• 💸 Meati Raises $100M, Locks In Kroger
• 💰 Earnings: W.K. Kellogg and Hain Celestial
• 🍕 Ricks Rolls From Super Coffee to Caulipower
• 🧁 Rubicon Bakers Adds GF Muscle With Acquisition
• 🏭 Ferrero Opens Its First U.S. Chocolate Factory

There’s a lot of (mycelium-based) meat to this story. 

Meati announced a trio of big moves today, headlined by the closing of a $100 million investment led by Grosvenor Food & AgTech along with existing investors Prelude Ventures, BOND, Revolution Growth and Congruent.

But that’s not all. The new funds are accompanied by a new distribution agreement with Kroger that will bring three of its mycelium-based alt-meat products to an additional 2,000 doors nationwide. That gain places Meati in 6,000 stores nationwide in just over a year since its initial retail launch.

The new Kroger agreement will expand access for its Classic cutlet as well as its Classic and Carne Asada steaks to both Kroger flagship and banner stores including Ralphs, Mariano’s, City Market, King Soopers, Dillons and others. Recently appointed CEO Phil Graves said the new capital will be used to maintain that “high growth momentum” and continue scaling in U.S. retail.

And last but not least, the company shared that co-founder and chief innovation officer Tyler Huggins has moved into an advisory role, passing day-to-day duties off to Graves. 

Under its new CEO, Meati is continuing its push toward profitability and working to reach the “next level.” Graves, a former Patagonia exec who established and ran its corporate venture fund, said the company has reduced its burn rate by nearly 40% since he took the helm in February. 

How’d they do it? With a handful of key initiatives including streamlining operations, eliminating unnecessary ingredients, reducing waste and moving away from temp labor. Graves also cut 13% of the company’s workforce when he took on the role.

“From my experience, I can confidently say there is no company more sustainable and scalable than Meati. Our MushroomRoot can produce the equivalent of hundreds of cows’ protein in just a few days from only a tablespoon of spores,” Graves emphasized. “Meati is truly unique and is poised to change the alternative protein industry.”

Nosh Insiders can read the full story to learn more about Meati’s investment history and the path it is taking to become profitable.

WK Kellogg’s Q1 earnings this week beat analysts’ projections as higher prices offset a decline in demand for the company’s cereals and ready-to-eat breakfast products.

• Net sales reached $707 million in the quarter, a decline of 1.9% y/y.
• Q1 2024 brought net income of $33 million, a 37.5% y/y increase that resulted in a reported net income margin of 4.7%. 
• The company reaffirmed its net sales guidance (between -1% and +1%) for 2024, with adjusted EBITDA projected to be between 3% and 5%.

💭 “Our strategy is clear, our integrated and engaged team is working end-to-end, and we are pleased with our progress as we continue to execute our strategic priorities,” said Gary Pilnick, chairman and CEO, in a statement.  

Hain Celestial also reported better-than-expected quarterly results, bolstered by improved margins and international sales growth amid the company’s multi-year transformation plan.

• Although Q3 net sales were down 3.7% y/y to $438.4 million, adjusted EBITDA soared 17.5% y/y to $43.8 million. 
• North America sales were $268.1 million, a 6.5% decrease primarily driven by lower sales in personal care that were partially offset by strong beverage performance.
• International net sales grew 1% y/y to $170.3 million, with growth in beverages offset by lower sales in meal prep. 

💭 “We have taken strategic actions to simplify our portfolio and operating footprint to reduce complexity in our business and strengthen our balance sheet,” said Wendy Davidson, president and CEO, in a statement. 

Days after BevNET reported Tyler Ricks’ departure as CEO of Super Coffee, his next move has been revealed: He’s taking the reins as CEO of frozen food company Caulipower.

🔀 Ricks has sat on Caulipower’s board of directors since 2022 and will replace departing CEO Marc Seguin, who has held the role for the past two years and succeeded founder Gail Becker.

🕞 Timing is everything. Ricks told Nosh he was ready to hand off Super Coffee, which he brought to solid financial footing following a “difficult transformation.” 

💬 “I'm not a disruptive founder; I'm the guy who can figure out how to really partner with the disruptive founder and help unlock their potential to really continue to impact the business,” Ricks said.

Nosh Insiders can check out the full story for insight on how this serial investor approaches the CEO post.

Richmond, Calif.-based Rubicon Bakers is looking to tap more gluten-free product opportunities and has acquired Salt Lake City, Utah-based Lucky Spoon to meet that need. The latter bakery brand was founded in 2010 and makes a variety of cookies, muffins and cupcakes.

🥐 Established in 1993, Rubicon’s foray into gluten-free options will complement its portfolio of clean-label, nut-free and vegan baked goods.

Candy producer Ferrero has opened its first chocolate processing facility in the U.S. and its third globally. Located in Bloomington, Ill., the $75 million project is part of the candy maker’s ongoing expansion and investment aimed at increasing stateside market share. 

🍫 The 700,000 sq. ft. expansion complements Ferrero’s existing campus in Bloomington and produces chocolate for some of the company’s most popular brands including Kinder, Ferrero Rocher, Butterfinger and CRUNCH. 

⏩ The campus will also soon house a new $214 million Kinder Bueno production facility, expected to create 200 local jobs. 

🌎 The candy company also recently invested in growing capacity and capabilities at its Ontario plant and added new distribution centers in Pennsylvania, Georgia and Arizona. 

Chamberlain Coffee founder Emma Chamberlain and CEO Christopher Gallant join us for a conversation about the brand’s growth strategy and why its identity is anchored by love and modernity. We also unpack Albertsons’ merchandising strategy with Buster Houston, the chain’s VP of national merchandising.

Listen to the latest episode now.