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Daily news and analysis about the food tech revolution

fungi

MycoTechnology Raises $39M Series D for its Mushroom Fermentation Platform

MycoTechnology, which transforms mycelia into functional ingredients like alternate protein, announced this week that it has raised a $39 million Series D round of funding. Food Navigator first reported the news and wrote that the round was co-led by Greenleaf Foods, SPC, S2G Ventures and Evolution Partners, with Tyson Ventures, Kellogg’s Eighteen94 Capital, and others participating. This brings the total amount raised by MycoTechnology to $121 million.

MycoTechnology’s mushroom fermentation platform is used to create a number of mycelia-based products. The company’s ClearTaste promises to act “as a shield for your tongue temporarily blocking bitter tastes from being perceived.” And its PureTaste is an alternative protein source derived from shiitake mushrooms.

Of note in MycoTechnology’s investor list are Tyson and Kellogg, two big names in BIG FOOD. Tyson was already an existing investor in MycoTechnology, but participation from both household names futher illustrates how alternative protein is catching on with the traditional food companies.

Mushrooms as a vehicle for alternative proteins are totally hot right now. Ecovative is using mycelium to give plant-based meats better texture. Prime Roots uses fermented myco-protein to make things like fake bacon (fakon?). And Emergy Foods is making whole cuts of “meat” out of fermented fungi.

As we’ve written before, there are a lot of benefits to this fungi-forward approach to creating alternate proteins. In addition to its ability to recreate meat, it has the same protein profile of traditional meat. Fungi also has fiber, which animal-based meat does not have.

MycoTechnology’s funding comes at a good time as sales of plant-based products are skyrocketing (we know, mushrooms are fungi, not plants, but you get what we’re saying). Plant-based meat sales, in particular during this pandemic have surged as well.

With all this interest and the flexibility of fungi, we’ll probably be seeing more money flow into mycelia this year.

Dye Another Day: Michroma Makes Sustainable Food Coloring through Fungi Fermentation

Be it Red 40 or Yellow 6, food dyes are hiding in a surprising number of food and bev products on your local grocery shelf. Sometimes these dyes are made from natural ingredients like beet juice, turmeric, or even bugs (which means they’re not vegan, and also kinda gross). But natural dyes aren’t as vibrant or heat-resistant as their artificial counterparts, which are typically made from petroleum (also gross).

Michroma, a new company currently participating in science accelerator IndieBio, is out to recast the food dye industry. The startup is developing a platform to create dyes through fermentation, specifically mushroom root fermentation. Michroma scientists use CRISPR to edit the genes in particular strains of fungi so that when they’re placed in a bioreactor they secrete vibrant, colorful dyes.

Ricky Cassini and Mauricio Braia founded the company a year ago in Argentina before moving to San Francisco for IndieBio. Cassini, who is the CEO, told me over the phone this week that Michroma has raised $250,000 from IndieBio and previously raised $200,000 in Argentina.

According to Cassini, Michroma’s fermentation process could usher in a more sustainable production method for food dyes. In addition to being free from stuff like petroleum and crushed-up bugs, Michroma’s dyes are incredibly scalable to produce since the funghi require very little light, space and energy. Cassini also told me that their fermented dyes are significantly more heat-resistant than plant-derived natural dyes.

Michroma is currently focused on developing red dye. The company can already make orange and yellow. Next up it’ll tackle blue, green and black food colorings.

For now, the startup is creating dyes at a lab scale and, according to Cassini, their products are already cost-competitive with plant- and insect-based dyes. Michroma will sell its dyes B2B to large food corporations (as well as cosmetic and pharma companies), but that won’t happen for a while yet. Cassini said that since their technology is new for food dye, they need to go through something called a “color additive petition” to have it recognized as safe to eat. That could take up to two years. By that time, Cassini said that the fermented dyes will cost around the same as those made with petroleum.

However, he’s hoping that it won’t take a full two years before they can start selling. If he’s right, maybe soon you’ll be able to scan the back of a bag of Dorito’s and see “fermented dye” listed instead of, you know, petroleum and bugs.

Emergy Foods Makes Very Realistic-Looking Steak Alternatives From Fermented Mushroom Roots

Today Boulder, CO-based startup Emergy Foods announced the release of its first alternative meat brand, Meati Foods.

Meati Foods will focus on making whole cuts of meat from fermented fungi, also known as mycelium. Unlike most plant-based meats, Meati Foods’ offerings are free of pea, wheat, and soy. According to Emergy Foods CEO Tyler Huggins, who I spoke with over the phone today, opting for mycelium allows Meati to mimic the look and mouthfeel of whole cuts of protein, such as steak and chicken breast, which is difficult to do with other proteins.

