Key Takeaways
- Planetarians is auctioning its intellectual property and assets on August 7 to address outstanding debts.
- The firm has developed a patented process for creating affordable, sustainable meat alternatives from spent brewer’s yeast.
- Despite challenges in the alternative protein market, Planetarians’ technology offers significant cost benefits and clean-label solutions.
Strategic Transition for Planetarians
Planetarians, a startup known for its patented method of producing meat alternatives from spent liquid brewers’ yeast, is set to auction its intellectual property and assets on August 7. Founder and CEO Aleh Manchuliantsau clarified that this move is not a liquidation but rather a strategic transition aimed at finding buyers who will actively develop the technology further.
Based in California, Planetarians is the latest casualty in the alternative protein space, which has seen diminishing investor interest and stagnant sales. Established in 2013, the company initially focused on using upcycled ingredients like defatted sunflower seeds for snacks and pasta before shifting to meat alternatives. Their innovation revolves around a method that produces clean label meat substitutes from spent yeast and plant proteins, supported by an 11,500 square foot pilot facility in Hayward, California.
In 2023, Planetarians raised $6 million in a seed funding round led by Mindrock and supplemented by other entities such as Traction Fund and ZX Ventures, yet it struggled to secure additional capital for increasing production capacity. Manchuliantsau stated, “The fundamental issue isn’t our technology or market fit — it’s the mismatch between the capital intensity required to scale breakthrough manufacturing innovation and the current investor appetite for foodtech.”
Despite economic challenges, Planetarians achieved market validation, reporting $141,000 in school sales in 2024 and $135,000 in senior housing sales in 2023. The company recorded retail velocities 2-4 times higher than competitors, with an impressive 85% repeat rate in foodservice. The technology has proven to be cheaper and more sustainable than traditional plant proteins.
As a by-product of the brewing process, spent yeast is rich in proteins and nutrients but has limitations due to its high RNA content. Planetarians has developed a processing method that enhances flavor and texture while significantly reducing RNA levels.
The upcoming auction will include a range of equipment such as a twin-screw extruder and cooling systems, along with patents valid until 2041. The company’s ‘SpyGlass AI’ platform will also be available, which facilitates broader food product development using industrial food byproducts. The auction is described as a “rare opportunity” to acquire technology with validated market potential.
Manchuliantsau emphasized that this technology could significantly impact the food market, addressing challenges like high prices and the demand for clean ingredient labels. He mentioned, “Our IP directly confronts these issues by offering lower production costs through innovative use of agricultural byproducts.”
For prospective buyers, an opportunity exists for a strategic shortcut to market-ready solutions. Additionally, Manchuliantsau has offered his expertise for a 6-to-9 month period after the acquisition to help mitigate knowledge loss, a common issue in asset sales.
He stated, “The real opportunity here extends beyond plant-based meat,” suggesting that the technology could be applied to enhance a variety of consumer packaged goods, potentially reshaping innovation in the food industry to align with sustainability goals.
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