Meati Foods, a Colorado-based company known for its plant-based meat alternatives, is facing a major financial crisis after its lender unexpectedly pulled funding. As a result, the company has warned state officials that it may have to shut down its manufacturing facility in Thornton, CO and lay off 150 employees by May 6, 2025, unless it can secure new financing.
The Worker Adjustment and Retraining Notification (WARN) notice details that the lender “unexpectedly removed cash from our accounts and took control of remaining cash reserves on Friday, February 28, and the action was not reasonably foreseeable.” Consequently, Meati Foods stated, “Based on this action, we do not have sufficient funding to continue operating.”
Meati Foods
Despite this alarming development, sources familiar with the situation say Meati Foods continues to operate, with production at the Thornton, CO facility still ongoing. The company is actively seeking new financing to avert the planned layoffs and maintain operations. The lender’s actions were reportedly triggered by Meati’s failure to meet specific revenue and margin targets, despite the company nearly doubling its revenue in the previous year and expanding distribution by 130 percent.
Industry veterans bet big on Meati
Meati Foods, co-founded by Tyler Huggins and Justin Whiteley, has been at the forefront of utilizing mycelium—the root structure of fungi—as a protein source for its meat-alternative products. The company gained significant attention for its innovative approach, leading to substantial investments, including a $150 million Series C funding round in mid-2022.This funding was intended to support the construction of a large-scale production facility, dubbed the “mega ranch,” in Thornton, CO.
The Series C funding round attracted notable investors such as Revolution Growth and Cultivate Next, a fund owned by Chipotle Mexican Grill, along with Grosvenor Food & AgTech. Prior investors included Acre Venture Partners, Congruent Ventures, Tao Capital, Prelude Ventures, and Bond Capital. The company has raised more than $450 million over 11 funding rounds, according to Tracxn.
Meati Foods
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In early 2024, Phil Graves, formerly of Patagonia, was appointed CEO, succeeding co-founder Tyler Huggins, who transitioned to the role of Chief Innovation Officer. Under Graves’ leadership, Meati Foods aimed to achieve positive gross margins by the end of 2024, focusing on expanding distribution and product innovation. The company launched new products, including mycelium-based breakfast patties, and secured placements in major retailers such as Sprouts Farmers Market, Raley’s, and Harris Teeter, reaching approximately 7,000 stores nationwide.
Meati’s celebrity backers
Meati Foods’ rapid ascent in the alternative protein market was marked by strategic partnerships and media buzz. Support from celebrities and athletes including Rachael Ray, Derek Jeter, David Chang, Aly Raisman, and Chris Paul elevated its market position. Jeter, an MLB Hall of Famer, joined Meati Foods as an investor and advisor in June 2023. Jeter emphasized the company’s commitment to nutrition, sustainability, and taste, stating, “When it came to considering an investment in this industry, I had three main priorities in evaluating the food: nutrition, sustainability, and taste,” he said at the time.
“Meati certainly delivers, with great quality steaks and cutlets and an institutional emphasis on high nutritional value and sustainable practices. As we look to the future, the choices we make and the impact we leave are critical, and I appreciate the way Meati has dedicated efforts to making a real difference,” he continued.
The company’s products garnered attention for their nutritional benefits and sustainability as a whole cut alternative to many ultra-processed plant-based meat alternatives. The company’s innovative approach and product quality led to accolades, including in the Best Lunch & Dinner category in the 2025 Men’s Health Food Awards for its Crispy Cutlets.
In July 2023, Meati partnered with Dot Foods, North America’s largest food industry redistributor, to expand its reach across all 50 states. This move was a significant step toward Meati’s goal of becoming the market leader in meat alternatives by 2025. Despite these achievements, the recent financial turmoil underscores the volatility and challenges within the alternative protein industry.
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