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The Spoon

Daily news and analysis about the food tech revolution

dairy

This Finnish Company Uses Radio Waves to Monitor and Reduce Dairy Waste

Dairy plants around the world are facing a new set of challenges as they grapple with rising raw milk costs and increasing pressure to reduce their carbon footprints as plant-based competitors try to draw a contrast with animal milk. A Finnish startup named Collo wants to help on both fronts using what it describes as liquid fingerprint technology.

According to the company, its technology can detect any type of liquid in pipes in real-time, giving companies a way to optimize production and cut product losses. Collo says its technology can keep track of the liquids in the pipes, showing exactly where the leakage is occurring. This enables dairy plants, breweries, and other liquid processors to address the problem at the point of origin.

Collo’s technology is based on an electromagnetic resonator that emits a continuous radio frequency field into the liquid. The signal reacts to interferences caused by different components, chemicals, and phases in the liquid, and the Collo analyzer immediately warns of any disturbances so that the process can be adjusted.

Collo says its analyzer simultaneously measures eight proprietary parameters from a liquid, which collectively creates the liquid’s fingerprint. If one or more of these characteristics change during processing, the analyzer shows the changes so that corrective measures can be made.

While leakage may not seem like a problem, it can be costly to dairy processors. Sometimes it’s just a small leak that can lead to lost revenue over time, while other times bigger leaks can lead to harmful environmental incidents that can draw the scrutiny of citizens and local governments. Collo says its technology can help avoid both profit-wasting slow leakage and high-profile spillage incidents by alerting processors instantaneously.

“As our technology can supervise all the draining points in real-time, it can keep track of the liquids in the pipes and show exactly where the leakage is,” company spokesperson Mikko Tielinen says. “This makes it possible to address the problem at the point of origin, saving huge amounts of milk and money.”

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.

Remilk Raises $11.3 Million for its Microbial Fermented, Animal-Free Dairy

Remilk, an Israeli startup that makes animal-free dairy, announced yesterday that it has raised $11.3 million in Series A funding (hat tip to CTech). The round was led by fresh.fund, with participation from CPT Capital, ourCrowd, ProVeg, Hochland, Tnuva and Tempo.

Remilk creates its non-dairy dairy through a process of microbial fermentation. The result is the production of real milk proteins that the company says creates milk that is identical to cow’s milk without the need for any actual cows.

If this sounds familiar, that’s because microbial fermentation is the same process Perfect Day uses to create its own animal-free dairy proteins. Perfect Day, however has been around since 2014, raised $361 million, got FDA approval for its whey-free protein, and has its product to market through the Brave Robot ice cream brand.

Fermentation is a hot topic in food tech these days. In September, the Good Food Institute issued a report calling fermentation the third pillar of alternative protein. As we wrote at the time:

In the last five years there’s been a “Cambrian explosion” of companies in this segment, Nate Crosser, start-up growth specialist at GFI and author of the report, told me in an interview this week. By mid-2020 there were 44 fermentation companies globally working on alternative proteins, up from 23 companies in 2018.

Some of those companies include Change Foods, which is making animal-free cheese through fermentation, and a company called Melibo,which is using precision fermentation to create honey without the bees.

In addition to being a part of the fermentation trend, Remilk is also among a wave a food tech startups coming out of Israel. Companies there are doing really innovative things with plant, and cell-based meat (and chicken) as well as kitchen robotics.

Check Out This Insanely Detailed Market Map of the Alt-Dairy Landscape

Sometimes a picture tells a thousand words.

And in the latest alt-dairy landscape map from NewProtein.org, there’s a whole industry wrapped up in one highly detailed image.

NewProtein.org, which is run by Olivia Fox Cabane, has been creating these market maps for a few years, and just like those of our friend Brita Rosenheim (see Brita’s food tech market map from last year), they are amazingly detailed and help you to get an idea of the scope of this fast-growing industry.

One good way to see just how fast the category is expanding is to compare this version (1.6) to the previous one published just a couple months ago (1.5). Since that last edition Fox Cabane’s team has added algae, amaranth, barley, chickpea, microflora and pumpkin to name a few to alt-milks. Also, the oat milk category has exploded from around 40 to over 50 milks alone!

