Gullspång Re:food Still Backs Lab-Grown Meat
Despite tough opposition in certain states, Gullspång Re:food’s managing partner, Peter Odemark, remains optimistic about the future of lab-grown meat in the U.S. “Our portfolio company Mission Barns is awaiting FDA approval, expected in early 2025,” he says.
Earlier this year, Florida Gov. Ron DeSantis signed legislation criminalizing both the production and sale of lab-grown meat in the state, with several other states following suit or considering similar actions. At the same time, consumer demand for plant-based options continues to decline.
Swedish firm Gullspång Re:food Invest is one of the investors in Mission Barns, a San Francisco-based startup specializing in cultivating meat by growing animal fat from cells, reducing the need for animal farming. Despite regulatory hurdles, Peter Odemark, also on the board of Mission Barnes, is optimistic about the market for both cultivated meat and plant-based options.
“Better proteins as a solution for planetary and health issues are highly effective as long as the products taste great, have clean labels and solid business models,” he says.
The market is now, according to Odemark, entering a true scale-up phase.
“Only a few of the promising ideas and companies from the past decade will make it through, but those that do will become exceptional companies.”
Mission Barns cultivates pork fat in proprietary bioreactors, which, it claims, can significantly improve the efficiency of the production process. This cultivated fat is then combined with plant-based proteins to create meat alternatives, including sausages and bacon.
"Mission Barns is awaiting FDA approval, expected in early 2025, and then the company plans to start selling its products commercially in the U.S.,” says Odemark.
However, Florida isn’t the only state regulating cultivated meat. States like Alabama, Iowa, Nebraska, and Illinois have enacted or proposed similar restrictions, with Alabama even imposing fines and potential jail time. Those states cite risks to traditional agriculture, rural economies, and livestock industries. Additional concerns raised by critics include health, safety, and the long-term sustainability of lab-grown meat.
The demand for plant-based food in the U.S. continues to decline, partly due to taste complaints and ongoing debates over the healthiness of processed foods. Between 2021 and 2023, dollar sales of plant-based meat and seafood in the U.S. declined by 13%, with unit sales dropping by 26%. Public-listed Beyond Meat has seen its stock price drop significantly in recent years.
Has Gullspång Re:food adjusted its investment strategy in the U.S. market?
“No, our strategy remains as it was when we opened in the U.S. in 2021. Our portfolio is now 60% European and 40% U.S. companies. Our U.S. team has grown to three members: two in Boston and one in San Francisco,” Odemark says.
According to PitchBook, Mission Barns has raised nearly $30 million, with notable investors including 10X Capital, BlackPine Group, Bloom8, and Blue Ledge Capital, alongside Gullspång Re:food.
Gullspång Re:food Invest is a mission-driven investment firm focused on sustainable food solutions, with a portfolio aimed at advancing innovative and environmentally friendly food technologies. Founded in Sweden, the firm invests globally in companies that align with its vision for a healthier planet through improved food production.