USA's Chunk Foods secures investment from Mexico’s Sigma Alimentos

Mexican meat and dairy company Sigma Alimentos has made an undisclosed investment in Chunk Foods, a USA-based meat alternatives producer. Both companies will collaborate to create a new line of plant-based whole-cut meats. The co-branded products will be introduced to the retail and food-service sectors in Mexico, marking Chunk Foods' foray into the Latin American plant-based foods market.

Initially, these products will be available in select restaurants in Mexico City and Monterrey, according to Chunk Foods. The company specializes in plant-based meat whole-cut replacements, utilizing fermentation technology in its production process. Their product portfolio includes a 4oz steak, a 6oz steakhouse cut, and a shredded beef alternative. The financial details of Sigma Alimentos' investment remain undisclosed.

Headquartered in New York, Chunk Foods has confirmed its presence in Israel as a 'subsidiary' site. Helio Castaño, vice president for Sigma’s global plant-based business, expressed that the collaboration with Chunk aligns with the evolving consumer demands for taste, texture, ingredient transparency, and ease of preparation within Sigma's plant-based arm, Better Balance.

The partnership comes on the heels of Chunk Foods closing a US$7.5 million seed funding round, led by Californian VC fund Cheyenne Ventures, bringing the total seed round to US$22 million and the company's total funding to US$24 million. Investors include Cheyenne, Sigma, Fall Line Capital, Key1 Capital, E14 Fund, and the Footprint Coalition.

Amos Golan, founder and CEO of Chunk Foods, expressed excitement about working with Better Balance to deliver innovative, high-quality plant-based products tailored to the tastes and lifestyles of Mexico. The funds raised will be used to expand commercial and operations teams in the USA, achieve nationwide distribution, and forge more local distribution partnerships. Some of the capital will also support increased manufacturing capacity to meet growing demand across the United States.

Golan anticipates business revenue exceeding US$10 million in the next 12 months, with Chunk Foods currently selling its products in over 30 fine dining and casual restaurants across seven US states. Sigma, based in San Pedro, Mexico, operates globally with 11 brands covering plant-based, frozen, dairy, dry meats, and fresh meats. The company has 66 manufacturing facilities, 187 distribution centers, and over 45,000 employees, operating in 18 countries. Last May, Sigma acquired a majority stake in Hispanic cheese and cream producer Los Altos Food Products.