The Checkout: FDA to Resume On-Site Inspections, Perfect Day Raises $160M

Welcome to The Checkout: an express lane for weekly news you need to know, always 10 items or less.

FDA to Resume On-Site Domestic Inspections

In an update today, the Food and Drug Administration (FDA) said it aims to resume on-site inspections July 20 after prioritizing “mission-critical” inspections during the pandemic. The agency has been following The White House Guidelines for Opening Up America Again as well as state and county guidelines via a “thoughtful and deliberate” approach, the statement said.

Moving forward, all inspections (except for tobacco retailers) will be pre-announced to help protect company employees and FDA staff, who will be provided with PPE. The agency’s new COVID-19 Advisory Rating system will determine the highest-priority inspections and associated safety risks, including the state’s phase, county-level statistics and “intensity of infection,” along with national data. Ratings will be shared with the agency’s state partners who assist with inspections.

During the pandemic, the agency reported “great success” using tools such as remote assessments and import alerts, noting that it adjusted processes along the way.

Perfect Day Adds $160M to Series C

This week, fermentation-based alternative dairy startup Perfect Day announced it has raised $160 million, extending its Series C round to $300 million. The Berkeley-based brand has raised $361.5 million since its founding in 2014.

The tranche was led by investment firm Canada Pension Plan Investment Board (CPP Investments), which contributed $50 million, and the Series C announced in December included the brand’s longtime investors, Temasek and Horizon Ventures. Since then, Perfect Day has doubled its production capacity and reduced costs, according to a release, and is ahead of schedule in expanding its flora-based whey protein, which replicates milk protein and can be used to make products like cheese, butter and milk. Last July, Perfect Day offered a limited test run of ice cream online, and its three-pint bundles of Milky Chocolate, Vanilla Salted Fudge and Vanilla Blackberry Toffee sold out in a day. In April the brand received generally recognized as safe (GRAS) status from the FDA.

“We never doubted we’d reach this point, we just didn’t expect to get here so quickly,” cofounder and CEO Ryan Pandya said. “We’re not planning to take our foot off the pedal anytime soon.”

Pandya added that the pandemic has highlighted issues within the food supply chain. Leon Pedersen, managing director and head of thematic investing at CPP Investments, noted Perfect Day’s sustainable ethos as a major draw.

“Sustainable technologies like Perfect Day are poised to capture structural shifts in industrial practices, physical resources and consumer preferences for environmentally conscious options,” Pedersen said.

PBFA and Kroger: Plant-based Meat Sales Grew in Meat Set

Trade organization the Plant Based Foods Association (PBFA) and retailer Kroger released the results of their 12-week study examining sales of meat alternatives. Overall, they found plant-based meat sales increased 23% when placed in a three-foot set in the meat department compared to other areas of the store.

The study, which launched in December in 60 stores in Indiana, Illinois and Colorado, included sales analyses, shopper feedback, store personnel education and audits. Almost all shoppers in the study said the products were easier to find in the new location and many were “excited and impressed” about the options within the set.

Since then, plant-based meat sales in Midwest stores grew 32%, while the Denver area’s sales grew 13%. Julie Emmett, PBFA’s senior director of retail partnerships, noted in a release the “tremendous opportunity for plant-based meats…including in the nation’s heartland.”

Kroger merchandising director Sean Brislin said the retailer has seen continued double-digit growth in plant-based meat, including 75% sales growth from March to June, during which its plant-based meat customers grew by more than 50% year-over-year. According to the company, shoppers bought more items and more often than before during that time. Additionally, PBFA found that in the four weeks following mid-March panic buys, plant-based meat sales grew 27% — 35% faster than total food.

“This test provides one more proof point that plant-based meats have moved from niche to mainstream [and] demonstrates the viability of shifting product placements to reach even more customers,” Brislin said.

Uber Launches Grocery Delivery

Rideshare app Uber and grocery delivery startup Cornershop this week launched a new grocery delivery service, to meet demand from consumers who are growing hungrier for online shopping.

The service is now available using Uber Eats in select Latin American and Canadian cities (where five year-old, Santiago, Chile-based Cornershop operates) with plans to launch in Dallas and Miami later this month. Uber is available in 6,000 cities in six continents.

During a pilot, Uber partnered with over 9,500 merchants in 30 countries to deliver groceries, noting in a statement that grocery and convenience store orders on the platform increased 197% since March.

“Over the last six months, it’s become increasingly clear that grocery delivery is not only popular, but often a necessity,” the company said. “We expect to see this trend continue as people across the world look for new ways to save time and stay safe.”

Uber announced plans to acquire Cornershop in October 2019, with the deal expected to close this month. Through the partnership, Cornershop team members fulfill orders and customers receive tracking information before a no-contact delivery is made. The product marks “an important step” in the company’s partnership with Cornershop, said Raj Beri, Uber’s global head of grocery, in a release.

“Uber started on the premise that people should be able to more easily get to the places they need to go, and to people they care about,” Beri said. “We are thrilled to bring our product expertise to the world of grocery.”