Chunk foodsa company that produces whole plant-based alternative protein cuts, has closed on another $7.5 million in seed expansion funding amid a new strategic partnership with one of Latin America’s largest meat and dairy producers.
The partnership with meat and dairy company Sigma Alimentos brings Chunk’s products to Latin America for the first time. Chunk will provide plant proteins for Sigma’s Better balance production line. The products are expected to be available for food service and retail in Mexico this year.
We profiled Chunk Foods last April when the four-year-old company announced $15 million in seed funding from investors including Fall Line Capital, The MIT E14 fund and FootPrint Coalition. The company develops whole steak-like fillets using fermentation technology and food-grade microorganisms to convert soy and wheat into its proteins.
At the time, venture capital in the plant industry was booming. For example, No Meat Factory, Planetarians, and ISH Company were put together around the same time. Investments in this particular sector declined in 2023, however this investment could likely be a catalyst for things to come.
Despite fewer VC dollars being invested in plant-based protein alternatives, Amos Golan, founder and CEO of Chunk Foods, remains optimistic, even calling 2023 a “breakthrough year for the industry” and his company.
“For a long time, the plant-based options on the market fell short of expectations in terms of taste or texture,” Golan told TechCrunch via email. “Another major change from last year was availability. It used to be that you would only find a range of vegan options at a “vegan” restaurant, or maybe a mediocre plant-based burger at a fast-casual establishment. This is now changing.”
Food prices are also a big determinant of consumers being willing to try new things. Chunk’s whole cuts come close to par with traditional animal products, Golan said.
In the past year, Chunk’s plant-based “steaks” have made their way into mainstream restaurants on the East Coast of the United States, including Florida steakhouse chain Charley’s Steak House.
During that same time period, the company doubled in size, opened an entire production facility and introduced two new SKUs: the six-ounce Steakhouse Cut steak and the Chunk steak.
As for the new investment, Cheyenne Ventures led the round, which brings the total production round to $22 million. Chunk has now raised $24 million in total funding.
Golan plans to deploy the new funding in expanding its US commercial and operations teams with the goal of acquiring nationwide distribution and increasing the number of local distribution partnerships. The company will also increase production capacity to meet customer demand.
Golan declined to share revenue growth and the company’s valuation, but said the current valuation is higher than Chunk’s previous round.
“We have incredible traction in the market that the plant-based space hasn’t seen in a long time, and that has led to investment interest from existing and new investors,” said Golan. “It’s safe to say that there is investor confidence in our vision, the unit’s strong financials and the potential of the plant-based crop space as a whole.”
Got a juicy tip or guide on what’s happening in the world of food tech or entrepreneurship? Send tips to Christine Hall at chall.techcrunch@gmail.com. Requests for anonymity will be honored.
