact proteins in a laboratory setting instead of alternatives to those products, seafood created through cellular technologies is quickly advancing. 

Founded by company President and CEO Lou Cooperhouse and Chief Technology Officer Chris Dammann, the name BlueNalu incorporates “Nalu”, a Hawaiian word that when used as a noun refers to the waves of the ocean, and when used as a verb means to meditate, ponder, or contemplate.

Recognizing the range of challenges being faced by the wild catch seafood industry, including fraud, overfishing, environmental impact, pollution, illegal labor issues, and heavy metal toxicity, the founding team brought together expertise in cell biology, IP, food tech, tissue engineering, commercialization, and marketing to sustainably create cell-cultured finned fish, crustaceans, and molluscs in a laboratory setting.

Amir Feder, CFO of BlueNalu, said in January 2021 when the company closed on its $60 million Series A, “The global market for seafood is highly vulnerable today and is valued at an estimated $200 billion. With strong investor support, our innovative and visionary management team demonstrates a clear value proposition, technology, IP, and a comprehensive regulatory strategy…”

Now, with fresh funding in-hand and a path to market, BlueNalu announced the extension and enhancement of its strategic partnerships with three multinational seafood leaders in the APAC region: Mitsubishi Company of Japan, Pulmuone Co. Ltd. of South Korea, and Thai Union of Thailand.

Global seafood consumption is at an all-time high, especially in Asia, where it outpaces population growth – to a point where wild-caught and farm-raised sources are not keeping pace, according to the UN Food and Agriculture Organization, which forecasts a supply gap necessitating 28 million metric tons of new seafood production by 2030. 

Presenting a new option to fill this demand, BlueNalu noted that the MOUs established with these three partners will serve to support its planned introduction of cell-cultured seafood across multiple APAC nations over the coming years by providing market insights, an understanding of regulatory requirements, and in the development of go-to-market strategies. 

The company’s first product under development is the high-value toro portion of bluefin tuna – a high-demand item in Asia where more than 80 percent of the global supply is consumed. Supply in the region can be very limited and extremely variable in both its quality and sensory attributes, and due to over-exploitation has faced significant declines in wild numbers, according to WWF. 

The renewed partnerships with these three companies will focus on three particular areas of collaboration:

~ Facilitating comprehensive market research to understand consumer preferences, emerging trends, and shifting market dynamics.

~ Identifying and understanding the unique regulatory requirements of each market to expedite the process of securing approvals and certifications needed for distribution.

~ And the development of market entry, distribution, and supply chain management strategies across the APAC region. 

“We are honored to deepen our collaborations with Mitsubishi Corporation, Pulmuone Co. Ltd., and Thai Union, visionary partners who share our commitment to driving innovation and shaping the future of the seafood industry,” said Lou Cooperhouse, president and CEO, BlueNalu.

“These extended partnerships in the APAC region underscore our dedication to working collaboratively with local experts in each region that we target, and our ultimate goal to provide our customers with healthy and trusted seafood options that have superior product benefits and align with evolving market conditions.”

~ Lynda Kiernan-Stone is editor in chief 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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