Following his appointment as Meati Foods’ CFO in February, Phil Graves became its CEO.
Meati, a manufacturer of mushroom root cutlets and steaks, will expand its MushroomRoot product in 2024, and co-founder Tyler Huggins will become chief product and brand officer.
Graves told Eltrys exclusively that Meati was cutting 13% of its workers to “build a financially sustainable business.”
“To do that, you need the right organizational structure and team,” Graves added. “Building something new is hard, so we are reducing force. While uncomfortable for everyone, we must have a clear route to financial viability as a business.”
The corporation did not say how many jobs were involved. Meati reported 150 workers in 2022. At the time of publication, severance benefits were being determined.
Meati is another IT business that laid off without seeming to have difficulty. Meati’s Mega Ranch increased output in 2023. Over 3,600 stores, including Whole Foods Market, Meijer, Cub Foods, and Sprouts Farmers Market, sell products. Graves even indicated the business wants 10,000 outlets by 2024.
Currently, mushrooms are popular. Growing more mushrooms has led to success and venture capital backing for startups making functional drinks and leather-like materials.
Meati benefited from investment interest. In the previous two years, the firm raised Series C venture funding. After $150 million was disclosed in July 2022, the round raised $22 million in January 2023 and closed at over $200 million in 2023.
Meati spent heavily on its 100,000-square-foot “Mega Ranch” plant, which produced tens of millions of pounds of protein annually. Huggins told Eltrys that once fully operational, the plant can produce over 45 million pounds of goods.
“Production is ramping up as expected; however, the days where companies can raise unlimited capital and defer profitability for decades are gone,” Graves said. “My team and I are laser-focused on demonstrating a clear path to profitability in the next year. We have a plan to be EBITDA-positive. These modifications have raised our ceiling to its highest ever.”
Graves, who was CEO of sustainable meat producer Wild Idea Buffalo Co. for over two years, joined Meati last month. In addition to working at Bass Pro Shops, he founded Tin Shed Ventures in Patagonia.
“Phil is undoubtedly the right person to lead the company forward while I focus on delivering the product and brand that will establish Meati’s long-term legacy,” Huggins added. “We are coming significantly closer to fulfilling the reason Meati was founded—to elevate the health of people and the planet with nature’s boundless potential.”
As Meati Foods loses 13% of its personnel, CFO Phil Graves takes over.
