Believer Meats Announces Closure of Operations After Tough Decision

Key Takeaways

Believer Meats has halted operations after a vendor lawsuit over unpaid bills exceeded $34 million.
The startup, despite having FDA and USDA approvals, faced challenges common in the cultivated meat sector, including funding shortages.
Industry experts emphasize that setbacks in cultivated meat are not indicative of the sector’s demise; continued innovation and strategic approaches are essential.

Believer Meats, a cultivated meat startup with both a large production facility and regulatory approvals in the U.S., has ceased operations. The HR director, Anne Schubert, confirmed the closure following revelations of a lawsuit from a vendor for over $34 million in unpaid bills. Schubert expressed pride in the team’s achievements but did not clarify the specifics behind the decision.

Formerly known as Future Meat Technologies, Believer Meats has operations in both Israel and the U.S. It is notable for being the fifth cultivated meat company to receive an FDA “no questions” letter, verifying the safety of its products. The company also secured the necessary USDA approvals to launch its meat products from its North Carolina plant, which was expected to produce at least 12,000 metric tons of cultivated chicken annually. After raising significant funds—$347 million in a Series B round in 2021—Believer Meats was regarded as a leader in the sector.

The shutdown is viewed as a significant blow not just to the startup but to the cultivated meat industry as a whole. Experts underscore that Believer’s loss is concerning given its combination of regulatory approvals and operational capacity, which many believed would demonstrate the viability of cultivated meat production at scale.

However, Suzi Gerber, executive director of the Association for Meat Poultry and Seafood Innovation (AMPS), cautioned against interpreting this closure as a sign of doom for the cultivated meat industry. She highlighted ongoing regulatory approvals and progress in the sector, asserting that early-stage companies often face daunting challenges, similar to those seen in other emerging fields like renewable energy and electric vehicles.

Industry leaders from startups Aleph Farms and Mosa Meat noted the necessity of focusing on fundamentals and achieving profitability rather than rushing to scale. They echoed the sentiment that the closure of Believer Meats represents a “shake-out” phase within the rapidly growing cultivated meat arena, emphasizing the importance of a cautious approach to technology development.

Despite its pioneering progress, cultivated meat production still has no universally accepted playbook for large-scale manufacturing. Funding in the sector peaked at nearly $1 billion in 2021 but has sharply declined in subsequent years, leading many firms to cut staff and reconsider their strategies. Notably, companies like GOOD Meat and UPSIDE Foods have faced their own operational challenges, with UPSIDE pausing plans for a large facility in favor of a smaller location.

Tim Olsen from EdiMembre suggested that future firms will benefit from approaches that reduce capital expenditure while focusing on achieving specific milestones. He noted that the infrastructure-heavy nature of the industry often burdens first movers like Believer Meats, and the need for strategic facility planning is paramount.

Paul Burridge from Clever Carnivore commented on Believer’s strategy, cautioning against the temptation to quickly build large-scale solutions without a clear, proven process in place. He remarked that a thorough development approach is crucial in a sector that operates on tight margins.

Overall, while Believer Meats’ closure reflects significant hurdles within the cultivated meat industry, experts remain optimistic about the potential for future innovation and progress, highlighting the importance of strategic planning and realistic funding aims.

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