New Wave Foods, a prominent player in the plant-based seafood industry, has recently announced the cessation of its operations. The company has opted for an Assignment for the Benefit of Creditors (ABC), transferring its assets to a trust for liquidation and distribution among its creditors. The decision comes as New Wave Foods finds itself unable to fulfill its financial obligations, despite previous successes and fundraising efforts.

Challenges and Industry Headwinds

The closure follows a period of momentum for New Wave Foods, with CEO Michelle Wolf noting significant strides made in 2023, including securing a major customer for 2024 sales. However, challenges within the industry proved insurmountable, prompting the company to discontinue its operations. Wolf emphasized the importance of prioritizing healthy business fundamentals and expressed pride in New Wave’s contributions to sustainable eating.

Founded in 2015 by Michelle Wolf and Dominique Barnes, New Wave Foods garnered support from investors such as Tyson Ventures, New Enterprise Associates, and Evolution VC Partners. The company initially gained attention for its innovative plant-based shrimp formulation, which evolved over time to incorporate mung bean protein in lieu of soy protein.

The Rise of Alternative Seafood

Interest in alternative seafood solutions has surged in recent years, driven by concerns regarding environmental sustainability and ethical practices within the seafood industry. Despite modest retail sales figures for alt-seafood in the US, new entrants like Konscious Foods are emerging, offering innovative products at competitive prices.

Marissa Bronfman, founder of Future Ocean Foods, a trade association for alt-seafood startups, remains optimistic about the long-term prospects of the industry. While challenges persist, the necessity of scaling sustainable protein sources underscores the importance of continued innovation and investment in alternative seafood solutions.