The Better Meat Co. secures landmark LOI with South American meat giant

Sacramento, California-based The Better Meat Co. has signed its largest letter of intent (LOI) to date, securing a commitment from one of South America’s largest meat companies to purchase 30 dry tons of its Rhiza mycoprotein per month, which is equivalent to 90 tons of meat once hydrated. This latest agreement adds to four other executed LOIs with major meat companies across Asia and North America, bringing the company’s projected revenue from these combined agreements to US$13 million annually.

The Better Meat Co. operates a 9,000-liter demonstration fermentation plant in Sacramento, where it partners with major meat producers under joint development agreements (JDAs). Through these JDAs, companies pay monthly fees to access Rhiza mycoprotein and trial it in their formulations. Upon successful trials, these companies typically sign LOIs specifying the volume of mycoprotein they plan to purchase once commercial-scale production is achieved. While many of The Better Meat Co.'s corporate partners do not publicly disclose their collaborations, past partnerships have included companies such as SFE, Maple Leaf, and Hormel.

“Our joint development agreements are the gateway to long-term partnerships,” commented Paul Shapiro, CEO & Co-founder of The Better Meat Co. “These companies pay us to access our mycoprotein, experiment with it, and develop new products. When they see the benefits first hand, they sign LOIs committing to significant purchase volumes once we scale up production.”

The primary use of Rhiza mycoprotein is as a meat enhancer in hybrid products, allowing manufacturers to reduce costs while improving nutrition and maintaining a high-quality sensory experience. “Adding Rhiza to beef not only lowers costs for manufacturers, but it also enhances the nutritional profile while delivering a better taste,” added Shapiro. In blind taste tests, consumers preferred Rhiza-enhanced meatballs over 100% beef meatballs. With beef prices continuing to rise, interest in hybrid products has increased. The ingredient has also proven highly effective in applications such as crab cakes, another category impacted by soaring prices. While Rhiza works well in animal-free products - for instance, Oshi uses it in its fish-free salmon - most of the current executed LOIs focus on hybrid meat applications.

Looking ahead, The Better Meat Co. plans to scale up production through a contract manufacturer with approximately 150,000 liters of fermentation capacity. To support this expansion, the company recently opened a US$15 million fundraising round aimed at accelerating its asset-light scale-up. “Demand for Rhiza mycoprotein dramatically outstrips what we can currently produce,” said Shapiro. “Scaling up quickly with a contract manufacturer is imperative, and this new funding round will help make that happen.”

The Better Meat Co. has achieved several key milestones in recent months, further strengthening its position in the alternative protein sector. The company successfully reduced production costs by implementing continuous fermentation, a significant breakthrough in mycoprotein production. It has also received FDA and USDA regulatory approval (GRAS) for its organism, secured regulatory approval in Singapore, and was awarded a seven-figure grant from the Department of Defense to advance its fermentation technology. Additionally, BMC has been awarded five patents by the US Patent and Trademark Office and was recognized by TIME magazine as one of America’s Top GreenTech companies.

“Rhiza mycoprotein is a low-cost, highly versatile whole food ingredient that enhances both animal meat and animal-free applications, which is why major food manufacturers love working with it,” concluded Shapiro. “We’re delighted to partner with plant-based companies like Oshi, yet we’ve always been most focused on working with meat companies to help them use fewer animals.”

With growing interest from global food manufacturers, the company sees its mycoprotein as a key ingredient in the future of more sustainable and cost-effective protein solutions.