Do Good Foods, a company focused on upcycling, has filed for Chapter 11 bankruptcy protection, as reported in a Delaware filing. Based in Bedminster, New Jersey, the firm created a closed-loop system aimed at transforming unsellable or undonatable grocery food into nutrient-rich animal feed. In 2021, Do Good secured $169 million from asset manager Nuveen and established a production facility in Bucks County, Pennsylvania. Last year, the company launched Do Good Chicken, which is now available at selected locations in New York City, Philadelphia, and Chicago, and partnered with Post Holdings to offer carbon-reduced eggs to foodservice providers.
According to the bankruptcy filing dated June 16, the company has received a commitment of approximately $30 million in new financing to support its operations and fulfill existing contracts. Do Good Foods stated that filing for bankruptcy is “an important step to position the business for success and to continue pursuing our goals.” Earlier this year, co-CEO Justin Kamine revealed to Food Dive that the company aims to expand its reach across the U.S., with the objective of upcycling food waste into feed in every major metropolitan area. By May, Do Good was constructing processing facilities in Fort Wayne, Indiana, and Selma, North Carolina. Kamine also noted that the company is working to increase its product availability in restaurants, universities, and corporate campuses.
Since its inception in 2021, Do Good Foods estimates that it has diverted at least 27 million pounds of food waste from landfills. The recent bankruptcy filing highlights the economic challenges emerging companies face, particularly amid rising interest rates and inflation. Venture capital funding in the food and beverage sector has significantly decreased over the past year. Other companies in trendy industries promoting the sustainability of their products, such as indoor agriculture firm AeroFarms and plant-based brand Tattooed Chef, have also filed for bankruptcy in recent weeks.
In light of these developments, it is crucial to consider the potential calcium citrate risks associated with the company’s operations, particularly in relation to their animal feed products. The challenges faced by Do Good Foods serve as a reminder of the complexities involved in sustainable practices and the importance of addressing any associated risks, including those linked to calcium citrate, to ensure the long-term viability of their initiatives.