Zero Egg scores US$5m in funding to “make plant-based foods the norm”

12 Nov 2020 --- Plant-based egg alternative producer, Zero Egg, has raised US$5 million in Series A funding following its launch in the US.

Made from a blend of plant proteins – including soy, potatoes, peas and chickpeas – it “scrambles, bakes and fluffs just like an ordinary egg,” according to the company.

Funding for the alternative that “functions like an ordinary egg” was led by Powerplant Ventures, and joined by existing investors Unovis Asset Management-New Crop Capital and Strauss Group-The Kitchen Hub.

The company reports that it will use the funding to grow the brand in the US and support “ambitious new product launches” in the coming year for both foodservice and food manufacturers. 

Vegan trends abound
According to Innova Market Insights, new launches with vegan claims have seen a substantial rise and are becoming more mainstream. The market researcher notes a 21 percent annual growth of F&B launches tracked with vegan claims (Global, 2015-2019). Zero Eggs reports that some 100 billion eggs are consumed each year in the US alone, providing ample opportunity for alternatives in the space.

“Our goal is to meet growing consumer demand for an egg replacement that is effective, nutritious, versatile and kind to animals and to the planet,” says Liron Nimrodi, CEO and co-founder of Zero Egg.  

Zero Eggs reports that some 100 billion eggs are consumed each year in the US alone, providing ample opportunity for alternatives in the space. 

“By filling the white space in the foodservice industry for plant-based egg alternatives, Zero Egg aims to make plant-based foods the norm and empower the era of sustainable foods,” Nimrodi adds.

Eggs in demand
Powerplant Ventures co-founder and partner TK Pillan calls Zero Egg a “game-changer for the industry,” due to its versatile functionality and focus on the environment, animal welfare and people’s health.

“I’ve been on a mission to offer practical plant-based options for consumers at both the retail and restaurant level for many years. What has been missing until now is a complete, affordable plant-based alternative for eggs,” says Pillan, who is also a veteran plant-based restaurateur.  

“We’re proud to invest in their team and confident it will be the much-needed affordable and versatile solution for operators looking to continue to reduce their use of animal products,” Pillan adds.  

A rapidly expanding category Zero Egg is targeting foodservice, as well as retail, to make “plant-based alternatives the norm.”
The success of plant-based milk, which now makes up 14 percent of the US milk category and has more than 40 percent household penetration, has laid the groundwork for major increases in other plant-based dairy categories, according to The Good Food Institute (GFI).

Plant-based eggs were the fastest-growing plant-based category in 2019, with 192 percent growth over the prior year, reveals the GFI.

“The egg category is massive and the potential to disrupt it with an accessible plant-based solution is fairly untapped in the food industry,” says Dan Y Altschuler Malek, managing director, Unovis Asset Management-New Crop Capital and Zero Egg board member. 

“As investors, we are looking forward to continuing to support the expansion of Zero Egg in the US market.” 

In addition to the US, Zero Egg is distributed in Israel and Europe. 

Egg alternatives roll out
In May, US-based Just, producer of the Just Egg, entered into strategic partnerships to make its plant-based egg alternative more widely available. 

A partnership with the Emsland Group scaled up Just’s mung bean processing capacity, the key ingredient in the Just Egg.

In the same month, Just inked a deal with Post Holdings’ Michael Foods, where Michael Foods became the exclusive manufacturer, supplier and distributor of Just Egg to foodservice and food ingredient customers. 

Edited by Missy Green