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The Spoon

Daily news and analysis about the food tech revolution

Ag Tech

Jellatech Announces Successful Production of Animal-Identical Cell-Based Collagen

From connective tissue, skin health, lunchroom JELLO, and your inner ear to injections to create fuller lips, collagen is one of a body’s vital chameleons. Until now, the best way to introduce this protein to your everyday health is by eating animal products or substitutes such as Keratin and other amino acid supplements.

Raleigh-based Jellatech has announced the development of a full-length, triple-helical, and functional collagen made from their own proprietary cell lines. Others have worked on a solution to create lab-based collagen, but Jellatech’s stands alone as bio-identical to the animal-based variety.

In a recent interview with The Spoon, Stephanie Michelsen, Jellatech CEO, explained that, like others wanting to make an impact in the alt-protein space, she looked for a white space that was undeveloped and in need of a solution.

“I came across collagen and its roots and gelatin because it’s a unique protein only found in animals. And we use it for such, I mean, a crazy number of different applications,” Michelsen said. “So, I saw it’s going to be a future problem, so let’s try to solve it using cellular agriculture.”

Jellatech’s process differs from the fermentation approach to building alternative proteins. “It’s not fermentation because fermentation is more like yeast or bacteria using big vats,” Michelsen explained. “We use mammalian cells and those cells, so in that way, it’s different.”

Given its role in health and pharma, it’s no surprise the global collagen market size was valued at USD 8.36 billion in 2020, according to Grandview Research. It’s a space that is precited to grow at a 9.0% rate from 2020 to 2028, and much of that growth comes from increasing demand from the cosmetics markets. With that in mind, Michelsen sees pharma as low-hanging fruit and why taking the business-to-business approach is the best way to start.

Rob Schutte, Head of Science for Jellatch, emphasizes that what gives his company an advantage over possible competitors is the two years’ worth of work they put in to build a perfect collagen replica. “We’re thrilled to see that our cell-derived collagen appears bio-identical to collagen derived from animals. Because of this, we have a wide range of exciting applications from biomedicine to cosmetics to food and beverage.”

Jellatech will face the same issues as other companies creating either plant-based or cell-based proteins—cost. The number of bioreactors and the infrastructure to support a complex process can be enormous to build at scale. Without being specific, Michelsen believes that smart growth and innovation can play a crucial role in managing capital expenses.

We hope to do some innovation on our own to try to drive those costs down,” she said. “It’s true; there’s there are a lot of steps to get there. We are soon moving into the pilot and commercial-scale sometime after that. But, you know, I think there are a lot of avenues to explore to be able to cut those costs down.”

PARC Spinout EverCase Uses Electric & Magnetic Fields to Store Food in Freezers Without Ice Crystals

If you’ve ever put meat or fish into a freezer, you’ve probably noticed it doesn’t look nearly as fresh once you thaw it out.

That’s because the process of freezing food alters and damages its structure at a cellular level. As the temperature drops, water molecules slow down, and ice crystal embryos form ice nucleation sites. From there, the ice spreads to freeze the entire piece of food. Water within the food expands by up to 9% when frozen, causing food cells to rupture. When frozen food thaws, nutrients and flavors leach out from the food, often in the form of drip loss (that red liquid dropping from a warmed piece of red meat).

But what if you could store and preserve food in a freezer at sub-zero temperatures and avoid the damage incurred by traditional freezing? That’s the idea behind a new startup called EverCase, a spinout from storied research and business incubator Xerox PARC.

The new company, announced on June 15th, is the result of almost a decade of research that started when Dr. Soojin Jun, a professor at the University of Hawai’i at Mānoa, got a three-year research grant from the USDA in 2013 to research the technology dubbed “Supercooling.”

Jun’s Supercooling technology utilizes pulsed electric and oscillating magnetic fields to cause water molecules within food stored at sub-zero temperature to vibrate, inhibiting the formation of ice crystals. The result is food that, when pulled out of a Supercool equipped freezer, has almost the exact look and texture of food that is fresh and not riddled with ice crystals.

Image Above – Left: Drip Loss from thawed traditionally frozen meat. Right: EverCase’s comparison of meat using different preservation techniques

Jun would eventually take his ideas to Xerox PARC where he would get help incubating them and preparing them for commercialization. The end result of that move is EverCase, a new spinout that plans to build systems with Supercooling that can be used in existing freezers.

