January 10, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Leading Israeli biotech company Pluristem Therapeutics and Tnuva Group, the largest food producer in Israel, announced their collaboration to develop, manufacture, and  commercialize cultured cell-based food products. 

“Our collaboration with Pluristem is part of the execution of Tnuva Group’s strategy and vision,” said Haim Gavrieli, chairman, Tnuva Group. “Tnuva strives to lead the alternative protein industry in Israel and to continue to expand in the industry on a global scale.”

This endeavor is launching with the incorporation of a new company – NewCo – in which Tnuva will invest $7.5 million at a pre-money valuation of $40 million, with the option to invest an additional $7.5 million over the first 12-month period following the closing.

Pluristem is an industry-leading designer, developer, and manufacturer of cells for commercial use. Over the past two decades, the company has developed a proprietary 3-D expansion platform with the ability to cost-effectively produce high-quality cells with batch-to-batch consistency.

Gavrieli commented, “We chose to collaborate with Pluristem because we believe it owns one of the most advanced cell production technologies in the world. We expect the collaboration between the companies to revolutionize the cultured food industry and develop the next generation of alternative proteins.”

NewCo will receive exclusive, global, royal-bearing licensing rights to Pluristem’s proprietary technology, IP, and expertise to be used in connection with cultured meat. With its own dedicated management team and staff, it will then use its capital and resources to promote its mission, while Pluristem supports NewCo’s establishment and R&D activities. Tnuva will provide the R&D platform to develop consumer products, and will receive preferred marketing rights of any products developed by NewCo in Israel.

“Tnuva Group has decades of experience developing and marketing innovative products for the Israeli market,” said Eyal Malis, CEO, Tnuva Group. “Tnuva leads the alternative protein market in Israel and has recently taken its expertise globally. Just as Tnuva made the field of alternative proteins accessible to every Israeli home, we intend to make cultured food products available to all. The collaboration between two proven pioneers in their fields, each of which with proven experience and tremendous abilities, can create a better future for the food industry.”

Tnuva and Tech

Tnuva is the largest food brand in Israel with the country’s largest distribution network for chilled and frozen products, generating revenue of over $2 billion. It sells approximately four million products per day representing a wide range of dairy, meat, eggs, fish, frozen vegetables, pastries, and frozen and chilled foods. It also is the Israeli leader in the field of alternative dairy and protein products. 

However, Tnuva is also a groundbreaker in regard to food tech. In September 2019, the company was a member of a global consortium including Finistere, venture investor OurCrowd, and leading Israeli beverage company Tempo Beverages, which officially launched their NIS 1 billion (US$280 million) “Fresh Start” FoodTech Incubator  that month. 

This four-way partnership is a very well-rounded collective of players bringing together partners that aim to build out new companies that will be part of an evolving ag and food supply chain. Each partner can offer unique experience, knowledge, and resources to the whole, enabling the consortium to give entrepreneurs guidance that touches upon a range of factors from tech and business development, due diligence, team building, early-stage investment strategies, to food production and marketing.

Aside from identifying and supporting Israeli food tech, Tnuva also supports Israeli academic researchers and has recently signed a licensing agreement with Swiss retail giant Migros through which Tnuva will help Migro produce dairy alternatives.

“Tnuva Group has decades of experience developing and marketing innovative products for the Israeli market,” said Malis. “Tnuva leads the alternative protein market in Israel and has recently taken its expertise globally. Just as Tnuva made the field of alternative proteins accessible to every Israeli home, we intend to make cultured food products available to all. The collaboration between two proven pioneers in their fields, each of which with proven experience and tremendous abilities, can create a better future for the food industry.”

Alternative meats are one of the fastest growing segments of the food universe, estimated to see growth that will make it reach a value of $140 billion by 2030, noted Pluristem in a recent release. But to capitalize upon this potential, and to make cultured meats affordable, it will require mass-produced, high-quality cells at competitive costs. Here is where Pluristem is key. 

“Over the years, Pluristem has developed one of the most advanced cell manufacturing platforms,” said Yaky Yanay, CEO and president of Pluristem. “During the last year, we made our strategy more precise, with the goal of leveraging our technology and expertise through partnerships and collaborations.”

Yanay continued,“Today, we are proud to join forces with a market leader, Tnuva Group, as they bring 96 years of experience in consumer food brands and innovation to the table. We believe that Tnuva’s and Pluristem’s vast experience will support fast and effective development of large-scale cultured meat products, relying on our existing infrastructures and talented teams. This collaboration is the first showcase of Pluristem’s intention to expand its business to verticals that need superior cell expansion proprietary technologies.”

– 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 Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com. 

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