Plant-based salmon startup capitalizes on rising interest in fake seafood

While the plant-based civil wars have been going on for a number of years, plant-based fish is still in its infancy. But that’s about to change as new candidates enter the mix with various types of artificial fish offerings and investors rush in to fund them.

In the US alone, investments in artificial fish based on plant, fermented or cell-based sources totaled US$178.2 million in the first half of last year, according to fishfarmingexpert.com, and are on track to exceed the total investment of US$306 million US dollars in 2021. Some experts predict the sector could become a $1.6 billion business over the next decade as more environmentally conscious consumers seek seafood alternatives.

According to a 2021 study published in Nature, trawling, which involves dragging nets across the seabed in search of fish, produces as much carbon dioxide as air travel. And overfishing of wild salmon is endangering the species.

With the growing demand for seafood alternatives, so are names like Plantish, Sophie’s Kitchen, Gardein, Good Catch, and Toronto-based plant-based salmon startup New School Foods.

“We’ve spent the last 2-3 years developing this entirely new technology that will allow us to make muscle fibers entirely from plants and then assemble them into larger structures like whole chunks of meat,” said Chris Bryson, co-founder and CEO of New School Foods.

The company claims that it “looks, cooks, tastes and leaves like common fish”. We can’t confirm it as it’s not for sale yet. But unlike most plant-based meats, which are pre-cooked, ground, and often formed into patties or nuggets, this one is whole and raw.

“You can then prepare it in your kitchen and watch it transition from raw to cooked unlike most meat alternatives out there today,” Bryson added.

The so-called salmon contains both plant and aquatic ingredients, including seaweed, pea and soy proteins, and omega-rich oils like those found in seaweed, flax, and hemp. Investors say they hope it will appeal to those already buying plant-based meat.

New School will be introduced in restaurants first as approximately 70% of seafood is consumed in restaurants. Bryson said working with chefs will also help fine-tune the flavor and preparation of the product before it hits supermarket shelves.

“If plant-based seafood can achieve even 1-2% market penetration in North America and Europe, surely we’re talking about a multi-billion dollar market with very few competitors in this space right now,” said Nick Cooney, Managing Partner at Lever VC, an investment fund focused on alternative protein companies.

Cooney himself was an early investor in Beyond Meat. He noted that unlike fake meat, which is typically more expensive than the real thing, fake fish could be cheaper for consumers as the cost of real fish has skyrocketed.

“And certainly those costs have a big impact on consumer behavior,” he added.

In addition to Lever VC, New School Foods is backed by Blue Horizon, Hatch, Good Startup, Alwyn Capital and Joyance Partners. $12 million has been raised so far.

CNBC Producer Lisa Rizzolo contributed to this piece.

Source: www.cnbc.com