And it’s not just milk. The map details cheeses by type — wheels, blocks and wedges, sliced, shredded & grated and spreads — and breaks down down alt-butters, creamers, yogurts and frozen desserts.

One concern I had early in the pandemic was what its potential impact could be on alternative, plant-based food; the continued investment in the category has laid any potential concerns to rest. Yesterday morning we heard of another investment in cauliflower cheese startup Grounded Foods and today Oatly announced a monster $200 million round. This type of investment has been repeated over and over in the past few months and, as this up to date market map shows, the space continues to grow at an astounding pace.

You can see the full map in detail by clicking here. And make sure to check out NewProtein.org for this map and others.

GOOD PLANeT raises $12M for Meltable Plant-based Cheese Made from Coconut

GOOD PLANeT Foods, a company that makes plant-based cheese, announced yesterday that it had raised a $12 million Series A round. The funding was led by Cleveland Avenue with participation by GreatPoint Ventures, Tasseo Consumer, Stray Dog Capital and Lever VC. This is the company’s total funding announced to date.

Based in Seattle, GOOD PLANeT makes vegan cheese — from shredded mozzarella to sliced cheddar — that doesn’t contain any soy, nuts, or GMOs. Instead, it’s made from coconut oil and potato starch plus natural flavorings.

Since it’s coconut oil-based the cheese will melt, which not all vegan cheeses, especially those made from nuts, can do. However, that also means that it’s high in saturated fat: a one-ounce serving of GOOD PLANeT’s shredded mozzarella contains 5.6 grams of saturated fat, or 28 percent of your daily recommended value.

GOOD PLANeT’s cheese is sold at major retailers like Walmart, Costco, and Whole Foods nationwide. With its new funding, GOOD PLANeT will expand production and reach.

We haven’t tasted GOOD PLANeT’s cheese ourselves, so I can’t pass judgment on how close it comes to the real thing. However, I’ve tried other coconut oil-based cheese before and find that it falls short, both on texture and flavor.

Cheese is one of the trickier products to successfully make vegan and tasty. Several startups out there, like Noquo Foods and Grounded Foods, are experimenting with new ingredients and formulations to make a better cheese alternative. On the more high-tech side, New Culture, Legendairy, and Perfect Day are using microbes to recreate actual dairy proteins to make cheese without the animal. However, none of these options are to market yet.

GOOD PLANeT’s funding does illustrate the continued interest in animal alternatives, even during COVID-19. Since the start of the pandemic we’ve seen meat alternative companies attract significant amounts of investment as consumers flock to plant-based foods in the grocery store. Now it seems that dairy alternatives are also getting in on the action.

FDA Approves Perfect Day’s Animal-Free Whey Protein as Safe to Eat

Perfect Day, the startup using fermentation to create animal-free dairy proteins, has officially received approval for its proprietary whey protein from the Food and Drug Administration (FDA). In a letter, the FDA writes that it has “no questions” that β-lactoglobulin — Perfect Day’s proprietary protein for its flora-based products — is Generally Recognized As Safe (GRAS).

Perfect Day submitted the notice to approve β-lactoglobulin to the FDA on May 20, 2019, so it’s taken roughly 10 months for the FDA to officially approve it. The protein is created by fermenting a genetically modified strain of the yeast Trichoderma reesei. Said yeast is submerged in media, where it ferments and excretes the β-lactoglobulin protein. The whole solution is then put through a centrifuge to separate out the protein, which is then filtered and dried to create a raw product. Add fat and water, and you’ve got something that’s essentially animal-free milk — and can be used to make ice cream, cheese, and basically anything that contains dairy.

In the FDA letter, Perfect Day plants an important stake in the ground. The company “concludes that the protein characterization data shows that the sequence of β-lactoglobulin produced by fermentation is identical to commercially available bovine-produced β-lactoglobulin.”