In addition to better being able to replicate the texture of meat, mycelium has some inherent nutritional benefits. “It has the same protein profile of meat, and the same quantity [of protein] as chicken or steak,” Huggins told me. It also comes with fiber, which traditional meat doesn’t have.

Photo: Emergy Foods

At first Meati Foods will sell to high-end restaurants in order to build their brand. Huggins said that their products will likely be priced on par with traditional meat at these spots. As they scale he expects they’ll be able to match wholesale meat prices for chicken and beef, They plan to move into retail soon, but are currently limited by production capacity.

Founded in 2016 by two PhD students, Emergy Foods announced back in July that it had closed a $4.8 million funding round and currently has a team of 10.

If you want to try Meati’s realistic-looking steaks, you might not have much longer to wait (provided you’re in the Colorado area). Meati is preparing for a beta launch at the end of 2019 and is expecting to launch in restaurants in early 2020.

Emergy Foods isn’t the first brand to leverage mycelium as a magical ingredient to mimic meat. Prime Roots uses ‘shroom roots to make a variety of animal product alternatives, from bacon to crab cakes to chicken breast. Though it chiefly sells in Europe, alt-meat giant Quorn uses fermented fungi as the base for its wide array of products. There’s also Atlast Foods, a spinoff of Ecovative, which makes mycelium-based scaffolding for use in a myriad of meat alternatives, both plant-based and cell-based.

Based off of their product offerings and target demographics, it looks like Prime Roots will be Meati Foods’ biggest competitor. When I asked Huggins how he’ll differentiate himself, he said that Meati uses a “unique strain of mycelium” which can really accurately imitate meat.

Both companies are looking to begin selling their products in early 2020, so soon we might be able to put both products to a taste test. But with demand for protein alternatives on the rise, there’s plenty of room for more than one player in the fungi-meat game to put down roots.

Food Tech News Roundup: Fungi Burgers, Pineapple Beer, and Chatbot Bartenders

Summer has descended upon us like a thick, laze-inducing haze. If you’re like us, all you want to do is head to the local pool and drink cool beverages out of our stainless steel straws.

Steamy weekends are not the time for more work, so we went ahead and rounded up some news-worthy food tech stories from around the web for your reading pleasure. Bonus: you can peruse while you’re lounging in air conditioning.

Bronx Brewery Beer Fights Produce Waste
On July 30th New York’s Bronx Brewery will release a beer made with repurposed food scraps. Called More To The Core, it’s a Kolsch style ale brewed with pineapple cores and skins, which are normally tossed into the trash and end up in landfills. This tasty, waste-y beer is a collaboration between Baldor Specialty Foods and The Bronx Brewery, and is available in their taproom.

 

Capital sprouts up for fungi-based meat company
This week Terramino Foods, a startup which uses fungi to make meat and seafood alternatives, raised $4.25 million in a seed funding round co-led by Collaborative Fund and True Ventures. In a press release, True Ventures indicated that Terramino Foods has already developed a plant-based salmon burger, and has plans to create alternatives to beef, chicken, and pork with its new capital. 

 

Costco partners with Zest Labs to optimize food supply chain
Wholesale giant Costco announced this week that it would start working with Zest Labs, a company which works in fresh food supply chain traceability. According to a press release, Costco is expecting this partnership to help modernize and optimize their fresh foods, reducing food waste up to 50%.

 

McDonald’s workers are short on soft skills
This week McDonald’s released the results of its Workplace Preparedness Study, which analyzed skill development across multiple age groups. The survey polled 6,200 people and discovered that many were missing soft skills, such as teamwork, customer service, and responsibility. We’ve addressed the restaurant labor shortage before on the Spoon, and have wondered if companies will pad their meager workforce with robots in coming years. But will robots have better soft skills than teenagers looking for a summer job? Or maybe the robots will take over the physically repetitive jobs, like food prep and dish running, freeing up people with soft skills to interact with customers.

 

Allrecipes & Tito’s vodka launch Barkeep, a chatbot ‘bartender’

Ready to get your drink on through Facebook? Allrecipes and Tito’s vodka got you covered. The recipe site is working with the Austin, TX craft vodka maker to launch a chatbot by the name of Barkeep using Facebook Messenger chatbot platform. After checking if the user is of legal drinking age, Barkeep suggests a few cocktails (using Tito’s, natch) and then walks the user through a conversation branch flow that has the user ultimately choose a cocktail recipe. Once a recipe is picked and the user is sent to Allrecipes, they can then order their some Tito’s or other liquor through Drizly. You can try Barkeep out for yourself here.

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