CHIPOTLE'S CULTIVATE NEXT FUND INVESTS IN AQUATIC PLANT-BASED TECHNOLOGIES THAT AIM TO EMULATE ANIMAL PROTEIN AND SCALE MORE SUSTAINABLE CATTLE FEED

Rhea-AI Summary

Chipotle Mexican Grill (NYSE: CMG) announced minority investments in two aquatic plant-based technology companies through its Cultivate Next fund: Plantible and CH4 Global. Plantible develops Rubi Protein™ from duckweed (Lemna), creating a plant-based protein that mimics animal proteins while using minimal water and reducing carbon emissions. CH4 Global produces Methane Tamer™, an Asparagopsis seaweed-based feed additive aimed at reducing cattle methane emissions by up to 90%.

These investments align with Chipotle's mission to Cultivate a Better World and support its growth plans to reach 7,000 restaurants in North America. The investments will help scale production of sustainable food solutions and reduce environmental impact in the food industry. These companies join Chipotle's existing Cultivate Next portfolio, which includes various sustainable food and technology ventures.

Positive

• Strategic alignment with Chipotle's growth plan for 7,000 North American restaurants
• Investment in sustainable food technologies that could reduce operational costs
• Potential for new plant-based menu innovations through Plantible partnership
• Diversification of investment portfolio in sustainable food technology

Negative

• Minority investment position limits control over technology development
• Early-stage investments carry higher risk of failure

Insights

Sustainability Investment Analyst

This strategic investment in Plantible and CH4 Global represents a significant advancement in Chipotle's sustainability and supply chain innovation strategy. Plantible's Rubi Protein™ technology could provide two important advantages: potential cost reduction in protein sourcing and enhanced menu sustainability credentials. The vertical integration model aligns perfectly with Chipotle's existing food transparency initiatives. The CH4 Global investment is particularly shrewd - reducing livestock methane emissions by up to 90% could substantially lower Scope 3 emissions in Chipotle's supply chain. For context, cattle methane represents roughly 14.5% of global greenhouse gas emissions. The improved feed efficiency potential could help offset implementation costs for suppliers, making adoption more likely. This dual investment approach positions Chipotle ahead of potential future carbon regulations while developing alternative protein capabilities - essential for long-term market competitiveness.

Food Technology Specialist

The Plantible investment is particularly noteworthy from a food science perspective. Duckweed-derived Rubi Protein™ represents a breakthrough in plant protein functionality. Most current plant proteins struggle with texture and taste fidelity, but Lemna's unique protein profile could overcome these limitations. The water-efficient recirculation system is important - traditional plant protein production often requires significant water resources. For the average consumer, think of this as getting the taste and texture of meat without the environmental impact. The CH4 Global Asparagopsis technology is equally innovative - it's essentially a natural feed supplement that could transform cattle farming efficiency. The potential 90% methane reduction while improving feed conversion efficiency could revolutionize the economics of sustainable beef production. These investments demonstrate Chipotle's commitment to both environmental sustainability and food quality - a rare combination in the fast-casual sector.

Supply Chain Strategist

This investment duo strategically addresses both immediate and long-term supply chain challenges. The Plantible partnership could provide Chipotle with priority access to next-generation plant proteins, potentially offering a hedge against volatile meat prices and supply disruptions. The vertically integrated manufacturing platform is particularly valuable, offering enhanced traceability and quality control. CH4 Global's Methane Tamer™ technology could help Chipotle maintain its beef supply chain while meeting increasingly stringent environmental standards. The current "outstripped demand" for Methane Tamer™ suggests strong market validation. With Chipotle's goal of 7,000 North American restaurants, securing sustainable and scalable protein sources is crucial. These investments demonstrate forward-thinking supply chain risk management while potentially creating competitive advantages in cost structure and sustainability compliance.

• Plantible is a vertically integrated biology company unlocking the potential of duckweed to create a plant-based protein that emulates the characteristics of animal-based proteins
• CH4 Global is scaling up production of Asparagopsis seaweed to reduce enteric methane emissions from cattle, a key driver of climate change

NEWPORT BEACH, Calif., Jan. 15, 2025 /PRNewswire/ -- Chipotle Mexican Grill (NYSE: CMG) today announced it is making minority investments in Plantible, a company harnessing the power of Lemna, an aquatic plant, to create what could prove to be the world's most functional plant-based protein, and CH4 Global, a company aiming to impact climate change at scale via methane-reducing innovations. Introduced in 2022, Cultivate Next makes early-stage investments into strategically aligned companies that further Chipotle's mission to Cultivate a Better World and help accelerate the company's longer term growth plans to operate 7,000 restaurants in North America.

