Cost-effective carmine alternative scoops Start-Up Innovation Challenge Award

29 Nov 2017 --- Danish start-up company Chromologics has won the Start-Up Innovation challenge at Fi Europe for their natural red color solution. The biotech company, with just 5 employees, was spun out from the Technical University of Denmark after many years of research and is now looking to find funding in order to cross the lengthy and complex regulatory minefield ahead.

Chromologics has developed a patented fermentation process, employing a non-GMO filamentous fungus for the production of bio-based pigments. Their lead product is a red color, called ChromoRed, whose technical properties are more pH stable and heat stable than most of the competing natural red colorants.

The company started in September 2016 and applied for funding, receiving initial soft money funding of US$200k. They subsequently filed a patent and then signed the spin-off deal. Chromologics is now looking to raise a further US$500k in the short term in order to “lock the process” and start the regulatory pathway for clearance.

“Consumers want natural foods and natural ingredients. All over the world this is the case. Color is key when deciding which food to purchase and these types of trends have led major companies such as Nestle to aim to get rid of synthetic colors and switch completely to natural colors,” CSO Anders Ødum notes in a presentation.

“But there are some issues with natural colors – most are extracted from agricultural crops, such as tomato, beetroot and black carrot and they have very low yields, which then leads to seasonal dependent prices. Carmine is a very dependable color, which is extracted from insects and trades at just US$100-120 per kilo, but because it is from insects it is not vegan, halal or kosher, which is a major problem for many. On the other hand natural colors are very unstable from a pH perspective,” he says. 

Chromologics offers a solution from fermentation, produced in a similar way to how enzymes are produced for detergents. “Our color is a sustainable, stable, highly cost-effective and very similar in performance to carmine. The ingredient has a highly intense red, which means that very little is required to color foods. We have patented the compound itself,” he notes.

In classic start-up style, the potential active strain came to light by total chance. “A professor found the fungus growing on a supermarket on a bell pepper and thought to himself ‘we don’t have this in our strain collection’,” he quips.

Ødum notes that there are not taste issues with the ingredient. “We taste-tested it in milk and water applications. We blind tested it and couldn’t taste any real difference. The taste is very neutral. We did the first toxicity testing and it passed very well without being genotoxic.” The company is currently testing their ingredient in meats and yogurt applications.

Carmine replacement will be the priority for this ingredient innovation. “We really want to help our customers to replace carmine, which is a market worth around US$200 million a year. We can also look to replace synthetics too but carmine is the one that all companies really want to get rid of. There are a lot of big ingredient companies in this space, but we believe that it is possible to enter it because we have a new compound and a completely different process with some very good features. The pricing stability is something that the other ingredients don’t have. With time we will be able to reduce it further even,” he explains. “We are aiming at being available at the same price as carmine once we can increase the yields.” 

In fact Chromologics has collaborated with two major food colors suppliers in the development process. “They have really helped us to identify which parameters are good and which markets we should go for.” “In terms of potential exits, we will have to assess the situation at that given time, as we are in this to build a real company.”

Ødum notes, however, that they are still in the development phase and need to get regulatory approval and an additive approval with corresponding E-number. “This means that it may take 3-4 years before we get to enter the market,” he notes.

Moving forward from a development perspective, other colors, such as yellow are possible. “We have some ideas for how to make blue and purple colors but that would require genetic engineering. We could also maybe use it as a novel food in cheeses, or in cereal bars as the fungus used naturally contains a lot of fiber. In China there is a similar product which is used as a supplement, so that could maybe work too,” he says. “The problem is that many colors are well-known structures, so it is difficult for companies protect potential investments.”

Koupe finished as runner-up in the main award. This Dutch company has developed a new range of high-protein ice cream that is promoted as tasty, but also good for health, compared to normal ice cream.