You can watch a demo in the video below where EverCase shows a piece of frozen meat compared with a piece of meat stored using Supercooling technology.

EverCase Demo Video

The company is pitching nothing less than a revamp of the traditional “cold chain” supply network, where freezers, from packers to the retail storefront (and possibly even to the home), use Supercooling technology. The company’s pitch deck talks of a new category of smart packaging and a new preserved food category of ‘Supercooled foods.’ They also plan to work with refrigeration manufacturers and other OEMs to build Supercooling technology into freezers and refrigerators.

It’s an ambitious plan, but there’s no doubt there could be a market for technology that helps food sidestep some of the downsides of traditional cold chain freezer technology. The company does say its technology is “inexpensive to make,” but it’s still unclear to me what the total cost of upgrades for a restaurant, retailer, or food packer would be. Nevertheless, it is encouraging that EverCase says its technology works with existing freezers because forklift upgrades for the massive amount of installed freezer systems throughout a mature cold-chain network is a non-starter.

The company is headed up by Chris Somogyi, a former co-founder of cell-cultured seafood startup BlueNalu and business development exec at PARC, and other executives from IBM, Xinova, and PARC. According to the announcement, EverCase is in the process of a Series A funding round.

SuperMeat Believes An Open Source Approach to Cultivated Meat Will Benefit All

Lab-grown or cultured meat is a sexy topic that fulfills the dream of healthy eating while saving the planet’s precious resources. Most of the headlines focus on the companies in the four corners of the world waiting for regulators to wave the checkered flag. The more interesting story—at least for those who enjoy looking under the hood—is in the processes, supply chain, and partnerships vital to this promising industry.

To understand the drill-down of what it takes to go from harvesting animal cells to creating consumer-facing products, it’s valuable to speak with visionaries such as Ido Savir, CEO of Israel’s SuperMeat. In addition to his knowledge of cultivated meat, Savir’s background in IT provides him with a panoramic view of the infrastructure needed to build a successful B2B company.

While it might not qualify as an awe-inspiring announcement, SuperMeat recently received a grant from the Israeli Innovation Authority to establish an open-source high-throughput screening system for optimizing cultivated meat feed ingredients. As an analogy, think of it as a system that ensures cows or chickens receive only the best quality feed to produce larger quantities of high-grade meat or chicken. But there is a significant difference.

Savir explains that animals are inefficient producers of their products. “It’s just done more efficiently (in cultivated meat),” the SuperMeat CEO told The Spoon in a recent interview. “In traditional meat production, 70% to 80% of the cost comes from the feed, and animals are just not very efficient conversion machines.” To put it into perspective, the cost of animal component-free (ACF) feed can make or break those vying to play in this space.

Rather than compete with consumer-facing brands such as Future Meat, Eat Just, and Mosa Meat (to name a few), SuperMeat is taking a B2B approach. Working with established meat and poultry providers to build production facilities where companies with existing supply chains can quickly enter the future of the alt-meat market. SuperMeat has announced deals with Germany’s PHW Group and Migros in Switzerland. The Israeli firm is in discussion with potential U.S. partners to reach the stateside market by the end of 2023.

The decision to build a platform for cultivated meat rather than build its own consumer brand directly results from Savir’s tech background, and it is also why the new feed screening system is in the open-source approach. “From my background, and I really believe in open source, and I really believe in sort of a platform approach that can help bring not just one company but the industry forward,” Savir stated.

Also, speaking to his tech background, it’s clear Savir has learned the relationship between capital expenditures and profit. It’s not about cost; it’s about having the right model.

“The way I look at this, and it doesn’t matter how much the infrastructure costs,” he said. “What matters is how efficient and the return you can get from that money. Right. And if you can get that return in a reasonable time, it makes sense, no matter what the cost is. We have our cost of goods models that demonstrate that that makes sense.”

A trip to SuperMeat’s facility in Israel will yield more than a view of lab equipment and many steel fermentation tanks. The facility includes a small restaurant-like space called “The Chicken,” where potential business partners, consumers, and others can taste the lab-grown animal protein. Savir says it’s more than just a pretty place to show off.

“We’re trying to do things a bit differently,” Savir said. “We thought it was important for us and our potential clients, which are food companies, to have that full transparency and traceability.”

