Why we invested in Heura: Towards a net-positive food system

Authors: Mridul Pareek , Eugen Kaprov and Marie Asano

At ECBF, we are thrilled to announce our investment in Heura Foods ( Foods For Tomorrow S.L.) , plant-based food-tech leader company in South of Europe. Despite current challenges in the alternative meat sector, we are confident that the industry will recover and gain relevance when the products available address key issues. These include improving the taste and texture and achieving price parity with traditional meat, all this providing the great nutrition profiles. With a growing demand for healthier, less-processed plant-based options, Heura stands out in this competitive market by meeting these demands and providing effective scalable solutions to the industry's current challenges.

Heura’s Vision and Fit

Heura is a food-tech company founded by Marc Coloma and Bernat A?a?os in April 2017. Their mission is to create plant-based food products and solutions that render the current food system obsolete and accelerate the transition to a world where animals are no longer part of the protein production equation. Heura positions itself as a key innovator, leading the shift towards a globally sustainable food system with a net positive impact. The recent funding round will drive the company to profitability and strengthen its position as an industry frontrunner, confirming Heura’s unique competitive advantage and a prospective to become the European Champion, and thus an ideal match for ECBF’s funds mission.

Market Opportunity and Timing

Heura, with its established market leadership in Spain and impressive revenue trajectory, is well-positioned for both domestic and international expansion, despite the broader plant-based market experiencing a slowdown. This slowdown is indicative of a maturing market, setting the stage for the emergence of second-generation products that learn from the shortcomings of their predecessors. Europe's plant-based sector is expected to see steady growth in the medium to long term, transitioning from its initial hype phase to a more mature segment with sustainable consumer interest and significant profit potential. However, achieving cost parity with traditional meat products remains a challenge, as the development of cost-reducing technologies and alternative protein sources is still ongoing. Heura is actively pursuing strategies to improve its profit margins, with soy showing promise as a cost-effective and consumer-friendly option. Despite the hurdles, Heura's products have achieved the highest repeat rates in the category globally and underscoring the brand's positive trajectory and the ongoing need for innovation and improvement.

Product Innovation and Technology

We are convinced that Heura is leading the way in technology-driven innovation within the plant-based industry, enhancing the taste, texture, and performance of their products with a focus on clean label, additive-free offerings. The company has developed a technology that achieves remarkable nutritional values without the need of additives allowing a boost in nutrition density, applicable across various food categories including deli meats, whole cuts of meat and fish, and dairy products. This initiative is poised to meet the growing consumer demand for transparency and clean ingredients.

Heura' commitment is evident as most of their current products achieve the Nutriscore A rating, indicating superior nutritional value compared to other plant-based producers. Moreover, Heura is intensifying its R&D efforts to expand this technology across their product range efficiently, without significant capital investment. This strategic pivot from a marketing-centric approach to a more technology-focused strategy represents a crucial shift aimed at addressing core challenges in the plant-based sector.

Strong Brand leading to robust Internationalization Capabilities & Strategic Partnerships

While reinforcing its leadership position in its home market of Spain, Heura achieved a 63% growth in international sales in 2023. This expansion included entering prestigious European retail chains such as Intermarché in France, Auchan in Portugal, Pam in Italy, Colruyt in Belgium, and Waitrose in the UK. Additionally, Heura secured significant foodservice partnerships with industry giants such as Vueling Airlines, Hilton Hotels, Royal Caribbean cruises, and Serunion. The company has proven that they are able to enter new markets outside of Spain (e.g., France, Italy) and so far, are on a high growth curve in all entered markets despite the plant-based meat category slowing in growth and the growing competition from similar companies and private label products. The partnership with Upfield, a key development from Heura’s Series B funding round, enables Heura to quickly address new categories by leveraging the established distribution channels and retail network of Upfield. This collaboration positions Heura to efficiently tap into new growing but underpenetrated markets.

Team and Culture

Backed by a talented and mission-driven team, Heura has demonstrated a strong track record of execution, ensuring the success of their company. The management of Heura is strongly data-driven

and demonstrates robust execution capabilities. Augmented by a highly capable team with a proven track record, filling all core positions, underpins the company's strong mission-driven culture. Thanks to this exceptional team, the company enjoys notable brand recognition, distinguishing it in a competitive landscape.

In addition this funding round has united major players in the plant-based sector, including Flora Food Group , the largest plant-based manufacturer, Unovis Asset Management , and Newtree Impact . Establishing a syndicate that is committed to help Heura Foods leverage top-notch technology to redefine the industry standards, amplify its impact within the food industry, accelerate the international expansion, and explore innovative collaboration models beyond existing range of branded meat alternatives.

In conclusion, our investment in Heura reflects our confidence in their vision, technology, and commitment to a sustainable and net-positive food system. We are excited to join Marc Coloma , Cristina Roig , Isa Fernández Farrés, PhD , Bernat Ananos Martinez and the rest of their incredible #goodrebel team. This funding round will enable the company to accelerate its mission and establish its presence in new geographies and bring new business opportunities. We are excited to be part of their journey as a good rebel newcomer.

#ImpactInvesting #PlantBased #FutureofFood #HeuraFoods #GoodRebel #ECBF #Cleanlabel