Akua, a New York-based startup producing plant-based foods from kelp seaweed, has ceased operations. Co-founder and CEO Courtney Boyd Meyers announced the board's decision to wind up the company on LinkedIn.

Meyers cited challenges, including expensive production costs, slim margins, competition from supply chain partners, and a decline in the plant-based movement as reasons for the closure. The company had raised funds through crowdfunding campaigns and over 75 private investors.

Akua launched its first product, Kelp Jerky, in 2019, followed by kelp burgers in 2021 and kelp-based crab cakes in 2022. Before its closure, the company had scaled to over 1,000 retail stores and 100+ food service customers across the US.

Analyst QuickTake: This marks the second shutdown of a plant-based company, followed by RIP Foods’ closure in January 2024 . Furthermore, Mycorena recently filed for bankruptcy and planned to restructure operations under new ownership. While the plant-based meat industry showed signs of recovery in Q2 2024 , these developments highlight the volatility of the industry.