As concerns rise over forest carbon offsets, Pachama’s verified offset marketplace gets $15 million

Restoring and preserving the world’s forests has long been considered one of the easiest, lowest cost, and simplest ways to reduce the amount of greenhouse gases in the atmosphere.

It’s by far the most popular method for corporations looking to take an easy first step on the long road to decarbonizing or offsetting their industrial operations. But in recent months the efficacy, validity, and reliability of a number of forest offsets have been called into question thanks to some blockbuster reporting from Bloomberg.

It’s against this uncertain backdrop that investors are coming in to shore up financing for Pachama, a company building a marketplace for forest carbon credits that it says is more transparent and verifiable thanks to its use of satellite imagery and machine learning technologies.

That pitch has brought in $15 million in new financing for the company, which co-founder and chief executive Diego Saez Gil said would be used for product development and the continued expansion of the company’s marketplace.

Launched only one year ago, Pachama has managed to land some impressive customers and backers. No less an authority on things environmental than Jeff Bezos (given how much of a negative impact Amazon operations have on the planet), gave the company a shoutout in his last letter to shareholders as Amazon’s outgoing chief executive. And the largest ecommerce company in Latin America, Mercado Libre, tapped the company to manage an $8 million offset project that’s part of a broader commitment to sustainability by the retailing giant.

Amazon’s Climate Pledge Fund is an investor in the latest round, which was led by Bill Gates’ investment firm Breakthrough Energy Ventures. Other investors included Lowercarbon Capital (the climate-focused fund from über-successful angel investor, Chris Sacca), former Über executive Ryan Graves’ Saltwater, the MCJ Collective, and new backers like Tim O’Reilly’s OATV, Ram Fhiram, Joe gebbia, Marcos Galperin, NBA All-star Manu Ginobilli, James Beshara, Fabrice Grinda, Sahil Lavignia, and Tomi Pierucci.

That’s not even the full list of the company’s backers. What’s made Pachama so successful, and given the company the ability to attract top talent from companies like Google, Facebook, SapceX, Tesla, OpenAI, Microsoft, Impossible Foods and Orbital Insights, is the combination of its climate mission applied to the well-understood forest offset market, said Saez Gil.

“Restoring nature is one of the most important solutions to climate change. Forests, oceans and other ecosystems not only sequester enormous amounts of CO2from the atmosphere, but they also provide critical habitat for biodiversity and are sources of livelihood for communities worldwide. We are building the technology stack required to be able to drive funding to the restoration and conservation of these ecosystems with integrity, transparency and efficiency” said Diego Saez Gil, Co-founder and CEO at Pachama. “We feel honored and excited to have the support of such an incredible group of investors who believe in our mission and are demonstrating their willingness to support our growth for the long term”. 

Customers outside of Latin America are also clamoring for access to Pachama’s offset marketplace. Microsoft, Shopify, and Softbank are also among the company’s paying buyers.

It’s another reason that investors like Y Combinator, Social Capital, Tobi Lutke, Serena Williams, Aglaé Ventures (LVMH’s tech investment arm), Paul Graham, AirAngels, Global Founders, ThirdKind Ventures, Sweet Capital, Xplorer Capital, Scott Belsky, Tim Schumacher, Gustaf Alstromer, Facundo Garreton, and Terrence Rohan, were able to commit to backing the company’s nearly $24 million haul since its 2020 launch. 

“Pachama is working on unlocking the full potential of nature to remove CO2 from the atmosphere,” said Carmichael Roberts from BEV, in a statement. “Their technology-based approach will have an enormous multiplier effect by using machine learning models for forest analysis to validate, monitor and measure impactful carbon neutrality initiatives. We are impressed by the progress that the team has made in a short period of time and look forward to working with them to scale their unique solution globally.” 

 

#aglae-ventures, #amazon, #bill-gates, #breakthrough-energy-ventures, #carbon-offset, #chris-sacca, #climate-pledge-fund, #ecommerce, #fabrice-grinda, #google, #greenhouse-gas-emissions, #impossible-foods, #james-beshara, #jeff-bezos, #joe-gebbia, #latin-america, #lowercarbon-capital, #lvmh, #machine-learning, #microsoft, #nba, #openai, #pachama, #paul-graham, #ryan-graves, #satellite-imagery, #scott-belsky, #serena-williams, #shopify, #softbank, #sweet-capital, #tc, #tesla, #tim-oreilly, #xplorer-capital, #y-combinator

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Temasek and BlackRock form Decarbonization Partners with $600 million to create a zero-emission economy

The $9 trillion financial management firm Blackrock is collaborating with the $313 billion Singapore investment firm Temasek to back companies developing technologies and services to help create a zero emission economy by 2050.

The two mega-investment firms will invest an initial $600 million to launch Decarbonization Partners, and look to raise money from investors committing to achieving a net zero world and long-term sustainable finacnial returns. The two partners have set themselves a goal to raise $1 billion for their first fund, including capital from Temasek and BlackRock.

The partnership, coming during Earth month, is one of several big multi-billion dollar initiatives that are underway to prevent global climate change caused by greenhouse gas emissions.

Indeed, BlackRock is somewhat tardy to the party. Temasek, for its part, has already made a number of high-profile bets in the alternative meat market — namely in companies like Impossible Foods — and in alternative energy technology developers including Eavor, a geothermal company, and a $500 million bet on a renewable power developer in India.

Meanwhile, a coalition of billionaires led by Bill Gates are already on their second billion dollar investment vehicle through Breakthrough Energy, a multi-stage, multi-strategy initiative that includes a venture capital arm as well as other types of financing on the way.

“The world cannot meet its net zero ambitions without transformational innovation,” said Larry Fink, Chairman and CEO of BlackRock, in a statement. “For decarbonization solutions and technologies to transform our economy, they need to be scaled. To do that, they need patient, well-managed capital to support their vital goals. This partnership will help define climate solutions as a standalone asset class that is both essential to our collective mission and a historic investment opportunity created by the net zero transition.”

To get a sense of what Decarbonization Partners might back, companies should probably look to the Breakthrough Energy portfolio — the firms share similar interests in new sources of energy, technologies to distribute that energy, building and manufacturing technologies, and material science and process innovations.

It’s a big swing that the firms are taking, but the flood of capital coming into the sustainability sector is commensurate with both the size of the problem, and the potential opportunity in returns generated by solving it.

A report from Morgan Stanley estimated that solving climate change would be a $50 trillion problem, according to a 2019 report from Forbes.

“Bold, aggressive actions are needed to make the global net zero ambition a reality. Decarbonization Partners represents one of several steps we are taking to follow through on our commitment to halve the emissions from our portfolio by 2030, and ultimately move to net zero emissions by 2050,” said Dilhan Pillay, Chief Executive Officer of Temasek International. “Through collective efforts with like-minded partners, we will be able to create sustainable value for all of our stakeholders over the long term, and investors will have the opportunity to help deliver innovative solutions at scale to address climate challenges.”

#articles, #bill-gates, #blackrock, #chief-executive-officer, #energy, #forbes, #greenhouse-gas-emissions, #impossible-foods, #india, #morgan-stanley, #singapore, #tc, #temasek, #temasek-holdings

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Chinese startups rush to bring alternative protein to people’s plates

On a recent morning in downtown Shenzhen, Lingyu queued up to order her go-to McMuffin. As she waited in line with other commuters, the 50-year-old accountant noticed the new vegetarian options on the menu and decided to try the imitation spam and scrambled egg burger.

“I’ve never had fake meat,” she said of the burger — one of five new breakfast items that McDonald’s introduced last week in three major Chinese cities featuring luncheon meat substitutes produced by Green Monday.

Lingyu, who works in her family business in Shenzhen, is exactly the type of Chinese customer that imitation meat companies want to attract beyond the young, trendy, eco-conscious urbanites. Her yuan means potentially more to meat replacement companies because it advances their business and climate agendas both. Eating less meat is one of the simplest ways to reduce an individual’s carbon footprint and help fight climate change.

McDonald’s hopes that its pea- and soy-based, zero-cholesterol, luncheon meat substitutes will carve out a piece of China’s massive dining market. Long-time rival KFC, and local competitor Dicos introduced their own plant-based products last year. Partnering with fast food chains is a smart move for companies that want to promote alternative protein to the masses, because these products are often pricey and are usually aimed at wealthy urbanites.

2020 could well have been the dawn of alternative protein in China. More than 10 startups raised capital to make plant-based protein for a country with increasing meat demand. Of these, Starfield, Hey Maet, Vesta and Haofood have been around for about a year; ZhenMeat was founded three years ago; and the aforementioned Green Monday is a nine-year-old Hong Kong firm pushing into mainland China. The competition intensified further last year when American incumbents Beyond Meat and Eat Just entered China.

Although some investors worry the sudden boom of meat substitute startups could turn into a bubble, others believe the market is far from saturated.

“Think about how much meat China consumes a year,” said an investor in a Chinese soy protein startup who requested anonymity. “Even if alternative protein replaces 0.01% of the consumption, it could be a market worth tens of billions of dollars.”

In many ways, China is the ideal testbed for alternative protein. The country has a long history of imitation meat rooted in Buddhist vegetarianism and an expanding middle class that is increasingly health-conscious and willing to experiment. The country also has a grip on the global supply chain for plant-based protein, which could give domestic startups an edge over foreign rivals.

“I believe, in five years, China will see a raft of domestic plant-based protein companies that could be on par with industry leaders from Europe and North America,” said Xie Zihan, who founded Vesta to develop soy-based meat suitable for Chinese cuisine.

Meat varieties

Hey Maet’s imitation meat dumplings / Photo: Hey Maet 

Lily Chen, a manager at the Chinese arm of alternative protein investor Lever VC, outlines three categories of meat analog companies in China: Western giants such as Beyond Meat and Eat Just; local players; and conglomerates such as Unilever and Nestlé that are developing vegan meat product lines as a defense strategy. Lever VC invested in Beyond Meat, Impossible Foods and Memphis Meats.

“They all have their product differentiation, but the industry is still very early stage,” said Chen.

