October 18, 2018

French plant-based protein pioneer Roquette, and current shareholder Fortissimo Capital have jointly invested $4 million in Equinom, an Israeli seed breeding company. Roquette and Equinom also have signed a partnership agreement for the development and sourcing of new, high-protein pea varieties. Through this agreement – Roquette’s first in Israel – Roquette will be able to earn a place in the development of cutting-edge, non-GMO plant varieties that align with consumer demands.

Reflecting the scope of this growing demand, in January of this year Roquette announced it was investing C$400 million (US$300 million) – the largest pea protein investment made in the food sector to date – to build the world’s largest pea processing facility in Canada.

“This is one of the largest private sector investments in the history of Manitoba,” Brian Pallister, Premier of Manitoba, said at a news conference at the time, according to the Winnipeg Free Press.

Alternative protein sources have been increasingly on the radar of both consumers and investors. Global protein consumption is expected to climb at a CAGR of 1.7 percent, reaching 943 million tons by 2054, according to Lux Research. Over this same time period, alternative plant-based protein sources are forecast to command up to a third of the protein market as they fill the void created by slowing growth in meat and seafood production. Of these plant-based alternative protein sources, peas offer an additional benefit and appeal to consumers due to the fact that, unlike soy, they are not one of the major allergens and are not genetically modified.

Tying into this demand scenario, Roquette is a key provider of a broad range of high-quality, plant-based ingredients, and particularly of pea proteins.

“This investment represents a great partnership and a major step forward in the implementation of the Group’s strategy in plant-based proteins,” said Pascal Leroy, vice-president of Roquette’s Pea and New Protein business line. “It enables Roquette to position itself as a pioneer in the whole value chain for plant-based proteins. By contributing to develop new responsible and sustainable high-protein pea production thanks to this collaboration, we are demonstrating our goal of offering products increasingly tailored to the needs of Food, Nutrition and Health markets, and to better answer a growing customer and consumer demand.”

Founded in Givat Brenner, Israel, in 2012, Equinom is a computational breeding company in the process of developing a full portfolio of non-GMO legumes that have 50 percent more protein content that current varieties on the market. Together, the two companies have signed a multi-year agreement for the development and marketing of high-yielding pea varieties that offer superior protein levels and unique characteristics that suit the needs of innovative food innovators. Using the capital from this investment, Equinom will fund the further development of products that are essential to emerging food applications, complimentary to animal-based nutrition.

“The agreement with Roquette is a major milestone for Equinom, and its investment in our company is a vote of confidence in our technology and its ability to transform the plant-protein market,” said Gil Shalev, founder and CEO, Equinom. “The agreement will guarantee the full commercialization of Equinom’s high-protein pea varieties. It will also facilitate the introduction of additional plant protein to market and enable Equinom to attain its mission of increasing the production of high-quality, sustainable food ingredients that are changing the types of foods consumed.”

Trends in both consumption and concern for ecological sustainability have been reflected in the growing acknowledgment of plant-based protein companies by investors. The alternative protein narrative, and the roll of pea protein in this narrative,  is not lost on the world’s biggest and most iconic food brands either.

In January of this year Cargill made an undisclosed investment in PURIS, the largest pea protein producer in North America, creating a joint venture to accelerate the production of plant-based foods.

Under the structure of the joint venture between Cargill and PURIS, PURIS’ plans to establish a second production site in the U.S., according to Food Navigator, which will in turn enable the company to grow into being a global supplier.

However, the partnership between Roquette and Equinom may give Roquette an advantage in the pea protein category, in that it will be a driver in the development of new pea varieties.

“The partnership with Roquette is an important achievement for Equinom, enabling it to leapfrog its high-protein pea program and commercialize its varieties with the leading global player in the market,” said Yoav Hineman, partner at Forissimo Capital. “Using its proprietary software-based breeding system, Equinom continues to revolutionize significant global crops by introducing key traits in record time. Since inception, Equinom introduced varieties in sesame that can be harvested mechanically, protein rich legumes, high-yield quinoa, and is currently targeting additional crops.”

-Lynda Kiernan