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Daily news and analysis about the food tech revolution

kombucha

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.

Food Tech News Roundup: Baby Blockchain, Kombucha, and No More Eat24

Grab yourself another cup of nitro cold brew — it’s time for this week’s food tech news roundup! You know, that time when we assemble all the stories from around the web that we didn’t have time to write about, but are still worth a read. That time!

This week we have news about Nestlé’s foray into blockchain, food delivery closures, and some kombucha innovation. Yes, kombucha innovation. Enjoy!

 

Grubhub announces it’s shuttering Eat24
Bye bye, Eat24. This week news surfaced that Grubbub would be closing down the food delivery company, which it acquired in late 2017, by the end of 2018. This announcement came just a few days after food delivery giant Grubhub acquired online order management company LevelUp. According to Skift Table, Eat24 got the axe because, in a crowded food delivery market, not enough diners were loyal to its brand. Interestingly, Grubhub did not do the same to New York-based Seamless, another food delivery company under its umbrella.

 

Humm Kombucha develops patent-pending kombucha brewing process
Great news, kombucha lovers! This week brand Humm Kombucha announced that they had developed a fermentation process which results in the “first ever verified non-alcoholic raw kombucha” (patent pending). Kombucha, like other fermented beverages, can have small amounts of alcohol — which can be a problem for obvious reasons. Apparently, Humm figured out a way to brew a raw, live (that is, unpasteurized) kombucha that’s below the government standard of 0.5% ABV — and stays that way even when left unopened at room temperature.

 

Photo: Shutterstock

Nestlé dips toe into blockchain with baby food
Corporate food giant Nestlé is applying blockchain technology to its Gerber baby food products. The Wall Street Journal reported that Nestlé hopes that blockchain will let them track the fruits and vegetables that go into Gerber goods, and facilitate product recalls in case of contamination. Nestlé is also working with frenemies Unilever, Driscoll’s, and others on the Food Trust, an IBM-supported network working to increase transparency and traceability in the food system.

Did we miss any juicy food tech stories? Tweet us @TheSpoonTech!

Food Tech News Roundup: Google Groceries, Icelandic Drones, and More “Bleeding” Vegan Burgers

What a week! We just wrapped up our first ever Smart Kitchen Europe event in Dublin. It was a whirlwind few days jam-packed with content and networking as foodtech innovators from across the continent got together to forge the future of food tech. If you’re curious, get to know the winner of our SKS Europe startup showcase, and read up on some smart ktichen news that dropped on the show floor. And of course, if you want to connect with many of the innovators from SKS Europe as well as a whole bunch more in person, make sure you’re at our flagship event in Seattle come October.

But enough about us — here’s a list of the some of the food tech news stories that snagged our interest this week. Perfect for reading over a second cup of coffee while fighting jet lag.

Photo: Naturl’i Foods.

Sainsbury’s to add plant-based “bleeding” burger to meat section
British retail giant Sainsbury’s announced this week that it will debut a “bleeding” plant-based burger in June 27th in 400 locations. In the spirit of the Impossible Burger or Moving Mountains, the patty is meant to look, smell, cook, and taste like a beef burger in an attempt to woo flexitarians who are trying to reduce their meat consumption but don’t want to compromise on flavor. The plant-based burger, made by Danish brand Naturli’ Foods, will be sold alongside its beef counterparts in the meat section. This announcement comes not long after Tesco, another large U.K.-based grocery chain, released the news that it would carry Beyond Burgers in their shops beginning in July of this year.

 

Photographer: Arnaldur Halldorsson/Bloomberg

Iceland amps up drone deliveries in Reykjavik
Aha, Iceland’s largest online marketplace, is slated to expand the number of drones it flies through Reykjavik over the next two years. That’s right, expand — this would be in addition to the limited drone trial they launched last year with Israeli company Flytrex last year.

According to the BBC, the drones could be used to speedily shuttle everything from pizzas to organs destined for transplant — as long as they’re below the maximum weight of 3kg (6lb, 9oz). Their results will no doubt be critical for companies like UberEats, who are also piloting drone delivery programs.

