Culinology - June 2019 - 14

BUSINESS trends

The Chobani
Incubator supports
food businesses such
as Cannonborough
Craft Soda, a
brand of sparkling
beverages.

14 |

Culinology | JUNE 2019

"Investors tend
to gravitate to
high-growth segments
like beverages
and snacks."

that desire."
Stray Dog
investments include Good Catch,
a maker of plantbased seafood alternaMark Crowell, Principal Culinologist,
tives; Miyokos Kitchen,
CuliNex, LLC
a maker of vegan cultured
nut cheese; and Goodseed
Burger, a brand of veggie burgers
made
with
hemp seeds. Another portfolio
that other
company, Ocean Hugger Foods, Inc. producbrands are not
es plant-based sushi ingredients made with
currently fulfilling.
tomatoes, carrot and eggplant.
This can come in the
"The rise in plant-based eating has awakform of providing a
ened the CPG category," Ms. Marriott said.
functional benefit, sexy
"A 2018 Nielsen study found that plant-based
packaging, new usage
occasions, delicious taste or product sales are growing across all categories. During the 12-month study range, altersuperior quality."
native meat sales skyrocketed by 24%. This
Conversely, several factors may make for
growth is great news for major players like
a bad investment, Mr. Sebastiani said, referBeyond Meat and Impossible Foods but also
ring to "weak leadership, disorganized vision,
indicates plenty of room for new entrants."
a flailing category, lackluster branding or
Stray Dog Capital also backs food technola product that is simply following a passogy companies using cellular agriculture and
ing fad."
aquaculture or tissue engineering to produce
Investors also should be wary of products
meat without the need to raise or harvest
that are too narrow in their appeal or "too
animals. This is an area that has piqued the
early in the lifecycle and may not catch on,"
interest of the nation's largest meat processaid Mark Crowell, principal culinologist at
sor, Tyson Foods, Inc.
CuliNex, LLC, Tukwila, Wash.
Through its Tyson Ventures business unit,
"Investors tend to gravitate to high-growth
the Springdale, Ark., company is funding
segments like beverages and snacks," Mr.
Future Meat Technologies, Jerusalem, Israel;
Crowell said, citing specific interest in "sugar
and Memphis Meats, Memphis, Tenn. Both
replacers, upcycling, paleo, gluten-free,
produce meat from animal cells.
nut and seed milks, and vegetable pro"We continue to invest significantly in our
tein products."
traditional meat business but also believe in
exploring additional opportunities for growth
Plant-based and beyond
Plant-based food and beverage businesses that give consumers more choices," said
Justin Whitmore, executive vice-president,
are a focus of Stray Dog Capital, Leawood,
corporate strategy and chief sustainability
Kan., which invests in early-stage companies
officer of Tyson Foods.
that are focused on removing animals from
Tyson Ventures also recently invested in
the supply chain.
MycoTechnology, Inc., a company that uses
"Due to the nature of our thesis, we're not
mushroom fermentation to produce functional
looking for companies that have a product
ingredients. Its first product, ClearTaste, is a
as good as the animal-based version, but
certified organic bitter blocker that helps rerather ones that are better in taste, texture,
duce sugar content in formulations. Another
price and/or process," said Macy Marriott, a
product, PureTaste, is a complete, digestible
venture analyst at the firm. "Data are showing
mushroom protein made from Shiitake musha notable consumer shift led by millennials
rooms that has a slight cereal or nutty taste. It
and Gen Z in the form of flexitarians and reis low in calories, fat and carbohydrates and
ducetarians who are wanting to incorporate
high in vitamins and minerals.
more plant-based options in their diet, and
Eighteen94 Capital, a venture fund
we're seeking innovative products that fulfill

Culinology - June 2019

Table of Contents for the Digital Edition of Culinology - June 2019