August 24, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Vivici B.V. has successfully closed on Seed funding provided by Fonterra and dsm-firmenich Venturing as it enters the precision fermentation industry with the goal of bringing animal-free dairy proteins to market. 

Given our rate of population growth, finding sustainable and complementary protein sources is crucial. The evolution and introduction of non-dairy alternatives onto the global market has been rapid and highly disruptive to the category. However, with the application of new technologies, what began with plant-based formulations and ideations has expanded to include precision fermentation.

Animal agriculture and dairy production are associated with a range of environmental, ethical, and health challenges. These include greenhouse gas emissions, land and water usage, animal welfare concerns, and the overuse of antibiotics leading to bacterial resistance. 

Precision fermentation is a natural process that offers a way to circumvent these issues by producing dairy proteins through a controlled fermentation process using microorganisms such as bacteria, yeast, or fungi. This method allows for the precise manipulation of genetic material and metabolic pathways to yield the desired proteins without the environmental or ethical drawbacks of conventional dairy farming.

And as technology progresses and awareness of the environmental and ethical implications of food production increases, precision fermentation could play a pivotal role in shaping the future of sustainable and compassionate dairy alternatives.

Based in the Netherlands, Vivici is headquartered at the Biotech Campus Delft with a dairy protein application lab in the Food Valley at NIZO food research, where it holds world-leading knowledge in the isolation and application of dairy proteins, and leverages decades of experience in developing and scaling bioprocesses.

 “We are thrilled to be a founding investor in Vivici BV’s Series Seed capital raise,” said Pieter Wolters, managing director, dsm-firmenich Ventures.

“Vivici has the foundation for success, and builds on multiple years of joint technology and application development, and is now well-positioned as an agile startup company.”

Fonterra and dsm-firmenich have been collaborating since 2019 to launch Vivici as a joint venture geared for the dual purpose of driving product development and advancing R&D in the field, when the European Commission granted approval for the venture in late 2022.

“Vivici is an exciting opportunity to combine dsm-firmenich’s world-leading precision fermentation expertise with Fonterra’s world-leading dairy science and technology,” said Komal Mistry-Mehta, chief innovation & brand officer, Fonterra. “This partnership aligns well with the Co-op’s strategy to be a leader in dairy innovation and science.”

As of last year, there were 136 companies worldwide focused either exclusively or mostly on alternative proteins, according to the Good Food Institute. In 2022, these companies saw investment of $842 million, and the all-time investment in companies focused on fermentation for alternative protein production has been $3.9 billion.

Meanwhile, Markets and Markets forecasts that the global precision fermentation ingredients market will see a CAGR of 44 percent, growing from a value of $2.8 billion in 2023 to $36.3 billion by 2030. 

However, like any emerging technology, precision fermentation is not without its challenges. Several obstacles need to be addressed in order to fully harness its benefits and integrate it into the food value chain. 

Despite these challenges, the potential benefits of precision fermentation in association with sustainability, reduced environmental impact, and the ability to create novel and customizable food ingredients, etc. are driving continued research and investment in this technology and those advancing it. 

“I’m thrilled to work with such an experienced team that knows what it takes to not only develop, but manufacture, register, and commercialize great ingredients,” said Stephan van Sint Feit, CEO, Vivici.

 “Together, we will build Vivici into a precision fermentation leader that contributes to a future-proof food system.”

~ Lynda Kiernan-Stone is editor in chief 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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