JOYN Foods: Revolutionizing Blended Meat Solutions for Cost Efficiency and Nutrition

JOYN Foods, a burgeoning startup with a focus on blended meat solutions, is setting its sights on significant revenue growth this year. Cofounder Shalom Daniel asserts that the company is expected to triple its revenues and achieve EBITDA positivity by early 2027.

A Unique Approach to Mycelium Production

Previously known as Mush Foods, JOYN Foods originated in Israel in 2021 and has now relocated its operations to the United States. The company specializes in supplying frozen mycelium from edible mushroom strains under the brand 50CUT. This innovative ingredient, designed specifically to blend with meat, is gaining traction across universities, hotels, and corporate canteens, boasting a monthly revenue growth rate of 13-14%.

Approval from South Carolina Purchasing Alliance

After receiving approval from the South Carolina Purchasing Alliance, JOYN Foods is now poised to supply its products to school districts throughout the state. Daniel commented, “We’re winning business in a notoriously price-sensitive market, offering my ingredient at 25% to 30% less than the lowest commodity beef in the US.”

The Competitive Edge of Blended Meat

While blended meat products can help food service companies meet Environmental, Social, and Governance (ESG) goals by reducing saturated fat, sodium, and enhancing fiber content, the cost advantage remains a key factor. “People are beginning to realize blended products could be a primary solution for the market,” Daniel noted, emphasizing that consumers are hesitant to alter their eating habits purely for ethical reasons.

Asset-Light Production Model

JOYN Foods differentiates itself from other companies like Quorn, ENOUGH Food, and The Better Meat Co by adopting an asset-light approach. Instead of using steel bioreactors for large-scale production, JOYN collaborates with indoor farmers who grow the edible mushroom strains using a solid-state fermentation process. The mycelium is then processed by co-manufacturers before being delivered to meat and food service companies.

Nutritional Benefits and Flavor

Mushroom mycelium offers numerous advantages, such as a naturally meaty flavor, acting as a binder without the need for additional ingredients like eggs or methylcellulose. Moreover, compared to other protein sources like soy or pea protein, mycelium is allergen-friendly and often more cost-effective.

Optimizing Mycelium for Upcycled Ingredients

JOYN Foods is uniquely positioned to offer various blends for chicken, beef, and pork by utilizing tailored upcycled substrates such as wood chips and beer waste. This not only improves yield and protein levels but also allows for simpler consumer messaging. “We’ve optimized for yield and protein levels without running into legal issues,” Daniel explained.

Rapid Growth and Future Aspirations

Having raised approximately $10 million so far, JOYN Foods is currently in the process of securing additional funding. The company has already reached gross margins of over 30% and aims to increase these in the future. Daniel shared, “Our path to becoming EBITDA positive is in sight, allowing us more control over future fundraising decisions.”

Expanding Into K-12 Markets

JOYN Foods is generating over $250,000 in monthly sales with double-digit growth. It’s partnered with major names like Cisco, US Foods, and Compass Group, and has now made its move into K-12 cafeterias as public schools represent significant markets for ground beef. With potential clients including Google, Amazon, and various sports arenas, JOYN Foods is well-positioned for extensive growth.

Further Exploration

In addition to JOYN Foods, other companies are also exploring the mycoprotein space:

• Planetary is looking to unlock low-cost mycoprotein production in India.
• The Protein Brewery has raised funds to scale its less capital-intensive processes.
• Better Meat Co raised $31 million to expand its offerings.
• MyForest Foods is also making headlines with its mycelium bacon.