The Checkout: BlueNalu Raises $60M; Jensen Meat Opens Plant-Based Division

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Cell-Based Seafood Maker BlueNalu Raises $60M

Cell-based seafood company BlueNalu announced this week it has secured $60 million in debt financing, which will be used to open a new San Diego-based pilot production facility, complete FDA regulatory review of its products and pilot its products in the foodservice channel.

The financing was led by Rage Capital, with Siddhi Capital, Lewis & Clark AgriFood, Agronomics and McWin also participating. Thai Union, owner of global seafood brands including Chicken of the Sea, also invested in the company, marking its first investment in the cell-based foods sector. The company added four new Observers to its board of directors as part of the deal: Steven Finn of Siddhi Capital, Jim Mellon of Agronomics, Larry Page of Lewis & Clark AgriFood and Alex Ruimy of Rage Capital. The new financing follows a series A funding round of $20 million in February 2020 as well as a $4.5 million seed round in 2018.

BlueNalu will look to bring its cell-based seafood to market later this year, beginning with mahi mahi and followed by premium bluefin tuna, according to a press release. The company is currently forging strategic partnerships for product development and distribution across several key markets, including the U.S., where it plans to first launch its products. The company has also established partnerships with companies in Japan and South Korea that could help BlueNalu gain distribution and regulatory approval for its products in Asia.

“The team at BlueNalu is driven to produce cell-based seafood products that are healthy for consumers, humane for animals, sustainable for our planet, and provide increased food security to each nation in which we go to market,” Lou Cooperhouse, BlueNalu’s president and CEO, said in a press release. “This recent financing will allow us to continue advancing our mission and the next phase of our commercialization plans, while we continue to develop strategic partnerships that we expect will provide us with global market reach during the coming years.”

The funding for BlueNalu follows a wave of investment in the alt-seafood space, which includes plant-based shellfish brand New Wave Foods’ $18 million funding round announced earlier this month.

Jensen Meat Adds Plant-Based Division

Jensen Meat, a Southern California-based ground beef processor and owner of Beyond the Butcher, this week announced the expansion of its facilities to accommodate co-packing and processing opportunities for plant-based beef products. The company produces branded products under Great Value, Kroger and Sam’s Choice private labels which are sold through retail, foodservice and the club store channel.

“With sixty years’ experience, Jensen Meat has perfected how to process and pack quality ground beef,” Abel Olivera, CEO of Jensen Meat, said in a press release. “We now want to leverage our world-class knowledge to create a cost-effective process for producing plant-based products.”

The company’s new facility, which will be completed by April, will allow the company to form partnerships with plant-based brands, offering capabilities such as blending, cooking, emulsifying and hydrating, as well as patty forming. The facility will assist emerging plant-based brands struggling to scale their production processes and ultimately enable them to produce products offered to consumers at a lower price point. The new division will also help the company meet its goal of achieving a more sustainable and equitable food system, the company said.

“We want to help bright minds out there that have the same goal of creating healthy, low-cost foods from alternative sources of protein, which also play a part in reducing world hunger,” Olivera said.

This is not the company’s first foray into plant-based meat. In 2019, Jensen acquired plant-based meat brand Before the Butcher, which launched a budget-friendly vegan burger under the brand Mainstream last year. While the Before the Butcher operates in its own production facility, founder Danny O’Malley told NOSH last year it used Jensen’s San Diego-based facility for its high volume burger production.

U.S. Soy Launches Sustainably Grown U.S. Soy Mark Pilot

The United Soybean Board (USB) has joined forces with meal replacement brand Soylent and DuPont Nutrition and Biosciences for a pilot program of labeling products and ingredients with the new Sustainably Grown U.S. Soy mark. The rollout of the mark is aimed at increasing demand for U.S.-grown soybeans grown using environmentally conscious agricultural practices.

The mark indicates a brand uses soy that has been grown using sustainable agricultural practices, such as no-till farming, which support biodiversity, soil conservation and reduction of greenhouse gas emissions. Products and ingredients that feature the new mark are guaranteed to have been grown in the U.S. on family farms with responsible labor practices, compliant with U.S. environmental regulations and “protect highly erodible soils and wetlands,” according to a press release.

“It’s an honor to be one of the first companies to receive the Sustainably Grown U.S. Soy mark,” Demir Vangelov, CEO of Soylent, said in a press release. “For years, we have created market-leading products rooted in science and sustainability, so it was important to us to be a part of this pilot.”

The pilot program will extend through March 19, after which the USB aims to open use of the mark up to other interested companies. Companies who would like to receive the mark must submit a third party supply chain audit.

Explore Cuisine Owner Acquires Edamama

New Jersey-based food company Ethical Brands, owner of pasta and rice brand Explore Cuisine, announced its acquisition of high protein pasta and sauce brand Edamama. Edamama, founded in 2014, is distributed across Germany, Austria and Switzerland in retail and e-commerce channels.

Edamama CEO Fabio Matticoli said in a press release that the brand will benefit from the partnership through Ethical Brand’s “robust supply and distribution structure,” which will support the launch of the brand’s new innovations. According to Ethical Brands CEO Gregor Forbes, the Edamama acquisition will help strengthen the company’s presence in Europe, where many of its Explore Cuisine products are also distributed. Edamama’s organic bean-based pasta will complement Explore Cuisine’s pasta range, which features ingredients such as lentils, spirulina and edamame, according to the company.

“The demand for plant-based protein alternatives is accelerating, and our high protein, high fiber, and low carbohydrate brands provide consumers with a simple, clean way to reduce meat consumption,” Forbes said.

SPINS Secures New Investment

Wellness-focused data and analytics company SPINS this week announced new investment from Warburg Pincus, General Atlantic and Georgian. The funding will be used to support sales and marketing expansion, new product development and growth of new verticals. Terms of the deal were not disclosed.

SPINS has worked with the natural products industry for over two decades, providing data and insight for retailers, brands and distributors. Tony Olson, founder and CEO of SPINS, said in a press release that the company’s mission is to “increase the presence and accessibility of natural and better-for-you products that help people live their healthiest and best lives and drive sustainable production practices in North America.”

“We are beyond thrilled to take our vision to the next level with Warburg Pincus, General Atlantic and Georgian by leveraging their global resources and experience in data and information businesses to enable SPINS to meet the rapidly growing demand for our services,” he said.

Margaret Wu, lead investor at Georgian, said the new investment and new initiatives from SPINS will help further fuel the growth of the natural products industry.

“The company’s rich dataset has enabled the team to develop a high-value AI roadmap that will drastically enhance its product intelligence offerings,” she said. “We are excited to partner with SPINS on this journey and support the team in helping customers realize greater value, faster.”