See video of the makeshift eatery below:

World's First Cultivated Meat Blind Tasting Full Reel

IKEA Tests Vertical Farms in Partnership With InFarm

Furniture retail giant IKEA is trialing vertical farm installations at three locations in Germany, according to an announcement made by Infarm. Customers at IKEA locations in Kaarst, Duisburg, and Munich-Eching will be able to watch the Infarm installation grow dill, curly parsley, and Italian basil in-store starting this week. According to the announcement, the herbs will be used in food served inside the store’s restaurant.

“Infarm’s concept convinced us because we can make the topics of sustainability and healthy eating tangible for our employees and customers in a prominent place in our furniture stores,” said Tanja Schramm, Country Food Manager IKEA Germany. 

It’s an interesting partnership given how much influence IKEA has in consumer furniture trends and retail. By showing off how they can use in-store farm systems to grow food for consumption in-store, IKEA could potentially encourage other retailers to embrace precision grow systems on-site.

That said, the news would be a lot more interesting if this signaled a potential push by the retailer to position vertical farming systems as a new category for consumers. The company has dabbled previously with its VÄXER/KRYDDA hydroponic systems, but unfortunately, the company has since discontinued those products.

But who knows? Maybe with others beginning to launch new kitchen systems designed around sustainable eating, this news signals that IKEA is starting to look for new ways to encourage consumers to embrace hyperlocal and tech-powered food production.

Israeli Company Wants to Create a Greener Future Through Compostable Plastic

Like many transformative ideas, the genesis behind TIPA, an Israeli company with a novel way to reduce plastics in the environment, came from the need to solve an obvious problem. Daphna Nissenbaum, TIPA’s CEO, and co-founder was bothered by the mountain of plastics around her and wanted to find a solution that would benefit her son and others moving forward.

“If you think about nature’s packaging, such as an orange peel, or banana peel,” TIPA’s vice president for North America, Michael Waas, told The Spoon in a recent interview. “We don’t see the Mt. Rainier of banana peels or orange peels because they all break down. And so (Nissenbaum) thought, ‘I need to do something about this for my kids’ and turned her focus on finding a compostable solution inspired by nature.”

For TIPA, it’s all about flexible plastics—those water bottles and food packaging that may wind up at a recycling center but are challenging to become part of a circular economy where materials can be reused for another valuable purpose. Founded in 2010, TIPA’s vision for flexible packaging is to create compostable packaging with the same qualities as conventional plastic, such as durability and shelf life. In particular, for food packaging, compostable material will add days to the freshness of bagged produce and other foods.

Waas explains that TIPA uses polymers that are both bio-based and petroleum-based, which seems contrary to the company’s overall mission. “You’re probably thinking that doesn’t make any sense,” Waas said about petroleum-based polymers. “You can have fossil-based, petroleum-based polymers designed to be fully compostable and bio-based polymers that are not compostable. So, it’s two different challenges. One is the source of the material, whether it’s coming from oil or a bio-based source, and then what happens to it at the end of life. And so TPA uses a combination of both bio and fossil-based, but absolutely everything we produce is certified compostable.”

“We spend a lot of time working on what works and what doesn’t,” Waas added.

TIPA takes a broad approach to the business side of creating a viable system for the circular economy. The Israeli company can manufacture packaging for clients or provide the compostable film to clients or their packaging partners. “We focused on developing the IP and the technology around the solutions. Then, we work with best-in-class manufacturing partners to produce the film or the laminate,” Waas said. We’re doing that because it allows us flexibility for customers.”

The EPA points out that composting enriches the soil, helping retain moisture and suppress plant diseases and pests; reduces the need for chemical fertilizers; encourages the production of beneficial bacteria and fungi that break down organic matter to create humus, a rich nutrient-filled material, and reduces methane emissions from landfills and lowers your carbon footprint.

Creating a compostable future is an obvious path to a greener world, but are consumers ready to make an effort to go through the process of composting? Several surveys indicate that most consumers would compost if it were more accessible. More than 180 communities in the U.S. have composting programs, including such cities as Portland, San Francisco, Boulder, and Seattle have city-wide composting programs.

Even with the ready availability of municipal composting programs and consumers’ general sense they would use composting if made available, Waas believes that consumer education is critical.

