Meati Foods Sees Nearly Doubled Revenues and Positive Gross Margins on the Horizon
Fungi-fueled alt meat startup Meati Foods almost doubled revenues in 2024 compared to 2023 and is on track to achieve positive gross margins by the end of the year, according to CEO Phil Graves.
With $365 million in funding, Meati has undergone four rounds of layoffs in recent years to streamline operations and accelerate profitability. Despite the challenges, Graves remains optimistic about the company’s future.
Recently, Meati launched a new line of breakfast patties in Sprouts stores nationwide and secured listings in Raley’s and Harris Teeter, increasing its presence in over 7,000 stores. Graves believes that the company is heading in the right direction.
“Our financial models show us achieving positive gross margins by the end of this year, so we’re well on our way,” Graves stated.
While discussing the significant revenue growth in 2024, Graves emphasized that Meati’s strong start in 2023 set a solid foundation for continued success. He anticipates continued growth and expansion in the coming years.
Meati’s focus on simpler products with fewer ingredients and less processing has resonated with consumers, even as sales of meat alternatives decline in the US.
Sweating assets at the Mega Ranch in Thornton, CO
Graves is exploring partnerships to utilize spare fermentation capacity at Meati’s Mega Ranch in Thornton, Colorado, until all available space can be used for in-house mycelium production.
“We’ve had several firms visit and there are a few opportunities that we’re actively vetting from a technical perspective and negotiating from a commercial perspective although we don’t have anything to announce right now,” Graves shared.
In response to the recent auction of Meati processing equipment, Graves explained the decision to consolidate operations in Thornton. “If you’re not fully utilizing a building, why have it just as a badge of honor showing you have multiple locations? We need to be good stewards of the capital that we have,” he said.
