Better Juice lands US$8M in seed round funding for “revolutionary” sugar reduction juice tech

23 Jun 2021 --- Biotechnology company Better Juice has raised US$8 million in seed round investment for its enzymatic technology, which reduces sugar content in fruit juices – a process its creators say will fulfill a “significant need” in the better-for-you segment.

The funding will be used to build a full-scale manufacturing plant in Israel and meet growing consumer demand for healthier beverage options. The new high-tech plant will increase production capacity by 40-fold and generate up to US$50 million in sales annually.

Speaking to NutritionInsight, Eran Blachinsky, founder and CEO of Better Juice, says the current investment round will enable the company to begin its sales. 

“During the next 18 months, which is the first commercializing period, we expect to install some bio-reactors.” 

“With these funds, we can establish a production line for the immobilized microorganisms, recruit sales and marketing (S&M) and production personnel to our team, and more to support sales growth.”

Investments were led by Israeli investment group iAngels and include Maverick Ventures; Food Tech Lab, The Kitchen Hub (as part of the Strauss Group and IIA); NEOME; Schestowitz Group; and Semillero.

Innova Market Insights reports 91 percent of consumers are influenced by sugar reduction claims.Sugar reduction tech 
Better Juice’s technology can reduce sugar content in fruit juices without reducing nutritional or prebiotic value. It does so by using natural enzymes in non-GMO microorganisms to convert sugars in juice into non-digestible compounds, such as dietary fibers.

“These enzymes change the molecular structure of the sugars to non-digestible, yet natural, molecules like dietary fibers, gluconic acid and sorbitol,” explains Blachinsky. 

“We immobilize these unique microorganisms so the enzymes can be used for a long period of time. Once immobilized, the microorganisms are placed in a bioreactor for enabling a continuous flow of the juice.”

The process removes all sugars – namely sucrose, fructose and glucose – from any fruit juice, regardless of its sugar composition. It also has a minimal impact on final juice cost and can be easily integrated into existing manufacturing facilities, says the company. 

Blachinsky says that a central difficulty in creating Better Juice’s technology is keeping the process clean from microbial contamination for the long operating time of the bioreactor.

“We cannot disclose how it was solved – it is a trade secret – but we did it. We validated a two months continuous flow process clean from contaminations.”

The sugar reduction boom
Better Juice will be able to generate US$50 million in annual sales with increased production capacity.The resulting drop in sugar content provides two key health benefits for consumers, Blachinsky says. 

“By reducing sugar, we are serving the growing health-conscious population, who seek better-for-you beverages with low sugar content. They can even enjoy ice cream containing sugar-reduced juice.” 

“The other aspect is that we can enrich the juice by adding beneficial dietary fibers and gluconic acids.”

This year, Innova Market Insights highlighted the importance of sugar reduction reformulations in “better-for-you” developments, noting that 91 percent of consumers are “at least a little” influenced by sugar reduction claims.

Maintaining indulgent tastes in sweet products is also essential when removing unhealthy ingredients, notes the market researcher. 

Better Juice says its technology has no negative impact on the smell or taste of the juice, except for reducing its sweetness. Manufacturers can also tailor their processes to select the amount of sugar they would like to remove.

Scaling up 
In January, the company began collaborating with Germany-based GEA Group, a process engineering specialist for the F&B sector. 

GEA agreed to help design, manufacture and install Better Juice’s sugar reduction bioreactor. The agreement included the development of three designs for small, medium and large production capacities. 

Blachinsky says the company is eyeing fresh technological developments and further funding rounds in the near future. 

“We cannot stay in our comfort zone. We must continue and improve ourselves, find new solutions, adjust to new F&B applications and more,” he remarks. 

“As for the next round, in 18 months from now, we will raise a series A round that will be focused on the growing demand for our solution and developing new, interesting solutions to the F&B industry. As we enter the next phase for growth, we foresee that we will need to bolster our production capabilities and will require more S&M personnel to support it.”

By Louis Gore-Langton