The maker of plant-based JUST Egg is acquiring a protein production facility as distribution grows.
San Francisco-based Eat JUST says it will be the biggest private employer in Appleton, Minn., when it closes on its acquisition of the 30,000-square-foot Del Dee Foods factory by year’s end.
Del Dee has doubled its staff to 40 since signing on to start producing JUST’s mung bean protein isolate more than a year ago, and it’s on track to grow further along with demand for plant-based JUST Egg.
Since launching last year, JUST Egg’s distribution has grown in both retail and foodservice channels, and its latest announcement blends the two.
Whole Foods Market sells JUST Egg’s retail product at its stores around the country. On Wednesday, JUST unveiled plans for a new deal with Whole Foods that will put JUST scrambled eggs and three vegan sandwiches on the breakfast menu at 63 stores in the four-state Southern Pacific region come January.
Whole Foods is also crafting JUST Egg-based vegan breakfast pizzas that will be sold at pizza stations at some stores.
The menu items are aimed at pleasing both vegans and those moving toward a more plant-based diet, Megan Tucker, associate product coordinator at Whole Foods Market Southern Pacific region said.
The sandwiches will be made with JUST Egg, plant-based meats including Lightlife bacon and Gardein sausages, and vegan cheddar from Good Planet.
They’ll join other plant-based breakfast items Whole Foods sells at some stores, including a house-made tofu scramble, breakfast potatoes and roasted and sautéed vegetables, Tucker said.
JUST founder Josh Tetrick and his team spent five years developing and perfecting the liquid plant-based egg alternative before launching it on the market in the U.S. and Asia in 2018. The Whole Foods launch caps more than a year of announcements of expanded distribution for the product at retail outlets and restaurant chains.
Eggs are by far the smallest category when it comes to plant-based food sales, but they’re growing fast, according to SPINS data. U.S. sales of plant-based eggs grew 104.9% from April 2017 to April 2019, to $6.5 million.
Other brands including Follow Your Heart have launched powdered plant-based egg substitutes that have gained traction with vegans, but JUST’s product is the first liquid vegan egg to debut and win a large following. The company’s message of an eco-friendlier alternative to chicken eggs has resonated with mainstream consumers and companies in the U.S. and Asia, Tetrick said earlier this year.
Distribution has grown rapidly, starting with regional supermarkets including Publix, Wegmans and Harris Teeter. In August of this year, the company announced plans to sell the product in 2,100 Kroger-owned stores and sealed a distribution deal with Walmart. JUST has also expanded its presence in foodservice, signing on with distributors including Sysco and US Foods and gaining a place on the menu at restaurant chains including Veggie Grill, Silver Diner and Bareburger.
That rapid growth fueled the need for a factory capable of producing enough of the mung bean protein needed to fill fast-growing demand.
Josh Tetrick and mung bean protein isolate.
“To make our mission happen, we need to scale,” Tetrick said. “Separating the protein from the bean requires talent, proprietary processing and a supportive community. We found all that and more in Appleton.”
Del Dee’s story reflects the growing influence of the plant-based ingredient industry in the wider food world. Founder Del Droogsma grew up on a dairy farm and started the company in 1972 as a broker of dairy products. Later it grew into an early manufacturer of ingredients made from whey, a dairy byproduct that used to be discarded and is now an industry valued at about $10 billion, the company says.
In its latest transition, the family business has moved away from whey to plant-based protein extraction, and under new ownership it will be strictly a supplier for JUST’s plant-based products, said Droogsma’s daughter and Del Dee co-owner Lori Lind.
“It’s both fun and humbling to think that this all began with one man, a Rolodex and a big dream,” she said in a news release.
Owning the factory will give the company the capacity to run round-the-clock shifts six days a week, and the 40-employee staff will grow to ultimately add a seventh day of production, according to JUST.
JUST’s research and development arm will remain in California, but the Del Dee acquisition comes with 40 acres of land that will allow for future expansion of the production facility.