Do Good Foods, a Bedminster-based company championing sustainable meat production by combating food waste, has recently filed for Chapter 11 bankruptcy protection. This move raises questions about the viability of environmentally conscious businesses in today’s challenging economic climate, particularly those focused on “do good foods.”
In a petition submitted on June 16th to the U.S. Bankruptcy Court for the District of Delaware, the two-year-old company described the decision as a strategic move to secure its future and advance its mission. Despite the setback, Do Good Foods remains optimistic, emphasizing that it has secured a $30 million financing commitment to maintain business operations during the bankruptcy process. The company plans to continue honoring contracts, expanding operations, and collecting food waste from partners, upcycling it into animal feed and supplying its products to retailers and food service clients nationwide.
Do Good Foods reported estimated assets and liabilities of up to $500 million in its filing.
Founded in 2021 by brothers Justin and Matthew Kamine, Do Good Foods addresses food waste by collecting unsold produce and proteins from grocery stores. Materials unsuitable for donation to food pantries are then converted into a nutrient-rich, healthy dry feed for animals.
The “Do Good” Closed-Loop System
Do Good Foods operates on a closed-loop system, partnering directly with retailers to collect excess products at no cost. Edible items are donated to local organizations fighting hunger. The remaining waste is processed at Do Good Foods’ facility in Fairless Hills, PA, where it is transformed into animal feed. This feed is then used to raise animals with a reduced carbon footprint, offering consumers a sustainable alternative in supermarkets.
In April 2022, Do Good Foods launched its flagship retail product, Do Good Chicken – the first USDA-verified carbon-reduced chicken, actively contributing to climate change mitigation. This product has gained traction in hundreds of stores across the U.S., and the company has recently expanded its retail distribution with Inserra Supermarkets (ShopRite banner in North Jersey), Morton Williams (New York City), and select Acme locations.
Backed by a $169 million investment from Nuveen, a global asset manager, Do Good Foods also has processing facilities under construction in Fort Wayne, IN, and Selma, NC, highlighting its commitment to scaling its sustainable operations.
Scaling Sustainability and Facing Challenges
The Kamine brothers, sons of Harold Kamine (founder and chairman of Kamine Development Corp.), expressed optimism earlier this year about future expansion in distribution, production, and new retail categories such as carbon-reduced eggs.
They acknowledged the challenge of balancing infrastructure development with consumer brand building. Despite this, their strategy remains focused on raising awareness of Do Good Chicken, emphasizing the tangible impact consumers can achieve by choosing their product.
Do Good Foods, recognized as one of Fast Company’s most innovative brands of 2023, estimates it has diverted at least 27 million pounds of food waste from landfills since its inception. This demonstrates the company’s potential to significantly reduce environmental impact by promoting “do good foods.”
Navigating the Road Ahead
Do Good Foods’ bankruptcy filing comes on the heels of a similar announcement from AeroFarms, a Newark-based vertical farming company. This highlights the challenges faced by companies in the sustainability sector. High energy costs, technological hurdles, and the difficulty of scaling production while managing expenses make it challenging for these ventures to achieve true environmental and financial sustainability.
Justin Kamine, in a statement to NJBIZ, emphasized the company’s commitment to its mission of scaling sustainability with the largest food companies. He stated that the court-supervised process is intended to strengthen the company’s financial position and that the $30 million financing commitment from existing lenders demonstrates their confidence in Do Good Foods’ mission.
The company aims to align with partners who can help accelerate its national scaling efforts, confident that these steps will enable them to amplify their sustainable solution’s reach.
