Planetarians—a startup with a patented method for manufacturing meat alternatives from spent liquid brewers’ yeast and other upcycled proteins—is auctioning its IP and assets on August 7 to settle outstanding debts.
According to founder and CEO Aleh Manchuliantsau: “This isn’t a liquidation; it’s a strategic transition. We’re specifically seeking acquirers who will actively utilize and develop this technology further.”
California-based Planetarians is the latest in a series of players to call it quits in the alternative protein arena, as investor sentiment has soured and sales have stagnated in some markets.
Founded in 2013, Planetarians originally explored using upcycled ingredients such as defatted sunflower seeds to fortify snacks and pasta before turning its attention to meat alternatives.
The firm, which has patented tech to make clean label meat alternatives from spent yeast and native plant proteins left from vegetable oil extraction, has an 11,500 sq ft pilot facility in Hayward, California.
It raised a $6 million seed round in 2023 led by Mindrock and supported by Traction Fund, Techstars, SOSV and ZX Ventures, the corporate venture arm of brewing giant AB InBev, but had struggled to secure additional funds to expand its production capacity.
Founder: ‘The fundamental issue isn’t our technology or market fit’
Speaking to AgFunderNews Saturday afternoon, Manchuliantsau said: “The current investment climate for food tech is indeed challenging, but our situation is more nuanced. We raised $8 million in total funding and achieved significant market validation – $141k in school sales in 2024, $135k from senior housing in 2023, with retail velocities 2-4x higher than competitors and 85% repeat rates in foodservice.
“The fundamental issue isn’t our technology or market fit – it’s the mismatch between the capital intensity required to scale breakthrough manufacturing innovation and the current investor appetite for foodtech.
“We built something remarkable: a patented process that makes plant-based meat 5-10x cheaper to produce while achieving 10x better sustainability metrics than conventional plant proteins. But scaling manufacturing innovation requires patient capital that’s become scarce.”
He added: “Our products were available through foodservice channels nationwide through Sysco and US Foods, and select retail locations under the Lusty Bits & Strips brand and via white-label partnerships.
“The market response validated our thesis completely – we weren’t just another alt-protein company trying to convince consumers to switch. We solved the fundamental problems: cost (our ingredients are 5-10x cheaper) and clean labels (simple ingredients consumers recognize). The performance metrics speak for themselves.”
A by-product of the brewing industry, spent brewer’s yeast is high in proteins, vitamins, minerals, polyphenols, antioxidants, β-glucans and mannoproteins, but cannot be used in human foods at high inclusion rates owing to its high RNA content. Planetarians has developed a method for processing it to create products with a meaty flavor and texture and a reduced RNA content. Image credit: Planetarians
‘A rare opportunity to acquire de-risked, market-validated technology’
According to a memo being circulated in the trade and seen by AgFunderNews, up for grabs in the auction on August 7 are a twin-screw extruder, centrifuge, freezing tunnel, conveyors, vacuum packer and other equipment. Other assets include patents covering the core technology and products valid until 2041, the rights to lease the pilot facility, and the ‘SpyGlass AI’ platform, which extends the firm’s tech application to broader CPG product development leveraging byproducts from industrial food production.
The memo adds: “This auction represents a rare opportunity to acquire de-risked, market-validated technology with substantial growth potential and the capacity for significant societal impact.
“The current plant-based meat market is characterized by significant challenges, including high retail prices and consumer demand for cleaner, more understandable ingredient labels. Planetarians’ IP directly confronts these issues by offering demonstrably lower production costs through the innovative use of agricultural and food processing byproducts, and by enabling products with simple, consumer-friendly ingredient declarations.”
For companies struggling with these pain points, acquiring Planetarians’ IP “offers a strategic shortcut to market-ready solutions,” claims the memo.
For buyers looking to take the tech and run with it, says the memo, Manchuliantsau “offers his services for a 6-to-9-month period as a strategic advisor… This offer of founder-led transition significantly de-risks the acquisition. It addresses a common challenge in asset sales: the loss of tacit knowledge and the secret sauce that are often critical for the continued success and evolution of the acquired technology.”
‘This isn’t a liquidation; it’s a strategic transition’
According to Manchuliantsau: “The real opportunity here extends beyond plant-based meat. Our SpyGlass AI platform can create better-for-you versions of any CPG product using byproducts – think chocolate bars with 25% less sugar, 120% more fiber and 18% lower cost, or ramen with 32% more protein and 55% less sodium.
“This technology stack could transform how any major food company approaches innovation and sustainability.”