USA – Eat Just, a renowned producer of plant-based eggs and cultivated chicken, has recently secured a substantial round of funding, marking a significant development for the company’s ambitious endeavors.
The funding, led by VegInvest Foundation, an organization dedicated to supporting companies, aims at replacing animals in the food system and other industries.
While the exact financial figures of this investment remain undisclosed by the company, a Bloomberg report suggested that it amounts to a substantial US$16 million in fresh capital.
The primary goal of this funding injection is to enable Eat Just to continue its growth trajectory and enhance its sustainability, as stated by Satish Karandikar, a principal at Ahimsa and VegInvest Trust.
Eat Just plans to allocate this funding across both of its core divisions: Just Egg and Good Meat, its cultivated meat arm.
The strategic decision underscored the company’s commitment to advancing both plant-based and cultivated meat technologies, demonstrating its unwavering dedication to revolutionizing the food industry.
The recent financial boost arrives on the heels of some operational challenges faced by Eat Just earlier this year.
In March, the company implemented a series of cost-cutting initiatives, including workforce reductions in its Just Egg division, resulting in the layoff of 18% of its employees, or 45 individuals.
Notably, this move was part of a broader industry trend, with major players like Impossible Foods, Beyond Meat, and Maple Leaf Foods’ Greenleaf Foods also announcing job cuts in the same timeframe.
The plant-based meat sector, in particular, experienced a slowdown in demand, contributing to a decline in sales over the past year.
Despite these challenges, Eat Just has made substantial progress which includes the obtaining of regulatory approvals both the U.S. Department of Agriculture (USDA) and the Food and Drug Administration (FDA).
With these regulatory milestones achieved, Eat Just now faces a new set of challenges, including consumer education and addressing the cost and scalability of its products.
While the recent funding injection is undoubtedly a significant step forward, CEO Josh Tetrick acknowledged that Eat Just still needs to secure a substantial amount of capital to fund the construction of a large-scale cultivated meat facility in the United States.
Prior to this latest funding round, the company had already raised an impressive $850 million in capital.
The new investment is poised to not only enhance the quality of Eat Just’s products but also propel the company further along its path to profitability.