While consumer acceptance around fungi grows, Meati’s line up of mycelium-based filets and patties are still a novelty, explained John Bortells, chief commercial officer at Meati during Natural Products Expo West.
“That comes with a lot of restrictions and requirements to make sure that you bring something in that is clean and healthy,” he said, adding that while Meati’s products are self-affirmed GRAS (generally recognized as safe), the company is looking into submitting the GRAS notice to FDA to expand into the alternative markets.
Last year, the alternative meat startup faced a class action lawsuit accusing it of falsely claiming its cutlets and steaks were made from mushroom root, when in fact they are made from a strain of filamentous fungus known as Neurospora crassa, a type of mold.
Improving consumer perception about ‘what we are’
“We have so much work to do here that we have to be very cautious and choose the right strategy and how we go forward and focused on what is the big goal moving forward right now,” Bortells said.
One of those goals is improving consumer education about “what we are and who are,” Bortells said.
“It is about getting our core products right, making sure that we have a simplified offering to our customers, so it is not so confusing,” he added.
This includes packaging that “really screams education,” he emphasized.
Another goal is ensuring a consistent and affordable price point for consumers. Meati’s current lineup price is equivalent to a grass-fed beef or chicken, Bortells explained.
Room to grow retail presence and ‘be more economical’
While the company recognizes its products “are not for everybody,” its national distribution in 6,500 retail doors – with a goal to triple those numbers – indicates that there is room to “grow this business and be more economical,” he said.
“Mycelium can do so many things and it’s just educating the customer that we are providing growth in the category right now,” Bortells added.
Earlier this year the company announced its foray into the breakfast category with its Original and Maple Breakfast Patties launched exclusively in 280 Sprouts Farmers Markets nationwide. Each of the patties are made with 98% mycelium and deliver 8 grams of protein, 4 grams of fiber and zero saturated fat or cholesterol.
While the investment is challenging due to current market conditions and pending shifts in health policies, Meati’s internal and external investors are optimistic about the company’s financial stability though the company “needs a little more runway,” Bortells said.
“We have a lot of people interested in our product,” with investors looking into products that “could literally feed the world,” Bortells said.
