September 28, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

I have to admit, I’ve never really given much thought to stone fruit pits. But that’s okay! Because Austria-based Kern Tec has been doing the thinking for us. 

In Europe alone, 500,000 metric tons of these pits end up in landfills each year. Kern Tec is stepping up to develop processing systems that transform these pits into safe and sustainable food ingredients, thereby contributing to a circular and more resilient food system. 

Founded in 2019 in Vienna, Austria, by Michael Beitl, Luca Fichtinger, Sebastian Jeschko, and Fabian Wagesreither, Kern Tec uses a series of proprietary processing steps to obtain valuable oils and protein from the seeds within unused pits from stone fruits such as apricots, plums, and cherries. 

These novel ingredients are then further processed into a base compound for the production of sustainable and cost-effective dairy alternatives including plant-based milks, yogurt, ice cream, cheese, and confectionery products. 

By employing these new technologies and by creating new supply chains, Kern Tec has successfully processed 2,500 tons of fruit pits at their Austrian facility into valuable B2B ingredients.

And now, as the company enters the growth stage, scaling their entire value chain and customer base, the company announced it has secured €12 million in Series A funding led by Telos Impact, with participation from PeakBridge Growth 2 fund and the European Innovation Council (EIC) Fund. It also has secured additional significant local and international grant funding. 

“We are delighted to welcome Kern Tec as the latest addition to our growing European portfolio,” said Guillaume Boury, investment manager, Telos Impact. “This investment is consistent with our desire to back inspiring founders and companies developing long-term sustainable competitive advantages. We are very excited to be leveraging our network and expertise to support the company’s ambitious growth strategy.”

“The EIC Fund has established itself as a strong force in EU deep-tech investments,” added Svetoslava Georgieva, chair of the EIC Fund Board. “This unique form of financing via EIC – combining grants and equity – is proving itself highly attractive to Europe’s most promising start-ups and companies.”

“Our investment will provide Kern Tec with the means to scale their business in Europe and, thanks to their innovative technology, contribute to saving resources and supporting farmers and businesses.”

The company stated it will use this capital to fund its ambitions to scale up the production and commercialization efforts for its sustainable ingredients for both the plant-based and confectionery industries. 

“This investment will accelerate our global scaling capabilities and enable more products to the market that are derived from the valuable stone fruit seeds,” said Luca Fichtinger, co-founder and managing director, Kern Tec. “This will scale our impact of reducing waste, whilst unlocking further growth in the plant-based dairy industry.”

Erich Sieber, co-founder and general partner, PeakBridge, also noted, “Innovations in food ingredients, like those propelled by Kern Tec, play a pivotal role in transforming the food industry towards healthier and more sustainable products, at affordable costs.”

“Kern Tec’s initiatives pave the way for responsible production and consumption, while also offering enhanced flavor possibilities. We stand firmly behind Kern Tec as they lead the way in this domain, and we are honored to be part of their exceptional journey.”

~ 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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