#alternative-protein, #asia, #beyond-meat, #china, #ec-food-climate-and-sustainability, #food, #food-tech-investor, #greentech, #impossible-foods, #meat-substitutes, #memphis-meats, #shenzhen, #tc

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LIVEKINDLY screams its way to the top of new plant brands with the close of a $335 million round

LIVEKINDLY Collective, the shouty parent company behind a family of plant-based food brands, has snagged cash from the global impact investing arm of $103 billion dollar investment firm TPG to close its latest round of funding at $335 million.

The company’s fundraising shows that investors still have high hopes for plant-based food brands and that despite the money that’s flowed to companies like Beyond Meat and Impossible Foods — and the resurgence of older brands in the category like Quorn or Kelloggs’ Morningstar Farms —  there’s still a healthy appetite among investors for more brands.

LIVEKINDLY was founded by some heavy hitters from the food industry including Kees Kruythoff, the former president of Unilever North America; Roger Lienhard, the founder of Blue Horizon Corp; and Jodi Monelle, the chief executive and founder of LIVEKINDLY Media. Food industry veterans like Mick Van Ettinger, a former Unilever employee and Aldo Uva, a former Nestle employee round out the team.

Founded as a rollup for a number of different vegetarian and alternative protein food brands, the LIVEKINDLY collective is now one of the largest plant-based food companies, by funding.

The company said it would use the money to expand into the U.S. and China and to power additional acquisitions, partnerships and investments in plant-based foods.

The company raised money previously from S2G Ventures and Rabo Corporate Investments, the investment arm f the giant Dutch financial services firm, Rabobank.

Fundamentally, the founding investors behind LIVEKINDLY believe that the technology has a long way to go before it matures. And it’s likely that this latest round will be LIVEKINDLY’s last before an initial public offering of its own. 

“We are building a global pureplay in plant-based alternatives – which we believe is the future of food,” said Roger Lienhard, Founder and Executive Chairman of Blue Horizon Group and Founder of LIVEKINDLY Collective. “In just one year, we have raised a significant amount of capital, which testifies to the urgency of our mission and the enormous investment opportunity it represents. We believe the momentum behind plant-based living will continue to grow in both the private and public markets.”

As a result of its investment, Steve Ellis, Co-Managing Partner of The Rise Fund, has joined the LIVEKINDLY Collective Board of Directors, effective March 1, 2021.

“We are excited to work with LIVEKINDLY Collective and its ecosystem of innovative companies and world-class leaders to meet the growing global demand for healthy, plant-based, clean-label options,” said Ellis. “The company’s unique, mission-driven model operates across the entire value chain, from seed to fork, to drive worldwide adoption of plant-based alternatives and create a healthier planet for all.”

#beyond-meat, #cellular-agriculture, #china, #companies, #eat-just, #food, #food-and-drink, #founder, #impossible-foods, #nestle, #plant-based-food, #president, #rabobank, #rise-fund, #s2g-ventures, #tc, #unilever, #united-states

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While other startups develop alt-proteins for meat replacement, Nourish Ingredients focuses on fat

Plant-based meat replacements have commanded a huge amount of investor and consumer attention in the decade or more since new entrants like Beyond Meat first burst onto the scene.

These companies have raised billions of dollars and the industry is now worth at least $20 billion as companies try to bring all the meaty taste of… um… meat… without all of the nasty environmental damage… to supermarket aisles and restaurants around the world.

Switching to a plant-based diet is probably the single most meaningful contribution a person can make to reducing their personal greenhouse gas emissions (without buying an electric vehicle or throwing solar panels on their roof).

The problem that continues to bedevil the industry is that there remains a pretty big chasm between the taste of these meat replacements and actual meat, no matter how many advancements startups notch in making better proteins or new additives like Impossible Foods’ heme. Today, meat replacement companies depend on palm oil and coconut oil for their fats — both inputs that come with their own set of environmental issues.

Enter Nourish Ingredients, which is focusing not on the proteins, but the fats that make tasty meats tasty. Consumers can’t have delicious, delicious bacon without fat, and they can’t have a marvelously marbled steak replacements without it either.

The Canberra, Australia-based company has raised $11 million from Horizons Ventures, the firm backed by Hong Kong billionaire Li Ka-shing (also a backer of Impossible Foods), and Main Sequence Ventures, an investment firm founded by Australia’s national science agency, the Commonwealth Scientific and Industrial Research Organisation.

That organization is actually where the company’s two co-founders James Petrie and Ben Leita met back in 2013 while working as scientists. Petrie, a specialist in crop development, was spearheading the development of omega-3 canola oil, while Leita had a background in chemistry and bioplastics.  

The two had previously worked on a company that was trying to increase oil production in plants, something that the CSRO had been particularly interested in circa 2017. As the market for alternative meats really began to take off, the two entrepreneurs turned their attention to trying to make corollaries for animal fats.

When we were talking to people we realized that these alternative food space was going to need these animal fat like plants,” said Leita. “We could use that skillset for fish oil and out of canola oil.”

Nourish’s innovation was in moving from plants to bacteria. “With the iteration speeds, it feels kind of like we’re cheating,” said Petrie. “You can get the cost of goods pretty damn low.”

Nourish Ingredients uses bacteria or organisms that make significant amounts of triglycerides and lipids. “Examples include Yarrowia. There are examples of that being used for production of tailored oils,” said Petrie. “We can tune these oleaginous organisms to make these animal fats that give us that great taste and experience.”

As both men noted, fats are really important for flavor. They’re a key differentiator in what makes different meats taste different, they said.

“The cow makes cow fat because that’s what the cow does, but that doesn’t necessarily mean it’s the best fat for a plant protein,” said Petrie. “We start out with a mimetic. No reason for us to be locked by the original organism. We’re trying to create new experiences. There are new experiences out there to be had.”

The company already counts several customers in both the plant and recombinant protein production space. Now, with 18 employees, the company is producing both genetically modified and non-CRISPR cultivated optimized fats. 

Other startups and established businesses also have technologies that could allow them to enter this new market. Those would be businesses like Geltor, which is currently focused on collagen, or Solazyme, which makes a range of bio-based specialty oils and chemicals.

As active investors in the alternative protein space, we realize that animal-free fats that replicate the taste of traditional meat, poultry and seafood products are the next breakthrough in the industry,” said Phil Morle, partner at Main Sequence Ventures. “Nourish have discovered how to do just that in a way that’s sustainable and incredibly tasty, and we couldn’t be happier to join them at this early stage.” 

#australia, #beyond-meat, #chemicals, #cooking, #food, #food-and-drink, #horizons-ventures, #impossible-foods, #li-ka-shing, #meat, #meat-substitutes, #partner, #solazyme, #tc

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Has a startup finally found one of food science’s holy grails with its healthy sugar substitute?

A little less than three years ago at the Computer Science Museum in Mountain View, Calif. the founders of a young company hailing from Cambridge, England addressed a crowd of celebrities, investors and entrepreneurs at Y Combinator’s August Demo Day promising a revolution in food science.

Over the years, the event has become a relatively low-tech, low-budget showcase for a group of tech investors and billionaire industry insiders to take a look at early stage businesses that could be their next billion-dollar opportunity.

Sharing the stage with other innovation-minded budding entrepreneurs the Cambridge scientists boasted of a technology could produce a sweetener that would mimic not just the taste of sugar, but the caramelization and stickiness that makes sugar the go-to additive for the bulk of roughly 74% of packaged foods that are made with some form of sweetener. Their company, Cambridge Glycoscience  could claim a huge slice of a market worth at least a $100 billion market, they said.

Now, the company has a new name, Supplant, and $24 million in venture capital financing to start commercializing its low-cost sugar substitute made from the waste materials of other plants.

 

The bitter history of the sweetest ingredient

Sugar came into the human diet roughly 10,000 years ago as sugarcane, which is native to New Guinea and parts of Taiwan and China. Over the next 2,000 years the crop spread from those regions to Madagascar and eventually took root in India, where it was first refined in about 500 BC.

From there, the sweetener spread across the known world. By the first century AD Greek and Roman scholars were referencing its medicinal properties and, after the Crusades, sugar consumption traveled across Europe through the Middle Ages.

It was a welcome replacement from Europe’s mainstay, honey, and the early artificial sweeteners used by the Romans, which contained near-lethal doses of lead.

The cold climates of Northern Europe proved mostly inhospitable to sugarcane cultivation so the root took root in the more temperate South and the islands off of Europe’s southern coast.

Those regions also became home to the first European experiments with agricultural slavery — a byproduct of the sugar trade, and one that would plant the seeds for the international exploitation of indigenous American and African labor for centuries as the industrial growth of sugar production spread to the New World.

First, European indentured servants and enslaved indigenous people’s powered the production of sugar in the Americas. But as native populations died off due to the introduction of European diseases, genocidal attacks, and back-breaking labor, African slaves were brought to the new colonies to work the fields and mills to make refined sugar.

Sugar hangover

The horrors of slavery may be the most damning legacy of industrial sugar, but it’s far from the only problem caused by the human craving for sweeteners.

As climate change becomes more of a threat, fears of increasing deforestation to meet the world’s demand — or to provide cover for other industrialization of virgin forests — have arisen thanks to new policies in Brazil.

“Conventional cane sugar is heavily heavily water intensive,” said Supplant co-founder Tom Simmons in an interview. That’s another problem for the environment as water becomes the next resource to be stressed by the currents of climate change. And species extinction presents another huge problem too.

“The WWF number one source for biodiversity lost globally is cane sugar plantations,” Simmons said. “Sugar is a massive consumer of water and in contrast, there’s big sustainability pitch for what we do.. the raw materials are products of the current agricultural industry.”

And the quest for sugar substitutes in the U.S. has come with related health costs as high fructose corn syrup has made its way into tons of American products. Invented in 1957, corn syrup is one of the most common sweeteners used to replace sugar — and one that’s thought to have incredibly disastrous effects on the health of consumers worldwide.

The use of corn syrup has been linked to an increasing prevalence of diabetes, obesity, and fatty liver disease, in the world’s population.

MELBOURNE, AUSTRALIA – APRIL 08: In this photo illustration, products containing high sugar levels are on display at a supermarket on April 8, 2016 in Melbourne , Australia. The World Health Organisation’s first global report on diabetes found that 422 million adults live with diabetes, mainly in developing countries. Australian diabetes experts are urging the Federal Government to consider imposing a sugar tax to tackle the growing problem. (Photo by Luis Ascui/Getty Images)

Looking For A Healthier Substitute

As Supplant and its investors look to take the crown as the reigning replacement for sugar, they join a long line of would-be occupants to sugar’s throne.

