June 29, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

As climate change intensifies, 60 percent of the world’s coffee species are threatened by extinction, according to findings from the Royal Botanical Gardens in Britain.

Changing climate has forced coffee plantations into higher elevations, clearing new land suitable for the production of Arabica coffee beans. These higher-quality, in-demand beans account for two-thirds of global coffee production, but are only grown in specific subtropical highland regions, as they thrive at temperatures between 64 and 70 degrees Fahrenheit.

In 2014, extreme drought in the world’s top two coffee producing regions of Brazil and Vietnam severely cut output, while in Central America, high temperatures and heavy rainfall led to an outbreak of leaf rust fungus, costing farmers more than $1 billion in crop losses. 

 If these challenging conditions continue, the International Center for Tropical Agriculture (CIAT) warns that  half of the world’s coffee producing land will no longer be suitable for production by 2050.

“Coffee is among the most consumed beverages worldwide, with roughly 42.6 liters per person per year according to Statistica,” said Tony Lau, Atomo board member and managing partner at Horizons Ventures in August 2020. “Atomo Coffee can make a huge impact in the market from a sustainability aspect while not sacrificing the quality and taste that consumers are going after.”

World Coffee Research, CIAT, and agricultural producers are taking various measures to mitigate the damage, including the development of new bean varieties, implementing shaded production practices, and integrating biologicals into pest control protocols, but Atomo is approaching the challenges from a different angle, by reverse engineering the coffee bean to make bean-less coffee. 

“The demand for coffee is increasing year over year with climate change significantly impacting the farming regions, which in turn will impact the consumer through price and availability,” said Rob Leclerc, AgFunder. “Breakthrough technologies pioneered by Atomo are going to be a part of the solution for future generations to be able continue enjoying their favorite brews.”

Now reaching the market in the form of two ready-to-drink cold brews – Classic Black and Ultra Smooth –  Atomo announced that it has closed on a $40 million Series A backed by S2G Ventures, AgFunder, and Horizon Ventures that will be used to advance product development, scale up manufacturing, and fund the official launch of its game-changing products.

This Series A is more than four times the size of the startup’s $9 million Seed round raised in August 2020 from  S2G Ventures, AgFunder, Bessemer Venture Partners, and Horizon Ventures.

“With Atomo in the hands of the consumer we are empowering them to drink coffee they love while making a choice to do something better for the planet every day,” said Andy Kleitch, CEO and cofounder, Atomo.

Founded in Seattle in 2019, Atomo uses upcycled ingredients to reverse engineer coffee to produce a consistent, smooth coffee with a reduced environmental impact. Having perfected their production method, they are now prepared to bring coffee with 93 percent less carbon emissions and 94 percent less water usage to consumers.

Not only does Atomo’s coffees have an impressive environmental footprint, but in a blind taste study conducted by National Food Labs, the company’s bean-less brew out-ranked competitive traditional cold brew coffees at a rate of 2:1, with panelists not able to deduce that Atomo’s products were made without coffee beans.

“We are amazed at how Atomo’s molecular platform is able to create such a premium bean-less coffee experience for consumers, with every sip bringing confidence and satisfaction,” said Wayne Cheng, Horizons Ventures. “Atomo is delivering on taste and sustainability for coffee lovers worldwide.”

“Atomo’s cold brew products deliver great environmental benefits and their taste is superior to other products on the shelves,” added Chuck Templeton, managing director, S2G Ventures.  “Great taste and better for the planet is a win-win combination.”

~ Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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