Key Takeaways

• Fable Food, specializing in shiitake mushroom-based products, achieved over 50% growth last year while other alt meat companies struggled.
• The company emphasizes taste, health benefits, and minimal processing to attract consumers, avoiding the “fake meat” stigma.
• Fable’s innovative product blends shiitake mushrooms with ground beef, offering lower costs and better taste, with retail trials planned in the US.

Success Through a Focus on Flavor

Sydney-based Fable Food, founded in 2019, has experienced substantial growth in a challenging market for alternative meats. With over 50% year-over-year growth last year, the company is set to surpass those figures in 2023. Michael Fox, a co-founder who recently relocated to the US to accelerate growth, attributes this success to a strong emphasis on taste, price, and the health benefits of shiitake mushrooms.

By steering clear of terms like “vegan” or “plant-based meat,” Fable positions its products as delicious, healthy, and accessible mushroom options. Fox describes how consumer tests revealed that products labeled with ‘mushroom’ consistently outperformed those using meat analog terminology. This marketing strategy has helped Fable resonate more with consumers, who are increasingly familiar with the health benefits of mushrooms.

Innovation in Blended Products

Fable has seen great success in various cuisines, particularly within the quick-service restaurant industry. Their shiitake products are quickly becoming sought after across Australia, the US, Canada, the UK, and Singapore. Fable is committed to enhancing its offerings, including a “shiitake infusion” product designed for blending with beef, which has recently gained traction.

The unique attributes of Fable’s shiitake-based product allow it to blend seamlessly with beef, improving taste, yield, and cost-effectiveness. Fox notes that traditional cooking methods often result in significant weight loss due to water content, an issue his process mitigates.

Fable’s strategy is aimed at meeting consumers where they are, as studies indicate that one in three Americans wish to reduce meat consumption but may not seek out analogs. Instead, they are inclined to substitute vegetables or consume smaller portions of meat. This understanding inspired the development of the shiitake infusion, a simple blend of mushrooms and other natural ingredients.

Expansion and Cost Management

Fable’s products are gaining momentum with caterers focused on health and sustainability goals, as well as within retail, where initial tests have shown promising results. The company anticipates that their infusion product will perform well in the US market, following successful tests in Australia.

Unlike competitors that utilize expensive bioreactor systems for mycelium production, Fable relies on simpler processes to manufacture its products. Their pricing structure varies, with some retailers opting for parity with 100% beef and others providing slight discounts. This flexibility enhances Fable’s appeal in a competitive market.

In the long term, Fable aims to grow its own shiitake mushrooms, anticipating significant cost reductions. By optimizing the growing process for larger mushrooms suited for their product line, Fox is confident they can decrease cultivation costs by 80-90%. Plans are in place for a pilot facility to begin in the following year.

Financial Stability and Future Growth

Fable Food has raised $14.5 million in funding, currently retaining $3.5 million for further development and growth initiatives. Fox expresses confidence in reaching cash flow positivity by next year, after achieving notable growth and profitability. Future financial plans include a series B funding round within the next two years, bolstered by two consecutive years of healthy revenue performance.

As consumer preferences shift toward low-calorie and high-fiber foods like shiitake mushrooms, Fable Food is well-positioned to capitalize on this trend while continuing to innovate and expand within the alternative protein market.

The content above is a summary. For more details, see the source article.