'Food tech' startups get big backers

Friday, April 4, 2014

A story from the Associated Press highlights two cutting-edge companies backed by Bill Gates. But instead of developing the newest tiny computer, these startups are creating plant replacements for eggs and chicken.

Hampton Creek Foods has some heavy-hitter backers that include Peter Thiel, co-founder of PayPal. Scientists at Hampton Creek have already analyzed 1,500 types of plants from more than 60 countries in their quest to oust the egg. So far, they have 11 "hits," according to CEO Josh Tetrick. Their first product, Just Mayo, is on shelves at select Whole Foods locations.

Also at Whole Foods are Beyond Meat's "chicken-free strips," made from plant protein. Beyond Meat is funded by Obvious Corp., a startup incubator owned by the founders of Twitter.

The so-called "food-tech" industry is growing. Venture capital trackers CB Insights report that $350 million was invested into startups in 2013, compared to $50 million in 2008. The companies and their backers see plant-based alternatives as a way to reduce meat consumption and preserve the water, land and crops needed for meat production.

But can eggs and chicken really be replaced? Claire Kremen, faculty co-director of the Berkeley Food Institute, says "the biggest challenge is that people who consume a lot of meat really like meat, and to convince them to try something different may be extremely difficult." The American Egg Board website urges readers to "accept no substitutes!" It points out that "it takes more than one ingredient to replace the multiple functionalities of eggs." BF