Boston-based foodtech firm Motif FoodWorks, renowned for its innovative heme proteins produced via precision fermentation, is closing its doors, AgFunderNews has learned. The announcement was made to remaining staff this afternoon, marking the end of a significant chapter in the alternative protein industry. A skeleton crew will remain to manage the winding down of operations at the company’s headquarters in Boston and its market development and research center in Northborough.
Motif FoodWorks, which spun off from Ginkgo Bioworks in 2019, quickly emerged as a high-profile player in the alt protein field, raising an impressive $345 million in funding. The company’s mission was to revolutionize meat and dairy alternatives with high-impact, low-inclusion ingredients. In 2021, Motif secured a staggering $226 million in a Series B round, capitalizing on the then-booming interest in alternative proteins.
However, the company has faced significant challenges in recent years. Investor sentiment towards meat alternatives has soured amid declining retail sales, creating a more challenging environment for firms in this sector. According to Circana data analyzed by 210 Analytics, US retail sales of meat alternatives fell 10.7% to $1.1 billion in the 52 weeks ending June 30, 2024, with volume sales dropping 13.3%. In contrast, fresh meat department sales saw a modest increase of 2.3%, with volumes up 0.7%.
Adding to its woes, Motif was embroiled in a costly intellectual property battle with Impossible Foods, which was resolved this week with both parties agreeing to cover their own costs. While Motif has denied that the litigation deterred potential customers, a source close to the company told AgFunderNews that the lawsuit had a detrimental impact: “The Impossible lawsuit [filed in March 2022] hurt a lot the potential of the business and pretty much killed it.”
The company’s internal dynamics have also been turbulent, with three different CEOs since its inception. Former PepsiCo R&D executive Jonathan McIntyre was the first to helm the company, followed by CTO Dr. Mike Leonard in mid-2022, and most recently, Brian Brazeau in November 2023 after a round of layoffs. A source suggested that the influx of investment capital led Motif to adopt a corporate mentality rather than maintaining a scrappy startup ethos, which may have hindered its agility and innovation.
Motif FoodWorks has commercialized several groundbreaking products, including HEMAMI myoglobin, a heme protein designed to deliver the flavor and aroma of meat through precision fermentation. Another notable product is APPETEX, a hydrogel that combines plant-based proteins and carbohydrates to replicate the “springiness, juiciness, and bite” of animal-based connective tissue. Additionally, Motif developed finished plant-based chicken, beef, and pork products containing HEMAMI and APPETEX, targeting the foodservice market. The company also acquired exclusive access to prolamin technologies for plant-based cheese and oleogels for more authentic fat textures in plant-based meats.
The closure of Motif FoodWorks is a significant blow to the alternative protein industry, which has been grappling with shifting consumer preferences and increased competition. As the sector continues to evolve, the fate of Motif serves as a cautionary tale about the challenges of scaling innovative food technologies in a rapidly changing market landscape.
This is a developing story, and further details will emerge in the coming days. For now, the industry watches closely as one of its pioneering firms winds down, leaving behind a legacy of innovation and a reminder of the volatility inherent in the quest to transform our food system.