v2food Expands Footprint in US with Daring Foods Acquisition and Ajinomoto Partnership

Australian plant-based meat market leader v2food is setting its sights on the US market through the acquisition of plant-based chicken manufacturer Daring Foods. This strategic move is accompanied by a partnership with Japanese food giant Ajinomoto.

Synergizing Brands for Market Growth

Under the new agreement, Daring Foods will retain its brand identity while serving as a launching platform for v2food’s products in the competitive US market. Tim York, CEO of v2food, expressed excitement over this opportunity: “We were looking to launch the v2 brand into the US market a couple of years ago. The Daring opportunity came up; we looked at it and just fell in love with it.”

Daring boasts an impressive distribution network of 16,000 doors, reaching consumers from Walmart to Whole Foods. Unlike many competitors, Daring has seen consistent growth in an increasingly crowded market.

Market Dynamics: Frozen vs. Chilled

York noted that the push for plant-based meats in the chilled meat section has not yielded the expected results, mentioning a 20% annual decline over the past three years. “The frozen category has held up much better, as it offers longer shelf life which reduces wastage,” he explained. This aligns with historical trends, as brands like Morningstar Farms have established dominance in the frozen sector.

Commitment to Clean Labels

Daring’s recognition for short ingredient lists aligns perfectly with v2food’s mission. York affirmed, “Clean label will be the USP that we’ll be sticking to with the brand.” The company plans to introduce new product formats in the US market, including methylcellulose-free options by 2026, leveraging innovations developed by v2food.

Strengthening Ties with Ajinomoto

The collaboration with Ajinomoto builds on existing R&D initiatives focused on clean label solutions for plant-based products. “We are conducting market trials, with commercial launches set for the upcoming year in select emerging markets in Africa and Asia,” York stated. Ajinomoto’s investment in v2food signifies their commitment to this evolving partnership.

Additionally, York noted plans to expand Daring’s frozen entree offerings, given Ajinomoto’s established presence in the frozen food sector in the US.

Challenges and Future Prospects in Asia

Despite v2food’s attempts to penetrate several Asian markets through collaborations with Burger King, results have been mixed. “Plant-based options in QSRs in Asia haven’t gained traction as expected,” York remarked, observing how offerings have often been treated as limited-time promotions.

Reflecting on the broader plant-based landscape, York believes the transition will take time: “We thought the market would change in three years, but it’s more of a 30-year transition.” He emphasized the importance of providing products that resonate with consumers on a practical level.

Industry Consolidation: Expert Insights

Jack Cowin, an early investor in v2food and founder of Hungry Jack’s, echoed York’s sentiments. He described the Daring acquisition as a logical step in the market’s ongoing consolidation, anticipating a streamlining of the industry over the next five years. “Together, we see an opportunity to shape the future of our space in a way none of us could have achieved alone,” added Jeffrey Gendelman, CEO of Daring Foods.

This partnership between v2food and Daring Foods marks a significant milestone in the plant-based industry, promising innovation and quality as they work towards a sustainable future in food.