At the onset of February, Phil Graves assumed the role of chief financial officer at Meati Foods, an alternative protein manufacturer. Now, he has been appointed as the company’s new chief executive officer.
In this transition, co-founder Tyler Huggins will take on the position of chief innovation officer. In his new role, Huggins will spearhead the company’s brand refocus as Meati, known for its alternative protein cutlets and steaks crafted from mycelium, or mushroom root, prepares to expand its MushroomRoot product line in 2024.
Alongside these changes, Meati announced a reduction in its workforce by 13% as part of its efforts to establish a financially sustainable business model, as confirmed by Graves in an exclusive statement to TechCrunch.
Graves emphasized the necessity of aligning the organizational structure and team with the company’s objectives for sustainable growth. He acknowledged that building something entirely new presents challenges, necessitating a clear path to financial profitability.
While the company did not specify the exact number of jobs affected by the reduction, Meati reported having approximately 150 employees in 2022. Details regarding severance packages were still being finalized at the time of publication.
Meati’s recent layoffs may appear surprising given its outward success and expansion efforts. The company’s Mega Ranch facility experienced significant production scaling throughout 2023, and its products have achieved widespread distribution, being stocked in over 3,600 retail locations nationwide, including prominent chains like Whole Foods Market, Meijer, Cub Foods, and Sprouts Farmers Market. CEO Phil Graves has even set an ambitious goal of expanding distribution to 10,000 locations by the end of 2024.
The surge of interest in mushrooms as a versatile and sustainable resource has also contributed to Meati’s traction. Beyond food products, companies are leveraging fungi to create functional beverages and leather-like materials, garnering success and significant venture capital funding.
Meati itself has attracted substantial investor attention, securing significant funding over the past two years, particularly at the Series C level. Initially announced at $150 million in July 2022, the funding round later received an additional $22 million in January 2023 before ultimately closing at over $200 million later in the same year.
A significant portion of this capital infusion was directed towards the establishment of the 100,000-square-foot Mega Ranch facility. This facility has enabled Meati to achieve an annual production capacity of tens of millions of pounds of its protein product. Upon full operational capacity, the Mega Ranch is projected to produce over 45 million pounds of product, as stated by co-founder Tyler Huggins in a previous interview with TechCrunch.