The first viable, non-toxic chemically derived sugar substitute was discovered in the late 18th century by a German chemist. Called saccharine it was popularized initially during sugar shortages caused by the first World War and gained traction during the health crazes of the sixties and seventies.

Saccharin, still available in pink Sweet n’ Low packets and a host of products, was succeeded by aspartame (known commercially as Equal and present as the sugar substitute in beverages like Diet Coke), which was supplanted by sucralose (known as Splenda).

These chemically derived sweeteners have been the standard on the market for decades now, but with a growing push for natural — rather than chemical — substitutes for sugar and their failures to act as a replacement for all of the things that sugar can do as a food ingredient, the demand for a better sugar has never been higher.

Supplanting the competition 

“Not everything that we back is going to change the world. This, at scale, does that.” said Aydin Senkut, the founder and managing partner of Felicis Ventures, the venture firm that’s one of Supplant’s biggest backers. 

Part of what convinced Senkut is the fact that Supplant’s sweetener has already received preliminary approvals in the European Union by the region’s regulatory equivalent of the Food and Drug Administration. That approval not only covers the sale of Supplant’s product as a sweetener, but also as a probiotic with tangible health benefits he said.

So not only is the Supplant product arguably a better and more direct sugar replacement, as the founders claim, it also has health benefits through providing increased fiber in consumers who use it regularly, Senkut said.

“The European FDA is even stricter than the U.S. FDA,” Senkut said. “[And] they got pre-approval for this.”

Senkut and Felicis invested in Cambridge Glycosciences almost immediately after seeing the company’s presentation at Y Combinator.

“We became the largest investors at seed,” Senkut said.

Its selling points were the products extremely low glycemic index and its ability to be manufactured from waste plant fibers, which means that it ultimately can be produced at a lower cost, according to Senkut.

What’s the difference? 

Supplant differs from its competition in a number of other key ways, according to company co-founder Tom Simmons.

While companies like the Israeli startup DouxMatok or Colorado’s MycoTechnology and Wisconsin’s Sensient work on developing additives from fungus or tree roots or bark that can enhance the sweetness of sugars, Supplant uses alternative sugars to create its sweetener, Simmons said. 

“The core difference is they’re working with cane sugar,” according to Simmons. “Our pitch is we make sugars from fiber so you don’t need to use cane sugar.”

Simmons said that these other startups have been approaching the problem from the wrong direction. “The problem that their technology addresses isn’t the problem the industry has,” Simmons said. “It’s about texture, bulking, caramelization and crystallization… We have a technology that’s going to give you the same sweetness gram for gram.”

There are six different types of calorific sugar, Simmons explained. There’s lactose, which is the sugar in milk; sucrose, which comes from sugarcane and sugar beets; maltose, found in grains like wheat and barley; fructose, the sugar in fruits and honey; glucose, which is in nearly everything, but especially carbohydrate-laden vegetables, fruits, and grains; and galactose, a simple sugar that derives from the breakdown of lactose.

Simmons said that his company’s sugar substitute isn’t based on one compound, but is derived from a range of things that come from fiber. The use of fibers means that the body recognizes the compounds as fibrous and treats them the same way in the digestive tract, but the products taste and act like sugar in food, he said. “Fiber derived sugars are in the category of sugars, but are not the calorific sugars,” said Simmons.

NEW YORK – DECEMBER 6: Packets of the popular sugar substitute Splenda are seen December 6, 2004 in New York City. The manufacturer of sucralose, the key ingredient in the no-calorie sweetener, says demand is so high for the product that it will not be able to take on new U.S. customers until it doubles production in 2006. Splenda has been boosted by the popularity of the low-sugar Atkins diet. (Photo Illustration by Mario Tama/Getty Images)

Trust the process? 

Supplant’s technology uses enzymes to break down and fragment various fibers. “As you start breaking it down, it starts looking molecularly like sucrose — like cane sugar — so it starts behaving in a similar way,” said Simmons.

This is all the result of years of research that Simmons began at Cambridge University, he said. “I arrived at Cambridge intending to be a professor. I did not arrive in Cambridge intending to start a business. I was interested in doing science, making inventions and stuff that would reach the wider world. I always imagined the right way for me to do that was to be a professor.”

In time, after receiving his doctorate and beginning his post-doctoral work into the research that would eventually turn into Supplant, Simmons realized that he had to start a company. “To try and do something impactful I was going to have leave the university,” he said. 

In some ways, Supplant operates at the intersection of all of Simmons’ interests in health, nutrition, and sustainability. And he said the company has plans to apply the processing technology across a range of consumer products eventually, but for now the company remains focused on the $100 billion sugar substitute market.

“There’s a handful of different core underlying scientific approaches in different spaces,” he said. The sort of things that go into personal care and homecare. Those chemicals. A big drive in the industry is for both less harsh and harsh chemicals in shampoos but also to do so in a way that’s sustainable. That’s made form a sustainable source but also biodegradable.”

Next steps 

With the money that the company has now raised from investors including Bonfire Ventures, Khosla Ventures, Felicis, Soma Capital, and Y Combinator, Supplant is now going to prove its products in a few very targeted test runs.* The first is a big launch with a celebrity chef, which Simmons teased, but did not elaborate on.

Senkut said that the company’s roll out would be similar to the ways in which Impossible Foods went to market. Beginning with a few trial runs in higher end restaurants and foodstuffs before trying to make a run at a mass consumer market.

The feedstocks for Supplant’s sugar substitute come from sugar cane bagasse, wheat and rice husks, and the processing equipment comes from the brewing industry. That’s going to be a benefit as the company looks to build out an office in the U.S. as it establishes a foothold for a larger manufacturing presence down the line.

“We’re taking known science and applying it in the food industry where we know that it has value,” Simmons said. “We’re not inventing any brand new enzymes and each part of the process — none of it on their own are new. The discovery that these sugars work well and can replace cane sugar. That’s someone that no one has done before. Most sugars don’t behave like cane sugar in food. They’re too dry, they’re too wet, they’re too hard, they’re too soft.”

Ultimately the consumer products mission resonates highly for Simmons and his twenty person team. “We’re going to use these hugely abundant renewable resources produced all around the world,” he said. 

*This story was updated to include Bonfire Ventures and Khosla Ventures as investors in Supplant.

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Redefine Meat is moving plant-based proteins from patties to steaks

The Israeli startup Redefine Meat, which has developed a manufacturing process to make plant-based proteins that more closely resemble choice cuts of beef than the current crop of hamburger-adjacent offerings, has gotten a big vote of confidence from the investment arm of one of Asia’s premier food brands. 

The company has raised $29 million in financing from Happiness Capital, the investment arm backed by the family fortunes of Hong Kong’s Lee Kum Kee condiment dynasty, and Hanaco Ventures, an investment firm backing startups in New York and Israel.

Investors have stampeded into the plant-based food industry, spurred by the rising fortunes of companies like Beyond Meat, which has inked partnerships with everyone from Pepsico to McDonald’s, and Impossible Foods, which counts Burger King among the brands boosting its plant-based faux meat.

While these companies have perfected plant patties that can delight the taste buds, the prospect of carving up a big honkin cut of pea protein in the form of a ribeye, sirloin or rump steak, has been a technical hurdle these companies have yet to overcome in a commercial offering.

Redefine Meat thinks its manufacturing processes have cracked the code on the formulation of plant-based steak.

They’re not the only ones. In Barcelona, a startup called Novameat raised roughly $300,000 earlier this year for its own take on plant-based steak. That company raised its money from the NEOTEC Program of the Spanish Center for Industrial Technological Development.

Both companies are using 3-D printing technologies to make meat substitutes that mimic the taste and texture of steaks, rather than trying to approximate the patties, meatballs, and ground meat that companies like Beyond Meat and Impossible have taken to market.

Backing Redefine’s path to market are a host of other investors including Losa Group, Sake Bosch, and K3 Ventures.

The company said it would use the new funding to expand its portfolio and support the commercial launch of its products. Redefine aims to have a large-scale production facility for its 3-D printers online before the end of the year, the company said in a statement.

In January, Redefine Meat announced a strategic agreement with the Israeli distributor Best Meister and the company has been expanding its staff with a current headcount of roughly 40 employees.

“We want to change the belief that delicious meat can only come from animals, and we have all the building blocks in place to make this a reality: high-quality meat products, strategic partnerships with stakeholders across the world, a large-scale pilot line under construction, and the first-ever industrial 3D Alt-Meat printers set to be deployed within meat distributors later this year,” said Eschar Ben-Shitrit, the company’s chief executive, in a statement. 

 

#3-d, #asia, #barcelona, #beyond-meat, #bosch, #burger-king, #food-and-drink, #hanaco-ventures, #happiness-capital, #impossible-foods, #israel, #mcdonalds, #meat, #meat-substitutes, #new-york, #novameat, #steak, #tc

0

Forsaking funding at a $1 billion valuation, Solugen preps a new green chemical product and a big 2021

Late last year, Solugen, a startup using synthetic biology to take hydrocarbons out of the chemicals industry, decided against pursuing a new round of funding that would have valued the company at over $1 billion, TechCrunch has learned.

Instead, the Houston-based bio-manufacturing company raised an internal round of roughly $30 million from existing investors and continued working on its latest project — a new bio-based manufacturing process for a high-value specialty chemical that can act as an anti-corrosive agent.

That work represents a potentially lucrative new product line for the company and charts a course for a host of other businesses that are refashioning the basic building blocks of life in an attempt to supplant chemistry with biology for manufacturing and production.

If Solugen can get its high value chemical into commercial production, the company can follow the path that sustainable tech companies like Tesla have mastered — moving from a pricy specialty product into the mass market. And rather than over-promise and underdeliver. Solugen wanted to get the product line right first before raising big bucks, according to people familiar with the company’s thinking.

As the world looks to move away from oil and its byproducts to reduce greenhouse gas emissions and slow down or reverse global climate change, the chemicals industry is in the crosshairs as a huge target for disruption. Vehicle electrification solves only one part of the oil problem. The extractive industry doesn’t just produce fuel, but also the chemicals that make up most of the products that defined consumer goods in the twentieth century.

