widget foodsa company that makes whole plant alternative protein bars, has secured another $7.5 million in seed extension funding amid a new strategic partnership with one of Latin America’s largest meat and dairy producers.
A partnership with meat and dairy producer Sigma Alimentos brings Chunk products to Latin America for the first time. Chunk will provide plant-based proteins to Sigma Better balance production line. The products are expected to become available for food service and retail in Mexico this year.
We took a look at Chunk Foods last April when the 4-year-old company announced $15 million in seed funding from investors, including Fall Line Capital, the MIT E14 Fund, and the FootPrint Coalition. The company develops whole cuts of steak-like steak using fermentation technology and food-grade microorganisms to convert soy and wheat into proteins.
At the time, venture capital in the plant-based sector was booming. For example, No Meat Factory, Planetarians, and ISH Company raised their shares around the same time. Investment in this particular sector has slowed in 2023, but this investment will likely be a catalyst for things to come.
Despite a decline in venture capital investments in alternative plant proteins, Amos Golan, founder and CEO of Chunk Foods, remains optimistic, even calling 2023 “a breakout year for the industry” and his company.
“For a long time, plant-based options on the market have not met expectations in terms of taste or texture,” Gollan told TechCrunch via email. “Another big change from last year is availability. Previously, you would only find a bunch of vegetarian options at a ‘vegan’ restaurant or maybe a veggie burger that was average quality at a casual restaurant. That’s changing now.”
Food prices are also a big determinant of consumers’ willingness to try new things. Whole Chunks are near parity with traditional animal products, Gollan said.
Last year, Chunk’s plant-based steaks spread to traditional restaurants on the US East Coast, including Florida steakhouse chain Charley’s Steak House.
During the same time period, the company doubled in size, opened a full cut manufacturing facility and introduced two new SKUs: the six-ounce Steakhouse Cut and Shredded Chunk Steak.
In terms of new investment, Cheyenne Ventures led the round, bringing the total seed round to $22 million. Chunk has now raised $24 million in total funding.
Golan plans to deploy the new funding to expand its commercial and operational teams in the United States with the goal of gaining nationwide distribution and increasing the number of local distribution partnerships. The company will also work to increase manufacturing capacity to meet customer demand.
Golan declined to share revenue growth and the company’s valuation, but said the current valuation is higher than Chunk’s previous round.
“We have an incredible amount of traction in the market that the factory space hasn’t seen in a very long time, and that has led to existing and new investors being interested in investing,” Gollan said. “It is safe to say that there is confidence from investors in our vision, strong unit economics and the potential of the full plant-based parcel space as a whole.”
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