Imagine that one day you make a protein-rich omelette for breakfast, but you don’t use an egg. Your diabetic colleague drank a bottle of juice without scruple; Your friend ate bread made from fruit flies. Does this sound like science fiction?

 

Now, Israeli food-technology companies are bringing these seemingly impossible things to life. In the Forbes list of the world’s top 50 companies in food technology and agriculture technology, released in March, we found Israel alone accounts for a fifth.。 Why are food technology companies concentrated in Israel? What’s their secret recipe for innovation? What kind of technological revolution will these food technology companies lead? Before we begin, let’s take a look at the financing of Israeli food technology companies in recent years to see what is currently favored by capital.

 

01 Go to space to grow beef and turn sugar into dietary fiber… 

What are the Israeli food geeks doing?

Israel’s innovation in the field of food is very diverse, black technology emerges endlessly. Such as BactuSense, which makes innovative food safety tests more efficient; SodaStream, a manufacturer of household bubble water machines that can reduce plastic use; Torr, which brings together natural food raw materials… together these companies form a dynamic food innovation ecosystem in Israel. We found that innovations in protein and sugar reduction were also a hot area of innovation in Israel in recent years, which led to the birth of many startups. So, what kind of innovation have these enterprises made? What does their innovation mean for the food industry?  

1) looking for proteins: magic protein where?

 Proteins are the primary agents of life. We’ve all learned this from biology books. We have long been accustomed to taking protein from animal-based diets, and meat, egg and milk have steadily become our main source of protein. But today, we don’t talk about pigs, cows and sheep. We talk about humans. Imagine a day when the environment can no longer bear the pressure of animal husbandry, and the abuse of antibiotics frightens us. …how should mankind respond to a possible crisis? Where do humans find new sources of protein? This is a problem that many people are worrying about. And Israeli scientists are helping us figure out how to solve these problems. 

Aleph Farms: Go to Space to Grow Beef

 Aleph Farms, an Israeli company, launched a space project called Alph Zero, which will start building its first BioFarm in an extraterrestrial environment in 2021. ™ Aleph Farms is exploring the Arabian Nights wherever fresh meat is produced, even in adverse environments such as the moon or Mars. 

BioFarm renderings

Photo: Aleph Farms website 

 

Aleph Farms has enough confidence. In 2019, the International Space Station, Aleph Farms, about 400km from Earth, successfully completed the experiment of cultivating beef in space with 3D biological printing technology without any soil and water source, which became an important step in the cause of seed beef in space.

 

Aleph Farms used this experiment to demonstrate that it is possible to produce cell-grown meat in microgravity without natural conditions. 

 

Aleph Farms is also making rapid progress in commercializing artificial meat. In December 2018, Aleph Farms announced that it had produced muscle-like steaks in the lab, but the taste was not ideal at the time and was very expensive. Aleph Farms plans to transition its product to pilot production in 2021 and believes there will be a product ready for sale within two years. Aleph Farms is currently keeping the price of the first meat at 50 euros. Aleph Farms is supported by a number of food producers, such as Cargill, Migros and Strauss. It has so far completed a round of financing of $12 million in 2019. 

2) There is no chicken, but also can have egg.

Founded in 2018, Zero Egg, an Israeli start-up, offers plant-based egg alternatives to catering service companies and food manufacturers based on B2B development models, and products have entered the U. S. market. It is reported that The startup plans to launch a consumer version of Zero Egg next year. 

 

ZeroEgg currently offers two products: Egg Basics, used in traditional egg entrees and breakfast dishes; The other, BAKE Basics, is used for baking. Both products are powdery and include soy, potato, peas and chickpea protein, with no cholesterol, low fat and low calories. ZeroEgg claims its products taste and function similar to regular eggs, but are made entirely from plants.

From: ZeroEgg Website

Photo: ZeroEgg 

 

Liron Nimrodi, co-founder and CEO of ZeroEgg, says that while startups are designed to meet specific industry needs, But it has since developed into their mission: to make the current animal food slowly replaced by plants.Zero Egg says producing a dozen plant Egg consumes 93 percent less water. Liron Nimrodi said in a statement: “Zero Egg is a game-changer. We need to not only make plant-based foods more accessible, but to be the norm.” 

