• 🚪 Hain Ousts CEO, Initiates Strategic Review
• 📉 B&G Sales Slide Across All Four Segments
• 🤑 Wonder Lands Another Investment
• 👶🏽 Cerebelly Secures Working Cap
• 🆕 What Else Is New?

Months after Meati’s primary lender pulled nearly two-thirds of the company’s available cash, the mycelium-based alt-meat producer is reportedly slated to sell for $4 million. 

Meati CEO Phil Graves assigned the food tech company’s assets to attorney Aaron Garber, per documents filed in Adams District County Court in Colorado on Friday. Garber asked the judge to allow the buyer – listed as Meati Holdings Inc. – to run Meati before the sale’s completion. Meati has raised nearly $450 million in external capital to date.

Garber wrote the sale would “preserve the operational value of the company, maximize recovery for creditors, and reduce collateral damage to stakeholders and interested parties when compared to a liquidation.” Additionally, he claimed the company would be worth less if sold for parts. 

What went wrong? Call it fatal funding. In March, Meati filed a Work Adjustment and Restraining Notification Act (WARN) notice, warning that if it couldn’t secure alternative funding within 60 days, it would have to lay off its 150-person workforce and close its Thornton, Colo., production facility. Those 60 days were up May 6. 

• Rewind: Meati’s primary lender cut off access to the company’s cash on hand (reportedly without notice) after it missed a revenue target for March.
• A spokesperson told Nosh at the time the company had renegotiated with the bank after the target was missed and believed they were in good standing when cash access was cut off.
• In the WARN notice to employees, Graves called the lender’s actions “wholly unanticipated” and “unforeseeable.” 

Last May, Meati closed a $100 million investment led by Grosvenor Food & AgTech with participation from Prelude Ventures, BOND, Revolution Growth and Congruent, bringing its total funding to nearly $450 million. The news was accompanied by a distribution agreement that brought three of the company’s products to 2,000 Kroger doors nationwide. 

Meati expanded into a new day-part – breakfast – in January as it worked to capture a broader audience. As of 2024, its products are available in over 6,000 retailers nationwide, including Kroger, Super Target, Walmart and Meijer, among others. 

A judge has yet to rule on Meati’s request for its buyer to run the company prior to the sale. According to court filings, the company has $158 million in assets. 

A spokesperson for Meati declined to comment.

Catch Up: Meati CEO Talks Breakfast, Distribution and Being Practical About Alt-Proteins

Hain Celestial is once again changing out leadership and initiating a strategic portfolio review after reporting Q3 net sales dropped 11% year-over-year to $390 million, driven by declines across all key segments with the exception of meal preparation.

🔀 Former president and CEO Wendy Davidson was replaced by independent board director and former Kimberly-Clark exec Alison Lewis, effective today, as interim president and CEO.

🔍 The company will also begin a strategic review which also leans heavily on similar initiatives from its past turnaround efforts, including streamlining operations and simplifying the portfolio.

⁉️ Analysts and shareholders questioned executives on the call, asking “what’s different this time… we’ve heard all of it before a few times.”

Check out the full story on Nosh to hear how Lewis responded and a full rundown of the report.

The books aren’t looking any brighter over at B&G Foods. The pantry staple, meal and frozen product producer reported net sales declines year-over-year across all four core business segments during the first quarter: Meals (-11.6%, Specialty (13.1%), Frozen & Vegetable (-11.2%) and Spices & Flavor Solutions (-4%). 

🧭 The down results come as it navigates the “uncertainty in the political economic environment and rapidly evolving negotiations regarding tariffs and retaliatory tariffs,” the company said in a press release.

🛒 Meals, Specialty and Frozen & Vegetable segment sales decreases were all driven by declines in volume and net pricing, the company said; Spices & Flavor Solutions suffered solely due to a drop in volume.  

🔽 The company lowered full-year net sales, adjusted EBITDA and EPS guidance due to the results.

🗣️ What They Said: “We remain laser focused on our critical priorities: improving our core business net sales trends, reshaping our portfolio for future growth and higher margins, and reducing leverage through divestitures and excess cash flow to facilitate strategic acquisitions” - Casey Keller, president and CEO

Catch Up: B&G Foods Emphasizes Commitment to Portfolio Restructuring

Wonder has raised a fresh $600 million in new funding at a more than $7 billion valuation. The round was led by New Enterprise Associates, Accel, Google Ventures and Forerunner, with an add-on investment from Amex Ventures.

💸 The meal-delivery and food hall closed a $700 million raise in March 2024 as it expands its retail footprint into new markets like Philadelphia and Washington D.C. as it moves further into meal-delivery.

💰 Wonder has built out a big portfolio, acquiring Blue Apron in September 2023 and Grubhub earlier this year for about $650 million. At the time, Wonder said it had raised an additional $250 million.

↗️ CEO Marc Lore said Wonder will use the new funding to accelerate “the expansion of our physical retail locations, opening one a week with plans to grow from our current base of 46 locations to 90+ by the end of 2025,” in a LinkedIn post. 

Go Deeper: DTC Meal Kit Brands Find Second Act in Retail Expansion

Organic baby and toddler food brand Cerebelly has secured a “comprehensive financing package,” providing the business with working capital to execute on long-term growth plans. The size of the round was not disclosed.

🏦 The funding was procured in partnership with finance and advisory firm BizCap, who announced the raise in a press release.

🚼 “Cerebelly’s integrity and transparency made it easy for non-dilutive capital partners to rally behind the mission. We’re proud to have played a role in fueling their next chapter,” said BizCap VP Tim Gaines in the release.

Catch Up: Cerebelly Announces New Leadership

It’s Hump Day! Here’s a taste of the new drops and activations from the first half of the week.

👵🏽 Hispanic fresh foods brand Del Real Foods is embracing a different form of A.I.: Abuela Intelligence. In its first brand campaign, the company will have TV and online ads celebrating the “wisdom, warmth and wit of abuelas.”

🐙 Snack maker Chomps is working to save the sea via a partnership with 4ocean, a global cleanup group focused on the ocean plastic issue. 

🦖 Remember Barney the Dinosaur? Little Spoon is paying tribute to the purple dino with a new co-branded line of organic smoothies featuring characters from the classic children’s series.

🍿 Microwave popcorn brand Pop Secret is saving consumers a few minutes with a new Ready-to-Eat popcorn line, available in Movie Theater Butter, Homestyle Sea Salt and Double Cheddar flavors.

🍨 Jeni’s Splendid Ice Creams is also embracing a more convenient form factor with a new line of frozen J-Bars. The ice cream on a stick desserts come in Vanilla Caramel Sundae, Dark Chocolate Bombe, Passion Fruit Dreamsicle and Chocolate Churros & Cream flavors.

🥋 Ahead of the upcoming film release, Bachan’s is promoting Karate Kid: Legends with a limited edition gift box featuring its Japanese Dipping and Barbecue Sauces.

Check out more new product news on Nosh.