Exactly a year ago, two Australian brand leaders in the plant-based meat category — Fënn Foods‘ vEEF and All G Foods‘ LOVE BUDS — announced they were merging to form a new company called The Aussie Plant-Based Co. The strategic move aimed at achieving a massive expansion to cater to the growing demand for alternatives.
However, in an unfortunate turn of events, the Aussie Plant-Based Co. has been recently liquidated due to cash flow issues, as reported by local media. Following a general meeting of the company’s members, it was decided to appoint liquidators and have open discussions with parties interested in restarting the business.
Anticipated synergies
At the time of formation, there were anticipated synergies between the two brands, with vEEF present in multiple locations and operating a manufacturing hub in the Sunshine Coast, while LOVE BUDS was strong in R&D and foodservice.
Alejandro Cancino and Paola Moro founded Fënn Foods in 2015. The brand raised $3 million in an oversubscribed private capital raise in 2022 and was popular for its plant-based mince under its vEEF brand. Its range includes plant-based bacon bits, pulled beef, and roast seitan. Last year, the company became Australia’s first carbon-neutral plant-based food company, and just last month (under the merger), it launched a new range of plant-based meat at competitive prices.
“By combining our strengths, we can accelerate the adoption of plant-based alternatives and contribute to a greener planet and more ethical sources of protein,” said Cancino, announcing the merger.
Another setback for the industry?
The liquidation of The Aussie Plant-Based Co. marks another setback for the plant-based meat industry in Australia, despite the companies’ strategic advantages and market presence.
Earlier this year, ProForm Foods, the country’s first commercial plant protein manufacturer, entered voluntary administration and ceased operations in September. Sunfed Meats, a leader in the Australia-New Zealand (ANZ) industry offering pea protein-based chicken and beef alternatives, also shut down earlier this year. Furthermore, Australian Plant Proteins, the only manufacturer of locally grown fava bean and pulse protein isolates, entered voluntary administration this July.
Despite these events, interest in plant-based foods remains strong in Australia. A report by Food Frontier indicates that plant-based meat sales rose by 47% from 2020 to 2023, and per-capita consumption increased by 28%. Moreover, another report from the non-profit organization says that the alt protein industry in Australia has grown tenfold in the past few years.
Food Frontier CEO Dr. Simon Eassom, commenting on Australian Plant Proteins closure, said that challenges such as limited infrastructure, a shortage of skilled workers, insufficient local supplies of ingredients, and lack of government support strongly contribute to companies’ failure.
“This is a warning that building a long-term sustainable industry takes time, ongoing investment, and commitment from government,” he said.
“This is especially important in regional areas where employment and valued-added industries are needed. If we contrast Australia with a world leader in this sector, the government-sponsored Protein Industries Canada has co-invested $190 million in the time since APP was founded in 2016 and is strategically assembling and supercharging Canada’s domestic plant protein industry to reach $27.5 billion by 2035.”