A new venture that's creating plant-based poultry is set to launch in grocery stores and virtual kitchens with the help of some Chicago partners.
Skinny Butcher is making "chicken" tenders, breasts, nuggets and patties from pea protein and a spice blend that makes its products "indistinguishable" from the real thing, the company says.
Based in Detroit, the startup is led by the founders of Garden Fresh Gourmet, which sold to Campbell's Soup in 2015 for $231 million. Chicago-based Wow Bao, which is part of the Lettuce Entertain You restaurant group, is partnering with Skinny Butcher to create a virtual kitchen concept for the startup, which includes chicken parmesan, jumbo chicken tenders, chicken Caesar salad and other items that are available for delivery. Wow Bao is working with ghost kitchen firm REEF Kitchens to handle production.
Skinny Butcher is funded with $10 million from Valor Siren Ventures, a food-focused fund from Chicago-based Valor Equity Partners. Valor Siren's investors include Starbucks, which put $100 million into the fund in 2019.
The startup's alternative crispy chicken products come as fried chicken sandwiches have skyrocketed in popularity at America's fast-food chains. The so-called "chicken sandwich wars," ignited by Popeyes fried chicken sandwich in 2019, have resulted in several chains releasing new or improved chicken sandwich offerings. Popeyes' sandwich was a major catalyst for the 38% jump in its same store sales during the fourth quarter of 2019.
Skinny Butcher's market launch is unique in that it's available in both retail and delivery. It's currently only available for delivery in Chicago.
Chicago has some home-grown alternative protein startups of its own, including Nature's Fynd, which makes meatless breakfast patties and dairy-free cream cheese and is valued at more than $1 billion. In addition, Aqua Cultured Foods, which makes seafood from mushrooms, is backed by Supply Change Capital, Hyde Park Angels and others.
