Pacifico Biolabs bets on breweries to cut alt-meat costs

German foodtech startup Pacifico Biolabs has secured a €7 million ($8.1 million) Series A funding round to expand its fungi-based meat production model, which relies on converting unused brewery infrastructure into manufacturing sites for alternative proteins. The company plans to launch products in European retail markets later this year while scaling production capacity in Saxony to 200 tons per month.

Founded in 2022 by Zac Austin and Washington Logroño, the startup is focused on producing whole-cut alternative meat from mycelium, the root-like structure of fungi. According to the company, the strategy allows it to avoid the high capital costs typically associated with building new fermentation facilities.

As reported by AgFunderNews, the funding round included participation from Stray Dog Capital, TGFS, Sprout & About Ventures, Simon Capital, FoodLabs and a regional brewery partner. The investment will support commercial expansion across Germany, Austria, Switzerland and Nordic Europe.

Pacifico Biolabs argues that declining beer consumption in Europe has created a new opportunity for the alternative protein industry. Many breweries currently operate with underused infrastructure that can potentially be adapted for biomass fermentation.

The company claims its approach offers a “low-cost, rapidly scalable route to mass-market production” while targeting cost parity with conventional meat from day one.

Sören Schuster, managing director at TGFS, said the startup combines “European sovereignty and high capital efficiency,” positioning it as a significant player within the emerging bioeconomy sector.

The business model is centered on supplying products to established food brands and retailers. Pacifico Biolabs operates through both private-label and semi-finished product partnerships, allowing clients to package products directly or integrate them into prepared meals.

“Our mycelium products are ready to use by our customers as meat,” cofounder Zac Austin explained, according to AgFunderNews. “This can be anything from packaging them as plain pieces, or adding marinades or breading, through to integrating into another product.”

The startup is also in discussions with foodservice companies and major meat producers looking to expand into alternative proteins.

While Pacifico Biolabs has not disclosed the exact fungi strain used in production, Austin stated that the company is already using a strain approved for sale in Europe. He also claimed the texture differs significantly from existing mycelium-based products such as Quorn, with the company focusing on whole-muscle-like structures designed to resemble chicken breast and similar cuts.

The company’s production model reflects a broader trend within the biomass fermentation industry, where startups are seeking ways to reduce infrastructure costs and accelerate commercialization.

Several companies operating in the fungi-protein segment have faced operational and financial challenges in recent years. US-based Meati Foods collapsed after a turbulent expansion period, while other companies including ENOUGH Food and Quorn have faced slower-than-expected growth.

At the same time, investment activity in the sector remains strong. Companies such as Planetary, Infinite Roots, Better Meat Co, MATR and Formo have recently secured funding rounds to expand fermentation capacity and alternative protein technologies.

Pacifico Biolabs believes its brewery retrofit strategy could offer a more efficient path to scale at a time when many startups are struggling with manufacturing costs and infrastructure investment requirements.

The company expects its first large-scale commercial launches to begin later this year across selected European markets.