A Tokushima-based startup that produced edible crickets has suspended operations and filed for bankruptcy after facing criticism over the use of its product in school lunches, it has been learned.
Gryllus Inc. filed for bankruptcy at the Tokushima District Court on Nov. 7 with debts of about 153 million yen.
The company had suffered poor performance after receiving criticism online due to the public's resistance to the idea of eating insects.
According to a private research firm, Gryllus, which was founded in 2019, produced edible crickets at what used to be a school in Mima, Tokushima Prefecture.
The company started selling cricket crackers at Ryohin Keikaku Co.'s Muji stores in 2020, and cricket-based snacks at convenience stores in 2022.
However, Gryllus received widespread criticism on social media over providing its crickets in powdered form for use in a high school lunch item in Tokushima Prefecture in 2022-23.
Such criticism reportedly became a main factor for Gryllus to suspend its sales plans, resulting in a large amount of excess inventory. In the business year ending May 2023, the company's sales were about 38 million yen, with at net loss of 339 million yen, making it the fourth consecutive year of losses since Gryllus' founding.
The company then planned to start a new business producing feed using crickets for livestock and fisheries. However, as Gryllus was unable to receive government subsidies, it decided not to continue its operations, it was said.
The Washington Post