Supermarket giant Woolworths has invested in another fake meat company, this time All G Foods.
The supermarket has already supported plant-based protein company Harvest B, through its investment arm W23.
All G Foods, founded in Sydney by Jan Pacas, has already raised $16 million to help develop alternative meat and milk products.
The Federal government's Clean Energy Finance Corporation controversially spent $5 million on last year's fundraising round.
The seed funding is also believed to have won backing from a Hong Kong-based fund.
Harvest B, again from Sydney, also received a $1 million grant from the government as part of the Advanced Manufacturing Growth Centre Commercialisation Fund.
Red Meat Advisory Council chair John McKillop has previously questioned the spending of taxpayer dollars on fake meat companies.
"It is shameful that an agency entrusted to invest billions of taxpayer dollars cites extreme anti-meat and anti-livestock research as a basis for its investment," Mr McKillop said of the CEFC support for All G Foods.
All G Foods already has plant-based and alternative proteins on the shelves of national supermarket chain IGA including mince, sausages, chicken, bacon and animal-free dairy products.
MORE READING: Twiggy Forrest invests in fake meat company.
Woolworths said it was investing in alternative protein companies "to build local capability in plant-based production, so more of the products on the market can be made and sourced within Australia".
"At W23, we invest in innovative startups led by visionary founders, and we're interested in backing the next wave of food innovation in Australia," W23 managing director Ingrid Maes said.
"All G Foods is at the forefront of new alternative protein production techniques and is setting out to build a global business that can help feed a growing population. We're excited about the potential of All G Foods' emerging technology and ambitious growth plans."
All G Foods' Mr Pacas said his company's ambition was to make great tasting and nutritious products to meet a growing consumer demand.
"The investment by W23 only further accelerates the plan to reset the standard of Australian alternative protein companies in both product and customer engagement," he said.
"At All G we are passionate about Australian made and have joined the global innovation linkage project under Sydney University's lead to identify the future plant-based proteins of Australia, so local farmers can be a part of this growing opportunity."
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