• 🍞 BetterBrand Ends Whole Foods Deal
• 🫤 Amy’s Kitchen Delays N.Y. Facility
• 👀 Front-of-Pack Labels Head to White House
• 🏭 Hearthside Foods Files for Bankruptcy

The plant-based meat sector is working to take a page from the alt-dairy space’s success… literally.

Following a seven-year stint leading Oatly’s North America business as president, Mike Messersmith has been appointed CEO of Somerville, Mass.-based startup Tender Food. He joined the company’s board back in the spring before transitioning into the chief executive spot in the past month. 

“Mike’s appointment as CEO represents a major success marker for Tender…. He has a deep background in scaling purpose-driven companies and building world class organizations,” said board chair Carsten Boers, who is also the managing partner of Rhapsody Venture Partners, in a statement. (Tender is currently working to close a Series A round, which drew investment from Rhapsody).

But what does this mean for faux meat? Well, Tender believes it has cracked the code to solve a few of the category’s largest challenges including cost, texture and dizzying ingredient decks. Its lineup already spans numerous categories including shredded pork, beef and chicken alternatives, as well as a whole-cut chicken breast. 

Those items are made in a machine that’s roughly “the size of a washing machine” and costs about the same as a new car (i.e. less than $100,000). All of that is to say the company is working to build a scalable, “robust and defensible value-accretive technology platform” that it can then build consumer brands atop, according to Messersmith. 

The process allows Tender to forgo thickeners and binder, which Messersmith believes gives some alt-meats a “Play-Doh”-like mouthfeel. Instead it sticks to a limited ingredient deck of fava bean protein, peas, barley, rice, seasonings and, fittingly for him, oat fibers: “I can’t get away from oats,” he joked.

Nosh Insiders can access the full story to learn how Messersmith aims to bring Oatly’s approach to the alt-meat business.

Controversial low-carb bread maker BetterBrand has taken to Instagram with a lengthy update on the business. 

🥯 First, it has slimmed down its core lineup, removing its gluten-free bagel and Hawaiian rolls as well as its Sesame and Pretzel bun products; the post claims those items will now be available during limited drops online to reduce future shipping delays. 

⛔ BetterBrand also said it is no longer doing business with Whole Foods, attributing the decision to the high cost of doing business with the natural retailer.

🛒 Moving forward, the products will be available in Sprouts and Target stores in Florida and California only, and the post signals that the company’s sales will primarily return to their DTC-native roots.   

💸 The changes to its business have led to over 20% cost savings which the post claims is already reflected in pricing on its website; a 6-pack of four-bagel bags costs $65. The company also noted that it has implemented streamlined offerings and two-day, expedited shipping on all orders. 

📥 Nosh viewed an email sent to “all past or current” BetterBrand vendors earlier this month that claimed the company was undergoing an audit of all accounts and payments since its inception until now to ensure “all payables [are] accurately up to date” while “ensuring the sanctity of the Company's financial position.”

It does not appear that the Hudson Valley, N.Y., town of Goshen will see the economic lift from Amy’s Kitchen… which it has been waiting on for more than a decade. The planned food manufacturing and packaging center remains “paused,” according to the Mid-Hudson News.

⛏️ The company broke ground on the site in 2019 but has spent over $33 million invested in infrastructure in the area.

🏭 The organic food maker has faced a series of production challenges since the pandemic and abruptly closed a San Jose, Calif., plant in 2022, setting off a years-long labor dispute boycott that ended in June.

💭 CEO Paul Schiefer told Nosh in December that the company was improving production efficiencies as it refocuses after demand changed during and after the pandemic.

The FDA’s proposed front-of-pack (FOP) nutrient-related labels have advanced to the White House, according to a filing with The Office of Management and Budget. 

⏪ ICYMI: In 2022, the Center for Science for the Public Interest (CSPI) filed a regulatory petition with the FDA urging the agency to establish mandatory FOP labels. The move came after the FDA began drafting guidance to define “healthy” and “natural” on food packaging. 

🚦The proposed labels are intended to help reduce diet-related disease by better informing consumers about their food choices. The FDA has tested standardized color-coded FOP labels that flag fat, sodium, and added sugar levels using a traffic light system: green means low, yellow means medium, and red means high. 

🗣️ What the experts say: “Front-of-package labeling would avoid making products much easier for harried shoppers. In some of the 16 countries that have them, FOP labels have been associated with more healthful product reformulations and consumer purchases.” - Peter G. Lurie, president of CSPI 

Food contract manufacturer Hearthside Food Solutions has filed for Chapter 11 bankruptcy protections in the U.S. Court for the Southern District of Texas; the filing includes a restructuring plan to eliminate more than $1.9 billion in debt, per court documents. 

👀 The restructuring deal will also give Hearthside $200 million of new equity capital at exit, which the company believes will help position it for long-term growth. 

💵 To fund operations “without disruption” during the restructuring process, the Illinois-based company also filed a motion to gain approval for $300 million of debtor-in-possession (DIP) financing, including $150 million of new money from existing lenders. 

⏪ Last year, Hearthside faced serious backlash from its customers after a New York Times probe accused the company of illegally employing underage migrants in unsafe conditions. The company claims it never knowingly employed underage workers, blaming its third-party staffing agencies. 

💭 “We have taken decisive action across our company to put our past challenges behind us and are encouraged by the improvement we have already seen in our employee engagement, organizational culture, and ability to deliver best-in-class, quality products and services,” CEO Darlene Nicosia in a statement.