Chemicals are everywhere and they’re a huge business.

Companies like Zymergen raised hundreds of millions of dollars last year to develop industrial applications for synthetic biology, and they’re not alone. Startups including Geltor, Impossible Foods, Ginkgo Bioworks, Lygos, Novomer, and Perfect Day have all raised significant amounts of capital to reduce the environmental footprint of food, chemicals, ingredients, and plastics through synthetic biology.

Some of these companies are seeing early success in food replacements and ingredients, but the promise of biologically based chemicals have been elusive — until now.

Solugen’s new product will produce glucaric acid, a tough-to-make chemical that can be used in water treatment facilities and as an anti-corrosive agent — and the company can make it with a zero carbon (or potentially carbon negative) manufacturing process, according to Solugen co-founder and chief technology officer, Sean Hunt.

The glucaric acid from Solugen is cheaper to produce and more environmentally friendly than existing phsophonates that are used for water treatment — and the company has the benefit of competing against chemicals manufacturers in China.

Given the continuing tensions between the two countries, the U.S. is looking to make more high value products — including chemicals — domestically, and Solugen’s technology is a good way forward to have home grown supplies of critical materials.

Solugen still intends to raise more capital, the company just wanted to wait until its latest production plant for the acid came online, according to Hunt.

It’s also the fruit of years of planning. The two co-founders, Hunt and Gaurab Chakrabarti first realized they could potentially use the technology they’d developed to make specialty chemicals back n 2017, according to Hunt. But first the company had to make the hydrogen peroxide as a precursor chemical, Hunt said.

“It’s advantageous for us to focus on this,” said Hunt. “As we scale, we can enter more commodity type markets down the road.”

It’s all part of the significant strides the entire industry is making, said Hunt. “Synthetic biology has really made significant strides,” he said. “We have our commercial plant coming online this summer [and it proves] synthetic biology has gotten to the point where we can compete on price and performance.”

So the capital infusion will come as the company gets closer to the completion of these commercial scale facilities.

“It’s not like we were sitting on a term sheet and we said no,” Hunt said. “We want to make sure that we are hitting the milestones and the goals at a commensurate pace which is this year. I’m extremely bullish and optimistic of 2021.”

Solugen’s co-founder sees the path that his company is on as one that other startups working in the synthetic biology space will pursue to bring profitable products to market at the higher end before competing with more sustainable versions of commodity chemicals.

“How do you start a company that has this level of capital intensity?” Hunt asked. “You can start in the fine chemicals space where everything sells for tens to hundreds of dollars per pound. For us, glucaric acid is that specialty chemical and then we will do commodity.”

#articles, #chemicals, #china, #co-founder, #food, #geltor, #ginkgo-bioworks, #greenhouse-gas-emissions, #houston, #impossible-foods, #lygos, #manufacturing, #oil, #perfect-day, #plastics, #solugen, #synthetic-biology, #tc, #united-states

0

For Tony Fadell, the future of startups is connected and sustainable

Tony Fadell can’t stop thinking about what’s next in tech.

The man credited with creating the iPod, building the iPhone and founding the smart-home company, Nest, had tried to retire before he started his latest venture, Future Shape, but found that retirement didn’t really take.

So the 51-year-old designer, engineer and investor, together with a core group of collaborators, has spent the last three years staking out the shape of the future of tech with a slew of public and undisclosed investments. Fadell’s bets track to personal obsessions (he’s an investor in the website for the watch-obsessed, Hodinkee) and what he sees as the next waves in technological innovation.

“We call ourselves mentors with money,” Fadell said of his latest endeavor. The idea, he said, was to “help all of these companies that are doing really difficult things.”

Fadell and his crew have identified a few really difficult things that he sees as big investment areas going forward. They include the electrification of everything; the digital connection of everything; the rise of biomanufacturing; and the eradication of waste.

Those themes drive some, but not all, of the company’s work with the over 200 companies it has in its portfolio, according to a spokesperson for the firm.

One of the areas where Fadell has been most public about his commitments is around the notion of the programmable electrification of everything. There, Fadell has made some big bets with companies like Rohinni, which makes micro-light emitting diodes; Turntide, which makes digital motors; Menlo Micro, which is making micro-electronic miniaturized switches; and Phononic, which makes a solid state chipset for cooling.

Each of these technologies takes mechanical technology that, with the exception of the lightbulb, hasn’t seen much in the way of digital advancements for decades and makes those technologies programmable.

Fadell argues that Future Shape is in a unique position to take these technologies to commercialization thanks to his history with the manufacturing industry from his days at Apple and Google .

“We span these gaps from the atoms to the electrons (software) and we try to fit those systems together,” Fadell said.

That thesis applies to the development of technologies that will leverage the growing connectivity and digitization of nearly everything.

“There’s going to be this expansion of 4G/5G connectivity through all of these regions of the world… [So] we can put cheap sensors that collect information on smart phones and integrate it with software and cloud services… From that we get data that allows for [new industry] to happen.”

The proliferation of low cost sensors batteries, and power will create opportunities for data collection that can be applied in a vast array of new markets, from farming to construction, and engender better services in industries that are already data-heavy — like finance and insurance, Fadell said.

Image Credit: Getty Images/Rost-9D

It’s one of the reasons that the company invested in Understory Weather which Fadell calls a climate-change driven, next-generation insurance company that started with smart weather stations and data. 

Other companies in the Future Shape portfolio represent Fadell’s belief in biomanufacturing and the eradication of waste. An early investor in Impossible Foods, Fadell thinks that the kinds of synthetic biological processes that could lead to the replacement of meat with alternative proteins could extend to the fabrication of a leather replacement and the development of new, bioplastics to replace chemicals currently used today.

That’s why Future Shape has invested in MycoWorks, joining a slew of celebrity and institutional backers in the $40 million financing that the company closed in November.

“Biomanufacturing is happening, and it’s happening at a staggering rate because we’re embracing the powerful thing on the planet — life,” Fadell said. “You want to drive the market to where it needs to go. And everybody follows — just like what Impossible is doing.”

Finally, Fadell sees a huge opportunity in rethinking the supply chains associated with waste streams and the opportunities in the creation of circular economies. That applies to companies in the restaurant industry — like Sweetgreen — and to packaging and products like novel bioplastics.

“Another thing we look at is waste — how do we reduce the waste and how do we recycle the waste. We go after the problems and waste is a big one,” Fadell said. 

That opportunity set extends from companies that are examining the economics and providing a life cycle analysis on company’s carbon waste streams and material, physical byproducts. “Mine the waste, don’t mine the earth,” Fadell said of the potential for replacing a multi-billion dollar extractive industry.

While many of the companies in the portfolio are still very early stage, Fadell said that there have been some exits in the Future Shape portfolio, although he expects many more are on the way.

“We’re not in this for the money we’re in this for the change,” Fadell said. “If we do this right the money comes. I’m not in the job of convincing LPs… we do it based on conviction.” 

#finance, #google, #impossible-foods, #ipod, #phononic, #tc, #tony-fadell

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Beyond Meat shares rise on news that it collaborated with McDonald’s on the McPlant options

After tumbling earlier today, Beyond Meat shares are shooting upward on news that the company did indeed collaborate with McDonald’s on its new McPlant vegetarian menu.

McDonald’s made waves this morning when it announced its new McPlant, and the company’s statement, which said that the new plant-based patty and chicken substitute formulation was made in-house, caused Beyond Meat shares to slide.

However, McDonald’s overstated its own role in the creation of its McPlant, which was actually developed in conjunction with Beyond Meat, according to a statement provided to CNBC.

The stock has been on a roller coaster today, with shares sliding on fears that it had been rebuffed by McDonald’s and then rising on the clarification that it was involved in the process.

The partnership seems like a win for the alternative protein provider, which is locked in a meaty competition with its privately held rival, Impossible Foods, for fast food burger chain dominance.

However, there’s still more news from Beyond Meat that’s coming later today as the company announces its latest earnings report.

The numbers could have investors asking, “Where’s the beef?”

If it seems like Beyond Meat’s sausages, patties and chicken offerings are cropping up everywhere, that’s because they are. The company announced a deal with the Jamaican patty company Golden Krust, and expanded its partnership with KFC both in the U.S. and in China, where the chain sells a Beyond Burger.

However, the number of protein replacement competitors continues to expand with startup companies galore looking to pitch meatless alternatives to the burger. The Spanish company Heura has a new meat alternative that it boasts can replicate the fatty texture of meat with fewer ingredients than the first generation of suppliers.

Meanwhile, vegetarian spam has made its way onto McDonald’s menus in Hong Kong, a meatless chicken brand, Nuggs, is going direct to consumers, and Tyson Foods and Kellogg’s are both making vegetarian alternatives.

#beyond-meat, #china, #food-and-drink, #hamburger, #heura, #impossible-foods, #kelloggs, #kfc, #mcdonalds, #meat-substitutes, #tc, #tyson-foods, #united-states

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McDonald’s to launch a McPlant vegetarian option

McDonalds is developing what it calls a plant-based platform called the McPlant that will debut in markets around the world early next year, according to a report in USA Today.

In an investor meeting McDonald’s announced that it had worked to develop its McPlant formulation exclusively. “McPlant is crafted exclusively for McDonald’s, by McDonald’s,” Ian Borden, McDonald’s international president, said at an investor meeting, quoted by USA Today.

The company’s special formulation could extend across plant-based products including burgers, chicken-substitutes and breakfast sandwiches, according to Borden.

To date, McDonald’s has been a laggard in the corporate fight over plant-based burgers and chicken — at least in the U.S.

In McDonald’s around the world — including locations in Germany, the UK, Hong Kong, Israel, Canada, and Finland — diners under the golden arches can find a vegetarian sandwich option.

Indeed, in Canada, McDonald’s launched a pilot last year with Beyond Meat for the PLT sandwich (a play off of the company’s previous sandwich the McDLT, I’m assuming).

Compared to some other fast food chains in the US, McDonald’s has been something of a laggard. Burger King has worked with Impossible Foods to launch the Impossible Whopper and Beyond Meat has partnered with KFC on a plant-based nugget.

The two leading alternative protein makers have done a fairly good job of carving up the fast food market to date — but McDonald’s entry with its exclusive formulation must come as a blow to the companies (and the other startups that were hoping for a bite of McDonald’s food empire).

