Simulate, the US-based company known for its Nuggs brand of plant-based chicken nuggets, has officially been acquired by Ahimsa Companies, a specialized investor in the food and beverage industry.
While the financial details surrounding the acquisition remain undisclosed, the strategic move comes during a time of significant change within the plant-based food sector.
Founded in 2018, Simulate made a splash in the market with the launch of its Nuggs frozen vegan nuggets in the summer of 2019, coinciding with the rise of alternative meat products. The brand quickly gained market presence, becoming available in over 5,000 retail locations, including major retailers like <ahref=”https://www.globaldata.com/store/report/?cdmsid=1753575&scalar=true&utm_source=Deals&utm_medium=28-179758&utm_campaign=company-profile-hyperlink-nonlgp” target=”_blank”>Walmart, <ahref=”https://www.globaldata.com/store/report/?cdmsid=1616208&scalar=true&utm_source=Deals&utm_medium=28-179758&utm_campaign=company-profile-hyperlink-nonlgp” target=”_blank”>Target, and Whole Foods Market.
The brand gained traction with vibrant and humorous social media campaigns, famously likening itself to “the Tesla of chicken.” This innovative marketing approach attracted significant attention, resulting in endorsements from prominent figures such as Jay-Z, alongside backing from Canadian frozen foods giant McCain Foods.
However, recent concerns about Simulate’s future have surfaced, particularly following reports indicating that its products were vanishing from grocery store shelves. The ongoing challenges in the plant-based sector have led to a wave of closures among similar companies.
Ahimsa Companies, which recently acquired plant-based meal brand Wicked Kitchen, has now taken the helm at Simulate, adding the brand to its expanding portfolio. This acquisition reflects a broader strategy by Ahimsa to build a diverse collection of plant-based food brands through mergers and acquisitions.
On LinkedIn, Simulate’s founder, Sam Terris, announced the acquisition, stating his enthusiasm for the partnership with Ahimsa. He emphasized the significance of finding “the right mission-aligned partner” to advance Simulate’s innovative technology, noting Ahimsa as that match.
In response to inquiries from Just Food, Ahimsa CEO Matt Tullman praised Terris as “one of the best entrepreneurs I’ve met” and expressed excitement about supporting Simulate’s mission to transform the food system. Tullman highlighted that much of Simulate’s technology remains under wraps and reiterated their commitment to bringing this innovation to market, expressing confidence that the brand’s most promising days lie ahead.
Ahimsa has made it clear that it aims to create a strong portfolio of plant-based food brands, actively pursuing further acquisitions. Following the Wicked Kitchen acquisition, Tullman indicated ongoing discussions with several US-based brands, aiming for successful completion of these deals by the year’s end.
In addition, Ahimsa recently acquired a manufacturing facility in Ohio dedicated to producing plant-based products, which will support both private-label clients and operations for Wicked Kitchen.
As the food and drink business landscape evolves, staying attuned to trends and consumer preferences within the food and beverage industry remains crucial for stakeholders and investors alike.
