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Heura earns $20 million in funding for its plant-based proteins ahead of boost B next year TechCrunch

What’s going on with the demand for plant-based meat? If you watch at the headquarters in Barcelona Heura The picture looks brighter – with the alt-protein startup claiming to have “relentless” momentum and sales of its fake chicken, beef and pork products nearly doubling in the first half. year 2022.

In the middle of the year, the startup founded in 2017 reported that it had posted sales of 14.7 million euros, up from 7.6 million euros in the same period last year, after achieving the most successful first half of the year. over its 5-year history and includes several major retailers to stock plant-based foods (including Ocado in the UK, Migros in Switzerland, Carrefour in Italy, E.Leclerc, Intermarché and Super U at France). More new partnerships with “major” retailers in Europe are expected this year, and it is welcoming “triple-digit growth” of more than 100% YoY.

It has also enjoyed some apparent success in its home market by persuading restaurants to add products (and brand names) to their menus – like plant-based ingredients, allowing they offer vegan alternatives to meat dishes ranging from banh tet and bocadillos to curries, dishes and more. And Heura is taking credit for 80% of the growth of the local flora (although it should be noted that Spain still one of Europe’s largest consumers of animal meat so the development of alternative proteins is starting from a low base). It added that it expects to end the year with a 30% domestic market share as it strives to expand in Europe.

It also introduces a Series B round due next year – which it predicts will be one of the largest 2023 B rounds in Europe in the alternative protein industry (for some context, a Another European startup, Planted, has raised funds $72 million Series B round early this fall). And today, it announced a new round of bridging funding of €20 million, ahead of the (larger) expected B deadline. It notes that this (before) Series B funding covers the development of The issuance of convertible bonds will result in equity next year in full Series B so that a wide range of investors are clearly bought in to grow its sales.

Heura said the bridge round included contributions from NBA star Ricky Rubio, soccer players Sergi Busquets and Sergi Roberto, comedian David Broncano, as well as Unovis Capital. Part of the funding was raised earlier this year when it raised over €4 million in 12 hours through the Equity for Good Rebels crowdfunding campaign – attracting support from more than 5,000 individual backers.

This round will help it continue to expand in the region – with the goal of increasing its presence in key markets such as France, Italy and the UK, while adding new European regions, including Austria, Germany, Switzerland, Netherlands, etc in the coming years. “With new capital in hand, the main focus is on Heura will position itself as Europe’s factory-based leader by 2027,” it noted in a press release.

Square on the 2023 menu: New product in the “new segment”, after first patent filing in November 2022 – though exactly what it’s cooking remains unclear. The company’s PR department says its focus will be on offering new foods next year that are “beneficial to nature, rich in nutrients and achieving culinary excellence”.

So far, it sounds fascinating, if we can put it that way. But the plant-based meat category has deflated a long time after it was heavily advertised.

This may explain why Heura is causing a stir about this round of bridges and teasing bigger payouts to come next year. The motivation to continue is not necessarily the same.

To wit: US giant Beyond Meat reveals it’s cutting nearly a fifth of its workforce in the first day of this monthdue to declining sales.

While Bloomberg reports on cooling demand hit the plant-based category last monthquote a Deloitte Report which suggested that “stagnation” demand could be due to factors such as the market being less resolvable than initially thought (including the result of “cultural resistance”, perhaps tied to associated with increased political polarization in many societies); inflation (and especially high food price inflation) feeds into consumers’ appetites to pay higher prices for plant-based meat alternatives (which are often still more expensive than non-premium meat options) ); and changing consumer perceptions of healthy levels of plant-based protein.

Some of these suggestions may suggest that meat lobbying has been successful with negative publicity campaigns targeting plant-based alternatives to prevent this kind of wholesale conversion of the food system. products are essential if humanity is to reduce carbon emissions in line with climate goals.

For example, the meat industry has splurged on advertising campaigns that seek to call plant-based products ‘Frankenfoods’ – while framing animal-based meat as a simple, neutral option. real and (relatively) healthy. Such as this American offensive advertising campaign (reported by Science ZME last year) – attacks plant-based proteins by alluding to products that are more heavily processed and laden with chemicals that sound scarier than their meat equivalents (no mention at all). mentions health problems associated with the consumption of meat products such as bacon, such as The risk of certain cancers WHO has been associated with consumption of red and processed meats for many years); while making all these self-interest statements under the banner “cleanfoodfacts.com”, i.e. instead of explicitly disclosing their guaranteed commercial interests.

Plant-based startups will likely need to up their comms and product development game (and ideally lift the lid on manufacturing methods, like some have) to combat these types of cynical attack tactics.

Plant-based startups are at least in a position to garner support from (broader) environmental campaign groups and movements to amplify their own pro-climate messaging.

“Clearly communicating the benefits of protein transition along with getting more people to vote for their fork will help lead the way. [our] growth across the continent,” is how Heura’s PR shapes its growth prospects at this point in the PBP (plant-based protein) hype cycle.

There is certainly a big and clear story that PBP brands can tell to sell climate-conscious consumers about their meat alternatives.

For example, Heura alone, could save about 55.9 million liters of water used and 3.6 million kg of CO2 – as well as reduce the lives of 509,000 chickens, pigs and cows – in the first half of the year alone. now. So expect louder protest messages from alternative protein brands than in response to the meat lobby’s ‘tobacco’ style offensive marketing tactics.

The Deloitte report advises plant-based meat/alternative meat producers to “explore ways to expand addressable markets, reduce relative costs, and create formulations that provide health benefits.” while maintaining the taste” to drive growth – while noting what they say is rapid growth in VC and major consumer brand investments in this category over the past year (and shows that the resulting innovations could open a smoother growth path for the market).

In terms of cost, although plant-based proteins still often have the problem of high prices compared to meat (especially with subsidies that support traditional food production methods) – this is absolutely the case. a problem caused by rising food inflation (and the cost of the life crisis), the scales can be tilted. Especially in Europe, where the region remains heavily impacted by high energy costs caused by Russia’s war in Ukraine and its response to Western sanctions as the bloc seeks ways to reduce dependence on Russian gas imports.

The bottom line: High energy costs tend to affect meat prices more than plant-based food production because the former is a less efficient way to produce protein for humans than raising animals animals for slaughter – flesh-and-blood creatures that require self-sufficient protein. That means if you feed plant protein directly to humans and you’re cutting out a very expensive step.

This dynamic suggests that the price differential between animal meat and (at least some) plant-based protein will continue to narrow – even as startups like Heura continue to proliferate and grow. allowing them to open up to greater economies of scale in their production facilities.

So the degree of “stagnation” of the PBP industry is due to attacks by the skeptic meat industry and self-aggrandizement about the tougher climate reality (and cost of living) that remains to be seen. consider.

Commenting on his own growth prospects in a statement, Heuro CEO and co-founder, Marc Coloma, was upbeat, writing: “Having mission-driven investors who dare to do it Taking bold action to accelerate the transition to plant-based proteins gives us the resources to continue driving our portfolio growth across Europe. We have a clear vision and this new funding will help us transform from a successful plant-based company in Spain to an aggressive food technology startup leading the way. protein transformation across Europe. This growth path is designed to put us in 2023 at the close of the biggest Series B rounds in the industry and usher in a better future for people, planet and animals. “



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