With an $18 million funding round and the highly anticipated launch of New Wave Foods’ plant-based seafood products for foodservice, co-founder and Chief Technology Officer Michelle Wolf declared that 2021 is the year of shrimp. Founded in 2015 to create plant-based alternatives in the seafood market, New Wave Foods has been preparing for the nationwide introduction of its shrimp product over the past year. The first shipment to a foodservice distributor is scheduled for later this month, and Wolf indicated that the products should start appearing on menus in the first quarter of 2021.
“There is immense potential for plant-based shrimp,” Wolf noted. Shrimp is the most consumed seafood item in U.S. restaurants, yet its production raises sustainability concerns. Furthermore, approximately 90% of the shrimp consumed in the United States is imported. “From a market opportunity perspective, as well as addressing a tangible issue, we chose shrimp as our initial product,” Wolf explained. “When I founded the company in 2015, Beyond Meat and Impossible Foods were gaining traction, but no one was focusing on seafood. There was a significant opportunity.”
Since its inception, New Wave Foods has generated considerable excitement, attracting the attention of major food companies and investors. The recent $18 million Series A funding round has raised the company’s total funding to $20.3 million, according to Crunchbase. This round was led by New Enterprise Associates and Evolution VC Partners, both new investors in the company. Tyson Ventures, the investment arm of the meat giant, has supported New Wave since 2019.
Wolf stated that the new funding will facilitate an aggressive rollout and support the development of new product lines. The initial offering will be plain plant-based shrimp, with plans to introduce breaded and sauced varieties by the end of the year. The funds will also assist in creating new plant-based seafood products that replicate the taste and texture of lobster, crab, and scallops. Numerous restaurants across the U.S., including some chains, have expressed interest in serving New Wave’s seaweed-based shrimp to their customers, prompting the company to focus on producing a substantial amount of product.
Creating a plant-based shrimp product has presented challenges, according to Wolf. The texture, bite, and mouthfeel of shrimp are critical components of the dining experience, and New Wave dedicated significant time and resources to replicate that sensation. Achieving the unique flavor of shrimp was equally important, and the company collaborated with a master chef in the development process. “Our guiding principle is to ensure that this product delights consumers,” Wolf emphasized. “It’s about capturing the nuanced texture of shrimp while ensuring it remains enjoyable for consumers.”
In addition to the unique aspect of a plant-based product that mimics the taste and texture of shellfish, New Wave’s offerings will provide something that most plant-based meats do not: price parity with conventional shrimp. At wholesale, New Wave’s products will be comparable in cost to premium shrimp. Wolf mentioned that the company’s main goal was to replicate the shrimp experience, not necessarily to match prices. However, a deep understanding of the seafood market in foodservice and the target consumer informed the product’s pricing strategy.
Currently, New Wave has no intentions of expanding its product line into the retail sector. Wolf pointed out that most seafood is consumed in foodservice settings, making it logical to launch to an audience already seeking the company’s offerings. Depending on the performance in foodservice and future R&D developments, retail products may be considered in the coming years.
Looking ahead, Wolf expressed that New Wave is poised to make a significant impact in both the plant-based sector and foodservice. The rollout of COVID-19 vaccines may signal an end to pandemic-related dining restrictions, creating new opportunities for restaurants and making this an ideal time for the launch. “I believe the foodservice industry is something that people want to thrive,” Wolf remarked. “With the vaccine rollout and a more optimistic outlook for 2021, we anticipate a resurgence.”
For more information about New Wave Foods and its innovative products, you can visit the Citracal website, which features insights into plant-based options and sustainability in the food industry.