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Data Insights

August 31, 2022

Shiru’s Partnership With Puratos Adds Further Credibility to its Protein Discovery Platform

In the world of food tech, decisions made on viable data are good, and a lot of data is even better. But with Shiru, a functional ingredient discovery company, with a dataset of more than 450 million known proteins, you are in rarified air and a welcome partner to forward-thinking companies.

With that in mind, Shiru has announced a new partnership with Puratos, a Belgium-based company that supplies food ingredients for bakeries. Shiru’s Flourish platform will evaluate naturally occurring proteins that could serve as a next-generation egg replacement.

“At Puratos, we truly believe that collaborations can fuel innovation within the food ecosystem,” stated Paul Baisier, Chief R&D Officer at Puratos. “As a company rooted in biology and science, Shiru is the perfect partner in the Puratos’s journey to finding novel uses for proteins discovered by Shiru’s Flourish platform as functional food ingredients that are sustainable, healthy, and delicious. Together with Shiru, we will be able to accelerate our plant-based product innovation pipeline for the benefit of our customers and consumers.”

Julian Lewis, Shiru’s Vice President of Business Development, told The Spoon why his company is excited about this partnership. “(Puratos) will help us scale up these (egg replacement) proteins using their fermentation facilities to a large kind of food grade sample, where we can then do more extensive food application testing. And through this partnership, we have a clear path to fully scaling these ingredients and bringing them to market.”

At this stage of its life cycle, Alameda, Calif.-based Shiru lives for such a partnership. Its database Flourish Flourish uses AI and machine learning to analyze its database of nearly 450 million proteins found in nature. Each application—for example, a plant-based meat company that wants to add taste to its burgers—identifies ingredients that will solve that specific functional ingredient challenge. This business model, Lewis explains, might expand to his company by commercializing some of its discoveries.

“There’ll be other food categories where we might collaborate, or we might do it ourselves,” Lewis said of opportunities down the road. “We might end up in a hybrid where we’re doing some stuff ourselves and collaborating with experts in other fields just to accelerate its market path.”

Functionality is Shiru’s secret sauce, which is the ability to target a specific property of a particular food product. Lewis explains:

“There are three categories we can play in. There’s replace in which we substitute an ingredient for one that, for example, doesn’t work properly. A second is taste. And what we mean by that is some plant-based foods are not that good, and I have yet to find a vegan cheese that works. Lastly, it is to transform. What new foods could be generated in the future that is not replacing traditional products, which are just new things? And maybe we can do that by discovering new functional protein.”

One of the side benefits of working with a complex database is the ability to help food manufacturers get away from using relatively unhealthy ingredients in some plant-based products that give the impression of being a clean alternative. “We’re aiming to provide a much better toolkit of ingredients to the food developers trying to create plant-based foods,” Lewis said.

Lewis adds that while Shiru is currently generally focused on the plant-based world, there’s no reason it will not be a player as the cultured food business develops. “All food has, I would say, taste and texture challenges, so with cultured meats, some additional ingredients may be required. And we’re already working on the early stage with players in that space as well. Our goal is to create more sustainable food ingredients that are both required and interesting.”

July 15, 2021

Afresh CEO Matt Schwartz Explains How AI Can Help Grocery Retailers Place “the Perfect” Order

For grocery stores, measuring demand and managing orders for fresh foods can be a maddeningly difficult task that more often than not ends in lots of unused food getting thrown out. After all, bananas have a much shorter shelf life than, say, a bag of rice, and a lot of existing supply-chain technologies and processes were designed with the latter in mind.

“Existing tools don’t work for fresh food,” says Matt Schwartz CEO and cofounder of a San Francisco, California-based tech company called Afresh.

Afresh often gets labeled a “food waste” company and listed among other efforts to curb the problem of food waste at consumer-facing outlets like grocery stores. While Afresh’s store-level ordering platform can certainly help grocery retailers cut down on food waste, that’s not necessarily the main driving force behind the company. 

Over a call recently, Schwartz told The Spoon he thinks of Afresh as more of a “fresh food company” than food waste company. The system uses AI to analyze store-level data around customer demand, shipments of fresh food, sales of it, pricing and other factors. Gathering all that disparate data together, the system then makes ordering recommendations for grocers to help them create what Schwartz calls “the perfect order.” That is, “an amount that keeps you in stock for the shopper but also doesn’t cause you to drive waste from having it sit there.”

By way of example, he says it’s the difference between 14 cases of blueberries and 18: “Those four cases make all the difference when it comes to billions of pounds of waste.” 

Getting that perfect number can be complicated. Continuing with the blueberry example, Schwartz says there are a few major things grocery retailers have to consider, the first of them being customer demand. In other words, How many blueberries will shoppers want over the next few days? Retailers also have to consider existing store inventory, which can be tricky to calculate for something like berries. 

Reconciling these two things — how much a retailer has versus how much they think they will sell, also requires other types of data. That includes how many cases the shelf can hold, the shelf life of the blueberries, and the frequency of shipments, to name a few. The Afresh system connects to grocery retailers’ existing systems, then compiles the above data into a single place that a retailer making an order can view from an iPad.  

