Egg-cellent news: Hampton Creek raises $23M

BeyondEggs-logo-300x300Eggs from caged hens are the cruelest of all factory-farmed products, animal welfare advocates say. So if you care about animal welfare, you should be rooting for Hampton Creek Foods, a San Francisco-based technology company that says it aims to “enable the production of healthier food at a lower cost, starting with the displacement of the conventional chicken egg.”

Today, Hampton Creek is announcing that it has raised another $23 million in venture capital money in a Series B round led by Horizons Ventures, a technology fund overseen by Hong Kong-based billionaire Li Ka-shing, one of Asia’s richest men. He joins investors and partners of Hampton Creek that include Jerry Yang, the former CEO of Yahoo!; Vinod Khosla of Khosla Ventures; and Eagle Cliff, the investment fund of billionaire climate activist Tom Steyer and his wife Kat Taylor, the CEO of OnePacificCoast Bank. Bill Gates, who wrote about Hampton Creek here, has also invested, through Khosla.

I met Josh Tetrick, Hampton Creek’s founder, last year at the Fortune Brainstorm Green conference, after writing about the company. (See What’s for breakfast? Time to get Beyond Eggs) Josh is a very personable guy, a vegan, a former college football player and a Fulbright Scholar who worked in South Africa, Nigeria and Liberia before focusing on the food system, and how to improve it.

Josh believes that the plant-based egg substitutes being developed by Hampton Creek will deliver health benefits (they’re lower in fat and have no cholesterol) and environmental benefits (they require less energy to produce, generate fewer greenhouse gases and less waste) over conventional eggs from caged hens.

Nor will they cost more than conventional eggs. In fact, Tetrick believes that his team of food scientists can outcompete the chicken. In the press release announcing the new round of funding, he is quoted as saying: “Solving a problem means actually solving the problem for most people – not just the folks that can afford to pay $5.99 for organic eggs.”

JustMayo-600x450Hampton Creek has made a lot of progress in the last year. It now has a product called Just Mayo on the shelves at Whole Foods. It’s described as a plant-based, egg-free, dairy-free mayo-style condiment. Up next is egg-free cookie dough and an a liquid plant-based product that could substitute for scrambled eggs.

Meantime, the company says that in the last 90 days it has “signed partnership agreements with 6 Fortune 500 companies, including some of the largest food manufactures and retailers in the world.” It won’t name the companies or talk about the scale of the agreements, so it’s hard to know how meaningful they are.

Still, this new round of fundraising means that Hampton Creek has now raised $30 million in venture money. That’s a sign that the company is moving in the right direction.

An update: Early this morning, Josh Tetrick sent me the picture below from China where he had just met with Li Ka-Shing. That’s Josh T. in the middle, and on the left is his longtime friend Josh Balk, an animal-welfare activist with the Humane Society of the U.S. who works with businesses like Smithfield to improve their treatment of animals.

Picture with Mr. Li

Peak meat: Can Al Gore, Jay Z, Oprah and Rick Warren all be wrong?

Raw-Meat-1

 

Hungry? Does this photo make you eager for dinner? Not me. I almost never cook red meat at home anymore, and I don’t miss it. I feel mildly unAmerican, having given up red meat and the NFL, but so it goes.

Turns out I’m not alone. Al Gore has gone further–he’s now a vegan. The evangelical pastor Rick Warren (who I profiled in Fortune in 2005) is advising his flock to eat less meat in a new faith-based diet book called The Daniel Plan. Jay Z and Beyonce have sworn off all animal products for three weeks.

The decline of meat is the topic of my column this week for Guardian Sustainable Business. Here’s how it begins:

What will be hot on restaurant menus in 2014? The National Restaurant Association, which surveyed more than 1,400 chefs, says the top three trends for next year will be locally sourced meats and seafood, locally grown produce and environmental sustainability. That’s welcome news for people who care about the health of the planet, but the chefs may have missed an even bigger change coming to the US diet – the decline of meat.

Today, Americans consume more meat – approximately 270lbs per capita – than carnivores elsewhere (except Luxembourg). But meat consumption in the US has been declining for nearly a decade, according to the research firm Packaged Facts. About 12% of US adults strongly agree and 19% somewhat agree that “they are eating many meatless/vegetarian meals,” says David Sprinkle, publisher of Packaged Facts. Beyond the data, there are signs all around us that meat is falling out of favor, for health, environmental, ethical and economic reasons.

The decline of meat creates opportunities for an array of competitors in the protein business. They include the developers of sustainable aquaculture, producers of vegetarian analogs like Beyond Meat andBeyond Eggs, and consumer products firms whose vegetarian products like Boca and Gardein have moved from natural foods channels to mainstream retailers like Target, Safeway and Kroger. Fast-casual chain Chipotle recently launched Sofritas, a tofu sandwich, under the headline,Vegans and Carnivores Unite, while Subway is rolling out a vegetarian falafel sandwich. On its website, Starbucks says: “If you’ve ever heard someone dismiss vegetables as “rabbit food,” you should introduce them to our Hearty Veggie & Brown Rice Salad Bowl.”

The decline of meat is welcome news. Industrially-produced meat is bad for the environment. Eating too much red meat is bad for your heart. I’m personally troubled by the way chickens, pigs and cows are treated on factory farms. Of course, it is theoretically possible to raise and slaughter animals in ways that are good for the planet and your health, as I’ve written before. I’m not a vegetarian (yet) and I can’t imagine becoming a vegan because I’m fond of cheese, butter and eggs. But I’m thinking more and more about what to cook and eat. As Jonathan Safran Foer writes in Eating Animals: “One of the greatest opportunities to live our values – or betray them – lies in the food we put on our plates.”

Hat tip to Josh Balk of the Humane Society of America, who gave me the idea for my story.

Gestation crates: Not exactly hog heaven

pig_gestation_crates1Lately, I’ve been thinking about animal welfare. That’s partly that’s because I met Josh Balk of the Humane Society of the United States at the Fortune Brainstorm Green conference in May. Josh’s title is Director of Corporate Policy, Farm Animal Protection, at HSUS; his job is to work with big companies to get them to treat animals better.

Among other things, they are trying to get the pork industry to end the practice of confining m0ther pigs in gestation crates for most or all of their lives. These crates are designed so that the pig cannot turn around; their use has been compared to asking one of us to spend our lives in an airline seat.

Their battle with pig farmers is the topic of my story this week in Guardian Sustainable Business, headlined Why the US pork industry wants to shut down the debate over pig crates. Here’s how it begins:

Don’t try to convince the American pork industry that the customer is always right. Thousands of hog farmers and one of the industry’s big producers, Tyson Foods, want retailers, brands and supermarket shoppers to mind their own business and stop telling farmers how to raise pigs.

The issue? Gestation crates that confine mother pigs into metal enclosures so tightly that they cannot even turn around. The pork industry raises most sows in gestation crates, and says they do no harm.

But in the last year or so, about 40 companies – including fast-food chains McDonald’s, Subway, Burger King and Wendy’s, supermarkets Costco, Target and Albertson’s, food-service firms Compass Group, Sodexo and Aramark, and brands including Hillshire, which makes Jimmy Dean sausages and Ball Park Franks, and Kraft, which makes Oscar Mayer – have said that they will require their suppliers to eliminate the use of gestation crates by a certain date.

The industry is resisting, saying there’s no scientific basis to get rid of the crates. Dave Warner of the National Pork Producers Council told me that activist groups like HSUS have wrongly put pressure on the retailers and brands. [click to continue...]