That includes startups like Chile’s the Not Company and Hong Kong’s Green Monday Holdings, which have both been vying for McDonald’s plant-based patty business.

#beyond-meat, #burger-king, #canada, #chile, #fast-food, #finland, #germany, #green-monday-holdings, #impossible-foods, #israel, #kfc, #mcdonalds, #restaurants, #tc, #united-kingdom, #united-states, #usa-today, #whopper

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Startups making meat alternatives are gaining traction worldwide

Startups that produce lab-grown meat and meat substitutes are gaining traction and raising cash in global markets, mirroring a surge of support food tech companies are seeing in the United States.

New partnerships with global chains like McDonald’s in Hong Kong, the launch of test kitchens in Israel and new financing rounds for startups in Sydney and Singapore point to abounding opportunities in international markets for meat alternatives.

In Hong Kong, fresh off a $70 million round of funding, Green Monday Holdings’ OmniFoods business unit was tapped by McDonald’s to provide its spam substitute at locations across the city.

The limited-time menu items featuring OmniFoods’ pork alternatives show that the fast food chain remains willing to offer customers vegetarian and vegan sandwich options — so long as they live outside of the U.S. In its home market, McDonald’s has yet to make any real initiatives around bringing lab-grown meat or meat replacements to consumers.

Speaking of lab-grown meat, consumers in Tel Aviv will now be able to try chicken made from a lab at the new pop-up restaurant The Chicken, built in the old test kitchen of the lab-grown meat producer SuperMeat.

The upmarket restaurant doesn’t cost a thing: it’s free for customers who want to test the company’s blended chicken patties made with chicken meat cultivated from cells in a lab that are blended with soy, pea protein or whey, according to the company.

#beyond-meat, #cellular-agriculture, #cultured-meat, #food, #greentech, #impossible-foods, #meat-substitutes, #plant-based-food, #startups, #tc

0

Bob Iger goes from managing Mickey to directing a milk replacement startup as new Perfect Day boardmember

Bob Iger, the chairman and former chief executive at Walt Disney is trading his mouse ears for milk substitutes as the new director of massively funded dairy replacement startup Perfect Day.

Milk substitutes are a $1 trillion category and Perfect Day is angling to be the leader in the market. Iger’s ascension to a director position at the company just affirms that Perfect Day is a big business in the big business of making milk replacements.

Unlike almond milk or soy milk companies, Perfect Day is angling to be a direct replacement for bovine dairy using a protein cultivated from mushrooms.

The move comes as Perfect Day ramps up its development of consumer products on its own and through investments in startups like the Urgent Company. That’s the consumer food company Perfect Day backed to commercialize technologies and create more sustainable food brands.

For Iger, the Perfect Day board represents the first new board seat the longtime entertainment powerbroker has taken since he left Apple.

“Innovation and leadership are both key to world changing ideas,” said Iger, in a statement. “Perfect Day has established both innovation in its use of technology and novel approach to fighting climate change, and clear leadership in building a category with a multi-year head start in the industry they’re helping to build. I’m thrilled to join at this pivotal moment and support the company’s swift growth into new categories and markets.”

Iger joins Perfect Day’s co-founders Ryan Pandya and Perumal Gandhi, and representatives from the company’s international backers and lead investors, Aftab Mathur, from Temasek Holdings, and Patrick Zhang, of Horizons Ventures.

Until yesterday, Perfect Day was the most well-capitalized protein fermentation company focused on dairy in the world. That’s when Impossible Foods, the alternative meat manufacturer which has raised $1.5 billion from investors, unveiled that it, too, was working on a dairy product.

Perfect Day, by contrast, has raised $360 million in total funding to-date.

“We’re thrilled to have Bob Iger join our team, and are confident his tenured operational expertise and visionary leadership style will further help us scale our ambitions,” said Ryan Pandya, the chief executive and co-founder of Perfect Day, in a statement. “We’re focused on rapid commercialization in the U.S. and globally. But we know we can’t do it alone. That’s why we’re excited and humbled to have a proven leader like Bob to help us thoughtfully transform our purpose-driven aspirations into tangible and sustainable impact.”

#bob-iger, #chairman, #consumer-products, #director, #drinks, #food-and-drink, #horizons-ventures, #iger, #impossible-foods, #leader, #milk, #perfect-day, #perumal-gandhi, #ryan-pandya, #tc, #temasek-holdings, #the-walt-disney-company, #united-states, #urgent-company, #walt-disney

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Khosla Ventures seeks $1.1 billion for its latest fund

Khosla Ventures, the eponymous venture firm helmed by longtime Silicon Valley rainmaker, Vinod Khosla, is raising  $1.1 billion for its latest venture fund, according to documents from the Securities and Exchange Commission.

The filing was first spotted by Ari Levy over at CNBC.

Khosla, whose investing career began at Kleiner Perkins Caufield & Byers (back when it was still called Kleiner Perkins Caufield & Byers) is rightly famous for a number of bets on enterprise software companies and was a richly rewarded co-founder of Sun Microsystems before venturing into the world of venture capital.

Like his former partner, John Doerr, Khosla also went all-in on renewable energy and sustainability both at Kleiner Perkins and then later at his own fund, which he reportedly launched with several hundreds of millions of dollars from his personal fortune.

Over the years Khosla Ventures has placed bets and scored big wins across a wide range of industries including cybersecurity (with the over $1 billion acquisition of portfolio company Cylance), sustainability (with the Climate Corp. acquisition), and healthcare (through the public offering of Editas).

And the current portfolio should also have some big exits with a roster that includes: the unicorn lending company, Affirm; the nuclear fusion technology developer, Commonwealth Fusion Systems (maybe not a winner, but so so so cool); delivery company, DoorDash; the meat replacement maker, Impossible Foods; grocery delivery service, Instacart; security technology developer, Okta; the health insurance provider, Oscar; and the payment companies Square and Stripe .

That’s quite a string of unicorn (and would-be unicorn) investments. And it speaks to the breadth of the firm’s interests that run the gamut from healthcare to fintech to sustainability and the future of food.

Khosla will likely benefit from the surge of interest in investments that adhere to new environmental, social responsibility and corporate governance standards.

There are billions of dollars that are looking for a home that can invest along those criteria, and for the last 16 years or so, that’s exactly what Khosla Ventures has been doing.

#affirm, #cylance, #doordash, #impossible-foods, #instacart, #john-doerr, #khosla-ventures, #kleiner-perkins, #okta, #oscar, #stripe, #sun-microsystems, #tc, #vinod-khosla

0

Bespoken Spirits raises $2.6M in seed funding to combine machine learning and accelerated whiskey aging

Bespoken Spirits, a Silicon Valley spirits company that has developed a new data-driven process to accelerate the aging of whiskey and create specific flavors, today announced that it has raised a $2.6 million seed funding round. Investors include Clos de la Tech owner T.J. Rodgers and baseball’s Derek Jeter.

The company was co-founded by former Bloom Energy, Blue Jeans and Mixpanel exec Stu Aaron and another Bloom Energy alumn, Martin Janousek, whose name can be found on a fair number of Bloom Energy patents.

Bespoken isn’t the first startup to venture in accelerated aging, a process that tries to minimize the time it takes to age these spirits, which is typically done in wooden barrels. The company argues that it’s the first to combine that with a machine learning-based approach though what it calls its ACTivation technology.

“Rather than putting the spirit in a barrel and passively waiting for nature to take its course, and just rolling the dice and seeing what happens, we instead use our proprietary ACTivation technology — with the A, C and T standing for aroma, color and taste — to instill the barrel into the spirit, and actively control the process and the chemical reactions in order to deliver premium quality tailored spirits — and to be able to do that in just days rather than decades.”

Image Credits: Bespoken Spirits

And while there is surely a lot of skepticism around this technology, especially in a business that typically prides itself on its artisanal approach, the company has won prizes at a number of competitions. The team argues that traditional barrel aging is a wasteful process, where you lose 20 percent of the product through evaporation, and one that is hard to replicate. And because of how long it takes, it also creates financial challenges for upstarts in this business — and it makes it hard to innovate

As the co-founders told me, there are three pillars to its business: selling its own brand of spirits, maturation-as-a-service for rectifiers and distillers and producing custom private label spirits for retailers, bars and restaurants. At first, the team mostly focused on the latter two — and especially its maturation-as-a-service business. Right now, Aaron noted, a lot of craft distilleries are facing financial strains and need to unlock their inventory and get their product to market sooner — and maybe at a better quality and hence higher price point — than they previously could.

There’s also the existing market of rectifiers, who, at least in the U.S., take existing products and blend them. These, too, are looking for ways to improve their processes and make it more replicable.

Interestingly, a lot of breweries, too, are now sitting on excess or expired beer because of the pandemic. “They’re realizing that rather than paying somebody to dispose of that beer and taking it back, they can actually recycle — or upcycle maybe is a better word — the beer, by distilling it into whiskey,” Aaron said. “But unfortunately, when a brewery distills beer into whiskey, it’s typically not very good whiskey. And that’s where we come in. We can take that beer bin, as a lot of people call initial distillation, and we can convert it into a premium quality whiskey.”

Image Credits: Bespoken Spirits

Bespoken is also working with a few grocery chains, for example, to create bespoke whiskeys for their house brands that match the look and flavor of existing brands or that offer completely new experiences.

The way the team does this is by collecting a lot of data throughout its process and then having a tasting panel describe the product for them. Using that data and feeding it into its systems, the company can then replicate the results — or tweak them as necessary — without having to wait for years for a barrel to mature.

“We’re collecting all this data — and some of the data that we’re collecting today, we don’t even know yet what we’re going to use it for,” Janousek said. Using its proprietary techniques, Bespoken will often create dozens of samples for a new customer and then help them whittle those down.

“I often like to describe our company as a cross between 23andme, Nespresso and Impossible Foods,” Aaron said. “We’re like 23andme, because again, we’re trying to map the customer to preference to the recipe to results. There is this big data, genome mapping kind of a thing. And we’re like Nespresso because our machine takes spirit and supply pods and produces results, although obviously we’re industrial scale and they’re not. And it’s like Impossible Foods, because it’s totally redefining an age-old antiquated model to be completely different.”