3) InnovoPro, ChickP

 Israeli food technology company InnovoPro was founded in 2013, innovation around chickpea protein, has completed the B round of financing. It produces 70% chickpea protein concentrate powder known as CP-Pro 70 and is also developing an organic version of CP-Pro 70. The company has developed dairy substitutes, meat substitutes, jams, ice cream and other foods based on chickpea protein, and many products have been sold in Israel, the United States and Europe. InnovoPro is exploring collaborative protein production solutions to expand the supply chain and achieve sustainable growth. As recently as July, Innovo Pro launched a dairy-free yogurt line in partnership with Swiss retailer Migros. 

Migros chickpea yogurt

Photo: Migros official website 

 

The key to InnovoPros success is its ability to tap into the best features of chickpeas: Non-GMO, non-estrogenic, non-aftertaste and non-allergenic source to meet the diverse needs of products. ChickP, an Israeli food company that also makes chickpea protein, is a serious competitor. Reifen, a pediatric gastroenterologist and professor of human nutrition, founded the company in 2016 based on a proprietary chickpea technology. The patent eliminates bitterness and most non-nutritional elements. 

ChickP chickpea patentPhoto: ChickP In October 2019, the company begins to scale up production of ingredients and sell them to food businesses. Recently, ChickP starch has been released to comply with the cleaning label. Chickpea starch is said to have better gelling and thickening properties. 

4) Hargol FoodTech, Flying Spark: The Bug That Crawled Up the Table

Remember why earthworms, the mysterious food in wandering the Earth, do? In our impression, insects are apocalypse food that we have to eat. However, it has become a trend to supplement insects as a protein. According to Global Market Insights, the global insect food market is worth $143.6 million in 2019 and is expected to grow at a compound annual rate of 45 per cent. Some companies are gradually introducing insects into their diets, such as insect protein powders and insect baking mixes. Two Israeli start-ups are also excavating the edible value of insects. Hargol FoodTech was founded in 2014 and completed $3 million in financing in April 2020. It has developed an innovative breeding system for rapid breeding of grasshoppers for the production of high quality and sustainable protein products, includingMade from grasshoppers.Protein powder, meat substitute products. The company says its grasshopper products contain more than 70 percent protein, amino acids, iron, zinc and high levels of omega-3 and omega-6. The company already sells to restaurants and food manufacturers in Europe and the United States and is shifting its focus to producing finished products directly to consumers.

Hargol FoodTech的LOGO Flying Spark is.Drosophila larvae Produce protein powder and edible oil for raw materials. Its protein powder contains 70% protein and other minerals, while edible oil contains high levels of Omega-7. 

Flying Spark Edible oil made from fruit fliesPicture Source:Flying SparkOfficial website The company self-breeds high-protein fruit flies, feeding them a unique intellectual property protected diet formula and developing methods for bleaching, grinding and separating proteins. Eran Gronich, co-founder and CEO of FlyingSpark,Compared with traditional animal protein, insect protein has high conversion rate.“The conversion rate per kilogram of larva is 1.3 to 1, compared to one kilogram of beef for every 10kg of feed consumed. Insects are almost one-for-one, almost a protein factory.” 

5) YoFix: Plant-based yoghurt with Clean Label

 YoFix is a recipient of PepsiCos 2018 European Nutrition Greenhouse Program and completed Series A funding round in early 2020. YoFix was founded by lactose-intolerant agricultural machinery engineer YoFixs plant-based yoghurt is free of allergen fermentation formulas such as dairy and soybeans, Made mainly from oats, lentils and sesame seeds, the aim is to provide suitable products for people with lactose intolerance and soy allergy. For the founders, its not enough to just plant-based yoghurt, but to brand YoFix as a clean label. The founders found a formula called Bio5 that guarantees yoghurt-like texture and stability without the use of additives.

YoFix launchesPlant-based yoghurt

Photo: YoFix official website

1) The War on Sugar: Israels Counterattack against sugar

Some time ago,#Can Sugar Really Fight Aging?# This topic has attracted 720 million readers.In recent years, anti-sugar fever is enough to show that consumers have generally accepted the concept of excessive sugar intake = unhealthy, the overall consumer market is showing a low sugar trend. The prevailing view is that Sugar is not evil, blind anti-sugar is undesirable, but according to the current diet, it is necessary to control the way and amount of sugar intake.

A growing body of research showing that excessive polysaccharide consumption causes high rates of obesity, type 2 diabetes and other health problems is changing consumer behavior.

Therefore, the vitality of the forest, Jane Eyre and other brands launched sugar-free, low-sugar products by consumers welcome. In general, most companies in the market currently adopt sugar reduction programs directly without sugar or use sugar substitutes, such as Yuanqi forest using erythritol and sucralose.

