The dairy industry is on the cusp of a revolution, with traditional methods of producing milk proteins being challenged by innovative technologies that promise sustainability and efficiency. Bon Vivant, a French precision fermentation startup, is at the forefront of this change, aiming to fill the protein gap with ‘animal-free’ dairy proteins. In a recent interview with AgFunderNews, Stéphane Mac Millan, cofounder and CEO of Bon Vivant, shared his insights on the market potential for these novel products and the challenges they face.
Mac Millan is confident in the market’s appetite for animal-free dairy proteins, citing two main reasons. Firstly, the global demand for dairy is on the rise while milk production is on the decline, a trend that is expected to lead France, a major dairy producer, to import milk by 2027. Secondly, the food industry’s push towards reducing environmental impact makes these alternative proteins an attractive proposition. However, he acknowledges the hurdles, particularly in educating consumers and achieving the scale necessary to meet the demands of large food companies.
The challenge of scaling up precision fermentation is not lost on Bon Vivant, which has adopted a strategic approach of initially partnering with contract manufacturing organizations (CMOs). This allows them to refine their processes without the financial burden of constructing large-scale facilities. Eventually, though, Mac Millan emphasizes the need for their own production plants to achieve cost efficiency, reliability, and independence from the constraints of CMOs.
Partnerships are key in navigating the complexities of building large fermentation facilities. Bon Vivant is seeking alliances with established companies that have a history of fermentation at scale, extending the value chain from innovation to production.
Investor interest in the animal-free dairy space remains robust despite a challenging venture capital environment. Bon Vivant’s recent $16 million funding round, led by European biotech VC heavyweight Sofinnova Partners, is a testament to the startup’s promising technology and potential for scalability. The investors were particularly impressed by the yields Bon Vivant’s robust fungi strain could achieve, its flexibility in using various carbon sources, and the quality and breadth of the proteins being developed.
Mac Millan is bullish about the future economics of animal-free dairy proteins, predicting they will be cheaper than traditional cow-derived proteins within a decade. However, reaching this point will require investors who understand the nuances of unit economics. Bon Vivant is working towards titers that would make industrial production viable, with an eye on productivity and yield optimization.
The rising cost of sugar, a key feedstock in precision fermentation, does pose an economic challenge, but Bon Vivant’s adaptable strain can process various carbon sources, mitigating the impact of fluctuating prices. While the company explores the potential for continuous fermentation processes, it believes good economics can be achieved without them due to the limitations of current CMO capabilities.
Bon Vivant’s roadmap includes commercializing whey protein in the US by mid-2025, with regulatory filings expected this year. Casein proteins are further behind in development, but progress is being made towards commercially viable strains.
For Europe, Mac Millan urges regulatory agility to foster innovation and maintain the continent’s leadership in the dairy industry. The goal is not just to keep up but to become a frontrunner in precision fermentation for dairy.
Bon Vivant’s journey is emblematic of a broader shift in food production, one that seeks to marry technological innovation with sustainability. As the company navigates the challenges of scaling up and market education, its success could herald a new era for the dairy industry—one that is animal-free and environmentally conscious.