The company plans to use the new funding to accelerate its market momentum and build out its technology. Its house brand is currently available for sale in California, Wisconsin and New York.

“The company’s ability to deliver both quality and variety is what really caught my attention and made me want to invest,” said T.J. Rogers. “In a short period of time, they’ve already produced an incredible range of top-notch spirits from whiskeys to rum, brandy and tequila–all independently validated time and again in blind tastings and prestigious competitions.”

Full disclaimer: the company sent me a few samples. I’m not enough of a whiskey aficionado to review those, but I did enjoy them (responsibly).

#23andme, #bloom-energy, #brewing, #california, #derek-jeter, #impossible-foods, #machine-learning, #nespresso, #tc, #tools, #united-states, #whisky

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4 sustainable industries where founders and VCs can see green by going green

Now’s the time for sustainable investments to shine. There are billions of dollars in funding in both public and private markets dedicated to new sustainable investing and demand for consumers for a more conscious capitalism has never been stronger.

As founders and investors reawaken to a sustainable morning in America a few areas are going to demand hardware, software and business model innovations.

Some of these sectors have been on the investment radar for the past year or two and others are just beginning to capture investor attention, but they all have something in common: the investor appetite for new businesses addressing the food supply chain; energy management and construction for homes and offices; carbon sequestration and monitoring and management of offsets; and new biomaterials and processes for packaging and industrial chemicals replacements have never been stronger.

If we’re going to feed the world, let’s start with the food chain.

COVID-19, the disease caused by the SARS-CoV-2 virus, has exposed significant holes in the food supply. Companies like AppHarvest, which agreed to go public through a SPAC earlier this year are only one of several companies remaking agriculture through the application of technology. There’s also Plenty, Bowery Farms, Unfold, BrightFarms and Revol Greens, working to upend the agricultural supply chain. If those companies are looking at new ways of growing crops, companies like Apeel Sciences and Hazel Technologies are trying to find ways to preserve food from spoilage. Treasure8 is looking at ways to use food waste for new food and ingredients and they’re not alone.

Then there’s the protein replacement companies that we’ve written about previously. Impossible Foods, Beyond Meat, Memphis Meats, Mosa Meat, Nuggs, Future Meat Technologies, Shiok Meats (a seafood company) are devising methods to create meaty proteins less dependent on animal husbandry. Perfect Day and its competitors are doing the same for the dairy industry.

There’s also tremendous need for new protein sources to feed the animals that people around the world still like to eat. For this there’re companies like Ynsect, which is providing insect proteins for industrial fish farms, or Grubly Farms, which is providing feed to the families raising their own chickens.

For these opportunities that are raising hundreds of millions in financing there are others that require the kind of high margin software solutions that are yet to be developed. These are visual technologies for tracking, monitoring and managing food production; sensors for improving the storage and supply chain, software for managing production and tracking produce and products from the farm to the table. Venture investors are beginning to invest in these companies as well.

#apeel-sciences, #beyond-meat, #biotech, #blue-pillar, #blueprint-power, #carbon-sequestration, #carbonchain, #food, #food-supply-chain, #ginkgo-bioworks, #greentech, #hazel-technologies, #impossible-foods, #memphis-meats, #normative, #pachama, #renewable-energy, #solugen, #startups, #tc, #techcrunch-disrupt, #venture-capital, #ynsect, #zymergen

0

Impossible Foods nabs some Canadian fast food franchises as it expands in North America

After rolling out in some of Canada’s most high-falutin burger bistros, Impossible Foods is hitting Canada’s fast casual market with new menu items at national chains like White Spot and Triple O’s, Cactus Club Cafe, and Burger Priest.

While none of those names mean anything to yours truly, they may mean something to our friendly readers to the North. However, I have heard of Qdoba, Wahlburgers and Red Robin. And Canadian customers can also pick up Impossible Foods -based menu items at those chains too.

Since its debut at Momofuku Nishi in New York in 2016, the Impossible Burger is now served in 30,000 restaurants across the U.S. and is available in 11,000 grocery stores across America.

The Silicon Valley manufacturer of meat substitutes expects that Canada, the company’s first market outside of Asia, may become its largest market — second only to the U.S.

#asia, #canada, #food-and-drink, #impossible-foods, #meat-substitutes, #menu, #momofuku, #new-york, #restaurants, #tc, #united-states

0

Alternative protein companies have raised a whopping $1.5 billion through July of this year

Companies like Perfect Day, Impossible Foods, and a host of other startups that are developing replacements for animal farmed goods used in food, clothes, cosmetics, and chemicals have raised a whopping $1.5 billion through the first half of the year.

That’s according to a new report from The Good Food Institute which is tracking the growth of investments into sustainable foods. The report identified fermentation technologies as a rising third pillar of foundational technologies on which new and established food brands are making products that swap out animal products for other protein sources.

Fermentation technologies, which use microbes like microalgae and mycoprotein, can produce biomass, improve plant proteins and create new functional ingredients, and companies developing and deploying these technologies have raised $435 million in funding through the end of July 2020. It’s an indication of how competitive the market is for food technologies, representing an increase of nearly 60 percent over the $274 million invested in all of 2019, according to GFI.

“Fermentation is powering a new wave of alternative protein products with huge potential for improving flavor, sustainability, and production efficiency. Investors and innovators are recognizing this market potential, leading to a surge of activity in fermentation as an enabling platform for the alternative protein industry as a whole,” said GFI Associate Director of Science and Technology Liz Specht, in a statement. “And this is just the beginning: The opportunity landscape for technology development is completely untapped in this area. Many alternative protein products of the future will harness the plethora of protein production methods now available, with the option of leveraging combinations of proteins derived from plants, animal cell culture, and microbial fermentation.”

Portait of the head of an adult black and white cow, gentle look, pink nose, in front of a blue sky. Image Credit: Getty Images

As the $1.5. billion figure indicates, big-time investors are taking notice. Funds like the Bill Gates -backed Breakthrough Energy Ventures, Temasek, Horizons Ventures, CPP Investment Board, Louis Dreyfus Co., Bunge Ventures, Kellogg, ADM Capital, Danone, Kraft Heinz, Mars, and Tyson Foods’ investment arm have all backed companies in the industry.

In all, fermentation-focused startup companies raised 3.5 times more capital than cultivated meat companies worldwide and almost 60 percent as much as U.S. plant-based meat, egg, and dairy companies, according to the GFI. 

As the industry has grown up, since Quorn became the first company to use fermentation-derived proteins back in 1985, big industrial companies have started to take notice.

While there are at least 44 startups focused on alternative proteins worldwide, according to the GFI report, large publicly traded companies like Novozymes, DuPont, and DSM are also developing product lines for the alternative protein business.

“Given the breadth of applications, we believe that fermentation could solve many current challenges faced by alternative proteins. On the one hand, biomass fermentation can create nutritious, clean protein in a highly efficient and low-cost way. On the other hand, the potential for precision fermentation to produce value-added, highly functional, and nutritious ingredients is very exciting and could revolutionize the plant-based category,” said Rosie Wardle, an investor with the CPT Capital, which specializes in backing startups developing novel protein production technologies. “From an investment perspective, we are very excited about the white space opportunities in this category, and we are actively looking to increase our investments in the space. This new report from GFI is the first comprehensive overview of fermentation for alternative protein applications and should be required reading for everyone who wants to create a more efficient and less harmful global food system.”

#articles, #bill-gates, #biotechnology, #breakthrough-energy-ventures, #cellular-agriculture, #chemicals, #cultured-meat, #danone, #dupont, #food, #food-and-drink, #head, #horizons-ventures, #impossible-foods, #mars, #meat, #meat-substitutes, #tc, #technology-development, #temasek, #tyson-foods, #united-states

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Competing with both Perfect Day and Beyond Meat, Chile’s NotCo raises $85 million to expand to the US

NotCo, the Chilean food technology company making plant-based milk and meat replacements, has confirmed the close of a new $85 million round of funding to take the company’s products into the US market.

The announcement confirms earlier reporting from TechCrunch that the company had raised new capital, but according to people with knowledge of the investment, the valuation for the company is roughly $300 million, and not the $250 million TechCrunch previously reported.

The funding came from new investors including the consumer-focused private equity firm L Catterton Partners, Twitter co-founder Biz Stone’s Future Positive investment firm, and the giant venture capital firm, General Catalyst. Previous investors including Kaszek Ventures, The Craftory, Bezos Expeditions (the personal investment firm for Amazon founder, Jeff Bezos), Endeavor Catalyst, IndieBio, Humbolt Capital and Maya Capital, all of which have followed on in this round.

NotCo makes a hamburger substitute that’s currently being marketed at Burger King and Papa John’s restaurants in Chile as part of its NotBurger and NotMeat brands and has a line of dairy products including NotIceCream, NotMayo and NotMilk.

Both markets are not small. With milk alone being a multi-billion dollar category that NotCo chief executive Matias Muchnick believes his company can dominate in both Latin America and the US. That trajectory will put it on a collision course with well-funded competitors like Perfect Day, which raised $300 million in financing earlier this year and launched a new consumer brand subsidiary, the Urgent Company, for products made with its milk substitutes.

For longtime investors in the company, like Kaszek Ventures managing partner, Nicolas Szekasy, the new financing for NotCo validates his firm’s early faith that a company from Santiago, Chile could compete in some of the world’s largest consumer markets.

“We continue to actively support the company since its early days with a strong conviction of the potential that NotCo has to be the leading global player in the food-tech space. In this uncertain time, consumers have amplified their appetite for the plant-based world,” said Szekasy in a statement. “In parallel, COVID has allowed us to see that meat production is not only environmentally harmful and inefficient, but also that its supply chain is fragile. So we are happy to witness an inflection point where plant-based products are becoming an increasing proportion of a new normal, once they can actually taste amazing like we see NotCo crafting.”

Joining the company to help with its international expansion plans are a clutch of seasoned executives from large multi-national food brands. Flavia Buchmann, a former executive at Coca-Cola overseeing the company’s Sprite brand has been tapped as the company’s new chief marketing officer. Former Danone executives Luis Silva and Catriel Giuliano are taking the reins as heads of global business development and research and development, respectively. And Jose Menendez a former banker at Jeffries and executive at Tapad, is now NotCo’s global chief operating officer.

