Feb 11 (Reuters) - Plant-based burger and burritos maker Alpha Foods said on Tuesday it raised $28 million in a funding round led by AccelFoods, a venture capital fund that focuses on food and beverage companies.
The funding follows cell-based meat producer Memphis Meats’ $161 million raising last month, led by Japan’s SoftBank Group , highlighting investors’ growing appetite for the plant-based meat sector.
“Plant-based food and beverage brands really are the future of our industry and we think there will be increasing opportunities for investors in that space,” AccelFoods Managing Partner Jordan Gaspar said in an interview.
Plant-based meat and other meat alternatives are soaring in popularity, with millennials and Gen Z consumers increasingly shunning beef, poultry and pork for environmental and health reasons.
Beyond Meat Inc, whose shares have more than doubled since their market debut, and Impossible Foods made the trend popular with the introduction of vegan options at fast-food chains and by stocking products in the meat section of super markets.
Alpha Foods said it plans to use the funds to launch new products and expand its distribution channels.
The company makes more than 25 popular vegan and non-GMO products that are available in more than 9,000 stores across the United States, including Walmart, Kroger and Wegmans supermarkets. (Reporting by Nivedita Balu in Bengaluru; Editing by Subhranshu Sahu)