Akua, a New York-based start-up specializing in plant-based products derived from kelp seaweed, has announced its closure.
Co-founder and CEO Courtney Boyd Meyers disclosed on her LinkedIn profile, stating, “our board reached the very difficult decision to wind up company operations.”
The former journalist and environmental advocate elaborated in another post, “If you work in CPG right now, you are well aware of the struggles that early-stage companies are experiencing.”
“During our seven incredible years building Akua, we raised money through four different crowdfunding campaigns and over 75 private investors – many of whom are my friends and fellow founders.”
Among these investors was California-based Vibrant Ventures, which spearheaded a $3.2 million seed round in 2021, increasing Akua’s total funding at that time to $5.4 million.
Akua debuted its first product in 2019 with kelp jerky, followed by kelp burgers in 2021 and kelp-based crab cakes in 2022. The company catered to independent retail stores across the US and selected restaurants.
“We started as a D2C brand, and we learned how to scale our kelp burgers into over 1,000 retail stores and with 100+ foodservice customers across the US,” Meyers explained.
“We faced many challenges over the years – healthy food is expensive to make, and our margins were slim. We were copied by our supply chain partner, and investors often entered and exited our space rapidly.”
“Kelp never took off as we had anticipated. As the economy declined, we struggled against the overall downturn in the plant-based movement.”
Numerous other companies within the plant-based protein sector have encountered similar difficulties in recent months. For instance, Tattooed Chef in the US faced its own challenges, while Canada-based The Very Good Food Co. ceased operations last year.
In Europe, notable examples include The Meatless Farm Co., Plant & Bean, and LoveSeitan, all of which have also struggled to maintain viability amidst changing consumer preferences.
Simultaneously, within the protein alternatives market, the Quorn brand owned by Monde Nissin has been navigating volume pressures due to persistent softness in the category.
