Daily Briefing (Insiders Only): Why Chipotle Is Investing In Plants
Are aquatic plants the next hot ingredient in the plant-based space? Chipotle seems to think so.
Through its VC arm Cultivate Next, the fast-casual Mexican grill chain has made minority investments in food tech outfit Plantible along with methane-reducing solutions provider CH4 Global. These investments are said to help scale the production of sustainable food and accelerate the chain’s plans to operate 7,000 locations in North America, according to a press release.
Since its inception in 2022, Chipotle’s Cultivate Next fund has bet on startups innovating across the farming, robotics and plant-based food sectors; its investments tend to lean into simple-ingredient approaches rather than food tech-heavy or incredibly novel processes.
- Check out Cultivate’s portfolio, which includes mycelium-based alt-meat maker Meati Foods (which recently secured a $100 million investment) and clean cooking oil producer Zero Acre Farms.
What is Plantible? The vertically-integrated platform produces Rubi Protein – a plant-based protein that mimics the taste and texture of animal proteins. It hails from duckweed, a small flowering aquatic plant found on ponds or wetlands. (Let us be the first to claim it: It’s only a matter of time before Swamp Steaks show up on menus)
- Plantible is gaining ground, having shared the news late last year that it closed a $30 million Series B round co-led by Siddhi Capital and Piva Capital, with participation from Cultivate.
Chipotle’s investment in Plantible is just the latest example of how the restaurant ecosystem has taken a supporting role in growing sustainability within the CPG space. In 2023, burger chain Shake Shack partnered with Zero Acre Farms to test its oil at two of its New York City locations.
- Additionally, Meati has garnered support from Sweetgreen with the chain using its plant-based meat analogue in its Miso Meati Bowl.
These partnerships have played a key role in giving relatively early-stage, sustainability-focused CPG products a channel for generating consumer awareness and driving trial.
While we can’t be sure these partnerships will pay higher dividends than what alt-meat giants like Beyond Meat and Impossible Foods experienced with McDonald’s and Burger King – we’re willing to bet Chipotle and Sweetgreen consumers might be a tad more receptive of these wellness and climate-supporting product plays.
Correction: The original version of this newsletter incorrectly stated that Zero Acre Farms has partnered with Sweetgreen.
