German fermentation startup’s co-founder Roman Plewka and his team have secured a significant $61 million Collection B investment to further scale up production of their innovative, climate-conscious and animal-free cheese, fueled by a shared passion for food and dairy.
The Berlin-based startup’s initial foray into merchandise leveraged the unique properties of Koji protein, a type of fungal microorganism commonly used in various Asian cuisines, such as? For centuries, Japan has revered a trio of fermented condiments – miso, soy sauce, and others. While Koji has been a historic ingredient, Formo asserts its pioneering role in leveraging this ancient tool to produce industrial quantities of dairy-free cheese, revolutionizing the industry with its innovative approach.
Factor is that the phrase “vegan cheese” can clear a room faster than a slab of sarcasm. Numerous initial iterations of non-dairy-based cheese products fall woefully short of their dairy counterparts’ authentic taste and quality. While vegan cheese alternatives often employ plant-based proteins as their foundation, they are frequently supplemented with various ingredients to create a product that closely mimics the taste and texture of traditional cheese. Unfortunately, this often implies unwholesome, unpleasantly flavored (with no redeeming quality akin to fine cheese) comestibles accompanied by an unpleasantly sticky sensation in the mouth.
While higher-quality vegan cheeses do indeed exist, their production methods may occasionally involve processes that drive up their retail prices. By incorporating Koji proteins into its products, Formo introduces a modern innovation to a complex category, aiming to simplify the experience for consumers through this unique approach.
As a fungus, Koji isn’t a plant; it’s a microscopic organism. Proteins may be cultivated through fermentation processes in large vessels, with the approach bearing some resemblance to the art of brewing beer. According to Plewka, Forma’s plant-based cheeses offer a healthy substitute for traditional meals, boasting “like-for-like” protein levels comparable to those found in dairy cheese.
“We founded our corporation in 2019 and have since built three proprietary technology platforms, resulting in a substantial portfolio of intellectual property – including patents and trade secrets.” “As we’ve consistently been the sole entity poised to launch high-quality products at full commercial scale alongside the world’s second-largest retailer, this strategic positioning has generated significant investor interest in our recent Series B round.”
Twin technique
By leveraging Koji as its starter protein, Formo can circumvent the need for novel food authorization from European regulators, thereby expediting product-to-market times and generating revenue sooner.
While Formo dubs itself a precision fermentation startup, Plewka highlights the “twin technique” – initiated by a process called “micro fermentation”, which does not involve genetically modifying microorganisms, thereby eliminating the need for regulatory approvals for novel foods.
Formo’s initial foray into cheese production involves a more fundamental process: fermenting and harvesting Koji proteins in its first wave of artisanal cheeses. Using the resulting liquid, the process yields a range of artisanal cheeses. Given the lack of innovation in substance, there’s no need for Koji-based cheese to secure regulatory clearance. While exploring opportunities in future merchandise, the company aims to venture into gene modification of microorganisms to produce milk proteins without relying on cows, thereby expanding its range of animal-free cheeses.
While Formo’s initial offerings of plant-based cheeses do command a slightly higher price point than their dairy counterparts, the recommended retail value (RRP) for these innovative products reflects the value proposition they bring to consumers seeking high-quality, sustainable alternatives. Here’s the improved text: Our initial offerings include a cream cheese-inspired spreadable curd, dubbed Frishchain (€2.89), and a refined brie-style delicacy, known as Camembritz (€3.99). According to Plewka, the startup is poised to achieve price parity – potentially undercutting competitors in the process – as it refines its technologies and scales production.
The startup spent 5 years of R&D to develop its manufacturing platforms so it could produce a variety of various kinds of cheeses (feta-style and blue are the following merchandise in its pipeline). Last week, the primary products hit store shelves, available in four different varieties: plain and three flavors – herb and tomato – for the spreadable product. The launch was supported by a wide distribution network, with over 2,000 REWE, BILLA and METRO stores in Germany and Austria offering the new items.
While price compression may be one tactic employed by Formo, the company’s commitment to exceptional quality and significant environmental as well as animal welfare advancements warrants a premium over traditional dairy products.
Animal husbandry, an inherently land- and resource-intensive practice, poses a significant environmental concern: the dairy industry alone accounts for approximately 3.4% of global carbon emissions. The use of intensive farming methods has raised concerns about animal welfare, with negative consequences for human health as well, including the potential for hormones and antibiotics to enter the food chain. Vegan cheese makers must surmount a significant hurdle to achieve profitability: convincing consumers to adopt their products on a large scale.