“We work with our customers to help them communicate that the package is recyclable because we want this packaging to end up in the right facility, whether that’s in somebody’s backyard or at an industrial compost facility,” Waas said. “And that means consumers have to know that it’s compostable and put it in the right place.”

Meati Adds Steak Filets to Its Roster of Mycelium Alt-Meats

Meati co-founder Tyler Huggins radiates the right blend of entrepreneurial enthusiasm and practical knowledge to catapult common mushroom threads into a popular staple for healthy consumers. Huggins walks the walk as a visionary in the future of food space with a diverse background that includes a stint as a field biologist for the U.S. Forest Service, a research engineer, a consultant in the wastewater industry, and a co-founder of a healthy snack company.

“I really dedicate my life to harnessing nature’s power and beauty and then guiding it to help produce sustainable food,” Huggins told The Spoon in a recent interview.

With initial success from the launch of Meati’s mycelium-based alt-chicken and alt-beef cutlets, the company has announced a new product, Meati Steak Filet, which will be available on May 23 directly to consumers through the company’s website. Four steak filets, which should be prepared much as one would cook a steak, will sell for $35.

Like other Meati offerings, the steak fillets are a whole food rich in nutrition. A single serving has only 0.5g of fat and zero cholesterol. It is 120 calories along with 14g of protein, 9g of dietary fiber, and a host of micronutrients such as Riboflavin, Niacin, Folate, Vitamin B12, Zinc, and Copper.

The fermentation process from mushroom roots to the finished product has evolved to become a smooth, sustainable effort, but years of hard work are behind Meati’s success.

“There was a lot of trial and error. We spent over two years and millions of dollars of government grant money to figure out the cultivation and the fermentation part of this process,” Huggins explained.  
And then it was, how do you take all these mushrooms and actually make meat out of it? That was a whole other couple of years because what we do is we make sure we ensure wholesome nutrition. The mushroom roots are actually alive during the entire process. We gently form and orientate the root structure in different ways to mimic different muscles and give you different textures.”

Huggins said that Meati is in the midst of a significant physical expansion, but in doing so, the company looked at other industries for ways to scale without reinventing the wheel. “We looked into other industries and found several analogs. Our existing processes are already scaling, and we said, okay, we’ll take one from here and another from food processing. And we’ve created this unique sort of hybrid of industrial processes where we don’t need some sort of technological breakthrough to be successful.”

The future for Meati includes testing retail distribution in the second half of 2022 and a continued effort to create a brand sanction between itself and the countless other alt-meat products. Beneath it all, Huggins’ passion for delivering a clean, healthy, nutritious product is his and Meati’s north star.

“I look at nature as sort of a toolbox, you know,” Huggins said. “Three billion years of evolution have designed all sorts of different tools. And I believe that most of our problems can be solved by looking into nature because nature’s problem is already solved.”

Mill It Farms Finds A Plant-Based Whitespace in Alt-Buttermilk

As the name suggests, buttermilk was made from the cultured cream leftover from the butter-making process. Was, being the keyword. With little sacrifice in its taste, modern buttermilk is made through a fermentation process in which cultures are added to low-fat or whole-fat milk. The result is a versatile product that is not only a popular beverage but a key ingredient in salad dressings, baked goods, pancakes, and a laundry list of other food.

The brain trust at Mill It Farms with an accent on brains, blended art, and science to create plant-based, vegan-friendly buttermilk that uses the fermentation of ancient grains to create a standalone beverage and salad dressing line. Mill It Farms Bill Myers, a food scientist who combines practical knowledge with keen market awareness, has taken on the challenge of developing a buttermilk substitute with a universal appeal.

Bill Myers’s dad, a food scientist, was developing a plant-based yogurt for Califia Farms when the two men realized buttermilk represented a significant whitespace in the plant-based market. “It’s like a little bit crazy that no one’s done this yet,” Myers told The Spoon in a recent interview.” With all the plant-based growth, there hasn’t been buttermilk (especially given) how many things buttermilk goes into.”

Aside from the success Mill It has found with offering buttermilk as a standalone beverage, it has a role in the three salad dressings the company provides. A Classic Ranch, Creamy Italian, and Thousand Islands are emerging as competitors to long-standing brands such as Follow Your Heart and Daiya, which contain sugar, cultured dextrose, and natural flavors.