In short, Perfect Day claims that its flora-based milk is essentially the same thing as the milk from a cow you’d buy in the store. The FDA backs that up — at least to some extent — when states in the letter that β-lactoglobulin needs the same allergy labeling as milk. It is, at least for those with dairy allergies, the same thing.

The FDA hasn’t approved Perfect Day to sell its protein willy-nilly. The letter explicitly states that the β-lactoglobulin protein is “not intended for use in infant formula or in products subject to regulation by the United States Department of Agriculture.” But Perfect Day is free to sell its flora-based dairy protein to larger CPG companies to make animal-free products, as it had planned to do all along.

According to Ryan Pandya, Perfect Day’s CEO, this GRAS certification hasn’t affected their go-to-market timeline one way or another. He wrote to me that “we were expecting to secure the certification,” and had essentially been preceding under the assumption that it would be granted. Since the FDA has already approved fermented ingredients to replace animal products in the past — like Impossible Food’s blood-like heme — it’s not a reach that Perfect Day’s dairy proteins are considered GRAS.

Waiting for the GRAS letter may not have been holding up Perfect Day’s plans, but COVID-19 could still wreak havoc on their timeline. Pandya didn’t reveal any specifics about the pandemic’s effects, only noting that they are “adjusting our plans as needed.”

Perfect Day released its first product — animal-free ice cream — last year and plans to announce its first commercial partnerships in early 2020 (as in, any day now).

Cauliflower Camembert? Grounded Foods’ New Plant-based Cheese is Surprisingly Delicious

When I was doing Vegan January (also known as Veganuary) this year, there was only one thing I missed: cheese. While there are relatively good substitutes available for ice cream, butter, milk, yogurt, and even eggs, cheese was the one thing that I just could not find an animal-free replacement for that didn’t taste bland, rubbery, or worse.

So when I went into the Big Idea Ventures (BIV) office in New York City this week to taste a new plant-based cheese from startup Grounded Foods, part of BIV’s latest alternative protein accelerator program, I came in with a healthy amount of skepticism. Especially since I knew that the main ingredient in many of the cheeses was one of the unsexier vegetables on the planet: cauliflower.

Grounded Foods’ vegan “Camembert.” [Photo: Catherine Lamb]

But before we get to the taste test, here’s a bit of background. Founded in Australia in July of 2019, Grounded Foods grew out of co-founder Shaun Quade’s efforts to develop a plant-based Roquefort (blue cheese) for a new high-end restaurant concept. As he and his co-founder (and wife) Veronica Fil started looking for funding for the restaurant, they realized that people were actually interested in investing in the Roquefort itself. “They just wanted to give money for the plant-based cheese!” Fil said.

Since then the company has participated in the Mars Seeds of Change accelerator, for which they earned $40,000, and just relocated to New York a few months ago to join the latest Big Idea Ventures cohort. As part of the alt-protein accelerator they receive $250,000 in funding. Next up Fil and Quade plan to move to the West Coast, where they believe there is the largest audience for high-caliber faux cheese. Fil and Quade hope that their products will attract not only vegans but flexitarians who either have dairy sensitivities or are looking for healthier ways to get their “cheese” fix.

The pair plan to launch their cheese through high-end restaurants later this year in order to establish the Grounded Foods brand before branching into direct-to-consumer sales and, eventually, retail. Ambitious plans to be sure, but Quade revealed that they’re prepared to scale; in fact, they’ve already secured a location on which to build their first large scale manufacturing facility on the West Coast. They’ve also filed a patent for their fermentation protocol, which Fil told me is the secret sauce that makes their cheese so “addictive” and full of umami (savory) flavor.

Pricing isn’t set in stone, but Fil told me that they expect to be cost-competitive with other cheese alternatives right out of the gate. Since their product is made using relatively inexpensive ingredients and low-tech processes, she claims it’s not expensive to produce. Grounded Foods is also cutting cost by using “ugly” cauliflower — vegetables that are aesthetically unfit to sell to grocers — to make their cheese.

