Deal focus: Proterra whisks Asia supply chain for Eat Just

Only a handful of plant-based protein replacement start-ups have achieved meaningful scale and billion-dollar valuations. Most of them – led by the likes of Impossible and Beyond – currently focus on meat substitutes. Eat Just, which has raised more than $300 million to date and is valued at $1.2 billion, is the sole egg specialist. This may prove advantageous in Asia.

“In the last two years, everyone and his dog has founded an alternative protein company, but very few have real volumes and supply chains, maybe just 10 in the world,” says Tai Lin, a managing director and head of China at Proterra Investment Partners. “And then egg is one of the few food categories that has higher consumption per capita in places like China versus the West. There are so many data points as tailwinds for having this product produced here and hopefully sold here.”

Established in 2011 as Hampton Creek Foods and best known for the egg substitute brand Just Egg, Eat Just has sold the plant-based equivalent of more than 60 million eggs. While the company’s products are available in Asia, its footprint is limited. Proterra plans to change that with a $100 million commitment to a regional roll-out. This is the estimated budget for building a factory in Singapore and establishing an entire supply chain, from sourcing to processing to packaging.

Proterra – a food-focused GP that spun out of agribusiness giant Cargill – has established a new 50-50 Asia joint venture with Eat Just, though the private equity firm controls the board. The JV will be supported by partnerships with the Singapore government, Korean agricultural industry supplier SPC Samlip, Thai food technology provider Betagro, and an unnamed counterparty in China. Lin declines to specify any production targets, stressing the initial focus is on creating the supply chain.

From a supply chain perspective, it helps that the key ingredient in Just Egg, mung beans, are primarily grown in Asia. Moreover, there is ample local demand for the remnants of the bean once Eat Just has extracted the protein. “Around 50% of your beans become starch, which is used to make glass noodles in Asia. North America doesn’t have that market. You can create a very big revenue stream with 50% of the raw materials,” Lin explains.

Protein extracted from the beans is converted into powder and then sold in liquid form by the carton and as slices that can be heated using a toaster or skillet. Just Egg is most used as a replacement for traditional eggs in scrambled egg and folded egg dishes as well as omelets. Lin observes that the growth trajectory could be like that of plant-based milk, which has risen from a 1% share in Western markets to around 10% in the space of 10 years.

“We see this trend in a variety of consumer and food-type products. If plant-based protein overall, including egg substitutes, can go from 1% to 10%, you are talking about a market of tens of billions of dollars across Asia. If you can be one of the leaders in that, it would be very interesting,” he adds, noting that the likes of Impossible and Beyond have yet to turn their attention to eggs.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Southeast Asia
• Expansion
• Consumer
• China
• Proterra Investment Partners
• Growth capital