The company, which is based in Copenhagen, started producing patties by hand in an industrial kitchen. It supplied the meat substitutes to two high-end restaurants in Denmark and a popular burger chain called Gasoline Grill. Chefs and customers were excited about the product.
The company is now investing about €40 million to expand its research and development, and to build and operate a new facility capable of producing 3 500 tonnes of plant-based meat alternatives – about a hundred times more than it produces now. The European Investment Bank signed an agreement in September to provide Matr Foods with €20 million in venture debt financing, backed by InvestEU.
Meat substitutes have evolved considerably over the last decade. First-generation substitutes largely consisted of tofu or tempeh – soy-based products that don’t fit easily into a European diet. “Most of us couldn’t really use those products in recipes we make at home,” says Stephan Mitrakas, a cleantech investment officer at the European Investment Bank. Think spaghetti Bolognese with tofu chunks.
Second-generation meat substitutes made more of an effort to resemble meat, and they had quite a bit of success. Impossible Foods, the maker of the plant-based Impossible Burger, planned an initial public offering that would have valued it at around $10 billion, although that valuation has since sunk a bit.
Some of those substitutes contained a lot of additives and “quite a bit of fat,” often through the addition of plant-based oils, says Carmine Marzano, a senior engineer in the European Investment Bank’s bioeconomy division. Those products include a relatively long-list of ingredients, and several additives, that are then mixed and pushed through a die to create the burger shape. “It’s kind of like a pasta maker,” Marzano says. “Makers of these products do something very similar, but the ingredients are mixed with vegan protein extracts.”