Meati Gets Lean, Cuts 5% Of Workforce

Meati is cutting its workforce by about 5%, affecting about 17 employees of the 300-person company, as it works to scale up production of its plant-based meat products.

The news, first reported by The Denver Post, comes less than six months after the mycelium-based protein company opened its new 100,000 sq. ft. “Mega Ranch” production facility in Thornton, Colorado and is just under a year after raising $150 million.

Despite the news of staff downsizing, the company maintains it is “as bullish as ever” on its short- and long-term goals of capturing 20% of what it believes to be a $5 billion retail market [in alt-meat] in five years, said Meati VP of Marketing Communications Christina Ra in an email statement to NOSH. Even though demand for Meati’s alt-meat chicken and beef products continue to outpace supply, she added, the company remains “firmly on track” to achieving a national, omni-channel footprint later this year.

“These changes were not made lightly. The individuals leaving our company have been instrumental in contributing to Meati’s success, and we are working to ensure they receive adequate care and assistance as they find new opportunities,” Ra said.

Meati’s January launch of its production facility was funded by an oversubscribed Series C round that brought total funding for the company to over $270 million. The alt meat brand uses mushroom root, or mycelium, to grow animal-free meat analogs that are sold in retail formats like Classic Cutlet, Crispy Cutlet, Classic Steak, and Carne Asada Steak. The brand launched in 2017 and entered retail in July 2022.

The news comes as other plant-based brands have also scaled back their workforces seeking a more profitable future. Impossible Foods cut 6% (about 48 employees) of its staff in October. One month earlier, Impossible’s founder and visionary, Pat Brown, took a step away from the day-to-day innovation role and then subsequently going on a leave of absence two months later in November. Beyond Meat initiated two rounds of layoffs in pursuit of significantly cutting operational costs.

Brazilian meat conglomerate JBS took the extreme measure of pulling the plug completely on its U.S.-based plant meat brand Planterra in October after concluding there is more opportunity for plant-based meat in foreign markets.

According to non-profit lobbyist group The Good Food Institute’s 2022 State of the Industry Report: Alternative Proteins, plant-based meat dollar sales growth was down -1% in 2022 and unit sales growth was down -8% with taste and price driving down faster consumer adoption.