March 15, 2023
By Lynda Kiernan-Stone, Global AgInvesting Media
Paleo is a Belgian B2B precision fermentation company that has been working to crack the code of meat. By exploring what gives meat and fish their distinctive characteristics – their specific taste, look, and smell etc. – the startup concluded that heme proteins were at the root of the human experience of eating beef, chicken, pork, and fish.
This notion of being able to imbue plant-based foods with a “real taste” experience on par with their animal-based counterparts has caught the attention of six investors. DSM Venturing and Planet A Ventures have led a €12 million (US$12.88 million) Series A in support of Paleo that also included Gimv, SFPIM Relaunch, Beyond Impact, and Siddhi Capital.
“With its innovative precision fermentation technology, Paleo has broken down barriers to the widespread adoption of plant-based meat alternatives,” said Jan Christoph Gras, partner, Planet A Ventures. “Its realistic taste and highly functional protein make it an attractive option for even the most skeptical consumers of meat and fish substitutes.”
In recent years, concerns associated with animal protein production have increasingly come to the fore, including antibiotic resistance, sustainability, animal welfare, food-borne illnesses, and perhaps most pressingly, the environmental impact of such production systems.
The livestock industry (for human consumption) uses almost 70 percent of all agricultural land, leading to deforestation, pollution, and loss of biodiversity, and accounts for almost 15 percent of total worldwide greenhouse gas emissions – more than what is contributed by the entire transportation sector combined.
Exacerbating these concerns is the knowledge that meat consumption is projected to grow by 40-70 percent by 2050 to keep pace with population growth and global consumption shifts. And although all food production carries with it some level of carbon footprint, meat production is a stand-out offender.
And while it’s true that the emergence of plant-based alternatives offers consumers another, more sustainable choice, many can’t get past the different texture, taste, and nutritional profiles.
“The market for plant-based meat and fish is ready to grow further, provided that consumers find the taste convincing,” said Hermes Sanctorum, co-founder and CEO, Paleo. “There’s only so much you can do with artificial coloring and additives.”
“Adding our ingredients to plant-based meat alternatives is a game changer that brings the experience of ‘real’ meat. You can smell it, you can taste it, and you can see it because our ingredients provide that vibrant red color that transforms into caramelized brown when you grill it,” continued Sanctorum. “And no animal is involved whatsoever in defining our ingredients as vegan. It’s great that our venture round is joined by industry expert investors, who tasted our Paleo ingredients and are fully convinced of their potential.”
Using fermentation technology on microorganisms such as yeast, Paleo focuses on the production of myoglobin, a protein that gives plant-based foods the color, taste, and smell of like meat or fish, Paleo currently controls a protein portfolio of six different species: beef, chicken, pork, lamb, tuna, and yes… mammoth.
And with this additional funding, Paleo will be able to work toward its goals of scaling its technology and filing for regulatory approval as it moves toward commercialization in key markets of these proteins that are 100 percent identical to animal proteins and 100 percent GMO-free.
“We think 2025 is a credible timeline to have plant-based food with Paleo ingredients on the market,” said Andy de Jong, co-founder and COO, Paleo. “We are happy to see keen interest from international, established food manufacturers in our ingredient portfolio. The food industry has barely scratched the surface of what is possible with precision fermentation, and Paleo will be at the forefront of this revolution in food production.”
~ 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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