V2food Secures €45M to Expand Plant-Based Meats to Europe & Asia

V2Food: Expanding its Reach in the Alternative Protein Market

V2Food represents a significant new participant in the rapidly evolving alternative protein industry. Originating in Australia, the company is now focused on expanding its presence into European and Asian markets, and beyond.

The company possesses several competitive advantages, and a recent €45 million funding injection positions it for potential success in the Eurozone and other regions.

Market Strategy and Current Offerings

Having achieved substantial traction within its domestic market, V2Food’s primary objective is to become the leading alternative protein provider in Australia. CEO and founder Nick Hazell, previously with MasterFoods and PepsiCo R&D, outlined this ambition.

Simultaneously, the company is actively increasing its footprint in Asia, notably through a partnership with Burger King, which features a Whopper utilizing V2Food’s plant-based patty. Expansion into Europe is also underway, capitalizing on the product’s appealing ingredient profile.

Currently, V2Food’s product line includes plant-based ground beef, patties, sausages, and a convenient ready-made Bolognese sauce. These categories represent a common entry point for many companies operating within the alternative protein sector.

Image Credits: v2Food

Key Differentiators

However, V2Food distinguishes itself from numerous competitors in two crucial aspects.

Firstly, V2Food products are formulated to be manufactured, or are capable of being manufactured, utilizing existing meat production infrastructure. This facilitates scalability and potentially reduces costs due to established economies of scale.

The production processes for many alternative proteins aren’t always compatible with current facilities. This adaptability also fosters potential collaborations with traditional meat companies who might otherwise hesitate to overhaul their operations.

Hazell emphasized that the company’s goal isn’t necessarily to displace conventional meats, but rather to broaden the overall market, a perspective likely to resonate with established meat producers.

Secondly, V2Food products are formulated without GMOs, preservatives, artificial colors, or flavorings. This characteristic is particularly advantageous in the European market, where stringent regulations have hindered the entry of several major competitors.

This ingredient simplicity also provides a subtle edge when appealing to consumers comparing plant-based alternatives; the option with fewer additives often proves more attractive.

Funding and Future Plans

The €45 million funding round, designated as a “B Plus” round, was spearheaded by European impact fund Astanor, with contributions from Huaxing Growth Capitol Fund, Main Sequence, and ABC World Asia.

These funds will be allocated to both research and development initiatives, as well as scaling up production capabilities.

“This funding represents a vital step towards v2food’s ambition of reshaping global food production,” stated Hazell. “Rapid scaling is essential given the urgency of these worldwide challenges.”

A significant portion of the investment will be directed towards increasing production volume to meet growing demand. R&D spending will be doubled to accelerate the development of new products and refine existing formulations.

Furthermore, V2Food is investigating the feasibility of establishing a local manufacturing facility in Australia, reducing reliance on imported ingredients. This could transform the region into a net exporter, bolstering the local economy while enhancing the company’s resilience and lowering operational costs.

European Expansion

While the expansion into Europe is progressing, launching a new product in this market presents complexities, even with the product’s straightforward formulation and non-GMO status.