 

Some Israeli food companies are also developing new sugar-reducing programs to combat the negative effects of too much sugar. 

Change sugar into dietary fiber, reduce the sugar content of juice by 30%

Fruit contains essential vitamins, minerals and dietary fiber, especially dietary fiber. It can delay the absorption of sugar and increase satiety, but the juicing process will greatly reduce it. Juice sales growth has been sluggish in the past few years, with CAgr of around 2% in 2011-18, as concerns mount about high calories and sugar in beverages. 1 In fact, according to a 2014 study in The Lancet, fruit juices contain as much sugar and calories as soft drinks.

Better Juice

Photo: BetterJuice website 

 

How to enjoy a sweet taste without worrying about health?

Better Juice, an Israeli start-up founded in 2017, is working a spell. The company is trying to tackle the high sugar content of fruit juices by developing a unique natural enzymatic technology to remove sugar from juices. The technology reduces the calories and sugar content of various juices and increases the fiber content by converting naturally occurring sugars such as sucrose, glucose and fructose into prebiotics and dietary fiber without the need for additional ingredients. Better Juice has said it reduced the sugar content of fruit Juice by 30% in tests. After several years of scientific experiments, it now claims that the sugar reduction rate is as high as 80%. According to Food Navigator, the company is already working with a number of multinational beverage companies in the United States to commercialize its sugar reduction technology. Last year it formed a partnership with Citrosuco, a Brazilian orange juice producer, and set up a pilot plant to expand enzymatic technology. 

 

2) Doux matok: Use 40% less sugar and still maintain the same sweetness

 

Founded in 2014, DouxMatok is a startup that can achieve 40% less sugar but retain the same sweetness. DouxMatok is said to have developed a proprietary method for reducing sugar, using inert mineral particles as carriers for sugar molecules, By covalent binding to silica, sucrose molecules can be coated on silica particles. This method preserves the texture, sweetness, and appearance of the sugar, making the structure sweeter to our taste.

DouxMatok sugar reduction solution the first product developed by the companyPhoto: DouxMatok After sensory validation and pilot testing, Doux Matok is working with several food and beverage companies to help develop the product, is currently expanding production in Europe and the United States, and expects the first products on the market in 2020.

Amai Proteins: Sweet Protein Designed with Cloud Computing

Amai Proteins, an Israeli biotech company founded in 2016, specializes in healthy sweet protein products with zero calories and zero glycemic index, which are used as sugar substitutes.

In tropical and subtropical countries near the equator, there are many plants will secrete high sweet protein to lure animals, scientists found that they will be used in food processing. At present, kiwi sweet protein is the most widely used, but there are some problems such as high price, small quantity and short shelf life, which hinder the use of this protein.

Amai Thaumatin

Photo: Amai Proteins official website

 

Amai is taking sweet proteins found along the equatorial belt and using them Agile Integrated Computational Protein Design (AI-CPD) and fermentation techniques based on cloud computing software make these proteins suitable for the mass food market.

 

According to Amai Proteins, the sweet Proteins developed by the company are 70-100% similar to the sweet Proteins found in nature, The sweet protein can be digested in the gastrointestinal tract without causing insulin response, does not cause adverse effects on the body microbiome, liver and kidney metabolism, and is heat stable and delicious. The application of sweet protein in beverage and dairy products has great potential. So far, Amai Proteins has partnered with food and beverage groups that we are familiar with, such as Pepsi, Danone and Soda Stream. In collaboration with SodaStream, Amai Proteins has introduced different flavors of sweet soda.

02 What are the financial fathers behind Israel’s food technology?

 

Knowing Israeli food black technology, we can not help but ask, who is the father behind these star companies? What is the purpose of their investment or cooperation? 

1、Vision is to mess up the food industry, Israel’s first food technology incubator: The Kitchen FoodTech Hub 

The above mentioned Better Juice, Aleph Farms, Torr and other start-ups incubated by The Kitchen, peek at the whole leopard, we feel this startup group has different ideas.

The Kitchen FoodTech Hub It is owned by Strauss Group, an Israeli food giant, and is backed by government funds through the Israeli Innovation Incubator Program. The incubator mainly through investment in seed enterprises, hoping to use Israel’s innovative ability to deal with a possible global food, environmental and other crises. The goal is to revolutionize the global food system to make it more productive, affordable, sustainable and healthy. We saw the official websiteIts vision is to work with other partners to mess up the food industry（But if your vision is to disrupt the food industry, we’d love to hear from you.）。

Businesses that join The Kitchen will receive support to develop not only their technical expertise but also their business models. Amir Zaidman, Vice President of Business Development, The Kitchen, explains: “By the time those companies graduate, They form a clear, food-based story or concept that is not far from raising more money and bringing the product to market.”  

