Konscious Foods goes off the menu as plant-based seafood startup shuts down in Canada

Canadian plant-based seafood startup Konscious Foods has shut down operations after its primary secured lender moved to enforce collateral, bringing the business to a halt following unsuccessful efforts to secure new financing or complete a restructuring process. The closure was first reported by AgFunderNews.

Founded in 2020 and headquartered in Richmond, British Columbia, Konscious Foods ceased operations earlier this year. Emails sent to company executives now trigger an automated response outlining the circumstances behind the shutdown. In that message, the company said that “unforeseen changes in US-Canada trade relations, combined with headwinds in the plant-based food sector”, had significantly impacted the business.

The message added that the company’s primary secured lender had issued a demand letter and a notice of intention to enforce its security. “This action has ultimately led to the cessation of Konscious operations and the pending transfer of our assets,” the automated response stated.

Further signs pointed to a full shutdown. The company’s main phone line is no longer in service and its website has gone offline.

Industry sources told AgFunderNews that Konscious Foods had been actively seeking new funding, merger opportunities, and recapitalization options in recent months, including exploring overseas co-manufacturing arrangements. Those efforts appear to have been unsuccessful. “All the employees I knew that worked with them are gone. They are no longer in business,” one source told AgFunderNews.

Neither founder and CEO Yves Potvin nor president and COO Michael Watt responded to requests for comment from AgFunderNews. Watt, the former CEO of dairy-free brand Daiya, joined Konscious Foods in early 2025 as part of an effort to stabilize and scale the business.

Konscious Foods was founded by Potvin, a veteran of the natural and plant-based food industry. He previously created Yves Veggie Cuisine, which was sold to Hain Celestial in 2001, and Gardein, which was acquired by Pinnacle Foods in 2014 and is now part of Conagra Brands. Drawing on that background, Konscious positioned itself as a premium plant-based seafood company, producing frozen sushi, onigiri snacks, and poke bowls for retail, while also developing a food-service business.

The company operated a 34,000ft2 manufacturing facility in Richmond, where it produced fully plant-based products that were organic where possible. Its stated ambition was to redefine convenience seafood through a health- and sustainability-focused approach, targeting both mainstream grocery retailers and institutional buyers.

In mid-2023, Konscious Foods raised CA$26 million (approximately US$18.9 million) from investors including Protein Industries Canada, Zynik Capital, and Walter Group. In February 2025, the company announced a further CA$5 million (approximately US$3.6 million) in funding from Pacific Economic Development Canada, the federal economic development agency for British Columbia, although AgFunderNews reported that the funds had been received earlier than publicly disclosed.

Speaking to AgFunderNews following the 2023 funding round, Potvin said the company expected to reach 4,500 supermarkets across North America by the end of that year. He emphasized that while Konscious operated within the plant-based category, its competitive focus was rooted in traditional food business fundamentals. “We are a plant-based business, but that’s not how I think about the competitive set,” Potvin said. “I’m running a food business; it’s about operations, margins, branding, and consumer trust, and that’s the case whether you’re plant-based or not.”

Potvin also acknowledged the financial realities facing mission-driven food startups. “It’s great to change the world,” he said. “But you’re still running a business and at some point you have to make a profit.”

The shutdown of Konscious Foods comes amid continued pressure across the plant-based and alternative protein sector, which has faced slowing sales growth, tighter capital markets, and increased scrutiny of unit economics over the past two years. A number of companies have scaled back operations, delayed expansion plans, or exited the market altogether as investors shift focus from growth to profitability.

While Konscious Foods’ assets are now expected to change hands, it remains unclear whether the brand or its product portfolio will re-emerge under new ownership. For now, the closure stands as another example of the recalibration underway within the North American plant-based food sector.