Myers points out that the aim of vegan products, such as salad dressings, that claim to offer clean, healthy alternatives often fall short. “A lot of the early plant-based dressings would take out buttermilk and replace it with hydrogenated oils high in calories and high in fat.”

Myers adds, “I think that’s one of the biggest problems in the plant-based space right now is, you know, people who want to eat plant-based typically are people who are trying to eat clean and trying to eat healthily. They also are trying to eat fewer calories because they’re really kind of monitoring their diet. But a lot of the early like alternatives in the space is high in calories, high in fat, and high in sugar”

To create a sustainable substitute for dairy, Myers went back to a college food science project involving baking and landed on ancient grains such as millet and sorghum. “With ancient grains, there’s a lot of benefits. One is that there are much more sustainable, and they can grow in arid climates. And so it makes sourcing a lot more efficient. “Our costs are lower because they don’t require as many resources, but it also allows it’s also a lot better for the planet.”

Grains also work well as a fermentation substrate, Myers said. With the proper fermentation process, the resulting buttermilk replicates the taste, consistency, and acidity of products made from a dairy source.

MIll It Farms’ vegan buttermilk and buttermilk dressings are now sold in hundreds of retail locations across the country, including Whole Foods, Krogers, and Sprouts.

Melt&Marble Raises €5 Million For Fermentation-Derived Fat That Tastes and Melts Like the Real Thing

In the first wave of plant-based “meat,” the marketing challenge was about convincing customers that giving up meat needn’t create a hole in their regular diet. For the Impossibles, Beyonds, and others, developing a reasonable, tasty facsimile to the beef or chicken experience got them into millions of homes and in demand on grocer’s shelves. For plant-based meat products to become a savory choice rather than a substitute requires innovators to “kick it up a notch.”

 While the horse race to alt-burger dominance is on, off to the side, innovators have been working on plant-based beef fat that would offer the mouthfeel and umami taste to a host of faux meat products. Included in the alt-beef fat space is Swedish company Melt&Marble which secured a €5 million Series Seed financing round to scale-up production and expand its team.

 Melt&Marble uses precision fermentation to create its plant-based beef fat. Like others in the alternative protein, dairy, meat, and seafood world know, precision fermentation is a robust process but requires a lot of capital to build a proper scalable infrastructure. CEO and Co-Founder Dr. Anastasia Krivoruchko told The Spoon that her company is currently at a lab-scale but will start scaling up in the coming months. It will still be a couple of years until it is fully industrial scale.

Dr. Kriviruchko believes the opportunity for Mouth&Marble is now and in the future based on conversations with plant-based meat providers. “We have talked with many companies about the challenges they are facing with their existing fats,” she said. “When designing our yeast strains, we have been looking into the structure of beef fats and asking ourselves what elements are important for overcoming these challenges. Our prototype has a similar mouthfeel and melting profile to beef fat, which is extremely important for replicating the taste of beef.”

This begs the obvious question about the health-related issues, such as high cholesterol and heart disease, that come with consuming “real” beef fat. Dr. Kriviruchko says such concerns are not present with plant-based beef fat.

“Generally, our fats don’t contain cholesterol, trans-fats, and contaminants. With our technology, we could also potentially integrate healthy bioactive fatty acids into our fats, and this is something that we are keen to explore,” Melt&Marble’s CEO explained.

Melt&Marble’s technology platform was spun out from research work conducted over the past decade by co-founders Dr.  Krivoruchko,  Dr.  Florian  David, and  Professor  Jens  Nielsen at the Chalmers  University of  Technology in  Sweden.  Lever VC led the latest round; an early-stage venture capital firm focused on technologies and brands in the alternative protein space. Lever has previously invested in Good Plant, The Good Spoon, A Dozen Cousins, and others.

If it appears that plant-based beef fat (and other related healthy fats) is a niche market, the number of trailblazers in this emerging sector speaks otherwise. Among Melt&Marble’s competition are Meat-Tech, Mission Barnes, Nourish Ingredients, Hoxton Farms, and Cubiq Foods.

According to Grand View Research, Inc., the global plant-based meat market size will reach $24.8 billion by 2030. A likely scenario, familiar to most emerging tech markets, will be when a few of the best alt-beef fat companies survive by being purchased by either a mega food processor such as Tyson or Cargill or merge with a plant-based market leader like Impossible Foods or Beyond Meat.

