Last year, Wicked Kitchen CEO Pete Speranza predicted the plant-based industry was headed for consolidation as sales slow and buzz fades.
Last week, the Minneapolis-based company was acquired by a Colorado startup looking to bring numerous plant-based brands under one roof.
Ahimsa Cos. paid an undisclosed sum for Wicked and its plant-based seafood brands, Good Catch and Current Foods, to “help stabilize and shape the new landscape for the plant-based industry,” CEO Matt Tullman said.
“Ahimsa is a long-term investor because they’re in it to take animals out of the food system,” Speranza said. “That’s a good investor to have because in this space you need patience.”
Plant-based food sales declined last year for the first time since tracking began in 2017, capping a rapid rise fueled by intense investor speculation built on an overestimate of how fast consumers would swap out meat for new lookalikes.
After years of explosive growth driven by plant-based milks and brands like Beyond Meat and Impossible Foods, the category has leveled off at around $8 billion in annual sales.
“For the market to see sustained growth, products will need to better deliver on the key consumer drivers of taste, price and convenience, while offering clear propositions to entice consumers to make the switch,” according to the Good Food Institute.
The industry also faces renewed pushback over ultra-processed food. A recent study showed people who followed vegan diets with high levels of ultra-processed food, including plant-based meat substitutes, had higher risks of heart attack. Meanwhile, plant-based diets built around whole foods easily beat meat-centered diets in terms of longevity and health.