According to Formo, their innovative micro-fermentation process for Frischhain yields a remarkable 65% reduction in emissions compared to traditional dairy-based methods. Moreover, this sustainable approach necessitates only 83% of the land and an astonishing 96% less water than its dairy counterpart, underscoring the significant environmental advantages of Formo’s cutting-edge technology.
Without any additives or scary components beyond Koji proteins, plant-based proteins, water, and a touch of salt, Formo avoids being accused of producing highly processed foods. Plewka asserts that his plant-based cheeses, designed as transparent alternatives, offer a nutritionally equivalent substitute for traditional dairy products.
The entrepreneur believes Formo’s initial product line may warrant a blind taste test comparison with dairy-based cheese. To effectively encourage others to adopt sustainable dietary habits, it’s crucial to present genuine, precision-crafted arguments to those who are inclined to make the necessary changes in their eating routines to minimize their environmental footprint.
Scrumptious, joy-filled cheese?
“We must strive to provide exceptional products that not only meet customer expectations but also benefit the environment, animals, and society at large without any negative consequences or externalities.” “This actually is our mission. Given the limitations inherent in plant-based proteins, it’s evident that they cannot effectively replicate the processes involved in cheese production, thus rendering their use in this context impractical. We’ve leveraged precision fermentation to produce authentic and bio-identical proteins, enabling the creation of genuine cheese.
With a proven track record in food investments and a confessed passion for culinary delights, Plewka arrived in Formo. As he delved deeper into the food industry, he discovered that the more he learned, the more troubled he became by inefficiencies and pressing concerns – from animal welfare and environmental degradation to supply chain vulnerabilities and a lack of resilience. This innovative venture represents his bold attempt to rectify these issues.
Currently, Formo is capable of manufacturing 100 tonnes each month of non-dairy-based fermented Koji protein and plant protein-based cheese. The fresh injection of funding enables the company to significantly expand its production capacity to a whopping 1,000 tonnes monthly by early 2025, according to Plewka.
The plant-based milk base produced by the company can be transferred to traditional cheesemakers, allowing them to craft a finished product – as Formo is already doing – by combining ancient processing techniques with modern sustainability goals to create an artisanal yet vegan food item.
With the Collection B funds, Formo plans to expand its development into different European markets and beyond.
The global cheese market boasts a staggering value of over $240 billion, making it an attractive opportunity for any business looking to get in on the action. It’s easy to understand why entrepreneurs’ eyes light up at the prospect of tapping into this lucrative market.
With the lengthy, preliminary years of R&D behind it, Formo is sounding bullish over the place its journey will go from right here on in, suggesting it should attain internet profitability sooner reasonably than later, regardless of solely launching its first merchandise every week in the past. Plewka notes that early reactions have been nothing short of phenomenal.
As a pioneer in the field, it aims to venture into precision fermentation – a cutting-edge process where a microorganism like yeast is genetically engineered to produce, for example, milk proteins without involving any cows.
Several startups specializing in precision fermentation, akin to those found in France, are now focused on developing non-animal-based cheeses. Rising interest surrounds the potential for commercializing strategies that revamp the dairy industry’s approach. However, merchandise requiring regulatory clearance as novel foods will likely necessitate regional launches that remain uncertain for years to come. Hence, the pioneering debut of a revolutionary, plant-based ice cream, where microbial proteins are seamlessly integrated to create a game-changing dessert.
According to Plewka, Formo must utilize non-animal-derived casein proteins to manufacture and market meltable varieties of cheese to its clients. He believes that achieving meltability could prove challenging in the production of koji-based cheeses. By commencing with the production of fungus-based fermented products, a company can swiftly reach the market, establish revenue streams, and concurrently develop a consumer-focused strategy.
“Indeed, the game-changer for casein lies in its exceptional ability to provide elasticity,” As the heat warms the cheese, it begins to melt, yielding a smooth, pliable consistency that’s reminiscent of mozzarella’s signature creaminess, with its characteristic gooeyness and stretchiness emerging in response. “So, unfortunately, our merchandise are currently restrained from achieving optimal performance.”
Formo’s B spherical has garnered a coalition of investors, comprising present buyers such as Elevat3 Capital, EQT Ventures, Foodlabs, Grazia Capital, Happiness Capital, Lowercarbon Capital, and M Ventures, alongside new additions like REWE Group, Europe’s second-largest retailer, which has already started stocking its products. The newly formed group also includes Indiposa Investments, Sazaby League, Seven Ventures, The Nature Conservancy, and Woodline Companions.
