Fonterra Partners with Superbrewed for Protein Innovation

In a significant move within the agri-food sector, global dairy cooperative Fonterra has entered into a multi-year joint development agreement with Superbrewed Food, a startup specializing in biomass fermentation. This partnership aims to explore the potential of Superbrewed’s innovative “postbiotic” ingredient, which boasts an impressive protein content of 85% and a high PDCAAS (Protein Digestibility-Corrected Amino Acid Score) of 0.91, surpassing that of many plant-based proteins.

Fonterra, already a key player in the dairy industry, is also involved in producing ‘animal-free’ dairy proteins through precision fermentation via its startup Vivici, launched in collaboration with DSM in 2022. The new agreement will allow Fonterra to assess how this protein-rich postbiotic ingredient can complement its existing product portfolio. Additionally, the partnership is set to explore the use of lactose permeate—a byproduct of milk protein production—as a feedstock for Superbrewed’s microorganisms, creating a circular economy solution that aligns with sustainability goals.

Dr. Bryan Tracy, founder of Superbrewed Food, highlighted the compelling functionality and nutritional benefits of the ingredient, noting that Fonterra is keen on addressing the growing demand for sustainable protein sources that can work alongside traditional dairy, precision-fermented dairy, and plant-based alternatives. “It’s a very flexible ingredient, so there are lots of different use cases,” he stated, emphasizing the ingredient’s versatility across various applications.

To bolster production capabilities, Superbrewed has partnered with Döhler, a global supplier of natural ingredients, to dedicate significant fermentation capacity for the postbiotic at one of Döhler’s facilities. Large quantities of this ingredient are expected to enter the market later this year, with product launches anticipated in early 2025. Tracy also mentioned that Fonterra’s discussions revealed a mutual interest in utilizing lactose as a feedstock, confirming that Superbrewed has identified additional bacterial species capable of efficiently converting lactose into valuable ingredients.

Chris Ireland, Fonterra’s general manager of innovation partnerships, expressed enthusiasm about the collaboration, emphasizing the potential to enhance the functional and nutritional performance of food products through innovative technologies like those employed by Superbrewed. This reflects a broader trend in the food industry, where traditional companies are increasingly looking to integrate advanced biotechnologies into their offerings.

Superbrewed’s approach to fermentation differs from conventional methods. Instead of merely producing chemicals and discarding the microbial biomass, Superbrewed focuses on harvesting the entire biomass to create a whole food ingredient. This method not only maximizes the value derived from fermentation but also generates a co-product—butyric acid—that has established market demand.

Despite challenges in the capital markets, Superbrewed has paused plans to retrofit an ethanol plant in Minnesota for large-scale production to concentrate on its partnership with Döhler. However, Tracy remains optimistic about reviving the Minnesota project in the future due to the potential advantages of in-house manufacturing.

Investor interest in Superbrewed is also noteworthy. Joshua Phitouissi, managing partner at TO VC, which is leading a Series B funding round for the startup, praised the company for its compelling value proposition. He noted that Superbrewed’s product addresses the common trade-offs in protein sourcing, offering a solution that combines cost-effectiveness, superior nutrition, and functional characteristics. With plans to scale production to 1,200 metric tons per year by 2026, and aspirations for further expansion in the U.S., Superbrewed is well-positioned to become a significant player in the alternative protein market.

As the demand for sustainable protein sources continues to rise, collaborations like the one between Fonterra and Superbrewed Food may pave the way for innovative solutions that not only enhance food security but also promote environmental sustainability in the agri-food sector.

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