Israel’s Remilk Heads to Denmark With Plans for Precision Fermented Milk Production Facility

The challenge for companies focused on developing fermented alternatives to milk-based products that come from cows is to replicate the scale of a dairy farm. A large farm can have up to 15,000 cows, while a small farm will have between 1,000 and 5,000 animals. Cows are milked two to three times per day, with each producing between six and seven gallons daily.

Do the math, and you understand the enormous task facing this new breed of innovators in the alt. dairy space. Among companies in this space, the race is on to build out giant fermentation facilities to meet the potential demand. Remilk, a Tel Aviv-based firm using yeast-based precision fermentation to create a non-animal milk product, announced it would go big in tackling future production needs by securing 750,000 square feet at Kalundborg Denmark’s Symbiosis Project. The company says construction will begin by the end of 2022.

“Remilk has already started high-volume production in several locations around the world. The Danish facility will be our first fully owned facility, and production at this facility, the largest of its kind in the world, will begin as soon as the build-out is complete,” Remilk CEO Aviv Wolff told The Spoon. “Remilk is committed to reinventing the dairy industry in a kind, sustainable way. Eliminating the need for animals is the only way to supply our world’s growing demand without destroying the process.”

While Wolff didn’t provide specifics, he said that Remilk is working with leading consumer brands to craft recipes made with Remilk and believes the end products resulting from those collaborations will be available to consumers soon.

Wolff points to Remilk’s ability to create sustainable animal-free products that do not compromise on taste. Rather than compare his company’s efforts to competitors such as betterland farms, Wolff thinks his competition is milk and milk products that have been around for more than 10,000 years.

“To a large extent, we benchmark ourselves against traditional dairy proteins because that’s what we are looking to replace,” Wolff said. “Remilk can seamlessly replace cow-milk-based ingredients in consumer products because Remilk has the same characteristics, nutrition, and flavor profile with the advantage of being non-animal, thus free of lactose, cholesterol, hormone, and antibiotic residues.”

Remilk is far from alone in the world of precision-fermented dairy. Others include Real Deal Milk, Change Foods, Imagindairy (also in Israel), Formo, and betterland foods. A list of plant-based milk startups would be run several pages.

Fermentation May Be Centuries Old, But It’s Attracting a Whole Bunch of New Money ($1.69 Billion to Be Exact)

You know what they say: everything old is new brewed again.

At least that’s true when it comes to fermentation, that ancient food and beverage production process that is currently an overnight sensation. It is going well beyond the time-honored probiotic-rich staples of sauerkraut, kefir, pickles, miso, yogurt, and kombucha. The process of fermentation is being utilized in the creation of alternative, sustainable proteins to take the place of meat, eggs, seafood, and dairy. And it’s projected to get even more significant in its scope and revenue.

Data in The Good Food Institute’s 2021 State of Fermentation Industry Report points to the growth of fermentation as a traditional means to create probiotic-rich foods and plant-based products. According to the report, a total of $1.69 billion was invested in 54 fermentation-based startups in 2021.

Other data from GFI’s report:

  • Fifteen known startups dedicated to fermentation for alternative proteins were founded in 2021, along with new suppliers focused on fermentation-enabled alternative protein ingredients.
  • Eighty-eight known companies are now dedicated to fermentation-enabled alternative proteins, increasing 20 percent from the number of known companies in 2020.
  • 2021 saw the first growth-stage fundraising in the fermentation industry, including three deals >$200 million.

It’s important to understand that fermentation is not a single process but is three separate processes. Traditional fermentation (used to make pickles, kombucha, and sauerkraut) uses live organisms (such as the fungus Rhizopus to make tempeh or a SCOBY to brew kombucha) to modulate ingredients to create a product rich in flavor and texture. One established company, Miyoko’s Creamery, uses fermentation to make its line of alternative protein dairy products.

 A second process, biomass fermentation, takes advantage of the properties of certain microorganisms that quickly create large quantities of protein. The resulting protein can be used as a standalone product or an ingredient, which is the focus of most companies in this area. An example of a company employing biomass fermentation is SACCHA, a  German company using spent brewer’s yeast to create an alternative vitamin-rich protein that can be used to develop animal-free metal. Colorado-based Meati Foods uses mycelium (a mushroom root) to create a fibrous material that resembles meat.

