Once the stuff of science fiction, lab-grown meat could become reality in some restaurants in the United States as early as this year.
Executives at cultivated meat companies are optimistic that meat grown in massive steel vats could be on the menu within months after one company won the go-ahead from a key regulator. In a show of confidence, some of them have signed up high-end chefs like Argentine Francis Mallmann and Spaniard José Andrés to eventually showcase the meats in their high-end eateries.
But to reach its ultimate destination - supermarket shelves - cultivated meat faces big obstacles, five executives told Reuters. Companies must attract more funding to increase production, which would enable them to offer their beef steaks and chicken breasts at a more affordable price. Along the way, they must overcome a reluctance among some consumers to even try lab-grown meat.
Cultivated meat is derived from a small sample of cells collected from livestock, which is then fed nutrients, grown in enormous steel vessels called bioreactors, and processed into something that looks and tastes like a real cut of meat.
Just one country, Singapore, has so far approved the product for retail sale. But the United States is poised to follow. The US Food and Drug Administration (FDA) said in November that a cultivated meat product - a chicken breast grown by California-based UPSIDE Foods - was safe for human consumption.
UPSIDE is now hoping to bring its product to restaurants as soon as 2023 and to grocery stores by 2028, its executives told Reuters.
UPSIDE still needs to be inspected by the US Department of Agriculture's Food Safety and Inspection Service and get sign-off from the agency on its labels. A USDA FSIS spokesperson declined to comment on its inspection timeline.
'Slaughterless House'
At UPSIDE's facility in Emeryville, California, lab coat-clad workers were seen poring over touch screens and monitoring giant vats of water mixed with nutrients during a recent Reuters visit. Meat is harvested and processed in a room that chief executive officer Uma Valeti calls the "slaughterless house," where it is inspected and tested.
Reuters reporters were served a sample of UPSIDE's chicken during the visit. It tasted just like conventional chicken when cooked, though was somewhat thinner and had a more uniform tan color when raw.
UPSIDE worked with the FDA for four years before receiving the agency's green light in November, Valeti told Reuters.
"It’s a watershed moment for the industry," he said.
California-based cultivated meat company GOOD Meat already has an application pending with the FDA, which has not been previously reported. Two other companies, Netherlands-based Mosa Meat and Israel-based Believer Meats, said they are in discussions with the agency, company executives told Reuters.
The FDA declined to provide details of pending cultivated meat applications but confirmed it is talking to multiple companies.
Regulatory approval is just the first hurdle for making cultivated meat accessible to a broad swath of consumers, executives at UPSIDE, Mosa Meat, Believer Meats, and GOOD Meat told Reuters.
The biggest challenge companies face is growing the nascent supply chain for the nutrient mix to feed cells and for the massive bioreactors required to produce large quantities of cultivated meat, executives said.
For now, production is limited. UPSIDE’s facility has the capacity to churn out 400,000 pounds of cultivated meat per year – a small fraction of the 106 billion pounds of conventional meat and poultry produced in the United States in 2021, according to the North American Meat Institute, a meat industry lobby group.
If the companies cannot get the funds needed to scale up production, their product may never reach a price point where it can compete with conventional meat, said GOOD Meat co-founder Josh Tetrick.
“Selling is different than selling a lot,” Tetrick said. “Until we as a company and other companies build large-scale infrastructure, this is going to be very small scale.”
Scaling Woes
The cultivated meat sector has so far raised nearly $2 billion in investments globally, according to data collected by the Good Food Institute (GFI), a research group focused on alternatives to conventional meat.
But it will take hundreds of millions of dollars for GOOD Meat, for example, to build bioreactors of the size needed to make its meat at scale, Tetrick said.
Investment in the industry so far has been led by venture capital firms and major food companies like JBS SA, Tyson Foods Inc, and Archer-Daniels-Midland Co.
JBS spokesperson Nikki Richardson said the company's investments in cultivated meat "are consistent with our efforts to build a diversified global food portfolio of traditional, plant-based and alternative protein product offerings."
Tyson did not respond to a request for comment. ADM declined to comment.
Much of that money has been directed toward the United States, the No. 1 target for cultivated meat makers because of its size and wealth, said Jordan Bar Am, a partner at McKinsey & Company who focuses on alternative proteins.
Some companies are scaling up US production even before their products have been approved by regulators.
Believer Meats plans to build a facility in North Carolina, set to be commissioned in early 2024, that could produce 22 million pounds of meat annually, chief executive officer Nicole Johnson-Hoffman said. And GOOD Meat has plans to build out its production in California and Singapore to as much as 30 million pounds annually.
