Investments

Impossible Foods raises again - this time it's a $200 Million Series G round --- bringing the company private financing to $1.5 Billion. https://cellbased.link/tss 

The round was led by the tech sector hedge fund, Coatue, a new entry to the Impossible Cap table with additional new investor XN. Participation from existing investors included Mirae Asset Global Investments and Temasek

According to data tracker Prime Unicorn Index, Impossible's valuation is estimated at about $4.03 billion following the latest Series G round with the most recent price per share at $16.15, compared to the March Series F price of $15.41 

Bottom Line: Explosive growth in this sector fueled by supply chain challenges from the traditional meat counterparts has led Impossible to a massive retail and direct to consumer footprint. According to a company press release, Impossible Foods is looking at tackling more major food groups including  milk, steak and other foods.

A Cell Based Tech Breakdown of Archer Daniels Midland ($ADM)

• ADM is one of the world’s largest suppliers of plant based protein ingredients.
• ADM is adding to their plant based protein portfolio with investments in cell based companies totaling an estimated $30-50 million.
• The company is also innovating their internal product line to meet the growing demand of plant based proteins that more closely resemble meat.
• ADM plans to continue investing in and co-develop proteins synthesized through cellular fermentation.
• Our Prediction: Since ADM already has the infrastructure and agility to incorporate cellular fermentation, it makes sense for them to continue investing in emerging cell based tech. This may allow them to assess where the market is, learn about new technology, and later incorporate it internally. We don't see their own use cases coming to market within the next year.

ADM Snapshot: Archer Daniels Midland, headquartered in Chicago, Illinois, is a global agricultural processor and food ingredient provider + distributor. ADM participates in two critical components of the agricultural lifecycle including producing and selling products that farmers use (e.g. animal nutrition) and processing and selling ingredients that food processors use (e.g. oilseed and milled wheat).

ADM already has a deep understanding of cellular fermentation and scalability. This is arguably their ticket into cell based technology and is the basis of their investment in Perfect Day. ADM has a dedicated venture capital fund, which has participated in four investments in the cell based tech space that are publicly available:

1. Geltor: ADM investment undisclosed. The total amount raised was $18.2 million (Series A). The investment round was led by private venture capital firm, Cultivian Sandbox Ventures and additional investors included Gelita, Cavallo Ventures and Box Group.
2. Perfect Day: ADM investment undisclosed. The total amount raised was $34.8 million (Series B). Temasek and Horizon Ventures were the other investors. This investment also included a joint development agreement between ADM and Perfect Day to work together to optimize and scale up the production of the animal-free dairy proteins using fermentation in microflora.
3. Sustainable Bioproducts: ADM investment undisclosed. The total amount raised was $33 million (Series A). Additional investors included 1955 Capital, Breakthrough Energy Ventures, Danone Manifesto Ventures (the venture investing arm of Danone), Lauder Partners, and the Liebelson family office.
4. Cultivian Sandbox Ventures Fund III: ADM Investment undisclosed. The total amount raised was $135 million. The $135 million fund invests in food and agriculture technology companies such as those addressing the increasing demand for protein. Additional investors include Corteva Agriscience, Ecolab, Elanco, Griffith Foods, GROWMARK, Koch Ag Energy Solutions, R.D. Offutt Company, Smithfield Foods, and Sumitomo Chemical America.

ADM rough estimated total investments are between $30-50 million. This represents 0.13-0.21% of their total market cap of $23.84 billion.

Based on Investments to Date: ADM is certainly focused on adding companies synthesizing cell derived proteins through fermentation to their portfolio. According to a 2018 article with Fortune, Victoria de la Huerga (Vice President of ADM Ventures), ADM already has the fermentation infrastructure in place and are producing a number of ingredients like amino acids. ADM currently has no investment in cell based (lab grown) meats.

Our prediction is that ADM will continue to invest in and co-develop proteins synthesized through cellular fermentation. These proteins can be integrated into their current manufacturing and distribution pipelines to be sold to food processors or direct to consumer. As a leader in plant based protein (particularly soy) since 1902 ADM seems to be adapting to establish market territory for plant based proteins that resemble meat. At the international trade fair for the meat industry (IFFA), ADM showcased a variety of soy protein products meant to replicate popular meat dishes such as chicken nuggets and pulled pork (no cellular fermentation).

