Motif FoodWorks Shuts Down Amid Legal Battle and Market Challenges

Boston-based foodtech company Motif FoodWorks, known for its plant-based meat analogues, has announced it will shut down operations following the resolution of a long-standing intellectual property (IP) dispute with competitor Impossible Foods. The decision to close was communicated to employees recently, according to multiple reports, with a minimal staff retained to handle the shutdown at the Boston headquarters and its nearby research center.

The closure comes just days after Motif settled the IP lawsuit with Impossible Foods, which began in early 2022. Both companies agreed to cover their own legal expenses, and Motif sold its heme-related business to Impossible Foods as part of the settlement. This development effectively ended Motif’s activities involving its Hemami ingredient, a heme protein designed to replicate the flavor and aroma of meat in plant-based alternatives.

Motif’s Hemami, which is based on bovine myoglobin, had been at the center of the legal dispute with Impossible Foods, which claimed that the ingredient infringed on its patents related to its own soy leghemoglobin. The litigation not only drained resources but also deterred potential customers, as many companies avoided working with Motif due to concerns over the lawsuit’s implications.

Since its inception in 2019, after spinning off from synthetic biology firm Ginkgo Bioworks, Motif raised $345 million in funding, including a notable $226 million Series B round in 2021. The round took place during a peak period for alternative protein investments, but market sentiment has since shifted. In recent years, investment in the sector has declined significantly, with only $1.6 billion raised in 2023, compared to $5.6 billion in 2021.

The downturn in investment, coupled with the costly legal battle, left Motif struggling to sustain operations. While the company had launched a range of products, including plant-based beef, pork, and chicken alternatives, as well as other novel ingredients such as the Appetex hydrogel and plant-based cheese technologies, the lawsuit severely hampered its ability to commercialize these products.

The impact of the lawsuit extended beyond financial strain. Sources indicate that the lawsuit and its aftermath created a challenging business environment, stifling Motif’s market prospects and prompting a strategic shift toward minimizing further investment. This situation led to multiple rounds of layoffs and eventually the decision to cease operations altogether.

While Impossible Foods has taken over Motif’s heme-related business, the future of the company’s other assets, including its proprietary ingredients and research facilities, remains uncertain. The case of Motif FoodWorks underscores broader challenges faced by the alternative protein sector, including fluctuating investor interest, regulatory hurdles, and the complexities of bringing new technologies to market.