Close Ad

The Spoon

Daily news and analysis about the food tech revolution

The Good Food Institute

Podcast: Talking Alternative Protein with the Good Food Institute’s Bruce Friedrich

If you work in the alt-protein industry or even just interested in the space, chances are you know about the Good Food Institute.

In this episode, I catch up with GFI’s CEO and founder Bruce Friedrich to talk about everything alt-protein and the future of meat.

Some of the topics we cover in this podcast include:

  • The current state of alt-protein sales
  • Why plant-based meat sales plateaued in 2021
  • The need for investment in alt-protein infrastructure
  • The politics of alternative meat
  • When will cultivated meat get regulatory approval for retail sale in the US
  • The need for affirmative messaging around alt-proteins

You can listen to the full episode below by clicking play or, as always, find it on Apple Podcasts, Spotify, or wherever you get your podcasts.

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.

Purple Orange Ventures Announces Fellowship Program For Alt Protein Scientists

Purple Orange Ventures (P.O.V.), a seed fund based in Berlin, Germany, announced the launch of a new fellowship program aimed at alt-protein projects and ideas.

Dubbed The Entrepreneurial Scientist & Engineer Fellowship Program, the fellowship will provide grant money and mentorship for scientists and engineers using, well, science and engineering to create products that mimic the look, feel, and taste of meat, dairy, and seafood without using any animal byproduct whatsoever.

“We want to accelerate the animal-free foodtech movement in Europe, UK, Israel & Singapore,” P.O.V. investor and Managing Director Gary Lin wrote in a blog post when he announced the fellowship. In keeping with that, the fellowship is open to those currently residing in those regions or countries.

The Fellowship, for which P.O.V. has partnered with The Good Food Institute, New Harvest, ProVeg International, and the ProVeg Incubator, differs from the usual startup accelerator or incubator in a few different ways. Most notably, the selection criteria is much narrower: the Fellowship’s homepage states that applicants should have a “Ph.D in science, engineering or related field with ideally commercial work experience or Master’s degree with a minimum of 2 years of commercial work experience.”

It’s also different in that it’s not about growing a company, as startup accelerators do, but rather, to validate whether a project is strong enough to warrant starting a company. To that end, participants will spend time testing their projects in the lab setting, receiving feedback from potential customers and stakeholders, and adjusting the product based on that feedback. The end goal is to get a project closer to a commercial reality.

The chosen few get €120,000 (~$135,379 USD) in grant funding across 12 months. The grant is non-dilutive. Participants also receive coaching and mentorship, networking opportunities, as well as a chance to work at P.O.V.’s facility in Berlin and a lab setting in Berkeley, CA.

Should a fellow choose to incorporate their company by program end, there’s potential for P.O.V. to invest, though that’s not a foregone conclusion.

Fellowships in food, food science, and food technology are becoming more plentiful these days. P.O.V.’s program joins the likes of the Future Leaders for Food and Agriculture (FFar) Fellows program, UC Davis’ Innovator Fellowship, and the Kirchner Food Fellowship.