Australian feta made from hemp seed. [Photo: Catherine Lamb]

Now for the moment of truth: how did the Grounded Foods cheese taste? I have to say, I was pleasantly surprised. Most of offerings were a home run, successfully imitating the things I love most about cheese: the umami flavor, silky texture, and creaminess. The camembert (cauliflower + hemp) was a standout; it actually emulated the funky “stinkiness” that you taste with aged French cheese. The gruyere (oats + cauliflower) was slightly less similar to its namesake, though it had a sharpness that would take well to being melted over pasta or tucked in a sandwich. The Australian feta, which was marinated in olive oil and herbs, was pleasantly smooth and fatty, and the scallion cream cheese would honestly have fooled me in a taste test. It was that good.

The only miss for me was the “cheese” sauce, which is meant to replace Velveeta. While tasty it tasted distinctly vegetal and reminded me more of a butternut squash sauce than the beloved neon-orange cheese sauce.

The offerings I sampled were only the tip of the faux cheese iceberg. Quade is already developing other vegan cheeses to add to the Grounded Foods portfolio, including a mozzarella and blue cheese. “We have not fully explored the potential of vegetables,” Quade told me. There’s also another product line in the mix meant specifically to appeal to Gen Z diners.

Gruyere made from hemp seeds. [Photo: Catherine Lamb]

Besides being quite tasty, Grounded Foods’ biggest advantage is its ingredient list. Most plant-based cheeses are made of nuts, soy, or coconut oil. The first two eliminate consumers who have certain food allergies, and the oil-based cheeses don’t have much nutritional content to speak of. Instead they’re made just of cauliflower, hemp, and oat, transformed through Quade’s proprietary fermentation process (which he, unsurprisingly, was hesitant to reveal too many details about).

While Grounded Foods is trying to crack the animal-free cheese code with plants, other companies are using a decidedly more high-tech approach. Perfect Day and New Culture have developed a method to ferment dairy proteins using genetically engineered microbes; in essence creating milk without the cow (which can then be turned into cheese). However, there’s no word on exactly when these offerings will go to market — or how costly they’ll be when they get there. Next-gen dairy startups like Eclipse Foods and Noquo Foods are also using plans to develop better-tasting cheese alternatives, but neither has announced a concrete timeline to enter the market.

Grounded Foods has been moving incredibly quickly considering it’s just over 6 months old. However, it’s still a young startup with only two full-time employees (Fil and Quade), neither of whom have experience scaling an alternative business. We’ll have to see if they can establish all the tricky parts of running a food manufacturing business, like establishing a supply chain, branding, and finding effective restaurant and retail partners.

However, with demand for plant-based cheese on the rise, there’s a lot of space for a market disrupter who will make vegan cheese that’s actually worth eating. And as far as taste goes, Grounded Foods takes the cake — er, camembert.

BIOMILQ Has Grown The Main Components of Human Breastmilk in a Lab

A new startup called BIOMILQ today announced that it had successfully produced human casein and lactose, the predominant components found in breastmilk, through their new patent-pending process. In short, they’ve grown the key elements of human breastmilk in a lab.

The startup was founded last year by Michelle Egger, a food scientist who previously worked in dairy R&D at General Mills, and Dr. Leila Strickland, a cell biologist who first conceptualized the technology in 2013 while breastfeeding her own daughter. The two met in the Research Triangle and created a patent-pending technology in which they trigger human mammary gland cells, kept alive by a constant stream of nutrients, to lactate. They then collect the resulting breastmilk.

Then again, the term “breastmilk” may not be strictly accurate. “We’re not calling it breastmilk just yet,” said Egger, explaining that a woman’s breastmilk contains much more than just lactose and casein alone. However, they’re confident that their samples are “quite similar to milk.” The startup’s cultured milk samples are currently readying to go through a detailed molecular characterization to affirm that they have the same nutritional profile as breastmilk.

I never thought I’d type this sentence, but BIOMILQ isn’t the only company working to growing human breastmilk in a lab. TurtleTree Labs, based in Singapore, uses lactating mammary gland cells (from humans or other animals) placed in nutrient-rich baths to encourage them to excrete milk. They then filter out the milk and distill it for a final product. However, Egger claims that BIOMILQ’s process is different from TurtleTree’s in that they don’t need to filter the end result — the mammary gland cells just secrete milk directly, no media bath needed. “It’s a much cleaner technology,” she said.