Photo: Clearly Kombucha.

Molson Coors acquires California-based Kombucha brand
Kombucha, a non-alcoholic fermented tea beverage with purported gut health benefits, is not for everyone. But it appears that it’s certainly for Molson Coors, who recently acquired California-based brand Clearly Kombucha. The kombucha brand was founded in 2010 and will become part of Molson Coors’ craft and specialty import division, Tenth and Blake.

According to Grand View Research, the global kombucha market is expected to reach $4.46 billion by 2024. Lately, Molson Coors has been investing in non-alcoholic beverages; last year they purchased a minority stake in Bhakti, a Colorado-based chai tea company.

Photo: MiAlgae

Scottish agtech company raises £500k
MiAlgae, a Scottish company that turns algae into nutrient-dense animal and fish feed, raised £500k ($665k) from backers including Equity Gap, SIB and Edinburgh University’s Old College, reported the U.K. Business Angels Association. The algae is grown using co-products from the Scottish whiskey distillation process (yum), and is high in omega-3 and other nutrients. As it’s made from a byproduct, the feed also has a low environmental footprint, which is critical as our global demand for, and production of, meat and fish continues to grow.

 

Photo: ndb_photo via Flickr.

Google to sell groceries through Home and Assistant platforms in France
Earlier this week Google announced a joint venture with French grocery chain Carrefour. According to Bloomberg, the retailer said that this partnership marks the first time in France that fresh food will be marketed through Google’s platforms. French shoppers will be able to buy grocery products through Google Home and Google Assistant by 2019. This comes a little more than a month after Google unveiled Duplex, which allows Google Assistant to have surprisingly realistic phone conversations to do things like make restaurant reservations. We’ll see if this move can make Google Home/Assistant a competitor with Amazon’s Alexa, who already partnered with U.K. retailers for voice-controlled grocery shopping.

Technology Drives the Future of the Self-Service Bar

Are we bidding goodbye to the days of pouring out your troubles to the neighborhood barkeep? As self-service technology eases its way into the hospitality business, a few daring entrepreneurs are willing to exchange customer intimacy for efficient and increased sales.

Case in point is Tapped, a suburban St. Louis self-serve bar where 48 taps of self-service beer, wine and even cold-pressed coffee are the stars. Using a system from iPourit, owners Ryan and Lindsay Reel converted a former pizza parlor into a modern taproom where customers use an IoT bracelet to sample the various beverages. All but one beer are from Missouri or Illinois and, in keeping with the heritage of the former pizza joint, Tapped serves pizza and desserts from a local bakery.

The iPourit technology excels in such a setting because it facilitates the tasting experience in a rather seamless manner. A customer is given a special bracelet when her or she enters (after giving a credit card for a tab) and then taps their device on a special screen to taste each beer. The screens offer additional information about the beers on tap, and just to keep things slightly human, Ryan Reel and another staffer are on hand for expert advice.

Featured on CNBC’s Billion Dollar Buyer, the company squared off against casino/restaurant magnate Tilman Fertitta’s traditional bar. The upstart not only outsold the standard-issue model by 4x, but the reaction from customers was uniformly positive. iPourit, based in Lake Forest, Calif., operates on a business model in which it receives one cent per ounce of beverage sold, with a base cost of $1,200 per tap for basic installation. The company’s clients include zPizza in Arizona, North Carolina and California, and Marriott hotels in Orlando and Baltimore.

iPourIt on Billion Dollar Buyer

While the iPourit system is on target for clients such as Tapped and other high volume establishments, the self-service model can fall flat on its face in the wrong setting and with the wrong product.

Case in point, Soma, a Portland-based kombuchery, who is experimenting with a self-service kombucha bar in Southeast Portland. Soma, a popular kombucha brand, added the self-service branch to its main speakeasy location earlier this year. The reaction to this odd implementation of technology has been, at best, lukewarm.

“I would gladly have settled for yet another f****ng coffee shop with succulents and taxidermy over this monstrosity,” wrote Portland Mercury’s Megan Burbank.

