Seattle-based startup Atomo has unveiled what it claims is the “world’s first beanless espresso” made from upcycled date pits. The company plans to open a facility in March 2024 that will be able to produce four million pounds of ground coffee a year, equivalent to around 80 million cups. Atomo’s aim is to gain traction across hundreds of coffee shops and then raise additional funds to build a factory capable of producing 40 million pounds a year. The startup is backed by $51.6m from investors including S2G Ventures, AgFunder, and Horizons Ventures.
Atomo, founded in 2019, originally focused on making beanless cold brew in cans but has recently shifted its focus to grounds. The new grounds formulation, showcased in New York, contains date seeds, ramon seeds, sunflower seed extract, fructose, pea protein, millet, lemon, guava, defatted fenugreek seeds, caffeine from green tea, and baking soda. Atomo’s CEO, Andy Kleitsch, claims that the espresso made from these ingredients delivers the “mouthfeel, taste, and aroma” of coffee.
The company’s long-term plan is to create a platform that can adapt to different ingredients from various regions, addressing the supply chain problems that major coffee companies anticipate by 2050. Atomo has been approached by several major coffee companies interested in collaborating due to the potential impact on the coffee industry.
While Atomo and other startups in the “beanless” coffee space are attempting to solve a structural problem in the coffee industry, it remains to be seen if consumers will embrace this alternative. Atomo is addressing potential consumer concerns by offering customizable caffeine content and a smoother, less acidic cup. The company is targeting alternative milk drinkers and those who have made dietary changes for environmental or health reasons.
At this early stage, Atomo is charging coffee shops $20.99 per pound, higher than comparable coffee products. However, the company claims it has not received any pushback from coffee shops. In the long term, Atomo aims to work with large coffee brands and expand into different markets, including Asia.
There are other players in the beanless coffee space, such as Minus Coffee and Voyage Foods, which use upcycled plant-based ingredients, and biotech startups like Stem and California Cultured, which grow “real” coffee from plant cell culture. Atomo believes there is room in the market for multiple approaches but believes it has the best solution.
As the coffee industry faces supply chain challenges, startups like Atomo are innovating to provide alternatives. While consumer acceptance remains uncertain, Atomo’s focus on taste, customization, and sustainability could position it as a viable option for coffee drinkers in the future.