Whole Cut Maker Chunk Foods Add $7.5M to Seed, Enters Mexican Market with Better Balance Partnership

US plant-based whole-cut meat producer Chunk Foods has raised $7.5M in an additional seed funding round and inked a partnership with plant protein company Better Balance to expand into Latin America.

Chunk Foods has added to its seed funding pot with a $7.5M capital injection, bringing its total raised to $24M ($22M of which is seed financing). The latest round was led by existing investor Cheyenne Ventures, while its previous backers include Robert Downey Jr’s FootPrint Coalition, Fall Line Capital, the MIT E14 fund, and Better Balance (the plant-based subsidiary of Mexican food giant Sigma Alimentos). The company plans to deploy the capital towards increasing distribution and manufacturing capacity.

In addition, Chunk has entered into a collaboration agreement with Better Balance to develop a new range of plant-based whole cuts. Better Balance will be using Chunk Foods’ 4oz steak in what will be the latter’s first venture outside the US, with the co-branded products available at six restaurants in Mexico during the pilot.

“It’s an honour to embark on this exciting journey with Better Balance, known for its commitment to delivering high-quality products,” said Chunk Foods founder and CEO Amos Golan. “Together with Better Balance, we are elevating the plant-based category with innovative, delicious products that cater to the vibrant tastes and lifestyles of Mexico.”

Plans to expand distribution and increase production

Founded in 2020, Chunk Foods makes whole-cut steaks using cultured soy and wheat, employing solid-state fermentation tech. In August, it won the Plant Based Meat Product of the Year honour at the fourth annual AgTech Breakthrough Awards. And last year, it solidified its footing in the alt-protein space by making its mark across multiple foodservice locations in the US.

Chunk Foods’ plant-based beef has appeared on the menus of several New York City restaurants, including Coletta, Anixi, and The Butcher’s Daughter. It has also established a partnership with the Floridian restaurant group Talk of the Town, having launched into Charley’s Steak House in Orlando last year. Chunk Steak is in Philadelphia too, starting with Monster Vegan, which makes a short rib ragu using the vegan meat.

Additionally, the company has collaborated with Leonardo DiCaprio- and Lewis Hamilton-backed chain Neat Burger, which introduced a Chunk Steak Sandwich, and landed on the menu at Formula 1 in Austin (as well as the Pro Smoke Show) in October. And in December, it headlined a culinary experience at Art Basel Miami Beach, as part of a Philly cheesesteak.

Speaking to Green Queen, Golan outlined the company’s plan to use the funds “to increase manufacturing capacity to meet the demand and to support our growth” in the US. He added: “We plan to continue expanding our commercial and operations teams in the US, obtain nationwide distribution and increase the number of local distribution partnerships. Our end goal is for every restaurant in the US interested in offering plant-based options to have a Chunk on the menu.”

The company notes that its partnership with Better Balance is “not just a financial transaction”, marking a “commitment to innovation, sustainability and an expansion of the premium plant-based market.” The alliance will provide Better Balance with access to Chunk Foods’ whole-cut products, enabling the brands to reach a wider, more diverse consumer base.

“The plant-based segment remains incredibly enticing, with substantial untapped potential waiting to be discovered,” said Helio Castaño, Better Balance’s global VP for plant-based. “Better Balance aims to meet the evolving consumer demands for taste, texture, ingredient transparency, and ease of preparation. The collaboration with Chunk will enable the exploration of exciting new alternatives in the premium segment which are aligned to this purpose.”

Chunk Foods ‘poised to outcompete animal agriculture’

Chunk Foods’ product offering includes 4oz, 6oz and 1lb steaks in filet, pulled and cubed formats for B2B customers. But it’s not just stopping there: the company has previously said it is also working on pork, lamb and poultry alternatives. Golan confirmed this, explaining: “I set out to create a plant-based meat that was delicious and made using as few recognisable ingredients as possible. Our first target is beef, but we certainly have other analogues in the works.”

The last couple of years have been rocky for the plant-based sector, with sales declining and companies shutting down as the cost of living bites consumers hard and discourse around long ingredient lists and ultra-processed foods sows doubt. The industry further suffered from a drop in VC funding, mirroring challenges in the overall food tech sector.

But on the back of Chunk Foods’ latest financing round, Golan remains positive. “The plant-based segment remains attractive, growing faster than the global market and holding significant untapped potential,” he said. “Part of the criticism of the category focuses on the fact that the current offerings do not meet consumers’ demands,” he added.

Whole cuts are widely considered the “holy grail” of plant-based meat, with their ability to meet key consumer concerns around taste and texture. That’s the aim of other players like Juicy Marbles (Slovenia), Redefine Meat (Israel), Libre Foods (Spain), Green Rebel (Indonesia) and Revo Foods (Austria), to name a few. “By creating a product that is truly comparable to beef and meets the culinary requirements of restaurant operators and their clients, Chunk is already expanding the addressable audience for the plant-based industry,” Golan said.

Another fear that Chunk Foods is hoping to allay is price. Using solid-state fermentation is cheaper than high-moisture extrusion or submerged fermentation is cheaper, thanks to which, Golan claimed the startup’s steaks cost about the same as a beef tenderloin. “Our plant-based whole cuts are poised to outcompete animal agriculture in terms of price, scale and efficiency.”

This will also be helped by the company’s new factory, which was completed last year and is said to be one of the largest of its kind in the industry. So what’s in store for the rest of 2024? “Our goal is for every restaurant in the US interested in providing customers a delicious plant-based option to include Chunk on their menu,” answers Golan.