Chicken-less egg proteins: Ingredion leads Series B funding in Clara Foods

26 Apr 2019 --- Ingredion is leading a Series B funding round in Clara Foods, a San Francisco-based biotech start-up. Under the terms of the agreement, Ingredion will partner with Clara Foods to globally distribute and market multiple proteins derived from yeast that are traditionally found in eggs. These products will augment Ingredion’s portfolio to include highly functional proteins that will produce food and beverages with higher levels of protein and unique characteristics without the inclusion of animal-derived inputs.

This latest move complements Ingredion’s recent US$140 million investment to expand its portfolio of plant-based proteins, including pulse flours, concentrates and isolates. It comes as Ingredion also adds two high-functioning, plant-based additions to its ever-growing pet food ingredients portfolio for the US and Canada.

Clara Foods is positioned as the market leader in engineering, manufacturing and formulating animal-free, animal proteins as ingredients for the global food and beverage industry. Leveraging advanced fermentation to produce functional and nutritional proteins from microorganisms, Clara says it is reimagining the factory farm model that underpins industrial animal agriculture with a more sustainable, kinder and healthier alternative.

Clara Foods is positioned as the market leader in engineering, manufacturing and formulating animal-free, animal proteins as ingredients for the global food and beverage industry.This round of financing will fast-track commercialization of the world's first chicken-less egg proteins, expand research and development capabilities, and broaden Clara's product roadmap into many other animal proteins beyond the initial focus on egg white proteins.

“We see extraordinary value in partnering with Ingredion to distribute our products globally and look forward to jointly transforming the status quo,” says Arturo Elizondo, Founder and CEO of Clara Foods. “Ingredion has been a global supplier to the food industry for more than a century and is as committed as Clara to satiating the massive unmet consumer demand for animal-free proteins.”

The announcement comes after four years of Clara Foods quietly developing its protein production platform and raising an unannounced US$15 million Series A led by The Production Board in 2016. Other investors joining Ingredion in this round include B37 (a strategic partner of Grupo Bimbo, the world's largest baking company), Hemisphere Ventures, SOSV, among others.

Clara also announced a global partnership agreement with Ingredion. Under the agreement, the companies will work together to jointly develop, market and globally distribute novel, highly functional protein ingredient products “that enable food and beverage companies to produce products with higher levels of protein, unique characteristics, and lower costs without the inclusion of animal-derived inputs.”

“We're excited to be working with Clara Foods as they have pioneered groundbreaking technology that allows a more sustainable and cost-effective production of proteins traditionally found in animal-derived products,” says Tony DeLio, Senior Vice President, Corporate Strategy and Chief Innovation Officer. “We see a tremendous need and increasing demand for highly functional animal-free proteins in multiple applications including foods, beverages and supplements.”

Clara’s proprietary yeast fermentation technology aims to reduce the production and environmental costs of functional proteins traditionally derived from animals. The company’s clean label ingredients also deliver additional benefits that solve for animal welfare and public health issues that have historically plagued traditional systems.

This latest funding round and global commercial partnership will enable Clara Foods to further its mission of decoupling the world's most powerful proteins from the animals that make them.

“We are thrilled to partner with Ingredion to bring these first ingredients to market and redefine how the world produces animal protein at scale,” says Arturo Elizondo, Founder and CEO of Clara Foods. “Their global reach across 120 countries and their applications expertise will dramatically expand Clara’s ability to disrupt the protein market as the world's leading animal-free, animal protein ingredient manufacturer.”

Ingredion says that the launch comes amid a consumer trend of “the humanization of pets,” which is helping to drive innovation and bring next-generation pet food and treats for both dogs and cats to market.It comes as Ingredion launches PURITY P 1304 pea starch and VITESSENCE Pulse 1550 pea protein concentrate for pet food applications. The new ingredients provide superior formulation functionality while helping manufacturers meet consumer demand for grain-free, clean label pet foods with an enhanced nutritional profile.

PURITY P 1304 pea starch and VITESSENCE Pulse 1550 pea protein concentrate are positioned as ideal for manufacturers who want to formulate new products, replace other starches and flours and help support protein combinations. The two plant-based ingredients deliver the performance needed for a broad range of pet food products, including canned foods, gravies, dry kibble, treats, biscuits and more. Ingredion will sell the ingredients as part of the joint venture agreement announced in December of 2018 with Verdient Foods, Inc.

Ingredion says that the launch comes amid a consumer trend of “the humanization of pets,” which is helping to drive innovation and bring next-generation pet food and treats for both dogs and cats to market. For the pet food industry, this means that manufacturers have a lot to consider when developing a differentiation strategy — from functionality and health benefits to the research behind ingredients, sustainability and sourcing considerations and more.

“There is a trend toward vegan protein acceptability in the pet food segment,” Patrick Luchsinger, Ingredion’s Marketing and Business Development Manager, Pet Food, tells FoodIngredientsFirst. “With the ‘humanization of pets,’ pet owners are willing to spend on pet products that they relate to. Currently, there is a trend in the human food market for more sustainable vegan sources of protein such as pulses. This trend is translating over into the pet market where pulses are an acceptable, complementary form of protein,” he adds.

Luchsinger does not see protein from pulses (like pea protein) as competing directly with animal protein sources, however, but rather serving as a complementary protein source for pet food and treats. “Animal protein sources, while being high in protein, have a different amino acid profile and also are high in other minerals like calcium and magnesium,” he explains. “Pulse proteins like that of pea, are high in essential amino acids like lysine, leucine and arginine for example, and can provide an additional formulating option. These amino acids can complement animal protein sources and those amino acid profiles while balancing out minerals,” he adds.

PURITY P 1304 pea starch and VITESSENCE Pulse 1550 pea protein concentrate provides texture and structure, improve water and fat binding, and offer thickening and gelling functionality in pet food applications. PURITY P 1304 pea starch helps formulators achieve improved ingredient binding, while VITESSENCE Pulse 1550 pea protein concentrate increases the efficiency of extrusion and injection molding processes. 

VITESSENCE Pulse 1550 pea protein concentrate enables pet food companies to enhance the protein content of their products. The pea protein concentrate also gives manufacturers the ability to develop new products, reformulate current products and create protein combinations using other protein sources — for pet food and treats with a complete protein profile.

By Robin Wyers