 Precision fermentation, the third method, is perhaps the segment in this area with tremendous potential and is a focus of major investments. In precision fermentation, microbes create “cell factories” to build specific functional ingredients. Precision fermentation can produce enzymes, flavoring agents, proteins, vitamins, natural pigments, and fats. EVERY Company is an example of this process in which precision fermentation creates a substitute for traditional egg whites.

The GFI chart below shows the different types of fermentation as they relate to alternative proteins and highlights different possible products enabled by each.

One of the most significant stumbling blocks for the more advanced fermentation methods is the buildout of large-scale facilities to tackle production. A growing number of companies are in the process of recently completing or midst such construction, which points to 2023 as a timeframe in which production could begin to fulfill a growing market.

GFI’s report points to these as examples of completed projects and ones in the process of buildout:

  •               The Protein Brewery, Netherlands, completed 2021
  •               The Better Meat Co., California, completed in 2021
  •               Nature’s Fynd, Chicago, targeted for 2022-2023
  •               Mycorena. Sweden, expected to be completed in 2022
  •               Solar Foods, Finland, to be completed in 2022        

 With all the noise about the more advanced forms of fermentation, the value and growth of products in the “traditional fermentation” space have been overlooked. The kombucha market has skyrocketed with a focus on health, especially during the COVID-19 scare. According to Absolute Reports, the global Kombucha market size is estimated to be worth $2.1 billion in 2022 and is forecast to be $6.1 billion by 2028, with a CAGR of 19.7%.

 And an old fermented standby, sauerkraut, also brings in big dollars. According to Verified Market Research, the sauerkraut market was valued at $8.7 billion in 2019 and is projected to reach $14.1 billion by 2027, growing at a CAGR of 5.74% from 2020 to 2027.

UPSIDE’s New Investment Dollars Pushes The Company To the Front of the Cultivated Meat Line

Picture this: It’s late 2023, or perhaps 2024. Renowned Austin pitmaster and entrepreneur Aaron Franklin finishes up tending to his smokers after a long night of preparing to feed the onslaught of barbeque fans. Those queued up along Branch Street in East Austin are in for a surprise; that day, instead of the usual prime brisket rubbed with Aaron’s secret coffee-based rub, the star of the day is meat that comes from a place other than a ranch and slaughterhouse. Welcome to the world of cultivated meat.

In such a scenario, UPSIDE Foods is likely to be at the forefront of cultivated meat choices for restaurants and later consumers. Armed with an additional $400 Million in Series C financing, the Berkeley, Calif.-based company is among the leaders in the cultivated meat, poultry, and seafood industry. With these new funds, UPSIDE (formerly Memphis Meats), reaches the milestone of a $1 billion valuation. The funds will be used to expand its production footprint, additional R&D for the next generation of products, consumer education, and enhance its supply chain.

Yes, it is a gamble to fund companies in the cultivated meat space given the lack of governmental approval in the form of the FDA and USDA. Amy Chen, UPSIDE’s COO, admits she has no crystal ball, regarding when cultivated meat will get the green light in the U.S., but is confident the market demand will encourage governments-not just in the U.S.—to provide thoughtful oversight without becoming a roadblock.

“We have had years of extensive dialogue and collaboration with the regulators,” Chen told The Spoon in a recent interview. “We are fully confident that globally there is a market for it and there are eager governments that will pursue it.”

The Series C round is co-led by Temasek, a global investment company headquartered in Singapore, and the Abu Dhabi Growth Fund (ADG), a new investor. Other new investors include Baillie Gifford, Givaudan, John Doerr, SALT fund, and Synthesis Capital. They are joined by existing investors Bill Gates, Cargill,  Cercano Management, CPT Capital, Dentsu Ventures, Singapore-based global investor EDBI, Kimbal and Christiana Musk, Norwest Venture Partners, SoftBank Vision Fund 2, SOSV’s Indie Bio, and Tyson Foods.

Chen is especially proud of the large cross-section of investors that represent varied interests from venture firms to companies entrenched in the agricultural space that produce conventional meat and poultry. It is that wide range of support, she believes, that will help in consumer education as well as a long-term presence in the new food chain.

