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

Our misguided fetish for “natural” foods

fresh-frozen-7

Fresh Frozen Vegetables: Which is it?

The supermarket has become a festival of oxymorons.

Fresh-frozen peas. Jumbo shrimp. Boneless ribs. Chanukah ham.

And the most common of all:  Natural food.

If you are eating wild-caught fish or mushrooms gathered from the woods, you’re eating natural food.

Otherwise, probably not.

There’s nothing “natural” about agriculture, whether it’s practiced on the industrial-sized soy and corn fields  in the midwest, on the sprawling fruits and vegetable farms in the Salinas Valley of California or on the local and regional farms whose owners truck their crops to the  7,800 farmers’ markets across America. Agriculture is, by definition, about the management of nature– fertilizing the soil, getting rid of weeds, insuring that crops get the water they need. Even if you grow a few tomatoes or cucumbers in your backyard, you’re enjoying the product of decades of selective breeding.

The misguided fetish for the “natural” is a problem for a couple of reasons, as I’ll explain. But first, if you doubt that the claim of “natural” is a selling point, take a look at a few of the labels that I came across the other day at the Whole Foods Market in Bethesda, Md., where I live: [click to continue...]

What’s for breakfast? Time to get Beyond Eggs.

Next time you dig into a breakfast of fried eggs, or enjoy a cupcake from your favorite bakery, or boil some egg noodles, don’t stop and think about the chicken that laid those eggs. You may lose your appetite.

According to the Animal Welfare Institute:

More than 95% of the approximately 280 million egg-laying hens in the United States are confined to barren battery cages where they are crowded and deprived of the ability to perform natural behaviors such as exploring, nesting, perching, dust bathing, or simply stretching their wings. Birds endure painful beak trimming, stand on wire floors that cripple their legs, breathe toxic air, and live their entire lives under unnatural, dim lighting.

A chicken lives its life on a footprint no bigger than an iPad. Imagine living the rest of your life just where you are sitting right now, crowded on every side by other humans, unable to move. You’d go insane, as Bruce Friedrich of Farm Sanctuary argues in this excellent essay. He calls eggs from caged hens “the cruelest of all factory farm products.

If you’re indifferent to the suffering of animals, consider that factory-farmed chickens have a big environmental footprint, albeit not as big as beef or pork. I couldn’t find any peer-reviewed life cycle analyses of eggs but, according to Slate, egg-laying hens are fed lots of grain, they’re pumped with antibiotics and they generate a lot of waste.

(And, if you want to get really grossed-out, read this long story that the Washington Post published just last week about the use of toxic chemicals to kill bacteria in plants that process chickens for meat.)

Josh Tetrick

Josh Tetrick

Josh Tetrick, the CEO and founder of Hampton Creek Foods, is convinced that there’s a better way. He wants to take America Beyond Eggs.

Beyond Eggs, according to Josh, is a healthier, safer, environmentally-friendly, plant-based ingredient for egg-based food products. And unlike the pricey, all natural, organic, free range eggs on sale at Whole Foods, Hampton Creek’s egg substitutes cost less than most of the eggs on the supermarket shelf. [click to continue...]