The European Union along with Israel and other countries are also working on regulatory frameworks for cultivated meat but have not yet approved a product for human consumption.
The 'Ick' Factor
Cultivated meat companies plan to pitch consumers that their product is greener and more ethical than conventional livestock, while attempting to overcome an aversion to their product among some shoppers.
For one, their product does not involve animal slaughter, which companies hope will make the product appealing to people who avoid meat for moral reasons. Animals are unharmed in the cell collection process, company executives told Reuters.
Another draw is that growing meat in a steel vessel instead of in a field could reduce the environmental impact of livestock, which are responsible for 14.5 per cent of the world’s greenhouse gas emissions through feed production, deforestation, manure management, and enteric fermentation - animal burps - according to the United Nations' Food and Agriculture Organization (FAO).
Plant-based meat companies have also appealed to consumers with moral and environmental claims, though the sector has captured just 1.4 per cent of the meat market, according to a GFI report.
But cultivated meat companies have the advantage that they can claim their product is real meat, Tetrick said.
“Probably the single biggest thing we’ve learned is that people really love meat. They’re probably not going to eat a whole lot less of it,” he said.
Still, a lot of people are grossed out by cultivated meat, said Janet Tomiyama, a health psychologist at the University of California, Los Angeles, who studies human diets.
In a 2022 study published in the Journal of Environmental Psychology, she found that 35 per cent of meat eaters and 55 per cent of vegetarians would be too disgusted to try cultivated meat.
Some people may perceive the meat to be "unnatural" and have a negative attitude about it before even trying it, she said.
To attract hesitant shoppers, companies need to be as clear as possible about how their product is made and that it's safe to eat, said Tetrick, whose company has sold its product at restaurants in Singapore.
"You’ve got to be transparent about it, but in a way that’s still appetizing," he said.
UPSIDE Foods and GOOD Meat plan to whet American palates by releasing their products at high-end restaurants first once approved, they told Reuters, betting that consumers there will tolerate a higher price point and have a good first impression of their meat.
UPSIDE hopes to get its products into grocery stores in the next three to five years, CEO Valeti said.
Major US supermarket chains did not respond to Reuters requests for comment.
Restaurateur Andrés, known for his work on global food security, told Reuters he wants to sell cultivated meat because of its environmental benefits.
"We can see in what is happening all around us, in every country around the globe, that our planet is in crisis," he said.
Fellow chef Mallmann, known for his preparations of meat and other foods on outdoor flames, told Reuters he is also influenced by environmental considerations and sees the role of chefs as making the product more gastronomically appealing and less scientific.
Convenience store body Association of Convenience Stores (ACS) today (30) has warned the Chancellor about the negative effects of the new National Living Wage (NLW) increase, a day after the Chancellor announced a pay rise for over 3 million workers next year, with NLW rates rising by 6.7 perc cent.
From April 2025, the NLW will increase from £11.44 to £12.21 while 18-20 National Minimum Wage will rise by £1.40 per hour to £10 - the largest increase on record, marking the first step towards a single adult rate.
ACS chief executive James Lowman said, “Our members are grappling with how to afford this inflation-busting increase in wage costs. The market remains tough, with many retailers reporting flat or declining sales while expenses like banking charges, credit card processing fees and energy bills are eating away at their profitability.
"More than ever, we need help from the Chancellor in the Budget. Without sustained and enhanced help on business rates, a reduction in National Insurance Contributions, and effective incentives to drive investment, our sector faces a challenging future. For some communities, this could mean the viability of their local shop is put at risk.”
Evidence provided to the Low Pay Commission by ACS earlier this year already found that to handle the increases in national wage increases, 53 per cent of retailers have reduced the amount they invest in their business, 53 per cent have been forced to increase their prices in store, and 47 per cent have had to take lower profits.
Baroness Philippa Stroud, Chair of the Low Pay Commission (LPC), stated that data already shows signs of employers finding it harder to adapt to minimum wage increases.
A Rossendale shop has had a licence bid rejected after repeatedly selling vapes to children and having illegal products on its premises.
Management at the Ibra Superstore at 34 Burnley Road, Bacup, have shown ‘no regard’ for children’s protection and safety, and have insufficient controls for licensing, Rossendale councillors have ruled.
Ibrahim Mohammad, director of the Ibra Superstore, had recently applied to Rossendale Council for a new premises licence. But the borough’s licensing sub-committee rejected his bid after a meeting which heard allegations from the police and trading standards officers.