Since direct-to-consumer is not in ADM’s current business model purview, it’s uncertain what they plan to do with these developments. Similar to other developments in the WILD Flavors and Specialty Ingredients family at ADM, [at this point] we must assume they will seek food service partners who will sell to consumers.

10K: ArcherDanielsMidlandCompany_10K_20190219

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Disclosures:

• Cell Based Tech has no business relationship with any company mentioned in this article.
• Cell Based Tech is not a registered financial adviser, and this is not financial advice. Please conduct your own due diligence and consult a financial adviser before making investment decisions.

A Cell Based Tech Breakdown of Tyson Foods Inc (NYSE: TSN)

• Tyson exited Beyond Meat, prior to the IPO, of which they held a 6.5% stake.
• Investments in the cell based meat space total an estimated amount of $30 million.
• Cell based tech external investments are relatively small compared to Tyson’s overall market cap.
• Our Prediction: The alternative protein product lines that are scheduled to launch this summer will not incorporate cell based technology, and will closely resemble Beyond Meat’s product lines.

Since selling their stake in Beyond Meat, Tyson considerably reduced their external investment position in the alternative protein space for the time being. Tyson’s investment in Beyond Meat was $34 million, a 6.5% stake.

In 2016, Tyson created the New Ventures Fund a venture capital arm to the Tyson brand. Tyson New Ventures Fund = $150 million.

The Tyson New Ventures fund has made three investments in the cell based tech space that are publicly available. At this time, all Tyson New Ventures investments are in cell based meat.

1. Future Meat Technologies: Tyson’s investment is undisclosed, but the total amount raised was $2.2 million.
2. Memphis Meats: Tyson’s investment is undisclosed, but the total amount raised was $20.1 million.
3. New Protein Fund - Tyson’s investment is undisclosed, but the total amount raised was $50 million. Temasek is the only other investor.

Our rough estimated total investments that Tyson has made out of the $150 million fund are $30 million.  The $150 million fund represents about .68% of the total market cap of $22.14 billion.

Tyson plans to introduce its own alternative proteins brand(s) this summer. CEO Noel White stated in the 2019 Q2 earnings call, “We'll be introducing products this summer and early in the next fiscal year, and we're well positioned to capture growth in this space. We have a deep understanding of how to develop new products, brands and categories, and our distribution reach will allow us to move quickly into the marketplace.” Our prediction is that these products will NOT use cell based technology, and will be similar to the plant based Beyond Meat product lines, whereby ingredients are cleverly integrated into the product to make it look and taste like “real” meat. In addition, we predict they’ll follow suit with creative and modern packaging.

Tyson Personnel: Tyson has been actively hiring for roles within the New Ventures Fund. The job descriptions have included innovation in the form of developing new products with R&D, strategizing for product launches, and product packaging.

Tyson Strategy: As reported in their 2019 Q2 10-Q, “Our strategy is to sustainably feed the world with the fastest growing protein brands.”

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This is a series at Cell Based Tech where we do a deep dive of companies as it relates to their business involvement in cell based technology. Sign up to never miss out on a Company x Cell Based Tech breakdown.

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Disclosures:

• Cell Based Tech has no business relationship with any company mentioned in this article.
• Cell Based Tech is not a registered financial adviser, and this is not financial advice. Please conduct your own due diligence and consult a financial adviser before making investment decisions.

Cell based flavor and fragrance company, Amyris, Inc. AMRS (NASDAQ) announced a cannabinoid development, licensing and commercialization partnership valued at up to $255 million with a confidential partner. According to the company's press release, the $255 million will include an upfront payment and future payments based on milestones over the next 12-36 months. http://cellbased.link/26f0d

There are currently three other public companies working on cell based cannabinoid production. 
- Cronos Group (CRON) in partnership with Ginkgo Bioworks 
- Organigram (ORGIF) in partnership with Hyasynth Bio
- Intrexon (XON) in partnership with Next Green Wave (NXGWF)

What this means. Using cellular technology to propagate cannabis plant compounds in a lab has the potential to maximize yield and eliminates the traditional resources of land, water, light and seeds.