From chocolate to cultured meat – Food giant set to enter new market

Switzerland: Nestle SA plans to enter the cultured-meat market in a move that could help the nascent technology become accessible to the masses faster.

The Swiss company is working on alternative meat products that combine animal products with plant-based ingredients, according to people familiar with the matter, who asked not to be identified because the information hasn’t been released. The meat is being developed with Israeli startup Future Meat Technologies Ltd.

Nestle CEO Mark Schneider is pursuing a new alternative protein strategy as environmental and health concerns encourage more consumers to forego conventional animal products. The early move, after an earlier decision to enter the plant-based craze, would enable Nestle to establish itself in an industry that could reach 35% of the $1.8 trillion meat market by 2040, according to analysts at Kearney.

A representative of Future Meat Technologies did not reply to an email seeking comment. Nestle confirmed in a statement that it is evaluating ‘innovative technologies to produce cultured meat or cultured-meat ingredients with several external partners and startups.’

Read also: Why don’t you drop ‘Colonial’ Sedation law? SC asks Centre

The timing of a potential market entry would also depend on regulatory approvals, the people said.

Future Meat Technologies will provide its cell-based technology, while Nestle has experience developing plant-based products under its Garden Gourmet brand. Additionally, the company recently introduced a pea-based beverage in Europe, adding to its range of dairy alternatives.

According to Nestle Research, Reinhard Behringer, head of the Nestle Institute of Material Sciences, the company is seeking animal-friendly alternatives that are close to meat in terms of taste, flavor and texture.

Nestle could quickly tap the cultured meat market with this hybrid product, which blends meat cells developed in bioreactors with plant ingredients. The goal of cell-based meat startups is to incorporate plant-based ingredients throughout product development. They are able to improve product texture and reduce costs, a top challenge for startups seeking to displace conventional meat.

Future Meat Technologies has already reduced costs. The company produces chicken at $4 per 100 grams (3.5 ounces) and plans to halve that price by the end of 2022, according to Chief Executive Officer Rom Kshuk. Sales in the United States are expected to begin by the end of next year, pending regulatory approval.

Various food and meat giants have backed cultured meat startups in recent years, recognizing the technology’s potential. Tyson Foods Inc. and Cargill Inc. have invested in the space, while BRF SA and Mitsubishi Corp. are partnering with Aleph Farms Ltd. Aleph Farms has also received support from Thai Union Group and South Korea’s CJ CheilJedang Corp.