Plantible
Founded in 2018, Plantible has developed a vertically integrated manufacturing platform to produce Rubi Protein™ from Lemna, more commonly known as duckweed. Rubi Protein™ is a natural, plant-based protein that can mimic the quality, taste, and texture of popular animal-based proteins and can replace synthetic emulsifiers and binders. By leveraging Rubi's functional and nutritional profile, Plantible aims to fulfill the food industry's need for a cleaner, healthier, and allergen-friendly food system currently polluted by unhealthy and unsustainable ingredients. Its manufacturing technology harnesses the aquatic growth of Lemna and limits fresh water usage through recirculation and minimizes carbon emissions due to its highly efficient growing process.

"Plantible's vertically integrated and traceable supply chain aligns with our commitment to ingredient transparency and Food with Integrity standards," said Curt Garner, Chief Customer and Technology Officer at Chipotle. "Investing in a like-minded venture that strives to transform the global food supply could help the entire industry unlock new opportunities for plant-based menu offerings." 

CH4 Global  
CH4 Global is on a mission to deliver gigaton-scale emissions reductions over the next decade using whole, dried Asparagopsis seaweed targeting livestock methane. The company's flagship product, Methane Tamer™, is a feed additive that leverages Asparagopsis, with a goal of reducing methane emissions in cattle by up to 90%.

Chipotle's investment will help CH4 Global scale production of Methane Tamer to meet burgeoning global demand for natural solutions to mitigate methane emissions from the world's 1.5 billion cattle.

In addition to slashing methane output, Asparagopsis may reduce the feed energy lost to methane production inside the rumen area of their stomachs. This means that cattle could get more energy and nutrition from the same amount of food, which would help them grow or produce milk more efficiently while reducing their environmental impact.

"As we all work toward the goal of minimizing global greenhouse gas emissions, it's vital for us to invest in companies like CH4 Global that are engineering scalable solutions to reduce harmful global emissions," said Christian Gammill, Cultivate Next Fund Manager. "Our investment in CH4 Global will help the team scale production of Methane Tamer™ to meet its current outstripped demand."

Chipotle's Cultivate Next venture fund portfolio includes: Brassica, CH4 Global, GreenField Robotics, Hyphen, Local Line, Lumachain, Meati Foods, Nitricity, Plantible, Vebu, and Zero Acre Farms. Companies interested in collaborating with Chipotle through the Cultivate Next venture fund can apply by emailing CultivateNext@Chipotle.com.

About Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are over 3,600 restaurants as of September 30, 2024, in the United States, Canada, the United Kingdom, France, Germany, and Kuwait and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe. Chipotle is ranked on the Fortune 500 and is recognized on Fortune's Most Admired Companies 2024 list and Time Magazine's Most Influential Companies. With over 125,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit chipotle.com.

Forward-Looking Statements
Certain statements in this press release are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements about the companies that Chipotle's Cultivate Next Fund invests in and our alignment with and expectations for those companies. We use words such as "anticipate", "aims", "goal," "believe", "could", "should", "may" and similar terms and phrases to identify forward-looking statements. The forward-looking statements in this press release are based on currently available operating, financial and competitive information available to us as of the date of this release and we assume no obligation to update these forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the statements, including the risks described from time to time in our SEC reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q, all of which are available on the investor relations page of our website at ir.chipotle.com.

 

 

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SOURCE Chipotle Mexican Grill

FAQ

What companies did Chipotle (CMG) invest in through its Cultivate Next fund in January 2025?

Chipotle invested in Plantible, a duckweed-based protein company, and CH4 Global, a seaweed-based cattle feed additive company.

How much can CH4 Global's Methane Tamer reduce cattle methane emissions for Chipotle (CMG)?

According to the announcement, CH4 Global's Methane Tamer feed additive aims to reduce cattle methane emissions by up to 90%.

What is Plantible's Rubi Protein and how does it benefit Chipotle (CMG)?

Rubi Protein is a duckweed-based protein that mimics animal proteins' qualities and can replace synthetic ingredients, aligning with Chipotle's Food with Integrity standards.

How many companies are now in Chipotle's (CMG) Cultivate Next venture fund portfolio?

The Cultivate Next portfolio includes 11 companies: Brassica, CH4 Global, GreenField Robotics, Hyphen, Local Line, Lumachain, Meati Foods, Nitricity, Plantible, Vebu, and Zero Acre Farms.

What is Chipotle's (CMG) North American restaurant growth target mentioned in the announcement?

Chipotle aims to operate 7,000 restaurants in North America as part of its longer-term growth plans.