No Meat Factory, an alternative-protein products co-manufacturer in Canada, has secured US$42m in new funding.
The Series B round for the Vancouver-based start-up, founded in 2019 by CEO Dieter Thiem and COO Leon Bell, was led by Tengelmann Growth Partners, a family-owned private-equity investor in Germany.
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No Meat Factory operates out of a facility in Vancouver, British Columbia, with a second plant due to come on stream around the middle of this year in the Pacific Northwest region of the US. That site, the exact location of which the company declined to disclose, will expand the portfolio into plant-based deli and sausage products, from the current line-up of animal-free nuggets, hamburgers and “whole-muscle alternatives”, a spokesperson for the business confirmed.
The firm supplies food brands in Canada and the US selling into retail and foodservice and the second plant will enable No Meat Factory to expand into the private-label sector.
Thiem said: “The traction No Meat Factory has experienced in just a few short years is evidence that consumers want greater access to plant-based alternative proteins and brands are looking for ways to deliver quality at an affordable price.
“With this latest funding round, we are excited to not only expand our operations to meet the needs of our partners but to take advantage of the support and expertise of our investors as we expand our footprint globally.”
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By GlobalDataEmil Capital Partners, an early-stage growth investor in the US, also took part in the Series B round and contributed funding when the business was started in 2019.
The spokesperson confirmed one previous financing round, taking funding to date to $60m. However, as a privately-owned company, No Meat Factory declined to reveal growth rates or turnover.
“With this latest funding round, No Meat Factory plans to expand its production footprint in North America and build out its manufacturing capabilities to service the global market,” the company said in a statement.
Daniel Bentrup, an investment partner at Tengelmann, added: “As more brands understand the need to provide customers with delicious plant-based alternatives, companies like No Meat Factory are poised to experience rapid growth and increasing demand for its manufacturing capabilities.”
The Very Good Food Company, another Canadian plant-based business manufacturing its own brands, has found itself in financial difficulties of late. The firm, founded three years before No Meat Factory in 2016, said yesterday (12 January) it had failed in a bid to win new funds just as an existing creditor called in a loan claiming a default of terms.
