Key Takeaways
- Nxtfood secures €49 million in funding to expand production and R&D for plant-based meats.
- The French startup is experiencing rapid growth, projecting €17.4 million in sales for this year.
- Despite a global decline in plant-based meat sales, the French market is growing, encouraging innovation and private label opportunities.
Company Growth and Expansion
Nxtfood, a French startup recognized for its ACCRO brand, has successfully raised €49 million ($58 million) in a funding round aimed at accelerating its growth in the retail and foodservice sectors. The round saw participation from existing investors Creadev and Roquette Ventures, alongside new partners Clay Capital and IRD Invest. Clay Capital’s managing partner, Matthieu Vermersch, emphasized that Nxtfood exhibits a combination of operational excellence, European ambition, and a promising path to profitability.
The funding will be directed towards tripling the production facility’s footprint in Vitry-en-Artois, France, expanding to 12,000 square meters, as well as enhancing research and development in high moisture extrusion. This investment will bolster sales and marketing efforts for the ACCRO brand in France and across Europe.
Rapid Sales Growth
Founded in 2019, Nxtfood has rapidly become a strong contender in the plant-based meat market. The firm’s products, made from locally sourced wheat and pea proteins, have gained significant traction, with over 20 offerings including alternatives to chicken, beef, and pork now available in major retailers and over 10,000 foodservice locations. CEO Renaud Saïsset reported substantial sales growth, from €1 million ($1.2 million) in 2022 to a projected €17.4 million ($20.5 million) this year.
Achieving profitability hinges on economies of scale and improved operational efficiency. Saïsset noted, “Our new industrial plan will enhance efficiency and yield, improving production margins while controlling costs.”
Opportunities in the French Market
While many markets see stagnation or declines in meat alternative sales, the French sector is experiencing double-digit growth. Retailers and foodservice businesses are eager to capitalize on this trend, creating room for new products and private labels. Saïsset highlights that many retailers are investing in advertising and promoting these alternatives.
He pointed out the importance of merchandising strategies, indicating that products are currently located within the chilled prepared food section of stores. There are ongoing discussions to determine more effective placements.
Nxtfood is also targeting various segments in foodservice, noting that consumers are more adventurous with plant-based products when dining out. This leads to increased retail interest as customers become familiar with the offerings. Schools are another promising area for expansion, as French canteens experiment with integrating more plant-based options into their menus.
Navigating Market Challenges
Regarding the current funding landscape, Saïsset acknowledged a tougher global economic environment. He noted that investors have become more cautious about the plant-based market, which has faced disillusionment due to high initial expectations. However, he remains optimistic that the French market, being relatively young and developing, can learn from the oversaturation seen in markets like the UK, where many brands offered similar products.
To address consumer preferences, Nxtfood prioritizes shorter ingredient lists and clean labeling, ensuring products are nutritious and comparable to traditional meat, featuring high protein and fiber while being low in saturated fat. As Nxtfood moves forward, the combination of innovation and market awareness may position it well for sustained growth in the evolving landscape of plant-based foods.
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