Cultivated Meat Company Believer Meats Faces $34 Million Lawsuit: What Does This Mean for the Future of Lab-Grown Meat?
The cultivated meat industry, once hailed as the future of sustainable protein, is facing turbulent times. Believer Meats, a prominent player in this emerging sector, is currently embroiled in a legal battle with Gray Construction, a design-build firm, over a staggering $34 million in unpaid bills. This lawsuit, coupled with recent layoffs at Believer Meats’ North Carolina plant and executive suite, raises serious questions about the financial viability and overall stability of the cultivated meat industry.
The Lawsuit: A Breakdown of the Allegations
Gray Construction alleges that Believer Meats failed to meet its financial obligations under a design-build agreement signed in 2023 for the construction of Believer Meats’ cultivated meat facility in North Carolina. According to the lawsuit, Gray Construction completed the work in August 2025, but Believer Meats did not pay its bills on time.
In October 2025, both companies entered a forbearance and release agreement. Believer Meats agreed to pay Gray Construction $22 million by December 5, 2025, with the remaining $12 million to follow in two installments in 2026. However, Gray Construction claims that Believer Meats failed to meet the December 5th deadline, resulting in a “material breach” of the forbearance agreement.
Gray Construction is now seeking to foreclose on the North Carolina facility or pursue a court-supervised sale of the asset. Believer Meats disputes Gray Construction’s claims, alleging that Gray Construction failed to perform under the design-build agreement.
Believer Meats: A Pioneer in the Cultivated Meat Industry
Believer Meats, formerly known as Future Meat Technologies, has been a significant player in the cultivated meat industry. In July 2025, the company secured a “no questions” letter from the FDA, confirming the safety of its cultivated meat products. The company also completed construction of its large-scale production facility in North Carolina, which CEO Gustavo Burger hailed as “the first and only large-scale cultivated meat production site in the world”.
Believer Meats has attracted substantial investment, including a $347 million Series B round in 2021. Investors include ADM Ventures, the Menora Mivtachim pension and insurance fund, S2G Investments, Tyson Ventures, Rich Products Ventures, Manta Ray Ventures, Emerald Technology Ventures, Cibus Capital, and Bits x Bites.
The Broader Context: Challenges Facing the Cultivated Meat Industry
The lawsuit against Believer Meats highlights the broader challenges facing the cultivated meat industry. While the industry has generated considerable excitement and investment, several obstacles remain such as:
- High Production Costs: Cultivated meat production remains expensive, hindering its ability to compete with traditional meat products. The cost of cell culture media, the nutrient-rich substance needed for cell growth, has been a significant barrier.
- Scalability Issues: Scaling up production to meet potential consumer demand is a major hurdle. Companies need to develop efficient and cost-effective methods for producing cultivated meat on a large scale.
- Regulatory Hurdles: Cultivated meat companies must navigate complex regulatory frameworks to gain approval for their products. The FDA and USDA jointly regulate cultivated protein products in the United States, requiring companies to meet rigorous safety and labeling standards.
- Consumer Acceptance: Consumer acceptance of cultivated meat is not guaranteed. Some consumers may be hesitant to try lab-grown meat due to concerns about taste, safety, or ethical considerations.
- Financial Constraints: Funding for cultivated meat startups has declined in recent years, reflecting investor skepticism about the commercial viability of these technologies.
Financial Troubles in the Cultivated Meat Sector
Believer Meats isn’t alone in facing financial headwinds. Aleph Farms, an Israeli company known for its lab-grown beef steak, is seeking $25 million in funding but expects to secure only $10 million from existing investors. Its valuation has dropped significantly, and the company has laid off staff. New Age Eats closed down in 2023 after running out of funds.
Global funding for food and agricultural technology startups fell 57% from 2021 to 2023. Investments in alternative foods like lab-grown meat dropped by 67% during the same period.
The Future of Cultivated Meat
Despite the current challenges, the need for alternative protein sources remains critical. The global population is expected to reach 10 billion by 2050, creating a projected protein supply shortfall. Climate change further threatens food security, with a 2°C temperature rise potentially causing significant damage to global grain production.
The cultivated meat industry has the potential to address these challenges by providing a more sustainable and ethical way to produce meat. However, companies must overcome the technological, economic, and regulatory hurdles to realize this potential.
Advice for Investors and Stakeholders
Given the current climate, investors and stakeholders in the cultivated meat industry should exercise caution and conduct thorough due diligence. It’s crucial to assess a company’s financial stability, technological capabilities, and regulatory compliance before investing.
Here are some key considerations:
- Financial runway: How much cash does the company have on hand, and how long will it last at the current burn rate?
- Technological feasibility: Does the company have a viable and scalable production process?
- Regulatory strategy: Does the company have a clear plan for obtaining regulatory approval for its products?
- Market analysis: Is there a clear market for the company’s products, and is the company positioned to compete effectively?
The lawsuit against Believer Meats serves as a reminder that the cultivated meat industry is still in its early stages and faces significant challenges. While the long-term potential of cultivated meat remains promising, investors and stakeholders should proceed cautiously and carefully assess the risks involved.