Diving overview:
- Eat Just’s Good Meat, the company’s cultured meat division, has not paid $30 million worth of bills to ABEC. According to the complaint filed by the Bioreactor specialist. Avec have working together good meat At pilot facilities in California and Singapore.
- Good Meat and ABEC entered into a bioreactor development agreement in 2022 that required Good Meat to issue purchase orders at various stages of work on the project. ABEC sues cultured meat manufacturer for breach of contractCourt documents filed on Wednesday described the company’s actions as “repeated failures and broken promises” and accused Good Meat of being “severely undercapitalized from the start.” Eastern District of Pennsylvania Said.
- A person familiar with the matter confirmed to Food Dive that the parties are “actively working toward a settlement.”uncertain Why didn’t Eat Just pay my bill? Avec claims.
Dive Insight:
The skirmish with ABEC comes at an inopportune time as Eat Just looks to grow its business and become more profitable.
Eat Just and Peter Norman Claire harrison harvey branzburg, agent attorney Avecdeclined to comment on ongoing litigation.
According to court documents, ABEC “fulfilled all of its promises and” “Eat Just & Good Meat has failed to meet its financial obligations,” the defendants said, including the construction of bioreactors and supporting equipment in both the United States and Singapore.
The contract was a multi-year exclusive contract. Ten 250,000 liter bioreactor units will be built for meat cultivation.
The document also states that ABEC considers Good Meat to be “significantly undercapitalized for its purposes” and that it is “unjust” for Eat Just to benefit from this undercapitalization at ABEC’s expense. He also made it clear that he thought that.
Eat Just CEO Josh Tetrick talks about his company’s expansion plans intention requires a large amount of capital.IIn a landmark announcement in June, the cultured meat maker became one of two companies to receive full regulatory approval to sell cultured meat in the United States.
Despite these achievements, Eat Just struggled with costs and expanded operations and consumer education. At the beginning of this year, The company cut its workforce by 18% and took other cost-cutting measures, including cutting raw material costs.
Just last week, Eat Just New funding round.A spokesperson said Food Dive and Just Egg good meat. The amount was not disclosed, but Bloomberg reported. The investment is said to have been $16 million. We support Eat Just’s “growth and sustainability.”
If ABEC and Good Meat can resolve their differences, the two companies could work together. Transforming the cultured meat industry by creating a real consumer product that approaches animal protein in price. Scaling up production with a bioreactor of this size could be important for Eat Just’s Good Meat division to grow the business quickly and increase profitability.
