Plant-based Better Foods receives funding boost to grow U.S. business

Plant-based food company Better Foods' Better Meat products are on display at a supermarket in Gangnam District, southern Seoul. [YONHAP]

Plant-based food company Better Foods, a U.S. subsidiary of Shinsegae Food, will receive investment from venture capital Cleveland Avenue for an unspecified amount, the Korean food company announced Thursday.

The company attributed the feat to the high evaluation of its research and development (R&D) capacity for products including meat, milk and cheese substitutes alongside future growth potential.

Based on the agreement, Better Foods will develop plant-based products including milk and cheese substitutes for which it is conducting R&D, perform consumer marketing activities and expand its business in the U.S. market, according to the company.

Cleveland Avenue, a Chicago-based venture capital which key investment targets include Beyond Meat, Bear Robotics and Bemyfriends, particularly highly evaluated the potential in Better Foods’ parent company Shinsegae Food, a food retailer and distributor.

Shinsegae Food has achieved steady business growth by applying meat substitutes in diversified fields including food manufacturing, bakeries, meal services and restaurant businesses.

Better Foods was established in the United States in 2022. Its Better Meat line, which includes Spam-style vegan canned ham along with cold cuts, meatballs and sausage patties, first debuted in 2021 in Korea in partnership with Starbucks Korea for plant-based cold-cut sandwiches.

The line later debuted in the U.S. market at the Plant Based World (PBW) Expo in New York City in September 2022.

The plant-based food market in U.S. retail in 2022 was worth $8 billion, according to insights released by the U.S.-based Good Food Institute and the Plant Based Foods Association, based on retail sales data.

“This investment holds great significance as it indicates that Better Foods has won recognition for its growth potential in the United States, the largest market for plant-based products,” said a Shinsegae Food official.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]