Yo Egg Announces Entry Into US Retail Stores

Written by the VEGPRENEUR team

Yo Egg, a Los Angeles-based startup, is set to revolutionize the plant-based egg market with its innovative, patent-pending technology that produces sunny-side-up and poached eggs from plant sources. Founded in September 2021 by CEO Eran Groner and chef Yosefa Ben Cohen, the company has garnered support from investors such as NFX, Stray Dog Capital, Secret Chord Ventures, and Surround Ventures.

After successfully entering the foodservice sector last spring, Yo Egg is now making its retail debut on the west coast. The eggs, made from a base of soy and chickpea protein along with sunflower oil, feature 'runny' yolks sealed by an alginate film, ensuring a realistic and satisfying culinary experience. Distributed by Whitestone Natural Foods, the zero-cholesterol, low-saturated fat eggs will be available in four-packs in the freezer section of select supermarkets across Los Angeles.

Yo Egg's initial retail rollout includes partnerships with prominent stores such as Besties Vegan Paradise, Rainbow Acres Natural Foods, Hanks Organic, Follow Your Heart Market, and PlantX-XMarket Venice. The company plans to expand its presence to California, New York, and nationwide in the coming year.

CEO Eran Groner outlined the company's strategic approach, starting with a focus on individual operators in the natural foods category before targeting regional players like Bristol Farms and eventually larger accounts such as Sprouts and Whole Foods. The initial retail price is set at $6.99, with plans to reduce it to $5.99 in the near future.

What sets Yo Egg apart is its groundbreaking technology, allowing the creation of sunny-side-up and poached plant-based eggs that are shipped frozen and intended for frying or boiling. Groner, with prior experience at cultivated meat startup Believer Meats, highlighted two key technologies behind this innovation: a specialized egg white system for texture customization and a scalable yolk manufacturing system capable of producing 50,000 yolks per day per machine.

The manufacturing process, according to Groner, involves a mixer, a yolk machine, baking or frying equipment, freezers, and packing machines. The entire production line at Yo Egg's facility in North Hollywood cost less than half a million dollars. Scaling up, Groner envisions co-manufacturers handling the latter stages of the process while maintaining Yo Egg's IP, recipe, and specialized equipment for yolk manufacturing.

Yo Egg's go-to-market strategy follows the footsteps of successful plant-based brands like Impossible Foods, commencing with a soft launch in foodservice and then expanding into retail. The company plans to introduce various egg formats, starting with fried and poached eggs, followed by patties, hardboiled eggs, and a liquid yolk product in the future.

Groner emphasized the broad appeal of Yo Egg's products, targeting not only vegans but also consumers seeking a 'deliciously plant-based, cholesterol-free' option. The focus on taste and nutritional benefits, such as one-third less saturated fat, zero cholesterol, and lower sodium compared to traditional chicken eggs, positions Yo Egg as a versatile and innovative product appealing to a wide audience.

In terms of funding, Yo Egg initially secured support from its founders and later raised $5 million in a seed round in 2022, led by Stray Dog Capital and NFX. Groner highlighted the company's lean capital expenditure structure, affordability of equipment, and scalability as attractive factors for investors.

While plant-based eggs remain a niche product, the potential market is significant, spanning industrial applications, foodservice, and retail. Yo Egg faces competition from a limited number of players in the US retail market, with JUST Egg being a notable leader. The appeal of plant-based eggs extends beyond environmental and animal welfare concerns, with Yo Egg focusing on delivering a satisfying and healthier alternative for various culinary applications.

Yo Egg will showcase its new retail line at the Natural Products Expo West show in Anaheim, California, providing an opportunity for consumers and industry professionals to experience the innovative plant-based eggs firsthand.