BIOMILQ has stated that as far as they knew, they were the first company to create the components of human breastmilk outside of a lactating woman. However, when I reached out to TurtleTree their CTO Max Rye said they had created human breastmilk in Q3 of 2019 and had been optimizing it ever since. So it seems fair to say that there are at least two players making strides in the space.

That’s not the only difference between the two companies. BIOMILQ is targeting Western markets, while TurtleTree will likely debut in Asia. BIOMILQ will likely enter the market selling its own product to consumers either through D2C models or through retail channels, while TurtleTree plans to license out its tech to large dairy companies.

TurtleTree has also disclosed a timeline: they plan to enter the market in two years. BIOMILQ, on the other hand, has stayed mum on the question of when they’ll begin selling.

One part of that hesitation is likely due to regulatory issues. The USDA and the FDA are jointly regulating cell-based meat, but BIOMILQ’s technology is unique — it’s not cells grown in a lab, but rather cells produced by cells kept alive in a lab setting through a precise calibration of environment and nutrition. Therefore it’s unclear how regulators will categorize their product.

Egger didn’t release hard numbers around BIOMILQ’s pricing, but did reveal that it would likely cost slightly more than top-end infant formula by the time of their full-scale launch.

Lab-grown breastmilk may be a ways away, but cultivated dairy is not. Perfect Day and New Culture are already creating animal-free dairy by fermenting genetically engineered microbes. Unlike BIOMILQ, which cultivates milk excreted from a lactating cell, both of the aforementioned companies rely on fermentation to create the various components of dairy, which they then combine with water and fat to create milk. Egger claims that their method was more efficient since it can produce all of the elements of milk in a single cell.

All of these companies could potentially have a big impact on the dairy industry. Perfect Day and New Culture are developing an entirely animal-free way to create milk, while BIOMILQ could theoretically replace dairy-based infant formula.

Though they might want to replace formula, Egger and Strickland were clear that they don’t want to replace breastfeeding altogether. “We’re not positioning ourselves to be equivalent to breastfeeding, because we know that immunologically there are some things we won’t be able to do,” Egger told me. Instead, she framed their product as a “supplemental nutrition aid.”

That could especially come in handy in low- and middle-income countries. BIOMILQ plans to eventually use its technology to provide reliable, cost-efficient breastmilk to areas were infants might struggle to get access to good nutrition.

The startup is still in very early stages with no significant funding, so we don’t even know if BIOMILQ will be able to follow through on their plan to commercialize their cultured (cell-based? cultivated?) breastmilk. But considering I hadn’t heard of lab-grown breast milk until a few months ago, and now there are two new companies making it, I think it’s safe to assume that the infant formula space has a shake-up coming its way.

Noquo Foods Raises $3.6M to Make Plant-based Cheese That Actually Tastes Good

Today Stockholm, Sweden-based Noquo Foods announced it had raised a €3.25 million ($3.6 million USD) seed round. Investors included VC firms Astanor Ventures, Northzone, Inventure, Purple Orange Ventures, and Creandum. Henry Soesanto, CEO of mushroom-based vegan food line Quorn, and a handful of angel investors also participated.

Noquo Foods was founded one year ago by Anja Leissner and Sorosh Tavakoli. The company has a singular goal: make vegan cheese that actually tastes good.

As it turns out, that is surprisingly complicated. (If you don’t believe me, go and taste some of the plant-based cheeses currently on the market — there’s a lot of room for improvement). During a phone call yesterday Tavakoli told me that current vegan cheese offers are usually made from coconut oil and plant starch, or else nuts. Both fall short when it comes to emulating cheese, and nuts have the added burden of being expensive. Animal-free cheese made from fermentation — like that from Perfect Day, Legendairy and New Culture — is certainly promising, but it may be a while before it’s widely available (or cost competitive).

