August 1, 2018

 By Michelle Pelletier Marshall

While Israel-based DouxMatok was founded only four years ago, its birth harkens back to a 70-year old dilemma to enhance real sugar in such a way as to use less of it without losing flavor or texture. In 2001, this conundrum was further illustrated when Professor Avraham Baniel, one of Israel’s forefathers of industrial chemical research, was called in as an expert to help a leading sugar substitute manufacturer reckon with the fact that their new substitute was rejected by most consumers who tried it. Baniel was instantly transported to 1944 when the same conversation – “to make a little sugar feel like plenty” presented itself during the food rationing war time of 1944. This time, Baniel was in the position to take on the challenge.

He went to work on the task in his own kitchen in Jerusalem, and in 2014 at the spry age of 96, he and his son Eran formed DouxMatok. Intense R&D began to create targeted flavor delivery technologies – for sugar and salt in particular – to improve the nutritional profile of food products without compromising taste.

Breakthrough technology was realized by a multi-disciplinary team, and just this week, DouxMatok announced a partnership with Südzucker, Europe’s leading sugar company, to commercialize its game-changing sugar reduction solution across Europe. The industry-disrupting technology was tested by third party evaluators, as well as by major food manufacturers, and is compliant with FDA and EU regulations. The product promises a reduction of up to 40 percent of the sugar content, while maintaining the same sugar sensory profile.

With a board of directors that includes two of Israel’s largest venture capital funds – Jerusalem Venture Partner and Pitango – the later who provided, along with Gil Horsky and FoodLab Capital, $8.1 million in funding last September. This funding is earmarked for use in commercializing its new sugar solution by mid 2019.

GAI News spoke with Eran Baniel, co-founder and CEO – who had previously been CEO and co-founder of HCL CleanTech and CEO of LifeWave, among others – about the breaking news of DouxMatok’s upcoming product commercialization.

Q1: Your new sugar technology is protected by 14 patents. Can you explain, without divulging proprietary information, how the technology can provide the same taste and feel of more sugar when it’s less?

DouxMatok has developed proprietary technology for targeted delivery of sugars and other tastents. DouxMatok is made by coating/loading carrier minerals or fibers with sugars to create powerful clusters of the flavor that enhances the perception of sweetness at the receptors. DouxMatok´s sweetness delivery is perceived as stronger and more effective than a normal crystalline sugar.

These potent clusters of sugar molecules target the taste receptors providing a strong experience of sweetness that is both satisfying and longer lasting than a traditional sugar. It is using a targeted flavor delivery system.

Q2: You just announced a partnership with Südzucker to commercialize your breakthrough sugar reduction solution. Can you please explain the key priorities of this agreement, including the schedule for commercialization?

The collaboration with Südzucker is aimed at commercializing DouxMatok’s breakthrough sugar reduction solution across Europe. Under the cooperation, both parties have jointly started to scale-up the industrial production technology and will continue to do so over the coming months and years. Südzucker will manufacture DouxMatok’s patented sugars and, jointly with DouxMatok, will market and sell the products to F&B customers. We aim to have commercial quantities of our first product in the market in the second half of 2019.  Over the next 12-18 months, we will be focused on ensuring the product is ready for commercialization.

Q3: DouxMatok is now scaling up production for sale to European producers. What type of products will be first to include DouxMatok’s sugar delivery technology? Who are some of your early adopters? Does this include those in the U.S.?

The first generation of our sugar product works best in biscuits, candy, chocolate, gummies, confectionary sugar, baked goods, and similar products. We have interested food manufacturers in all of these categories. DouxMatok is working intensively with CPG partners in rebalancing their products once 40 percent of the sugar is reduced. The goal is to offer the most popular products with as great a taste profile, while improving their nutritional value to replace the reduced weight of the sugar. This is an integral part of marketing activities that are already carried by DouxMatok and Südzucker.

Q4: You moved from launch to full commercialization in less than four years. What do you see as the future investment potential with DouxMatok? Is a salt substitute next?

DouxMatok has the potential to completely revolutionize the food industry across multiple categories and ingredients. Many ingredients that consumers love the taste of are not the healthiest in large quantities (such as salt) or they are expensive to produce (such as vanilla). The targeted flavor delivery system we’ve created can be utilized for many different ingredients and as we expand and scale up, we plan to adapt our technology to these different ingredients.

Q5: Just last month, DouxMatok was ranked by DISRUPT100 as number eight on their top 100 list of disruptive startups with the most potential to influence, change, or create new global markets. How does DouxMatok stay on the cutting edge of ag and food tech?

A small team of wonderfully talented and devoted scientists and engineers that have taken this flavor delivery technology to new horizons and are creating delightful options to combine healthier lifestyles with the best of indulgent products.

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Michelle Pelletier Marshall is the managing editor for Global AgInvesting’s quarterly GAI Gazette magazine and a regular contributor to GAI News. She can be reached at mmarshall@globalaginvesting.com.