‘Consumers Shouldn’t Have to Compromise’: Meati CEO Attacks UPFs & Factory Farming After Doubling Revenue in 2024

Meati Foods CEO Phil Graves says there should be no place for ultra-processed or factory-farmed meat on consumer plates, as the mycelium protein maker doubles revenue and rolls out a new product line.

Consumers should not be limited to choosing between planet-harming industrial meat or plant-based proteins with long ingredient lists, according to the head of one of the most well-funded meat alternative companies.

As the ultra-processed food (UPF) debate rages on, Phil Graves, CEO of mycelium meat maker Meati, said Americans shouldn’t have to “leave any room for ultra-processed, Frankenfoods or factory-farmed meats on their dinner plates”.

“Consumers shouldn’t have to decide between feedlot meats that are inhumanely raised, wreck the environment and lack nutrients, or ultra-processed plant-based options that have a long list of ingredients you can’t pronounce,” he told Green Queen, echoing a common attack line against vegan animal alternatives from Big Meat, while also lambasting the latter.

Graves, who joined Meati as CFO last February before taking on the CEO mantle two weeks later, was speaking to Green Queen about the launch of a new breakfast patty line, following a boost in revenues during a year that saw its products enter 7,000 stores.

“We had a strong year in 2024 – nearly doubling revenue, expanding retail distribution by 130%, innovating in the kitchen, and making some incredibly strong new hires,” he said. “We’re proving that there’s an appetite for a truly clean, whole-food protein like mycelium.”

UPFs a major talking point in the US

The discourse around UPFs has reached a fever pitch in the last few weeks, thanks to the possibility of Robert F Kennedy Jr becoming health secretary under President Donald Trump’s second administration.

Kennedy has been highly critical of the industrial food system, championing regenerative agriculture instead. He has promised to remove UPFs from school lunches if confirmed by Congress, and has made his disdain known for what he labels ‘fake meat’.

Meanwhile, nearly a dozen food giants – from Nestlé to Coca-Cola – have been hit with a lawsuit for engineering UPFs to be as addictive as cigarettes and “aggressively marketing” them to children. California Governor Gavin Newsom has signed an executive order asking state departments to suggest measures to limit purchases of UPFs, which could include warning labels on product packaging.

Vegan meat alternatives have been caught in the UPF crossfire, with critics pointing to the long list of ingredients of some products/brands. Some experts argue that the level of processing of a food product isn’t connected to nutrition, and bodies like the WHO have noted that many UPFs – including plant-based meat – aren’t bad for you.

Still, Americans are increasingly looking for cleaner-label options, and Meati is hoping to bank on that. Its new breakfast sausage patties, for example, are comprised of 98% mycelium.

“We’re strong believers that the best foods for the health of people and the planet will come from regenerative farming, and clean, whole-food, natural proteins like mycelium,” said Graves. “And fortunately, these are some of the best-tasting foods, too, which is why you’re seeing such a gravitation to products like Meati. Nature always knows best. Consumers should not have to compromise.”

Meati touts health benefits of mycelium meat

All the UPF talk is pushing Meati to promote the health credentials of its products, a tactic becoming popular across the category. The frozen breakfast sausages, which come in original and maple flavours and retail for $9.99, contain a complete profile with all nine essential amino acids.

Each patty contains 8g of protein and 4g of fibre, with zero cholesterol or saturated fat. These attributes have led the Colorado-based firm to pursue certifications like heart-healthy and diabetic-friendly from the American Heart Association and American Diabetes Association, respectively.

“We wanted to create something with the same big aroma that fills your kitchen, and the same taste and texture of the breakfast patty you grew up with – but with a much cleaner nutrient profile,” said Graves.

“Consumers and retailers have been eager for a mycelium-based breakfast option for a while now. And when you look at what’s available on store shelves now, it’s easy to see why,” he added.

“The current choices fall short. You’ve got traditional breakfast sausages, like Jimmy Dean, that are loaded with factory-farmed meats, questionable ingredients and poor nutritional value. And you’ve got ultra-processed plant-based options that have a long list of ingredients you can’t pronounce, protein profiles that don’t offer all nine amino acids, and flavours that don’t satisfy.”

The breakfast sausages are available at 280 Sprouts stores. “All of our Meati products are strong sellers at Sprouts, so they were eager to add our breakfast patties to the mix,” the CEO said.

Retail expansion crosses 7,000 doors

Meati’s announcement coincides with new listings at Harris Teeter and Raley’s nationwide, which gives it the distinction of being available in every metropolitan city in the US.

Last year, after raising $100M in the industry’s biggest round since 2022, the company took on a bold target to reach 10,000 retail doors. While it didn’t quite get there, it did expand its distribution to over 7,000 locations.

“We’re now in over 100 different grocery banners – including Whole Foods, Sprouts Farmers Markets, Meijers, Wegmans, HEB, Kroger family of stores, Super Target, Ralphs, Natural Grocers and several others,” revealed Graves.

Meati’s existing lineup of whole-cut steaks and chicken cutlets has proven popular among consumers during a turbulent time for meat analogues. Circana data for the 52 weeks to July 14, 2024 found that sales of these products dropped by 9%; Meati’s steak was among the top 15 growth items. The company saw a $2.7M hike in year-to-date sales, thanks in large part to its all-natural ingredient list.

“Early indications suggest that mycelium breakfast patties will be a significant growth avenue for Meati. We’re confident these products will perform well,” said Graves, whose company is aiming for a big chunk of what could be a $6.5B market by 2032.

It’s not just supermarket shoppers who are interested in its mycelium meat – which, despite the sales and expansion, has been subject to legal disputes recently. “Restaurants are seeing the same demands from consumers as our retailers are. And that’s exciting to us,” said Graves.

“Regardless of diet, today’s consumers demand food that’s delicious, clean, nutrient-dense and convenient. Not many foods can claim this, but we fit the bill for all. Vegetarians, vegans, meat-eaters, open omnivores, and all lifestyles find Meati a tasty and healthy addition to their lunches and dinners – and now breakfasts,” he added.

“Chefs who use Meati’s steak and cutlet products in their restaurants love the taste, versatility and health benefits, and we expect this to grow in 2025.”