Businesses working with The Kitchen

Photo: TheKitchen.com

The start-up incubator is also working with global partners such as PepsiCo, Mondelez, Danone, and Chihuahua to support food technology companies. Mondelez, for example, will provide technical and business guidance to food startups selected by The Kitchen, Mondelez International will also provide startups with access to its global technology centers, facilities and experts, including R & D, food safety, marketing and operations. 

2、PepsiCo, Danone, Cargill… Titans are spending money to buy the future

Cargill, the food and agriculture giant, has invested heavily in plant-based protein in recent years, and Aleph Farms is behind it. These investments complement its traditional animal protein investments. Sonya Roberts, General Manager of Venture Capital and Strategic Pricing at Cargill Protein North America, has said that while artificial meat makes up a relatively small proportion of Cargils portfolio,Cargill sees value in investing in innovative companies such as Aleph Farms, where artificial proteins have the opportunity to supplement or even replace traditional animal protein.

Giants such as PepsiCo and Danone are betting heavily on sugar reduction, plant-based dairy and beverages. In 2016, the PepsiCo Group announced plans to expand its portfolio by 2025,Those with less than 100 calories per 12 ounces will account for two-thirds of the group’s total.PepsiCos partnership with Amai Proteins is an obvious attempt to cut sugar.

From the food giant companies investment or cooperation layout, we may be able to see some food industry trends.

03

Why is Israel at the forefront of food technology innovation? 

How to solve the problems of food and environment, and how to raise the future generation? Entrepreneurs, food companies, policymakers and venture capital funds are all pinning their hopes on technological innovation. In Israel, home to high-tech start-ups and a fast-growing food technology ecosystem, technology is undoubtedly drivingOne of the industry’s exclusive recipes for growth. The Israeli food technology industry is experiencing a boom and start-ups are striving to be the leaders of the food innovation competition. What makes this country at the forefront of food technology innovation? 

 

1, unique innovation culture: everyone can start a business

According to the 2020 Global Innovation Ecosystem Report, Israel has become the sixth largest innovation ecosystem in the world.

 

According to Orly Glick, vice president of Vintage Investment Partners, local culture is an important factor in the maturity of Israels innovation ecology. In a country that has not historically been rich, she explains, Israelis see entrepreneurship as a way to succeed.Anyone can start a business. Israel is very entrepreneurial.

 

When we looked at Israeli food companies, we found that most of the founders were professionals in a particular field, with university professors in the majority. Turning knowledge into business value for the benefit of consumers and even humanity, Israels unique culture of innovation makes business more dynamic.

 

2. Sustainable consumption and investment: incubators accelerate start-ups

 

Shifting consumer demand is driving food companies and investors see opportunities.

Ofra Strauss, chairman of Israel’s food giant, the Straus Group, believes the turning point for the industry is when food practitioners admit they can no longer stick to old ways. This is the Strauss Group working with the Israeli government to create a food technology accelerator. The Kitchen Food Tech Hub The original intention.

 

The Kitchen assesses the food industry’s future disruptors, supporting these entrepreneurs in a two-year programme to develop technical expertise and business models. The Sustainable Development Agenda is driving growth in the food technology sector, especially investment, said Jonathan Berger, Kitchens chief executive.

 

The data support this.Israel’s food technology ecosystem raised $109 million in 2018, and by mid-2019, the industry had received nearly $100 million in funding. At the moment, the whole ecosystem of innovation in Israel is maturing.

 

3. Government Support: Assist in the Establishment of Startup Ecosystems

 

Another secret recipe is the Israel Innovation Authority, The government agency was established in 1992 to play a role in the creation of an Israeli start-up ecosystem and to provide interest-free grants to entrepreneurs to encourage enterprise development.

 

The government played an important role in the birth of the kitchen. Today, the government actively finances food technology entrepreneurs through the kitchen program. In a public-private partnership, the government and Strauss invest $700000 in each start-up entering the program in return for a 20-50 per cent stake in the kitchen.

 

We may have heard many times that the spirit of innovation made Israel. But specifically,Israel’s food technology sector is driven by the country’s technological know-how, inward investment and government supportEntrepreneurship and innovation are the core values of this innovation ecosystem.