In a significant development that could reshape the dairy industry, Vivici, a startup established by Fonterra and DSM-Firmenich, has announced its readiness to supply commercial quantities of whey protein produced through fermentation to the US market. This breakthrough comes just over a year after the company’s formation, signaling an accelerated progress within the ‘animal-free dairy’ category.
Vivici’s rapid advancement is attributed to the combined expertise of its founders in dairy proteins and industrial-scale biomanufacturing. Stephan van Sint Fiet, CEO of Vivici, shared with AgFunderNews that the company utilizes proprietary biotechnology with yeast strains industrially optimized over decades. This has allowed Vivici to complete the scale-up activities from the laboratory to commercial-scale production, including a successful tech transfer to a 120m³ fermenter.
The company is not resting on its laurels, though. While already achieving commercially viable and competitive titers, van Sint Fiet revealed that Vivici is actively pursuing both classical strain optimization and next-generation technologies. These efforts are aimed at enhancing productivity and realizing the potential of continuous fermentation.
A Disruptive Approach to Dairy Protein Production
The process of creating a dairy protein ingredients business using precision fermentation is complex and multifaceted. It requires robust capabilities across the entire value chain, including R&D, manufacturing, regulatory compliance, supply chain management, application development, marketing, and post-sales support. Van Sint Fiet emphasized that Vivici boasts a team adept at building and running successful ingredients businesses, which positions them favorably in the market.
From a nutritional standpoint, Vivici’s beta-lactoglobulin isolate not only rivals but in some cases surpasses plant protein isolates and traditional whey protein isolates. Marcel Wubbolts, CTO of Vivici, highlighted the isolate’s high content of amino acids that are beneficial for muscle growth and recovery, making it particularly appealing for fitness enthusiasts.
Pricing and Market Potential
Addressing the matter of pricing, van Sint Fiet is confident about achieving price parity with traditional whey protein, thanks to identified cost levers and systematic efforts to address them. This is a crucial factor in the widespread adoption of the product.
Vivici’s entry into the market is timely, as Nestlé recently introduced a limited edition Orgain protein powder featuring beta-lactoglobulin from fermentation. Branded as ‘Better Whey’, it is marketed as a more sustainable and digestible alternative to regular whey. The move reflects a growing interest among large manufacturers to explore fermentation-derived beta-lactoglobulin as a means to reduce their carbon footprint and benefit from its nutritional advantages.
The Global Landscape of Animal-Free Dairy
Vivici joins a burgeoning group of companies producing dairy proteins with microbes instead of cows. This includes Perfect Day, New Culture, Change Foods, Imagindairy, Remilk, Formo, Those Vegan Cowboys, Bon Vivant, Standing Ovation, Eden Brew, Zero Cow Factory, Real Deal Milk, Better Dairy, and De Novo Foodlabs, each making strides in their respective markets.
Perfect Day is enhancing its in-house capacity after recently installing an interim CEO. Remilk has shifted gears from building a large-scale facility to ramping up production with a contract manufacturer. Imagindairy has secured industrial-scale precision fermentation production lines, and its products are expected to hit the US market this year.
Implications for the Industry
The rapid progress of Vivici and its peers suggests a significant shift in the dairy industry. With the global demand for dairy increasing and milk production declining, alternative dairy proteins produced through precision fermentation present an economically viable and environmentally friendly solution. The implications for the dairy market are profound, as these advancements could lead to a reduction in reliance on traditional dairy farming, with benefits for sustainability, animal welfare, and meeting the dietary needs of lactose-intolerant and vegan consumers.
As the ‘animal-free dairy’ category continues to evolve, it becomes increasingly clear that the future of dairy might not involve cows at all, but rather the microscopic work of industrially optimized yeast strains.