Page 61 - Farm and Food Policy Strategies for 2040 Series

Tyson is shifting into selling “great tasting protein
alternatives that are more accessible for everyone.”

Pointing out “global protein demand has been increasing
at a steady rate,” Tyson Corporate Strategy Executive
VP Justin Whitmore adds the company will “continue to
invest significantly in our traditional meat business, but
also believe in exploring additional opportunities for
growth that give consumers more choices.”

If White is right, Tyson alternatives will fill consumers’
shopping carts soon, joining forces with the meatless
Beyond Burger from Beyond Meat, a 2009 California
startup that Tyson bought into in 2016 and 2017, giving
Tyson a 5% stake.

To ‘Completely transform the food industry forever’ Noel White, Tyson Foods

As part of its strategy of offering consumers more new-food choices, Tyson has followed up on
its Beyond Meat and Memphis Meats investments by investing in MycoTechnology, a 2013
startup selling mushroom-based food ingredients that reduce sugar content while promising to
enhance taste, nutrition and value.

MycoTechnology, whose stated goal is to “Completely transform the food industry forever,”
raised $30 million in January from investors that include food-industry leaders Tyson, Bunge,
Continental Grain, and Kellogg’s. This latest $30 million brings a total of $82.6 million that
MycoTechnology has raised in its seven funding rounds since 2013.

MycoTechnology’s $82.6 million compares with other leading fundraisers in the alternative
meats sector: Impossible Foods’ $387.5 million, Beyond Meats’ $122 million, and Memphis
Meats’ $20.1 million.

Alastair Cooper, senior investment director at ADM Capital Cibus Fund, explains the intense
food industry interest in MycoTechnology this way: “MycoTechnology’s fungi fermentation
platform solves a number of the biggest challenges in the food industry, including: producing a
high value, complete protein alternative to animal-based products, increased sustainability, and
the ability to drastically reduce sugar content in foods. MycoTechnology is driving the growth of
a new and disruptive product range, and we are thrilled to co-lead this investment round and fund
the next stages of development.”

Tyson’s and Beyond Meat’s new foods seem well ahead of lab-grown alternatives from
Memphis Meats that has wrestled its production costs down from $18,000 per pound in 2016 to
under $2,400 today. That still means lots more research and scaling ahead to bring lab-grown,
cell-cultured meat down to a realistic price and meet the Memphis Meats goal of launching its
retail sales in 2021.

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