MATR Foods Secures €40 Million to Enhance Meat Alternatives Production

MATR Foods, a pioneering Danish startup specializing in meat alternatives made through solid state fermentation of legumes, vegetables, and grains, has successfully raised €40 million (approximately $47 million) to accelerate its operational expansion.

The financing, which includes €20 million in equity from Novo Holdings and the Export and Investment Fund of Denmark, as well as a previously announced €20 million in debt from the European Investment Bank (EIB), will support the development of a new 4,000-ton facility in Ansager, Jutland, projected to commence operations by 2027.

Innovative Production Process

Currently, MATR operates a pilot plant capable of producing 30 tons annually. The company employs a unique method that involves inoculating “boiled and chopped” ingredients—such as peas, lupins, beets, potatoes, and oats—with fungi spores. This fermentation process enhances protein levels, binds the ingredients, and imparts rich, umami flavors.

After fermentation, the biomass is marinated in beet juice and seasonings, resulting in products that are low in saturated fat and high in fiber, according to cofounder and CEO Randi Wahlsten. “The entire process takes less than a work week,” she noted.

Cost-Effective Solutions

Wahlsten highlighted that MATR’s production process is more economical compared to submerged biomass or precision fermentation. “Our method does not involve a long regulatory approval process,” she stated. “We utilize a single strain of fungi approved for food use, ensuring compliance without the complexity of novel food regulations.”

The primary equipment required includes solid state fermentation chambers and pre-processing tools. The downstream process is streamlined, only involving marination and heat treatment before packing. “We believe our technology is more cost-efficient, as we avoid waste and operate at lower temperatures,” she added.

Target Market Strategy

MATR Foods is eyeing markets in Denmark, Germany, and Switzerland for its product launch. “The €20 million EIB funding, which we announced last year, is now finalized as part of the total €40 million funding,” Wahlsten mentioned. The company has now accumulated over €46 million in overall funding.

The startup has established a keen interest from customers and is strategically targeting both retail and food service sectors to capitalize on the positive feedback observed from restaurant and canteen experiences.

In terms of sales trends, Germany and Switzerland show resilience in the plant-based product market. “We’ve noted that many consumers want meat alternatives but haven’t been satisfied with current offerings. We believe our product can meet that demand effectively,” she emphasized.

A Unique Positioning

Wahlsten clarified that MATR Foods is not focused on mimicking meat but on creating a distinct category of “meat successors.” “We do not label our products as meat; instead, we prioritize offering real food made from whole organic ingredients without additives,” she remarked, highlighting the appeal of their products to both consumers and culinary professionals.