The Burnley Road shop has been subject to various licensing changes and concerns in recent years. In the past, it was called Bacup Wines.
Ibrahim Mohammad, the applicant, attended the Rossendale licensing sub-committe meeting with his father,Amin Mohammad. Also there was PC Mick Jones, of Lancashire Constabulary, and Jason Middleton of Lancashire Trading Standards. Councillor Bob Bauld attended as an observer.
Mr Mohammad wanted a premises license for alcohol sales and opening hours from 8am to 11pm, seven days a week. He already had a personal licence. He said the Bacup shop would install a CCTV system, keep an incident log and a refusals record, check customers’ ages, display information about staff and give them regular training.
Trading standards officer Jason Middleton said Ibra Superstore Ltd was incorporated as a company in April 2023. Since then, trading standards had received 11 complaints about under-age sales and carried out visits.
Breaches included non-compliant vapes being found which broke a 2ml limit on the quantity of nicotine-containing liquid, no age checks and no information on display.
During one visit, Amin Mohammad tried to leave with a bag containing 10 illegal vapes. In test purchases by trading standards, an ‘Elf Bar’ vape was sold to a 14-year-old by Amin Mohammad and an illegal Hayati Pro Max vape to a 13-year-old by Ibrahim Mohammad. The shop claimed a phone call distracted staff during the 13-year-old’s purchase and illegal vapes came from ‘a man in car’.
Councillors heard different speakers, looked at written reports and also some video footage from the applicant. But they rejected the premises licence bid.
Giving their reasons, they stated: “There was a repeated history and pattern of behaviour regarding under-age sales of age-restricted items, such as tobacco products and vapes to children. You must not sell vapes to anyone under the age of 18. This is a criminal offence which the council takes very seriously.
“It is clear you breached the law by failing a test purchase operation in which you sold an illegal vape to an under-age child. The sub-committee feels that you have no regard to the protection and safety of children.
“The sub-committee feels that there is insufficient management control at the premises. There is no credible system to prevent under-age sales of age-restricted products and no measures in place to avoid harm to children and to prevent crime and disorder
“Therefore, given the number of incidents, the circumstances surrounding the incidents and the fact that the matter involves safeguarding issues relating to young, vulnerable minors, we consider that the seriousness of the incidents and the crimes committed against young children undermines the licensing objectives to prevent crime and disorder, and protect children from harm.”
The shop has the right of appeal to a magistrates court within 21 days of the date of the notice.
SPAR North of England retailer Dara Singh Randhawa’s family store has been awarded £100,000 of free stock after hitting all his targets since moving to the symbol.
Dara and his family, who have their SPAR store in Patrington in the East Riding of Yorkshire, joined SPAR through its association with James Hall & Co. Ltd in August 2023 having taken the decision to maximise the store’s potential.
It is a decision they have not looked back on, with sales increasing by up to 25% and margins also showing significant uplift in the last 12 months.
Key to the store’s improved performance is the complete overhaul of products available in-store, particularly the fresh food range, to better support people who live in Patrington and the surrounding area.
A new store layout and refrigeration, better Food To Go and meal deal options, a coffee machine, and a Calippo slush machine were also installed during a major refurbishment prior to launch.
Dara said: “Our move to SPAR has been excellent. We have seen fantastic sales uplift and the support from the team at James Hall & Co. Ltd has been brilliant. The £100,000 of free stock is the cherry on the cake.
“We have been very impressed with the Price Locked promotions, in particular. These give customers confidence to do bigger shops with us as they see value on our shelves and the products at the same prices for longer.
“At times over the summer when tourists and visitors to the area add trade, we have seen sales £6,000 a week higher than our average. This is against a backdrop of the popular caravan park in the village being closed almost all year.
“We are really pleased with the position we are in, and we will be looking to achieve more in 2025.”
Peter Dodding, Sales Director at James Hall & Co. Ltd and Chairman of the SPAR Northern Guild, said: “Congratulations to Dara and the Randhawa family on hitting their targets and earning £100,000 of free stock.
“We recognise switching brand is a big decision for a retailer which is why this isn’t a gimmick, and we offer this to all retailers who join the SPAR family with James Hall & Co. Ltd.
“As well as our £100,000 incentive, we also offer retailers the chance to achieve up to an additional £5,000 of free stock if they successfully refer a friend.
“These opportunities provide additional motivation to retailers alongside the comprehensive benefits that joining the SPAR brand brings with it.”
James Hall & Co. Ltd is a fifth-generation family business which serves a network of independent SPAR retailers and company-owned SPAR stores across Northern England six days a week from its base at Bowland View in Preston.
