By Agroempresario.com

Meati Foods, the fungi-fueled alt-meat startup, has made significant strides in 2024, almost doubling its revenue compared to 2023 and positioning itself to achieve positive gross margins by the end of the year. CEO Phil Graves shared the exciting news with AgFunderNews, highlighting the company’s expanding presence in retail and its promising financial outlook.

With $365 million in funding, Meati has become a key player in the meat alternatives space. However, the company has faced challenges along the way, including four rounds of layoffs aimed at streamlining operations and pushing for profitability. Despite these difficulties, Graves remains optimistic about the company’s trajectory.

“We’re well on our way to achieving positive gross margins by the end of this year,” Graves stated, underscoring the company’s ongoing improvements. Meati’s sales momentum is fueled by the recent launch of a new line of breakfast patties, now available in 280 Sprouts stores nationwide, as well as new listings in Raley’s and Harris Teeter, further boosting their retail presence.

In total, Meati now boasts distribution across roughly 7,000 stores, a remarkable expansion from the 2,000 stores it was in last year. Graves attributed the company's success to the quality of the product and a dedicated team that’s been able to secure strong commercial traction.

"We’ve increased our distribution by 130% year over year, from 2023 to 2024, and we’re just getting started," he added. To ensure its products are consistently in stock and properly priced, Meati has also engaged a firm to audit over 1,000 stores.

Despite a broader downturn in meat alternative sales across the U.S., Meati stands out by focusing on simpler products with fewer ingredients and less processing. Its breakfast patties, for example, contain 8g of protein, 4g of fiber, and are free of cholesterol and saturated fat, aligning with consumer demand for cleaner labels.

Looking ahead, Graves is focused on maximizing the company’s assets at the Mega Ranch in Thornton, Colorado. He is in talks with potential partners to utilize spare fermentation capacity at the facility until it is fully optimized for in-house mycelium production.

"We’ve had several firms visit and we’re actively vetting opportunities from both a technical and commercial perspective,” Graves explained. While no specific announcements have been made, the discussions signal a strategic move to further scale up production.

In a recent move to optimize operations, Meati also sold off some of its processing equipment from an outdated pilot facility in Gunbarrel, Boulder. By consolidating all operations under one roof at the Thornton facility, the company is making a concerted effort to be more capital efficient and better utilize its resources.

"Our goal is to be good stewards of the capital we have, so we’re focusing on consolidating our operations in one location," said Graves.

As Meati continues to grow and expand, its future looks bright, with an eye on achieving profitability, increasing distribution, and tapping into the growing consumer appetite for simple, sustainable, and nutritious meat alternatives.