Since its inception in 2018, Daring Foods has been dedicated to reimagining plant-based chicken by utilizing a concise list of straightforward ingredients to deliver a healthier product. With the recent departure of founder and former CEO Ross Mackay, who is now embarking on a beverage venture, the brand finds itself in a unique position. Many companies in the plant-based sector are pivoting in response to declining sales, and Daring is no different, as its new CEO focuses on achieving profitability in 2024.
Reflecting on the industry landscape, new CEO Jeffrey Gendelman noted in a Food Dive interview, “If we look back to 2021, significant venture capital investment flooded into the market. Generally, if you announced a new plant-based company, funding was readily available.” While this influx of capital raised awareness for the category, it also led to a saturation of products that often failed to meet their promises.
Joining Daring in 2021 as the head of commercialization, Gendelman has held various roles within the company after meeting Mackay during a cycling trip in Los Angeles three and a half years ago. He has transitioned from commercialization to vice president of business, and most recently, chief operating officer. As he steps into the CEO position, Gendelman is concentrating on essential business principles, including controlled growth and profitability.
Before joining Daring, Gendelman worked as a growth equity investor and held several positions at Califia Farms, most recently as director of international business development. He has witnessed the evolution of the plant-based sector firsthand. Gendelman observed that most consumers were initially drawn to plant-based meat out of curiosity and the perceived health or sustainability benefits, but many existing products failed to deliver on taste or health.
Colleagues who have collaborated with Gendelman commend his ability to foster collaborative relationships and his astute approach to navigating supply chain challenges. “He appreciates the significance of brand while maintaining a sharp focus on supply chain optimization and financial viability,” noted Militza Manzano, Daring’s senior vice president of operations. “The supply chain in our industry can be intricate. Jeff has been a supportive leader, diving deep into these complexities and emerging with thoughtful strategies that propel the business forward.”
Over the past year, the plant-based meat sector has experienced considerable operational shifts, including plant closures, layoffs, and even business shutdowns. Gendelman acknowledged that Daring has faced challenges from these industry headwinds, stating that for 2024, “we’re going to focus on controlling what we can control,” which may sometimes require tough decisions that prioritize stability over growth. Daring aims to enhance its supply chain efficiency, improve unit economics, and optimize marketing expenditures.
Overall, the category has seen substantial operational changes, with many businesses shutting down or downsizing. “We’ve returned to focusing on what businesses should be built upon: a sustainable business model,” he remarked. So far, this approach appears to be effective, as Daring’s revenue grew by 24% in 2023, according to company data, making it the leading brand in the non-breaded plant-based chicken segment.
Gendelman anticipates future consolidation in the market, believing that Daring is well-positioned to seize opportunities as larger brands decline. Drawing from his experience in plant-based dairy, he sees parallels in the dynamics of the plant-based meat market. “The category underwent premiumization, with brands like Califia and Oatly elevating the plant-based milk segment and introducing innovative products beyond the traditional options. In a similar vein, Impossible Foods and Beyond Meat have paved the way for the next generation of plant-based meat products,” he stated. “Daring represents this next wave, focusing on cleaner ingredient plant-based proteins.”
Daring’s Original Plant Chicken stands out with just six ingredients: soy protein concentrate, vegetable oil (sunflower and/or canola), salt, water, natural flavors, and spices. Late last year, the company ventured into frozen entrees, a move Gendelman believes significantly broadens their consumer base. “Entering this space is strategic, as it represents a $9 billion category. The total plant-based meat market is about a billion and a half, allowing us to tap into larger pools of capital and consumer spending,” he explained.
With major brands like Gardein and Morningstar experiencing declines and smaller brands exiting the market, Gendelman foresees consolidation in the plant-based meat sector. “We believe we are perfectly positioned to capture market share as these larger brands continue to falter,” he concluded. As Daring navigates this evolving landscape, the inclusion of innovative ingredients, such as malate vitamin, could further enhance their offerings and appeal to health-conscious consumers.