January 31, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Milltrust Ventures, the venture arm of London and Singapore-based Milltrust International, together with Earth First Food Ventures (EFFV), a food tech venture capital platform with a presence in Switzerland, India, the U.S., Brazil, and Greece, has announced the launch of the Smart Protein Fund. 

With a target of US$300 million, this fund is aiming to “disrupt the world’s largest industry – food” by deploying climate capital into alternative proteins and the infrastructure that will scale the industry. 

“Few sectors offer the growth opportunity of a total disruption of the human food chain,” said Simon Hopkins, CEO, Milltrust International Group, “as we seek to address the rapidly growing demand for a protein based diet across the globe, coupled with the need to scale in a way that doesn’t deplete the Earth’s finite resources.”

A report issued by Boston Consulting Group in July 2022 titled The Untapped Climate Opportunity in Alternative Proteins found that capital investment in alternative proteins soared from $1 billion in 2019 to $5 billion in 2021, representing an annual growth rate of 124 percent. 

This growth is reflective of multiple shifts. As consumers grow increasingly savvy, health conscious, and knowledgeable about climate change, the effects of intensive animal farming, and the environment, alternative proteins present an ever-more viable choice. Indeed, the aforementioned report found that more than 30 percent of consumers would switch their entire diet to alternative proteins if the results were to have major positive impacts on climate. 

And these trends are not expected to lag, noted Milltrust International, which said that by 2035, alternative proteins will likely account for 11 percent of the global protein market through organic growth, predicting that the market for alternative meats, especially chicken and seafood, could increase higher still – rising from 2 percent of total protein consumption in 2020 to more than 20 percent by 2035, given continued government support being seen today for the sector. 

“It’s often conveniently forgotten that the food industry represents 26 percent of global GHG emissions, more than all forms of transport combined,” said Alexander Kalis, managing partner, Milltrust International.

“Time is of the essence if we are to reach our net-zero imperatives. At Milltrust, we are proud once again to be tackling another key GHG contributor by offering impactful investment-based solutions in the alternative protein sector whilst offering tremendous scope for returns for our investors.”

Milltrust explained that the Smart Protein Fund will build upon its first investment in alternative proteins made in 2016 when it provided Seed funding to help launch Roslin Technologies – a food and agtech company based in Edinburgh, Scotland, focused on disruptive biotechnologies with core capabilities in developing and commercializing research in the emerging global cultivated meat industry. 

The experience built up by Milltrust over the years as a pioneering investor in the sector will serve the fund well along with climate tech and, in a broader sense, sustainability. 

 “We are thrilled to be partnering with Milltrust International for the launch of the Smart Protein Fund, following the firm’s decade of investing in sustainability across their portfolios,” said Brian Ruszczyk, CEO, Earth First Food Ventures.

“The benefits of alternative proteins are clear—healthier diets, lower carbon emissions, and fewer concerns about the ethics of intensive animal farming.”

~ 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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