In the rapidly evolving landscape of alternative proteins, Australian startup All G is positioning itself to make a significant impact by leveraging precision fermentation to produce high-value dairy proteins. Founded in late 2020 by Jan Pacas, who previously co-founded successful ventures like Mad Paws and Flare, the company is set to launch its first product, bovine lactoferrin, in early 2024, followed by human lactoferrin in 2026 and casein proteins thereafter.
Lactoferrin, an iron-binding protein found in mammalian milk, boasts a range of health benefits, including enhanced immunity and digestive health. Historically, the extraction of lactoferrin from milk has been a costly and labor-intensive process, requiring thousands of liters of milk to produce a single kilogram. All G aims to revolutionize this market by producing lactoferrin through fermentation using genetically engineered microbes, a strategy that could unlock new opportunities in adult nutrition, nutraceuticals, and cosmetics.
Pacas emphasizes a disciplined approach to market entry, focusing on profitability from the outset. “First you own a highly profitable niche at a high price point before you go gradually down,” he explains. This strategy is a response to the pitfalls many startups face in the cellular agriculture sector, where negative margins have plagued numerous ventures. By ensuring that their products are launched with positive margins, All G is setting a precedent for sustainable growth in the industry.
The market potential for bovine lactoferrin is substantial, particularly as the company has identified four primary segments to target: infant formula, adult nutrition, nutraceuticals, and personal care. While infant formula represents the largest market, regulatory hurdles have led All G to focus on the other segments initially. “We’ve had conversations with big players who said that if we can meet their pricing, they will start incorporating lactoferrin into yogurts and mainstream products,” Pacas reveals. This indicates a readiness in the market for an affordable source of lactoferrin, which could significantly expand its applications.
From a regulatory standpoint, All G is on track to achieve self-GRAS (Generally Recognized as Safe) status in the U.S. and hopes to secure a ‘no questions’ letter from the FDA in the near future. The company is also pursuing approvals in large Asian markets, which could further enhance its growth trajectory. Manufacturing partnerships are crucial to their strategy, with collaborations established with U.S.-based Liberation Labs and Australian company Cauldron, both of which are expanding fermentation capacities to meet All G’s needs.
The company’s plans for casein proteins, while currently on the back burner, are equally ambitious. Dr. Jared Raynes, All G’s Chief Science Officer and former dairy team leader at CSIRO, explains that the company is developing recombinant casein proteins that mimic the natural processes occurring in cow’s milk. This involves creating micelles—structures essential for the functionality of dairy products—through a precise replication of the phosphorylation process that occurs in nature. Raynes emphasizes that this foundational research sets All G apart from competitors, enabling the company to offer customizable solutions for food manufacturers.
As All G prepares for its product launches, it has already secured approximately AUD 45 million ($30 million) in funding from various investors, including Döhler Ventures and Woolworths’ venture arm W23. The company is currently raising additional funds to support its upcoming initiatives, reflecting a cautious optimism in an investment landscape that has seen its share of turbulence.
Overall, All G’s strategic focus on high-value dairy proteins through precision fermentation not only positions it well within the burgeoning alternative protein market but also addresses the growing consumer demand for sustainable and health-oriented food products. As the company gears up for its product launches, the implications for both the dairy industry and consumers could be profound, potentially reshaping how dairy proteins are sourced and utilized in various applications.