Instead of coconut or cashews, Noquo Foods is making their cheese out of legumes that are formed into what Tavakoli calls a “stable matrix.” This, he claims, will allow their cheese to slice, melt, and taste like the real thing, and also have more protein than some other vegan options.

Nuquo Foods’ cheesy prototypes [Photo: Nuquo Foods]

The key word in that sentence is will. Despite their notable fundraise, Noquo Foods actually doesn’t have a product to market yet. They’ve developed a few prototypes — including one for a feta-like cheese — but haven’t even done a significant public taste test. Tavakoli is aware that they have a ways to go, and told me that the company will funnel most of its new capital into R&D. “We haven’t totally cracked it yet,” he added. At least at first, they’re focusing specifically on cheddar-like cheese meant for melting and slicing. He hopes to bring a product to market by the end of the year.

Initially Noquo Foods will sell its plant-based cheese to foodservice providers in Sweden in a similar model to Impossible Foods or Oatly. Down the road Tavakoli said they would create their own branded product line for retail.

Having $3.6 million in their pocket is certainly helpful, but Noquo Foods still has an uphill battle ahead of them. The company is quite small; Tavakoli and his cofounder just hired their first two employees — food scientists — in November. There’s also the fact that making cheese from plants is hard. If companies with even larger warchests and teams of R&D scientists are struggling to make vegan cheese that tastes like the real thing, I’m guessing Noquo Foods will also face plenty of hurdles.

There might not be many tasty vegan cheeses available right now, but consumers are hungry for them. A study by the Good Food Institute showed that sales of plant-based cheese grew by almost 70 percent from 2017 to 2019.

Looking at Noquo Foods’ seed round, I’d say that investors are pretty hungry for the next generation of vegan cheese, too.

Lab-Made Cheese Maker Legendairy Raises $4.7 Million

Legendairy Foods, which ferments microorganisms into cheeses with the same process used for making insulin, has raised $4.7 million from a group of investors that include German drugs and tech company Merck KGaA (not to be confused with the American drug company, Merck) and UK-based investment company Agronomics.

The Berlin-based startup told Bloomberg it has already created prototypes of mozzarella and ricotta. The company’s process involves mixing microorganisms and sugar, fermenting them into milk protein and creating dairy products such as cheese. It also plans to integrate plant-based ingredients into its products.

“The food industry has crossed an inflection point — for the first time in human history, we are capable of producing real dairy products without the need of breeding and raising animals,” Raffael Wohlgensinger, co-founder and CEO of Legendairy, said in an investor release. He added that the company will “fully leverage our core technology and bring our delicious, animal-free cheese to market in the coming years.”

Legendairy, which says it is Europe’s first cellular agriculture company developing lab-grown dairy products, joins a growing group of startups dedicated to removing animals from the process of creating milk. Perfect Day, which this month raised $140 million in Series C funding, creates dairy products with genetically engineered microbes and plans to sell its products to foodmakers. Another company that creates dairy from genetically engineered microbes is New Culture, which closed a $3.5 million seed round. It plans to sell its cheeses into high-end restaurants. Meanwhile, TurtleTree Labs is creating milk in a whole different way: actually growing mammary gland cells in a lab to produce milk.

It’s clear that in the coming years, there will be plenty of options besides nut- and soy-based milk and cheeses for those who forgo animal-derived dairy products.

Perfect Day Closes $140M Series C to Expand Animal-Free Dairy Production

Perfect Day, a startup producing animal-free dairy using microbes, today announced it has closed a $140 million Series C funding round. The round was led by Temasek with participation from past investors.

This more than doubles the total amount of funding for the Berkeley-based startup, which raised a $34.8 million Series B earlier this year. Its total money raised is now $201.5 million.

Perfect Day uses genetically engineered microbes to ferment the protein building blocks of dairy, like casein and whey. It then combines them with fat and water to create milk that’s genetically identical to the real thing. Since it’s neither made from plants (plant-based) or grown from animal tissue (cell-based), the startup has coined a new term for its products: flora-based.

