Eat Just Secures Capital For Continued Profitability Push
Eat Just – the maker of plant-based JUST Egg and cultivated protein company GOOD Meat – secured an infusion of new capital from existing investor VegInvest/Ahimsa Foundation, according to an announcement late Friday. The funds will go toward improving the product’s quality and the business’ bottom line.
While the total sum raised was not disclosed, Bloomberg reports the round rung in around $16 million. That brings Eat Just’s total capital raised to $465 million to-date. The company last raised a $25 million venture round in August 2022 from C2 Capital Partners, an Alibaba-backed PE firm, as it worked to expand into China.
“We founded this company to take the animal out of the equation, and today, we’re proud to continue this vital work with an investor who has shown an unwavering commitment to this ideal,” said Eat Just co-founder and CEO Josh Tetrick, in a press release. “Our work is not easy and not certain, but it’s what is required.”
The news follows a stream of headlines from the company over the last year – including approval from both the USDA and FDA to sell its cultivated GOOD Meat chicken product in the U.S., as well as additional approvals in Singapore for a new “more efficient and favorable production process.” Still, despite the positive momentum, the company also laid off 18% of its staff as it aims to become profitable. At the time, an Eat Just spokesperson said the layoffs were one of “20 additional cost cutting measures” implemented across all ends of Just Egg’s production process spanning ingredient cost reductions and increased production efficiencies. Good MEAT was not impacted by the layoffs.
As the San Francisco-based company continues its profitability push, it will likely focus on achieving those efforts within its JUST Egg business.
According to the announcement, JUST Egg has a repeat purchase rate of 51%. The product is sold in over 48,000 retail points of distribution, in addition 10,000 added locations via co-branded products like with Alpha Foods. The fake egg’s foodservice business is booming – with sales increasing 15% and 39% in Q1 and Q2, respectively, through a host of new airline, coffee shop and college/university campus partnerships.
Last summer the company also cut the price of JUST Egg nearly in half, bringing it down to $3.99 per 12 oz. bottle. Due to the impact of the avian flu at the time, the move allowed it to briefly reach price parity with the cost of a dozen organic eggs.
Following the layoffs, a company spokesperson had also noted that while certain areas of the business will be reduced, Eat Just is continuing to invest in growth areas including its R&D, operations and sales teams.
“Eat Just and its leadership in the industry play a critical part of building a kinder, safer food system,” said Shaleen Shah, President of Ahimsa Foundation, in a press release. “We’re proud of this investment and the continued partnership to make products that consumers love without causing the harm inherent in animal agriculture.”