“In the long term our systems will drive decisions around inventory, forecasting, etc.,” said Schwartz.  

In a recent post for The Spoon, food tech investors Seana Day and Brita Rosenheim noted that “increased workflow and data automation solutions in the food supply chain holds significant power to help the food supply chain leapfrog into digitalization.” That includes grocery retailers, and Afresh is among several companies trying to enable this leapfrog movement. Seattle, Washington-based ShelfEngine offers a similar fresh food inventory management platform, as does a company called Crisp. Rising consumer demand for both fresh food and a more reliable supply chain (hello, panic shopping) mean we can expect a lot more software in this area in the near future.

For its part, Afresh is currently live in hundreds of stores, says Schwartz. He declined to name specific stores or chains, but said his company’s biggest partner does about $10 billion in sales every year. 

The company has raised a total of $32.8 million to date, with its most recent round being a Series A fundraise towards the end of 2020.

February 2, 2021

ReFED: Food Waste has ‘Leveled Off’ Since 2016, But More Must Be Done

The total amount of food wasted in the U.S. has leveled off since 2016, while food waste per capita has decreased 2 percent over the last three years, according to ReFED’s newly launched data hub, the Insights Engine. But more must be done to meet the country’s goal of cutting food waste by 50 percent by 2030.

First announced last year, the Insights Engine is an online hub for data and analysis related to the global food waste problem. Among the other findings ReFED released today:

  • In 2019, 35 percent of food went uneaten or unsold. That’s the equivalent of throwing away $408 billion or 1.9 percent of U.S. GDP.
  • More than 50 percent of waste at the farm level is from food that does not get harvested but is perfectly edible.
  • Seventy percent of food waste at restaurants and foodservice businesses comes from customers not finishing their meals.
  • At-home food waste remains the largest generator of food waste in the U.S.

ReFED estimates that an annual investment of $14 billion will be needed to implement the kinds of solutions that will reduce food waste by 45 million tons annually. The Insights Engine reviews over 40 of these solutions, analyzing them based on things like net economic benefit, greenhouse gas emissions reduced, jobs created, and meals recovered. The Engine also provides a directory of organizations helping fight food waste, a tool that tracks current and upcoming food waste policies, and an “impact calculator” that puts into numbers the impact of food waste on the climate, economy, and population.

Roughly 1.3 billion tons of edible food worldwide goes to waste each year, and experts predict this number will jump to 2.1 billion by 2030. Solutions to this problem span everything from food rescue companies to technologies for preservation, cold storage, harvest and post harvest, and many other ideas, tools, and processes.

As a companion to the Insights Engine, ReFED also released its “Roadmap to 2030” framework today, which will help the organization implement the solutions found in the Insights Engine. It outlines seven “key action areas” for fighting food waste over the next 10 years, and also includes a financial analysis of where investments (public, private, philanthropic, and capital) should be directed.

July 28, 2016

Is FoodTech Investment Shifting Towards The Connected Kitchen?

If you look at the foodtech investment landscape over the past few years, you’ll notice one – and pretty much only one – investment theme: food delivery.

Yep, the vast majority of foodtech investment, as tracked by investment tracking firm CB Insights, goes to food delivery startups.  As can be seen in the chart below, all but 6% of foodtech venture funding in 2013 went to delivery and, while the percentage of non-delivery foodtech investment almost doubled in 2014 to 11%, it tanked in 2015 with a paltry total of $93 million (less than 2%) of investment.

Figure 1: FoodTech Investment (US$ Millions), Delivery vs. Non-Delivery

Source: CB Insights

Source: CB Insights

But as those of us who follow foodtech know, the category is more than just delivery. There are lots of startups doing interesting things ranging from cricket protein to farm tech to 3D food printing, so it’s no surprise that investors may finally be looking outside of delivery as the category matures.

And the hottest space in foodtech outside of delivery may just be the connected kitchen. Consider what we saw in the first half of 2016: At the top of the list is Juicero, the connected cold-press juicer company that announced one of the biggest foodtech funding rounds of the year with a $70 million series B in March.  That same month June announced a $22.5 million series A and, just two months later, PicoBrew announced a $10.6 million series A.  Add in Innit, which just announced an $18 million round last week, and you’re at $120 million for the first half of 2016 for these four connected kitchen startups alone.

If there is a slight reallocation in foodtech investment dollars towards the kitchen, no one should be surprised. Technology is giving consumersnew ways to cook food and democratizing other types of food creation (such as beer brewing). Millennials, once thought to be leaving the kitchen, are embracing cooking and love using tech as part of their cooking journey.

These trends point to a bright future for the connected kitchen, as do industry specific ones. Food brands themselves like Campbells and Nestle are beginning to invest in the space. all at the same time while big players like Whirlpool and Samsung are beginning to up their investments in IoT and the future of cooking.

Bottom line? If you’re a foodtech investor, maybe its time to come home and look inside the connected kitchen.

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