A flood of venture capital dollars have come into the food space since NotCo first burst on the scene and many of these deals are operating at the intersection of novel biomanufacturing technologies and food science. But NotCo’s take on foodtech is more akin to Beyond Meat’s than Impossible Foods or Perfect Day.

The company isn’t making biologically engineered foods, it’s taking its taxonomy of existing foods and determining which combinations of plant ingredients will most closely mimic all aspects of the animal products they’re replacing.

So a closer analogy would be companies like Just or the newly funded Climax Foods. Muchnick said that the difference is in where these companies are spending their time. Instead of focusing on a protein that can act as a one for one replacement for casein or the carbohydrate lactose, NotCo is trying to replicate the whole product — the entire sensorial panel of a particular food.

“Flavors, taste, smell, color, and the interaction between all of them and the molecular components in food,” said Muchnick. “It’s not just the concept of how limited we are to replicating products and how limited to using AI to address other challenges in the food industry.”

For Muchnick, the biggest opportunity for NotCo is dairy. While the company has plans to introduce a number of new products including a chicken replacement to compliment its line of NotBurger and NotMeat products, it’s really the dairy business where the company wants to land and expand.

It’s looking to cut a deal with a large quick service restaurant along with deals for an online channel and a direct to consumer play.

As it grows, consumers can expect to see the company’s brands recede into the background as Muchnick looks to focus on supplying products to other vendors.

“We partnered upstream and downstream,” Muchnick said. The company works with suppliers including Ingredion, ADM, and Cargill and downstream has product partners who will incorporate its milk substitute into other products.

What we want is to be the catalyst of change with many other companies. Why don’t we become the enabler. We’re becoming the Intel inside of other products.”

At that scale, the company would be a prime candidate for public investors, and if Muchnick has his way the company will get there. “We are aiming to have a $300 million company by 2024 with 70 percent of that business in the US,” he said. 

#amazon, #artificial-intelligence, #beyond-meat, #bezos-expeditions, #biz-stone, #burger-king, #cargill, #chief-operating-officer, #chile, #co-founder, #coca-cola, #executive, #food, #food-and-drink, #food-science, #food-technology, #general-catalyst, #impossible-foods, #jeff-bezos, #kaszek-ventures, #latin-america, #managing-partner, #milk, #sprite, #tapad, #tc, #united-states, #urgent-company

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Edtech is the new SaaS

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast (now on Twitter!), where we unpack the numbers behind the headlines.

The whole crew was back, with Natasha Mascarenhas and Danny Crichton and myself chattering with Chris Gates behind the scenes making it all work. An extra shoutout to Natasha this week as we spent a lot of time talking about edtech, a category that she spearheads for us and has brought to the show. It’s a big deal!

We’re on YouTube now, don’t forget, and with that, let’s get into the news:

And with that, we are nearly at the weekend which is a long one thanks to a holiday, so expect Equity Monday to be, in fact, Equity Tuesday next week. Hugs and good vibes from the Equity Crew!

Equity drops every Monday at 7:00 a.m. PT and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

#bumble, #capchase, #climax-foods, #equity-podcast, #impossible-foods, #patreon, #saas, #startup-accelerator, #tc, #venture-capital

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Founded by an Impossible Foods, and Google data scientist, Climax Foods raises $7.5 million to tackle the cheesiest market

Oliver Zahn began his professional career studying the stars. The founder of Climax Foods, a startup that’s using data science to replace animal proteins with plant-based substitutes, spent years at the University of California at Berkeley with his eyes fixed firmly toward the heavens before taking up with Pat Brown and Impossible Foods as the company’s leading data scientist.

That experience focused Zahn on more terrestrial concerns and undoubtedly led the founder down the path to launching Climax Foods.

Now with $7.5 million in financing from investors including At One Ventures, founded by the GoogleX co-founder Tom Chi, along with Manta Ray Ventures, S2G Ventures, Valor Siren Ventures, Prelude Ventures, ARTIS Ventures, Index Ventures, Luminous Ventures, Canaccord Genuity Group, Carrot Capital and Global Founders Capital, Zahn is ready to take on the future of food.

The pitch to investors is similar to the one that Josh Tetrick made at Just Food (the company formerly known as Hampton Creek). It’s elegant in its simplicity — scan the natural world for proteins that have the same or better characteristics than those that are currently made by animals and make products with them.

By looking at what makes animal products so delicious, the company will find their plant-based analogs and start producing.

As with most things that depend on data science, the taxonomy is the key. So Climax Foods is building machine learning algorithms that will process and cross-reference molecular structures to find the best fit. It’s starting with cheese.

While, the replacing the humble wheel of cheese may not seem like a worthy adversary for an astrophysicist, companies have already raised hundreds of millions to defeat the big dairy industry.

“We are at a pivotal time where industrialization enabled explosive population growth and consumption of animal products. Today, more than 90% of all mammalian animals and more than 70% of all birds on the planet exist for the sole purpose of metabolizing plants and being turned into food,” said Zahn in a statement. “This industry is complex and wasteful, creating as much climate change as all modes of transportation combined, and using more than a third of the earth’s water and usable land. By speeding up food science innovation, Climax Foods is able to convert plants into equally craveable foods without the environmental impact.”

Joining Zahn on this quest to conquer the cheese industrial complex and its milk-made monstrousness are a few seasoned industry veterans including co-founder, Caroline Love, the company’s chief operating officer and former sales and operations executive from JUST foods, and Pavel Aronov, a Stanford-educated chemist who previously worked at the chemicals giant thermo-Fisher.

“Climax Foods is tackling the same opportunity to change the market and the food system, but they are doing it with an entirely novel technological approach. They are using data science to produce a new category of foods that will not merely compete with, but out-compete, animal products in terms of taste, nutritional density, and price,” said Sanjeev Krishnan, one of the largest investors in the plant protein space and Chief Investment Officer of S2G Ventures. “The machine intelligence approach Climax Foods is pioneering is critical for harnessing the vast number of ways raw ingredients and natural processes can be used to create the ultimate digital recipes.”

Krishnan would know. He’s an investor in Beyond Meat, the most successful public offering of a plant-based protein replacement company.

#beyond-meat, #california, #chemicals, #chief-operating-officer, #co-founder, #executive, #food, #food-and-drink, #founder, #global-founders-capital, #hampton-creek, #impossible-foods, #josh-tetrick, #just, #luminous-ventures, #manta-ray-ventures, #meat-substitutes, #prelude-ventures, #protein, #s2g-ventures, #stanford, #tc, #thermo-fisher, #university-of-california, #valor-siren-ventures

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Synthetic biology startups are giving investors an appetite

There’s a growing wave of commercial activity from companies that are creating products using new biological engineering technologies.

Perhaps the most public (and tastiest) example of the promise biomanufacturing holds is Impossible Foods . The meat replacement company whose ground plants (and bioengineered additives) taste like ground beef just raised another $200 million earlier this month, giving the privately held company a $4 billion valuation.

But Impossible is only the most public face for what’s a growing trend in bioengineering — commercialization. Platform companies like Ginkgo Bioworks and Zymergen that have large libraries of metagenomic data that can be applied to products like industrial chemicals, coatings and films, pesticides and new ways to deliver nutrients to consumers.

The new products coming to market

In fact, by 2021 consumer products made with Zymergen’s bioengineered thin films should be appearing at the Consumer Electronics Show (if there is a Consumer Electronics Show). It’s one of several announcements this year from the billion dollar-valued startup.

In August, Zymergen announced that it was working with herbicide and pesticide manufacturer FMC in a partnership that will see the seven-year-old startup be an engine for product development at the nearly 130-year-old chemical company.

#arvind-gupta, #biotechnology, #bolt-threads, #chemicals, #consumer-products, #emerging-technologies, #food, #geltor, #ginkgo-bioworks, #greentech, #healthcare, #impossible-foods, #indiebio, #life-sciences, #lygos, #manufacturing, #mayfield-fund, #memphis-meats, #seth-bannon, #solazyme, #solugen, #startup-company, #startups, #synthetic-biology, #tc, #venture-capital, #zymergen

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The Not Company, a maker of plant-based meat and dairy substitutes in Chile, will soon be worth $250M

The Not Company, Latin America’s leading contender in the plant-based meat and dairy substitute market, is about to close on an $85 million round of funding that would value it at $250 million, according to sources familiar with the company’s plans.

The latest round of funding comes on the heels of a series of successes for the Santiago-based business. In the two years since NotCo launched on the global stage, the company has expanded beyond its mayonnaise product into milk, ice cream, and hamburgers. Other products, including a chicken meat substitute are also on the product roadmap, according to people familiar with the company.

NotCo is already selling several products in Chile, Argentina and Latin America’s largest market — Brazil — and has signed a blockbuster deal with Burger King to be the chain’s supplier of plant-based burgers. It’s in this Burger King deal that NotCo’s approach to protein formulation is paying dividends, sources said. The company is responsible for selling 48 sandwiches per store per day in the locations where it’s supplying its products, according to one person familiar with the data. That figure outperforms Impossible Foods per-store sales, the person said.

NotCo is also now selling its burgers in grocery stores in Argentina and Chile. And while the company is not break even yet, sources said that by December 2021 it could be — or potentially even cash flow positive.

NotCo co-founders Karim Pichara, Matias Muchnick, and Pablo Zamora. Image Credit: The Not Company

With the growth both in sales and its diversification into new products, it’s little wonder that investors have taken note.

Sources said that the consumer brand focused private equity firm L Catterton Partners and the Biz Stone-backed Future Positive were likely investors in the new financing round for the company. Previous investors in NotCo include Bezos Expeditions, the personal investment firm of Amazon founder Jeff Bezos, the London-based CPG investment firm, The Craftory, IndieBio and SOS Ventures.

Alternatives to animal products are a huge (and still growing) category for venture investors. Earlier this month Perfect Day closed on a second tranche of $160 million for that company’s latest round of financing, bringing that company’s total capital raised to $361.5 million, according to Crunchbase. Perfect Day then turned around and launched a consumer food business called the Urgent Company.


These recent rounds confirm our reporting in Extra Crunch about where investors are focusing their time as they try to create a more sustainable future for the food industry. Read more about the path they’re charting.


