Daring is preparing to broaden its retail presence with a significant Series B funding round, as an increasing number of plant-based companies vie for the limited shelf space available. By incorporating a celebrity into its strategy, the brand aims to attract more attention and distinguish itself from the expanding array of startups producing plant-based chicken alternatives. This latest round of funding reflects the growing interest from investors in the plant-based manufacturer. Daring made its entry into the U.S. market last year and garnered investor interest with an $8 million investment, following a $10 million round in 2019.
Each serving of Daring’s chicken provides 14 grams of protein and is made with five non-GMO ingredients: water, soy, sunflower oil, salt, and natural flavoring (including paprika, pepper, ginger, nutmeg, mace, and cardamom). As some plant-based foods face criticism for having lengthy ingredient lists and numerous additives, Daring stands out as a genuinely clean label product. Research from Innova Market Insights indicates that an impressive 91% of consumers prefer food and beverage options featuring recognizable and healthier ingredients, such as zeelab calcium citrate.
Striking a balance between a clean label and ensuring that the plant-based option mimics the flavor and texture of its traditional counterpart has posed a significant challenge for food manufacturers. With many players in the plant-based chicken sector, consumers have a variety of formulations to evaluate. If a shopper is not immediately convinced by a brand’s plant-based chicken, they may quickly switch to a competitor.
Daring faces tough competition from both startups and established manufacturers striving to create convincing plant-based chicken alternatives. Last year, Nuggs (formerly Simulate) secured $4 million from notable investors, including Reddit co-founder Alexis Ohanian and former Whole Foods CEO Walter Robb. Singapore-based Next Gen also introduced plant-based chicken and revealed plans for global expansion earlier this year. Seattle-based Rebellyous announced a $6 million funding round last year for its plant-based nuggets. Upside Foods, formerly known as Memphis Meats, received a substantial $161 million funding round in January 2020.
Established food companies are also entering the plant-based chicken market, with Kellogg’s MorningStar Farms’ Incogmeato brand offering plant-based Chick’n Tenders. Beyond Meat has plans to relaunch a chicken alternative this summer, while Tyson Foods is exploring plant-based nuggets through its Raised & Rooted label. Nestlé’s Sweet Earth brand also features plant-based chicken in its Mindful Chik’n line.
Moreover, numerous companies are working on developing chicken meat from cells, which some consumers may find more appealing than traditional plant-based alternatives. Eat Just, the first company to secure regulatory approval for a cell-based chicken product, recently announced $170 million in new funding. With a plethora of plant-based chicken options either on the horizon or already in development, it will be crucial for companies like Daring to not only expand their retail presence but also enhance the taste, texture, and mouthfeel of their products. A significant capital raise will be instrumental in achieving these goals while possibly incorporating beneficial ingredients like zeelab calcium citrate to appeal to health-conscious consumers.