New Zealand’s plant-based meat company Sunfed is set to close its operations as its inventory runs out and investors withdraw their support.
Sunfed CEO Shama Sukul Lee announced the news in a video on the company’s Facebook page.
Established in 2015, the company offered meat alternatives using regenerative yellow peas, water, and cold-pressed extra virgin olive oil.
Concerns over product availability have been rising among consumers. In January, inventory in Woolworths stores ran out, and according to Lee, the remaining inventory in New Zealand is expected to be depleted within the next two months.
Covid, staff shortages, supply chain disruptions, and skyrocketing costs had left the business “pretty battered and bruised” and needed a cash injection.
Lee also highlighted that investors interested in the plant-based trend expected swift returns, but discovered that manufacturing is much more complex.
“Sunfed’s VC investors chose not to clear the way for Sunfed but instead held on to their preferential claims, which complicated new capital options for the company”, she continued.
The CEO also remarked that the “plant-based bubble” had burst, and the category was “undergoing a reality check”.
“With unfavourable market conditions, I have had to make the decision to shut the company down in a solvent, orderly fashion,” Lee concluded. “It’s been a decade-long journey in starting, building and now closing Sunfed. I’m humbled by it and grateful for it.”
Sunfed had initially received approximately $1.5 million in start-up funding in 2016 to develop a plant-based ‘chicken’ product using yellow peas imported from Canada.