The government has on Wednesday announced its acceptance of the Low Pay Commission’s (LPC) recommendations on the rates of the National Minimum Wage (NMW), including the National Living Wage (NLW).
The rates which will apply from 1 April 2025 are as follows:
NMW Rate
Increase (£)
Percentage increase
National Living Wage (21 and over)
£12.21
£0.77
6.7
18-20 Year Old Rate
£10.00
£1.40
16.3
16-17 Year Old Rate
£7.55
£1.15
18.0
Apprentice Rate
£7.55
£1.15
18.0
Accommodation Offset
£10.66
£0.67
6.7
The recommended NLW rate is expected to equal two-thirds of median earnings and to have the highest real value in the history of the UK’s minimum wage. The increase in the 18-20 Year Old Rate narrows the gap between that and the NLW, in anticipation of the adult rate being extended to 18 year olds in future years.
“The government have been clear about their ambitions for the National Minimum Wage and its importance in supporting workers’ living standards. At the same time, employers have had to deal with the adult rate rising over 20 per cent in two years, and the challenges that has created alongside other pressures to their cost base,” Baroness Philippa Stroud, chair of the LPC, said.
“It is our job to balance these considerations, ensuring the NLW provides a fair wage for the lowest-paid workers while taking account of economic factors. These rates secure a real-terms pay increase for the lowest-paid workers. Young workers will see substantial increases in their pay floor, making up some of the ground lost against the adult rate over time.”
Stroud admitted that the data show some signs of employers finding it harder to adapt to minimum wage increases.
“The tightening of the labour market since the pandemic has unwound, but the overall picture is similar to 2019. The economy is expected to grow over the next year, although productivity growth remains subdued,” she noted.
Business secretary Jonathan Reynolds said:
Good work and fair wages are in the interest of British business as much as British workers. This government is changing people’s lives for the better because we know that investing in the workforce leads to better productivity, better resilience and ultimately a stronger economy primed for growth.
The recommended increase in the 16-17 Year Old Rate restores that rate to its original value relative to the adult minimum wage. In line with previous recommendations, the Apprentice Rate will remain equal to the 16-17 Year Old Rate.
October saw shop prices fall marginally further into deflation for the third consecutive month with food inflation eased, particularly for meat, fish and tea along with chocolate and sweets as retailers treated customers to spooky season deals, shows industry data released today (29).
According to British Retail Consortium (BRC), shop price deflation was at 0.8 per cent in October, down from deflation of 0.6 per cent in the previous month. This is below the 3-month average rate of -0.6 per cent. Shop price annual growth was at its lowest rate since August 2021.
Food inflation slowed to 1.9 per cent in October, down from 2.3% in September. This is above the 3-month average rate of 2.1 per cent . The annual rate continues to ease in this category and inflation remained at its lowest rate since November 2021.
Fresh Food inflation decelerated in October, to 1.0 per cent , down from 1.5 per cent in September. This is below the 3-month average rate of 1.2 per cent . Inflation was its lowest since October 2021.
Ambient Food inflation decelerated to 3.1 per cent in October, down from 3.3 per cent in September. This is below the 3-month average rate of 3.3 per cent and remained at its lowest since March 2022.
Helen Dickinson OBE, Chief Executive of the BRC, said, “October saw shop prices fall marginally further into deflation for the third consecutive month. Food inflation eased, particularly for meat, fish and tea as well as chocolate and sweets as retailers treated customers to spooky season deals. In non-food, discounting meant prices fell for electricals such as mobile phones, and DIY as retailers capitalised on the recent pick-up in the housing market.
“With fashion sales finally turning a corner this Autumn, prices edged up slightly for the first time since January as retailers started to unwind the heavy discounting seen over the past year.”
“Households will welcome the continued easing of price inflation, but this downward trajectory is vulnerable to ongoing geopolitical tensions, the impact of climate change on food supplies, and costs from planned and trailed Government regulation. Retail is already paying more than its fair share of taxes compared to other industries.
“The Chancellor using tomorrow’s Budget to introduce a Retail Rates Corrector, a 20 per cent downwards adjustment, to the business rates bills of all retail properties will allow retailers to continue to offer the best possible prices to customers while also opening shops, protecting jobs and unlocking investment.”
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said, “Inflation in the food supply chain continues to ease and this helped slow the upward pressure of shop price inflation in October, however other cost pressures remain.
“Consumers remain uncertain about when and where to spend and with Christmas promotions now kicking in, competition for discretionary spend will intensify in both food and non-food retailing.”