Better Foods, a plant-based subsidiary of South Korea’s Shinsegae Food (KRX: 031440), an arm of retail giant Shinsegae, announces it has secured investment from Cleveland Avenue, a VC firm established and run by Don Thompson, former president & CEO of McDonald’s. The amount of the deal was not disclosed.
South Korea’s plant-based market has been thriving over recent years and last October the country became the second national government after Denmark to enstate a national action plan for plant-based foods, thus emerging as the second country to actively participate in transforming the food system.
On the flipside, in November, South Korea’s Ministry of Food and Drug Safety (MFDS) published labeling guidance for plant-based products, prohibiting the use of animal food names such as “beef,” “pork,” “milk,” or “egg”.
Better Foods to develop alt milk and cheese
Cleveland Avenue has committed not only to financial investment but also to active collaboration for Better Foods’ global market entry as a strategic partner. This partnership will support Better Foods in developing plant-based alternatives such as milk and cheese through ongoing R&D, conducting consumer marketing, and expanding its US presence.
Founded in 2022 by Shinsegae Food, Better Foods aims to enhance the global competitiveness of plant-based products and penetrate the US market, and famously launched a vegan SPAM style product for the Korean market; SPAM is a legacy product in South Korea and often gifted to family and friends at traditional holidays such as Chuseok, the Korean harvest festival.
Cleveland Avenue states its decision to invest in Better Foods was influenced by its R&D capabilities in plant-based products, using proprietary technologies, and its potential for future expansion. Additionally, the consistent business growth of Shinsegae Food, especially in applying meat substitutes across various sectors like food manufacturing, bakeries, meal services, and restaurants, was a key factor in the positive assessment.
“This investment holds great significance as it indicates that Better Foods has won recognition for its growth potential in the U.S., the largest market for plant-based products,” states a Shinsegae Food official. “We will develop Better Foods as a company specializing in plant-based products that leads the global market through R&D on a variety of plant-based products including meat substitutes.”
