With UPFs Under Fire, Investors Bet $7M on Actual Veggies After Revenues Double

Can Actual Veggies be the antidote to ultra-processed foods? It’s what investors are hoping for, pumping $7M in funding for the New York startup.

New York-based CPG firm Actual Veggies has gained $7M in a Series A funding round after annual revenues jumped by 125%, just as GLP-1 drugs and the fight against ultra-processed foods (UPFs) change the way Americans eat.

The investment was led by Relentless Consumer Partners, with participation from New Fare Partners, Sovos Brands founder and Sauer Brands chairman Todd Lachman, and Ben Rawitz, the long-time manager of NFL legend Tom Brady.

It takes the 2020-founded startup’s total financing to around $12M, and comes after it doubled its retail presence over the last year – its veg-led products are stocked at 6,500 stores, including major retailers like Albertsons, Kroger, Whole Foods Market, and Sprouts.

The capital injection will allow Actual Veggies to build on the growing demand for clean-label, whole-food options in the anti-UPF, Ozempic era. “For the first time, consumers en masse aren’t just asking: ‘Is it plant-based?’ but: ‘What’s actually in it?'” says co-founder and co-CEO Jason Rosenbaum.

“The first wave of plant-based was about replication at any cost. Now we’re entering a more sophisticated era where consumers demand both functionality and clean ingredients,” he tells Green Queen.

‘Our customers are excited about quinoa and beets’

Founded in 2020 by co-CEOs Hailey Swartz and Rosenbaum, Actual Veggies makes burgers and fries with vegetables, mushrooms, and legumes as the central ingredient.

Its current lineup includes a Purple Roots burger with sweet potato, carrots and beets, an Actual Green burger with broccoli, spinach and kale, and the flagship Black Bean burger with red pepper and caramelised onion (which will launch into all 82 Costco locations across the Southeast next month). It also makes seed-oil-free veggie fries, from classic potatoes to orange and purple sweet potatoes.

Each patty contains 7-9g of protein and 7-10g of fibre, giving Americans the two ingredients they want to consume the most. They’re packed with vegetables, spices, grains and legumes, catering to the four in five Americans who find clean ingredient lists an important purchase motivator.

“We serve people who want to see and taste the vegetables in their burger. Our customers scrutinise ingredient labels, prioritise nutrition, and actually get excited about quinoa and beets,” says Rosenbaum.

“We do not try to replicate meat but rather serve a customer that’s seeking vibrant, nutrient-dense meals made from ingredients they recognise. We’re building for the growing segment that wants their food minimally processed and their vegetables front and centre,” he adds.

Sales of meat alternatives continued to fall in 2024, with the downtick steady at around 9% compared to the previous 12 months. And investors have been cautious with their cash here, as companies in the plant-based space saw funding fall by 64% last year. This has been ascribed to the backlash against UPFs, which studies have described as harmful to health, but experts have cautioned shouldn’t be directly linked with nutrition.

“Look at the data: while sales of ultra-processed alternatives have plateaued, whole-food plant-based products are seeing sustained double-digit growth. This isn’t just a moment – it’s a lasting transformation in how people eat,” Rosenbaum notes.

As RFK Jr takes reins, Actual Veggies backs food transparency

The discourse around UPFs went up a notch after Robert F Kennedy Jr’s nomination for health secretary in the US. He has been a vocal opponent of these foods, promising to ban them in schools. Even California Governor Gavin Newsom agrees with the stance, cracking down on UPFs in an executive order at the start of the year.

Now that RFK Jr has been confirmed, it leaves the alternative protein industry in an uncertain position. But Rosenbaum wouldn’t be drawn on that front. “We focus on providing high-quality, whole-food plant-based products and staying true to our mission rather than engaging in political discourse,” he says.

“That said, we support initiatives that promote public health, food transparency, and cleaner food options – values that align with what we offer at Actual Veggies.”

Rosenbaum reiterates that consumers “deserve transparency and healthier alternatives” to UPFs: “Actual Veggies is committed to using whole, recognisable ingredients without fillers, isolates, or unnecessary additives. While food processing exists on a spectrum, we prioritise minimally processed, nutrient-dense options that align with our values and customer expectations.”

These concerns are why the Non-GMO Project recently launched the Non-UPF Verified label for packaged foods. Would Actual Veggies be tempted to get that certification?

“If the Non-UPF Verified label becomes a widely recognised and meaningful certification for consumers, we would absolutely consider it. Ultimately, we believe the most important thing is ingredient transparency – which we already provide by listing 100% whole, real food ingredients right on our packaging,” says Rosenbaum.

Why Actual Veggies added cheese to the lineup

Until recently, Actual Veggies was a fully plant-based brand, but it launched a line of veggie burgers filled with cheese in October. “We saw a warm reception for our new Actual Veggies burger varieties with cheese,” he says when asked if it felt like a brand positioning risk.

“When we saw an opportunity to extend our quality standards in the creation of new products, we knew it was worth pursuing. Plant-based remains our foundation, but this expansion has actually reinforced our positioning as a brand that puts ingredient integrity first – regardless of source. Customers know we’ll never compromise on ingredients, whether they’re plant- or dairy-based.”

In addition to its retail expansion, the company has now secured a contract with catering giant Compass Group, which will enable its burgers and fries to be served at schools, hospitals, and corporate cafeterias, including those at Amazon and Google.

“We’re witnessing a fundamental shift in American eating habits, magnified by the projection that over 24 million Americans will be using GLP-1 medications in the next decade,” said Elly Truesdell, founder and managing partner of New Fare Partners. “This evolution presents a  massive opportunity for Actual Veggies to meet the growing demand for better meal options made without fillers, preservatives, or artificial ingredients.”

John Burns, a founding partner of Relentless Consumer Partners, added: “We anticipate a surge in consumer interest for products like Actual Veggies, which is committed to staying ahead of the curve in sustainable ingredient sourcing, innovative product development, and meeting the evolving needs of health-conscious consumers in 2025 and beyond.”