Mammoth Meatball Mistake, Ynsect Pivots to Pet Food with $175M + More

Image Credit: Fast Company

Every week we track the business, tech and investment trends in CPG, retail, restaurants, agriculture, cooking and health, so you don’t have to. Here are some of this week’s top headlines.

Investors in the foodtech industry may be making a grave mistake by prioritizing flashy technology over solutions that can truly improve how we eat. While the media went crazy over Vow’s mammoth meatball, the Fast Company warns that this approach does a disservice to everyone, as consumers are left with products that fail to meet their needs and startups struggle to find viable business models. Meanwhile, insect farming startup Ynsect has raised $175 million to expand its food production and shift towards high-margin pet food and food ingredients, highlighting the need for sustainable and profitable solutions in the food industry.

In other news, we are excited to spotlight our podcast in partnership with AgFunder: New Food Order, a nuanced investigation into the business of tackling our climate and social crises through food and agriculture. Read all about why we launched the podcast.

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1. Foodtech Investors Are Making a Mammoth Mistake – Fast Company

Backing whiz-bang tech versus things that might actually improve how we eat does us all a disservice.

2. France: Insect Farming Startup Raises $175M for Food Expansion – Bloomberg

Ynsect is shifting away from animal feed to high-margin pet food and food ingredients to boost profit amid soaring energy and raw material costs.

3. Why Big Food Is Looking to AI to Shape the Future of Food – Forbes

Companies like Bel Group and Kraft are aiming to meet corporate sustainability goals and address the limitations of traditional food production with artificial intelligence.

4. What Is the Future of Plant-Based Alternatives in a New Food Order? – New Food Order

Plant-based alternatives may have exploded onto the food scene in recent years but the hype is catching up, consumer sales have been lackluster and investors are turning away. Are they even taking the right approach by aiming for replicas, or do we need new protein formats altogether?

5. Baybel Maker Bel Group Invests in AI-Powered Startup Climax Foods – AFN

Bel Group has teamed up with startup Climax Foods to develop plant-based versions of iconic brands including Laughing Cow and Boursin for launch in 2024.

6. The Food and Beverage Industry Showing Signs of Resilience Despite Declining US VC Deal Volume – Forbes

Poor exit environment, macroeconomic downturn and the unexpected collapse of Silicon Valley Bank are driving US venture capitalists to increasingly withdraw from investing in late-stage deals.

7. Here’s What Store Shelves Will Look Like in 2035 – Fast Company

How recycling innovations and consumer attitudes towards product packaging are putting sustainability front and center.

8. The $45B Convenience Store Industry ‘Scrambles’ As Inflation Catches Up with Shoppers – Fortune

Consumers purchased 10.3% fewer items each time they visited a convenience store in 2022.

9. Restaurant Prices Are Rising Faster Than Grocery Prices for the First Time Since Inflation Ran Hot – CNBC

It’s a blow to the restaurant industry, which has already seen lagging traffic numbers as budget-conscious consumers cut back.

10. Toxic PFAS Chemicals Used in Packaging Can End Up in Food – The Guardian

Compostable packaging is popular for environmental reasons, but it can be treated with ‘forever chemicals’ linked to health problems.