Aside from the fact that kombucha does not lend itself to a self-service model, the newest Soma taproom uses a funky mix of technology including an ATM-like contraption at the door. To enter the building, a customer must swipe his or her credit card. There are no store personnel in sight with only placards and other customers to advise newbies on how the system works. Tastings are a free for all where individuals can gorge themselves on free kombucha—albeit in small cups—without buying anything. To make a purchase, there are keypads to select cups, bottles or growlers for your kombucha. After a perplexing half hour in Soma’s experimental shop, it’s safe to say that technology works best when it enhances, not confuses, the customer’s experience.

iPourit is not alone in its attempt to automate the beer dispensing experience. Pour My Beer, is a direct competitor. Meanwhile, some individual bars, such as Red Arrow Taproom near Chicago, use their own technology to offer 48 craft beers available through what it calls a “pour pass.”

PicoBrew Expands Beyond Beer By Adding Kombucha To The Menu

Once the domain of hippies and diehard health foodies, kombucha is making a major impact on the world of ready-to-drink beverages. It is made with a simple fermentation process that uses tea, sugar, water and a gelatinous mushroom-like culture called a scoby. One global research firm estimates the fizzy, probiotic drink will hit close to $4.5 billion in sales this year. Major soft drink firms like Pepsi have bought into the future of this market, purchasing kombucha brewer KeVita, in Nov. 2016.

Seattle-based PicoBrew, a Kickstarter darling, cleverly seized an opportunity to add kombucha brewing to its upcoming Model C (the original Pico, the Model S, will also brew kombucha). It can be accomplished without adding any new circuitry or hardware to its new home beer brewing appliance. Custom kombucha packs, composed of tea, sugar and some form of starter, are manufactured by noted Woodinville, Wash, farm-to-fork venue Herbfarm.

Adding kombucha brewing to its new model, which has an expected September delivery, was a natural evolution for co-founder and Chief Science Officer Jim Mitchell. Mitchell is a veteran food chemist, with a wealth of knowledge in the areas of prebiotics, probiotics, and fermentation. While adding kombucha to its product line is a new feature, such ideas have been on the mind of Mitchell for years.

“Some 10 years ago, I believed in the goal that the revolution of food and beverage can actually can be more than sustenance it can be healthy,” Mitchell told the Spoon.

Making kombucha is a different and simpler process than brewing beer. It begins with brewing tea in purified water, by boiling and letting it cool to room temperature. When it reaches the boiling point, sugar is added.

Once cooled, the tea/sugar mix is put in a jar or other vessel at which point that extraterrestrial substance called a scoby is added. For optimal results, some kombucha from a previous batch is added to jump-start the fermentation process. The jar is covered with a towel and set in a cool, dark place to ferment. There are many schools of thought and variations of the final steps, but, in general, it takes about two weeks to reach proper fermentation and is ready to drink. For more information on all things kombucha, you can head over to Kombucha Network.

The Model C’s kombucha function will include the tea, sugar and some form of starter but not the scoby. Mitchell said the company has not finalized how it will lead customers to find scobys. The possibilities include linking them to companies that offer scoby starters or building a community of kombucha brewers who are often more than willing to share their starters. After each brewing session, scobys, the “mother”, multiplies and develops additional “babies”.  As a result, many home artisans accumulate large numbers of these cultures and are glad to share them.

Wisely, the PicoBrew team has decided to enter the kombucha space in baby steps. “Our aim is to introduce people to kombucha – people who would not think pf brewing their own,” Mitchell explained. “As they get to the point of using their own tea they can segue into (the full process of) home kombucha brewing themselves.”

PicoBrew’s current record-breaking Kickstarter campaign is more than 200% subscribed with $817,061 raised with an intended goal of $350,000. In addition to adding kombucha brewing, the company announced it would have a sous vide adapter available for its new appliance. According to the PicoBrew’s crowdfunding page, the new Model C will ship in August.

Want to meet the leaders defining the future of food, cooking and the kitchen? Get your tickets for the Smart Kitchen Summit today.