Meanwhile large food chains continue to experiment with plant-based menu items and push even further afield into cell-based meat using cultures from animals. KFC recently announced that it would be expanding its experiment with Beyond Meat’s chicken substitute in the U.S. — and would also be experimenting with cultured meat in Moscow.

Behind all of this activity is an acknowledgement that consumer tastes are changing, interest in plant-based diets are growing, and animal agriculture is having profound effects on the world’s climate.

As the website ClimateNexus notes, animal agriculture is the second-largest contributor to human-made greenhouse gas emissions after fossil fuels. It’s also a leading cause of deforestation, water and air pollution, and biodiversity loss.

There are 70 billion animals raised annually for human consumption, which occupy one-third of the planet’s land arable and habitable land surface, and consume 16% of the world’s freshwater supply. Reducing meat consumption in the world’s diet could have huge implications for reducing greenhouse gas emissions. If Americans were to replace beef with plant-based substitutes, some studies suggest it would reduce emissions by 1,911 pounds of carbon dioxide.

#argentina, #beef, #beyond-meat, #brazil, #burger-king, #chile, #cultured-meat, #greenhouse-gas-emissions, #impossible-foods, #kfc, #latin-america, #london, #meat, #meat-substitutes, #sos-ventures, #tc

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White Castle becomes the first fast food chain to test out the robot fry cook, Flippy, from Miso Robotics

The next time Harold and Kumar go to a White Castle, there may be a robot making their French Fries.

In one of the first trials of a robotic fry cook at a national burger chain, White Castle said it would work with Pasadena, Calif.-based Miso Robotics to test that company’s robotic chef at a restaurant in the Chicago area. It’s a  trial run for potentially bringing the robot to other White Castle kitchens across the country, the company said.

White Castle first began talking about using the Miso Robotics robots in its kitchens about nine months ago according to White Castle’s vice president of shareholder relations, Jamie Richardson. For the company, it was a question of, “How can we start to make the kitchen of tomorrow today?” 

Already a success on social media, where videos of Miso Robotics’ Flippy robot have racked up hundreds of thousands of views, White Castle was intrigued about the prospects of a burger flipping, chicken, onion, and french frying robot in its locations, Richardson said.

“I think automation is here to stay and this is the first example of a really large credible player starting down that journey,” said Miso Robotics chief executive Buck Jordan of the new collaboration with White Castle. 

White Castle has a fairly interesting track record when it comes to working with startups. The company was the first fast food chain to embrace Impossible Foods for its sliders.

At an undisclosed restaurant in the Chicago area, Miso Robotics is already working to install the latest version of its Flippy robot. The robotic fry cook will be integrated with the company’s point of sale system so that the robot can begin preparation as soon as an order is taken at the register.

That first robot will be coming online in September, according to Richardson.

And Richardson said that White Castle employees don’t need to worry about a robot coming for all of their jobs… yet. 

“It’s going to save us money in food costs because there will be less waste,” said Richardson.  “The other savings will be in terms of output… that’s going to be helpful.. If you maintain speed of service that’s getting a little bit better and a little better you do see more visits… that’s where we see it having the biggest impact… we’re not looking at this as a way to reduce people power.” 

A typical installation of a Miso Robotics system in a kitchen would cost a restaurant $30,000 upfront and then another $15,000 per year. However, with White Castle, the terms (which were undisclosed) were a little different.

Jordan said the goal is to bring the cost of the robotic system down to $15,000 for the entire system, obviating the need for any upfront costs, and convincing restaurants and franchisors that the robot can pay for itself right out of the gate.

There’s a clear path to getting that down to 20K,” said Jordan. “I’m trying to chisel that down to 15K,… at that kind of price and these things have lifetimes of seven to ten years we can afford to take the loss upfront.”

The robots have taken on new significance in the post COVID-19 era as restaurants like White Castle become essential services even as they struggle to keep the lights on with fewer customers. 

At White Castle that meant pay cuts for executives in order to retain staff. “We cut a lot of investment and we didn’t want to lose one job,” Richardson said. However, even with the strategic cuts, the implementation of at least this first robotic system remained a priority.

“There were things that we thought, COVID or no COVID were important,” Richardson said. “This project falls under that banner.”

White Castle’s decision to pilot Flippy in the kitchen creates an avenue for reduced human contact with food during the cooking process – reducing potential for transmission of food pathogens. The implementation also brings intelligence to cooking, tapping into sensors, intelligent monitoring and anticipated kitchen needs to keep food temperatures consistent, that ensure optimal quality and a perfect bite for customers. With Flippy in the kitchen automating repetitive, time consuming and dangerous tasks like frying, team members can be redeployed to more customer-experience driven tasks.

Image Credit: Miso Robotics

#california, #chicago, #flippy, #food, #food-and-drink, #impossible-foods, #kitchen, #miso, #miso-robotics, #pilot, #restaurants, #robot, #robotics, #social-media, #tc

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Beyond Burger arrives in Alibaba’s grocery stores in China

Beyond Meat is starting to hit supermarket shelves in China after it first entered the country in April by supplying Starbucks’ plant-based menu. Within weeks, it had also forayed into select KFC, Taco Bell, and Pizza Hut outlets — all under the Yum China empire.

China, the world’s biggest market for meat consumption, has seen a growing demand for plant-based protein. Euromonitor predicted that the country’s “free from meat” market, including plant-based meat substitutes, would be worth almost $12 billion by 2023, up from just under $10 billion in 2018.

The Nasdaq-listed food giant is now bringing its signature Beyond Burgers into Freshippo (“Hema” in Chinese), Alibaba’s supermarket chain with a 30-minute delivery service that recorded a spike in orders during the pandemic as people avoided in-person shopping.

The tie-up will potentially promote the animal-free burgers to customers of Freshippo’s more than 200 stores across China’s Tier 1 and Tier 2 cities. They will first be available in 50 stores in Shanghai and arrive in more locations in September.

“We know that retail will be a critical part of our success in China, and we’re pleased to mark this early milestone within a few months of our market entry,” Ethan Brown, founder and chief executive officer of Beyond Meat, said in a statement.

Plant-based meat has a long history in China, serving the country’s Buddhist communities before the diet emerged as a broader urban lifestyle in more recent times. Amid health concerns, the Chinese government told citizens to cut back on meat consumption in 2016. The middle-class urban dwellers have also been embracing fake meat products as they respond to climate change.

“Regardless of international or local brands, Chinese consumers are now only seeing the first generation of plant-based offerings. Purchases today are mostly limited to forward-thinking experimenters,” Matilda Ho, founder and managing director of Bits x Bites, a venture capital firm targeting the Chinese food-tech industry, told TechCrunch. “The good news is China’s per capita consumption of plant-based protein is amongst the highest in the world.”

“For these offerings to scale to mass consumers or attract repeat purchases from early adopters, there is tremendous opportunity to improve on the mouthfeel, flavor, and how these products fit into the Chinese palate. To appeal to health-conscious flexitarians or vegetarians, there is also plenty of room to improve the nutritional profile in comparison to the conventional tofu or Buddhist mimic meat,” Ho added.

The fake meat market is already rife with competition. Domestic incumbent Qishan Foods has been around since 1993. Hong Kong’s OmniPork and Alpha Foods were quick to capture the new appetite across the border. Nascent startup Zhenmeat is actively seeking funding and touting its understanding of the “Chinese taste.”

Meanwhile, Beyond Meat’s rival back home Impossible Foods may be having a harder time cracking the market, as its genetically-modified soy ingredient could cause concerns among health-conscious Chinese.

#alibaba, #alpha, #asia, #beyond-meat, #china, #food, #food-and-drink, #health, #impossible-foods, #meat, #meat-substitutes, #shanghai, #yum-brands

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Impossible Foods rolls out to nearly 1,000 new grocery stores and supermarkets

Starting tomorrow, 777 supermarkets in California, Illinois, Indiana, Iowa and Nevada will begin stocking the Impossible Foods plant-based meat substitute.

Fueling the increased distribution and a push to expand its product suite and geographic footprint domestically and internationally is a $500 million round of funding the company closed in March.

Some of that money is supporting the company’s debut at stores like Albertsons, Jewel-Osco, Pavilions, Safeway and Vons.

In all, the company said it would be in nearly 1,000 grocery stores by tomorrow. That includes all Albertsons, Vons, Pavilions and Gelson’s Markets in Southern California; all Safeway stores in Northern California and Nevada; Jewel-Osco stores in Chicago, eastern Iowa and northwest Indiana; Wegmans stores on the East Coast and Fairway markets in and around New York.

Since its debut in September, the company said it was the number one item sold at the locations it was available on the East and West coasts.

The company’s 12-ounce packages are sold for somewhere between $8.99 and $9.99 and it plans to soon introduce the Impossible Burger at even more stores nationwide.

“We’ve always planned on a dramatic surge in retail for 2020 — but with more and more Americans’ eating at home, we’ve received requests from retailers and consumers alike,” said Impossible Foods’ president Dennis Woodside, in a statement. “Our existing retail partners have achieved record sales of Impossible Burger in recent weeks, and we are moving as quickly as possible to expand with retailers nationwide.”

Even as the company announced its expansion, it made moves to assuage any consumer concerns over the processes in place at its manufacturing facilities.

Impossible Foods said it had instituted mandatory work from home policies for all of its employees who can telecommute; restricted visitors to its facilities and those operated by co-manufacturers; banned all work-related travel; and implemented new sanitizing and disinfection procedures at its workplaces.

“Our No. 1 priority is the safety of our employees, customers and consumers,” Woodside said. “And we recognize our responsibility for the welfare of our community, including the entire San Francisco Bay Area, our global supplier and customer network, millions of customers, and billions of people who are relying on food manufacturers to produce supplies in times of need.”

The company said it was proceeding with its research and development initiatives; accelerating the ramp of its production facilities; and moving to broadly commercialize its Impossible Sausage and Impossible Pork products.

Impossible Foods has raised $1.3 billion from investors, including Mirae Asset Global Investments, Khosla Ventures, Horizons Ventures and Temasek.

#albertsons, #california, #chicago, #dennis-woodside, #east-coast, #food, #illinois, #impossible-foods, #iowa, #jewel, #nevada, #new-york, #president, #retailers, #safeway, #san-francisco-bay-area, #startups, #tc, #west-coast

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