That said, there’s a lot of work that goes into convincing consumers to bite into a new type of food that is, to say the least, unconventional. Chen suggests that there is a group of early adopters in place ready to sample something new that offers a premium taste while providing the start of a solution to creating a more sustainable global food supply.

“When I think about the adoption of any new technology,” UPSIDE’s COO commented, “There are always the cutting-edge early adopters. Folks who have two characteristics – one is they love food and are open to the next thing in food with an openness to innovation and new things. The other trait is being aware and an interested in addressing some of the challenges of conventional meats.”

The bottom line for Chen is the fact that her company’s cultivated meat has the taste of the real thing. “One of the things I am super passionate about, coming from the food world, is the taste of the Product,” she said.  “Ultimately, if it doesn’t taste good when the consumer puts it into their mouth, we have lost the journey.”

UPSIDE is not alone in this quest to bring cultivated meat to the masses. There’s Brazil’s JBS, Israel’s SuperMeat, GOOD Meat, and Mosa Meats, just to name a few. There are also other companies offering technology to aid in the process that facilitates the cultivation process. According to the Good Food Institute, 21 new companies in the cultivated meat space launched in 2021, a 32% increase from the previous year.

 Approval from the FDA comes in the form of a “no questions” letter from the FDA, followed by the USDA’s investment in plant inspection and labeling guidelines. Beyond those hurdles, there are other questions: will cultivated meat be considered Kosher/Halal (given there is no ritual slaughter)? And how will this new product be merchandised in stores? Does it belong in the current meat section alongside 80/20 ground round? Lastly, how will vegans react? No animal is killed, so how will those avoiding all things steak, hamburgers, et al react?

Only time will tell.

Mikuna Foods Hopes Its New Funding Will Take Its Superfood Chocho To New Heights

If there’s a category of superfoods that has the potential to surpass super, Mikuna’s line of chocho protein products aspires to claim that title. The competition is intense, but the uses for a clean, gluten-free, low-glycemic, multipurpose powder-like food go well beyond juices and smoothies.

“Chocho is the future of plant-based proteins, and as we look ahead to the brand’s product and innovation pipeline, Mikuna is poised to lead the plant-based industry back to its clean, whole food roots,” company CEO Tara Kriese said in a company statement.

 Chocho is a lupin that, once milled, becomes a protein-rich powder. It is indigenous to South America in the Andes Region, particularly in Ecuador and Peru (where it is known as Tarwi). Mikuna’s founder, Ricky Echanique, is a fifth-generation farmer from Ecuador who suffered from digestive issues. He found the answer in his backyard, discovering that this plant provided solutions to his ailments. After discovering the power of this superfood, it became Echanique’s mission to bring chocho to the world.

 Kriese, a former SVP for plant-based meat company Impossible Foods, brings her market knowledge and personal passion to the company. In an interview with The Spoon, the CEO spoke about her daughter, whose multiple life-threatening childhood allergies took her to the plant-based, clean food world long before it was fashionable.

 After being introduced to Echanique in 2020 and learning of Mikuna and chocho, Kriese knew she was on to something big. “I couldn’t believe that no one was using this amazing crop,” she said. And it’s no one-trick pony, something borne out by the company’s relationship with Erewhon, which features the protein in juices that it features in its in-house Tonic Bar and in juices it sells in the store.

 The well-known Los Angeles-area gourmet supermarket’s use of chocho is part of Mikuna’s current multipronged strategy, which will evolve with its new investment dollars. The company sells its original or pure product along with vanilla and cacao varieties direct to consumers via its website. They also are available at Amazon and in retailers and foodservice locations across Arizona, Colorado, Hawaii, Michigan, Ohio, Texas, and California.

Mikuna’s seed round investors include Olympians and World Champion athletes like Leticia Bufoni, professional skateboarder and six-time X Games gold medalist, professional surfer, and three-time world champion Mick Fanning; and professional snowboarder and Olympic gold medalist Sage Kotsenburg.

“I’ve always wanted a protein powder that’s clean, and Mikuna is as clean as it gets with just one simple ingredient, chocho,” says Professional Surfer Mick Fanning. “With Mikuna, I’m investing in both the future of nutrition and our planet, and to join such an impressive community of individuals to support Mikuna’s growth was a natural fit for me.”

Backed by more than hype, Kriese senses that, like her, when consumers learn of the power and versatility of this Andrean superfood, they will have a “chocho moment” just as she did.