Müller among international dairy players to invest US$2.5m in Israeli start-up Yofix
05 Feb 2020 --- Clean-label dairy alternatives company Yofix Probiotics has concluded an extended series A round of investment from new key investors, including Müller Ventures AG, bringing in a total of US$2.5 million. The new infusion of funding provides the start-up with significant leverage for attaining global expansion of its plant-based yogurts, which were launched last year. The funding also allows the company to accelerate development of its tech platform to launch more innovative soy-free dairy alternatives in additional categories. FoodIngredientsFirst talks with Yofix CEO, Steve Grün.
The series A round also includes the French Bel Group and LionTree Partners LLC, based in the US. Other investors for this round are Good Seed Ventures and HWA, as well as initial investors CPT Capital and VegInvest.
There are still unexplored opportunities in the plant-based yogurt category, according to Grün. “We are aspiring to develop tasty products with a short list of only natural ingredients. And Yofix is much more than just yogurt. We have developed a clean label platform for the dairy alternatives market, enabling us to enter much more additional segments,” he explains.
“We are at the verge of our global expansion, and therefore, need additional funds to support our international marketing and sales activities. We are also striving to increase our product portfolio beside the plant-based yogurt segment to other dairy alternative categories like milk, soft cheese and even ice cream. Prototypes have already been developed, and we want to boost our R&D efforts,” Grün reveals.
Steve Grün, CEO of Yofix (left) and Ronen Lavee (right) Meanwhile, Yofix are always open to partnerships in order to become a big player themselves. “Start-ups in this space can bring ‘out of the box’ thinking, bold entrepreneurship and innovation,” he says.
Last year, Yofix launched a new generation of clean label yogurt alternatives based on its proprietary zero-waste production process. The fermented formula is soy-free and composed of a short list of natural and highly nutritious ingredients, including oats, lentils and sesame.
It was carefully crafted to deliver the classic flavor and probiotic functionality of dairy yogurts without the dairy ingredients, serving the lactose-intolerant and dairy-allergic population as well as offering a plant-based solution for the growing vegan and flexitarian markets.
There are a lot of challenges involved, notes Grün. “Taste and texture are the main ones. For us, it is important to develop products that are clean label, meaning without all kinds of additives like preservatives, emulsifiers, thickeners and stabilizers.” At Yofix, there are no shortcuts, claims Grün. “We have developed a unique production process that enables us to bring products from field to spoon,” he continues. “Our yogurts are also fermented with billions of live cultures and are granting a feeling of satiety.”
The main plant-based yogurts today are produced from soy, almonds or cashew. Yofix products are soy-free as soy still remains a controversial ingredient. “We have chosen sustainable ingredients like oats, lentils and sesame to use in our products,” Grün adds.
“In the fast-growing dairy alternative space, Yofix offers a unique range of quality products, both in terms of flavor and texture,” notes Benjamin Bugl, Managing Director of Müller Ventures. “With no artificial ingredients, its clean label solution is a powerful differentiator for consumer awareness and acceptance. Combined with Yofix’ strong management team, this makes it an attractive investment opportunity for Müller.”
“The rise of flexitarianism has led to strong, growing demand for plant-based products worldwide,” adds Fatine Layt, Head of France of LionTree. “Yofix has a unique positioning, offering 100 percent clean label plant-based yogurt and a promising platform for delivering not only yogurts and drinkable yogurts, but a complete portfolio of real dairy replacements. More importantly, they hit all the desired organoleptic marks. We are enthusiastic to witness its next steps and facilitate its growth through our global network.”
Since the launch of its line of yogurt alternatives, the start-up has been awarded the final €100,000 grant from the PepsiCo 2018 Nutrition Greenhouse program, and more recently was elected as one of the 50 most innovative companies at Anuga 2019 in Cologne.
“Receiving the financial investment by such prominent multinational players of the dairy industry is an endorsement of trust and confidence in our products and technology,” adds Grün.
“This fresh influx opens the door to new possibilities. Over the next few years, we will focus strategic efforts on expanding our line of dairy alternatives – which also includes oat yogurt shakes – into the global market. The support will also boost the advancement of our efforts toward developing more clean-label plant-based offerings that extend into alternative cheeses, frozen desserts, and milk alternatives – the prospects are boundless,” he further explains.
Yofix was the first start-up to be housed by The Kitchen Hub, the FoodTech incubator established five years ago by the Strauss Group. Strauss led the first leg of the seed round back in 2017. “We are very excited about the future of Yofix. Strauss Group, through The Kitchen Hub, has long supported FoodTech start-ups. Yofix is one of the most promising startups in our portfolio,” says Jonathan Berger, CEO of The Kitchen.
In January last year, Yofix was one of the ten finalists in PepsiCo’s European Nutrition Greenhouse program. The start-up was awarded the final €100,000 grant (US$114,000) following a six-month journey.
By Elizabeth Green
