Nestlé eyes control of alternative meat market

Swiss food giant Nestlé is eyeing a move into lab-grown meat following criticism of the healthiness of its foods.

Nestlé is planning to enter the cultured-meat market in a move that could see the world’s largest food company help deliver the nascent technology faster to the mass market.

The Swiss giant is understood to have been working on alternative meat products that would blend cultivated meat with plant-based ingredients. 

It is understood the meat is being developed with Israeli cell-based startup Future Meat Technologies.

Nestle’s chief executive Mark Schneider is pressing ahead with an alternative protein strategy as environmental and health concerns drive more consumers to opt-out of conventional animal products.

The early move, after a relatively late decision to enter the craze for plant-based products, would help Nestlé gain a foothold in an industry that may reach 35% of the $1.8 trillion (€1.5tn) meat market by 2040.

The timing of a potential market entry would also be determined by regulatory approvals.

Future Meat Technologies is set to bring its cell-based technology, while Nestlé has experience developing plant-based products under its Garden Gourmet brand. 

The company has also been expanding its range of milk alternatives.

Most recently it added a pea-based drink in Europe.

Hybrid product

The hybrid product, which blends meat cells developed in bioreactors with plant ingredients, could be a gateway for Nestlé to tap the cultured meat market faster.

Cell-based meat startups incorporate plant-based ingredients at various stages of product development. 

It enables them to improve the texture of products and to reduce costs, a top challenge for startups vying to displace conventional meat.

Future Meat Technologies has already been successful in reducing costs. 

The company has managed to produce chicken at $4 per 100 grams and plans to halve this by the end of 2022, chief executive Rom Kshuk said in a recent Bloomberg interview. 

The company wants to begin sales in the US by the end of next year, pending regulatory approvals.

Several food and meat giants have backed cultured meat startups in recent years in recognition of the technology’s potential. 

Tyson Foods and Cargill have invested in the space, while Brazil's BRF and Mitsubishi are working with Israel's Aleph Farms. 

The latest financing round by Aleph Farms also drew backing from Thai Union Group and South Korea’s CJ CheilJedang.

• Bloomberg