Phil Graves becomes the company's new chief executive officer after the company named Meaty Foods chief financial officer in early February.
Co-founder Tyler Huggins will move into the role of chief innovation officer as Meaty, which makes alternative protein cutlets and steaks from mycelium (mushroom roots), further rolls out mushroom root products in 2024. , who will oversee the company's brand refocus.
The company also said it would cut its workforce by 13% as Meaty is working to “build a financially sustainable business,” Graves exclusively told TechCrunch.
“To do that, you need to have the right organizational structure and team in place,” Graves says. “The force is being reduced because it's difficult to build something completely new. It's painful for everyone involved, but it's also essential that we have a clear path to financial profitability as a company.”
The company did not say how many jobs would be involved. Meati said the company will have 150 employees in 2022. At the time of publication, severance pay was still being determined.
Mitty is another example of a technology company that cut jobs even though it didn't appear to be in trouble. Meati's Mega Ranch facility scaled up production throughout 2023. Products are currently sold in more than 3,600 retail stores across the United States, including Whole Foods Market, Meijer, Cub Foods and Sprouts Farmers Market. Graves even said the company has a goal of expanding it to 10,000 locations by the end of 2024.
The mushrooms are getting bigger now. Companies are turning fungi into materials like functional drinks and leather, and as a result, simply growing more mushrooms is making them successful and attracting venture capital funding.
Meety itself benefited from investor attention. The company has raised significant venture capital in the past two years, most recently at the Series C level. An initial $150 million was announced in July 2022, and the round raised another $22 million in January 2023, ultimately closing in late 2023 for over $200 million.
Much of that was invested in a 100,000-square-foot “mega-ranch” facility that allows Meaty to produce tens of millions of pounds of protein annually. Once fully operational, the facility will have the capacity to produce more than 45 million pounds of product, Huggins told TechCrunch at the time.
“Production is increasing as expected. But gone are the days when companies could raise unlimited capital and postpone profitability for decades,” Graves said. “One of the things I, and the team as well, are focused on is providing a clear path to profitability over the next 12 months. We aim to be EBITDA positive. And we have a path to get there. These changes have raised our ceiling higher than ever before.”
Meanwhile, Graves joined Meaty this month from Wild Idea Buffalo, a company focused on sustainable meat production, where he served as CEO for nearly two years. He previously worked at Bass Pro Shops and Patagonia, where he was also the founder of his corporate venture fund, Tin Shed Ventures.
“Phil is undoubtedly the right person to lead the company forward, and I will be focused on delivering the products and brands that establish Meaty's long-term legacy,” Huggins said in a statement. “We are much closer to achieving our founding purpose: harnessing nature’s limitless potential to enhance the health of people and the planet.”