Perfect Day will use its new funds to accelerate growth by upping its production capacity, deepening partnerships and developing new products. “We’re trying to scale the supply chain and bring this to the world in a big way,” co-founder and CEO Ryan Pandya told me over the phone last week. Their goal is to be making thousands of metric tons of the proteins by 2022 (right now they’re making tens of tons). The company currently works with food giant ADM to help manufacture its dairy proteins in larger quantities.

Photo: Perfect Day

It also debuted its first product earlier this year: a limited line of ice creams made with Perfect Day’s flora-based milk. (I tried them, they were delicious.) Based on photos sent to us by the company, Perfect Day has also developed animal-free cream cheese, feta, and cheese spread, in addition to straight-up milk.

Though its first product was branded by and sold by Perfect Day, the startup actually plans to sell its dairy B2B to large food companies. We won’t have to wait too long to find out whom that will be — Perfect Day will announce its first commercial partnerships early in 2020. The company is also developing animal-free milk fat which will allow it to create a wider range of flora-based dairy products using only its fermentation technology.

The flora-based dairy space is quite young (the only other player is New Culture). Once Perfect Day uses its sizeable hunk of new funding to scale up and establish a few big-name partnerships, however, flora-based dairy might not be such a niche anymore.

TurtleTree Labs is Creating All Kinds of Milk (Even Human Milk) in a Lab

When I first heard about TurtleTree Labs, a new self-described “clean milk” company based in Singapore, I assumed that the startup was creating milk proteins from genetically modified microbes, similar to alternative dairy companies like Perfect Day or New Culture.

Boy, was I wrong. “That’s very much not what we’re doing,” TurtleTree’s CTO Max Rye explained to me over the phone. Instead, their scientists are using cellular agriculture to grow mammary gland cells in a lab which actually lactate milk.

And by milk, we mean any kind of milk — not just cow milk. In fact, according to TurtleTree’s CEO Fengru Lin their first product will likely be human milk.

Yep, human. She said that they’ll focus on human breastmilk initially for a few reasons. One, it could sell at a much higher cost, so they could reach price parity more quickly than with, say, cow’s milk. For context, their cultured milk — any type — currently costs about $138 per liter to produce.

However, TurtleTree won’t be selling its cell-based milk directly to consumers. Instead, the company plans to license out its milk-producing technology, for which it has a provisional patent, to large dairy companies as a SaaS model.

Rye told me that since the milk is cell-based, there’s a huge amount of versatility to their product. Their scientists can play with the settings to create milk that’s lactose-free and has different cholesterol and fat levels. So, for example, they could make a healthier milk for those following strict diets, or an ultra-creamy options for gourmet chefs. 

The startup plans to have a media day in Q1 of next year to debut their first glass of milk, which will likely be human. It’ll be a while yet before they enter the market — two years, according to Lin. The startup has raised an undisclosed amount of funding and is in the midst of raising their seed round. 

TurtleTree’s decision to operate out of Singapore is a very conscious one. Not only were two of the four co-founders already based there, but the local government is very supportive of food tech initiatives. The country has a goal to produce 30 percent of its own food by 2030 (they currently import over 90 percent). As a result, the Singaporean government gives more support to startups to get new products to market more quickly. 

That could give TurtleTree an advantage against other dairy disruptors. As I mentioned at the beginning of the piece, TurtleTree isn’t the only company trying to make milk without the animal. Perfect Day or New Culture are both using microbes to create the protein building blocks of dairy — casein and whey — to create milk that’s genetically similar to the real thing. However, Rye said that TurtleTree has an advantage over these competitors because they can make milk “without having to break it down piece by piece.” Their technology is also species agnostic, meaning they can create milk of any animal without having to rebuild an entirely new process.

I understand why heading to market with cell-based human milk makes sense from a cost perspective, but I’m not sure how well it’ll be received — at least at first. People are pretty skeptical about eating lab-grown food to begin with. Developing a product that normally only comes from humans has a distinctly Soylent Green-y vibe that could be very off-putting to consumers. Especially as something to feed to their babies.

However, as cultured meat and other products hit the market and become more commonplace, maybe that perception will change.