BGP Expert talk: Future food foresights with expert Tony Hunter

BGP Expert Talk

In this BGP Expert Talk, Floor Buitelaar, Managing Partner at Bright Green Partners, speaks with Tony Hunter, a leading food futurist, scientist, and strategic foresight consultant with decades of experience. Known for his expertise in food, beverage, and agriculture, Tony provides a unique perspective on where the agri-food industry is heading. Their discussion covers foresighting, consumer trends, and major shifts anticipated in food production and development.

What does foresighting mean for food systems?

Tony opens by emphasizing that foresighting is less about predicting the future and more about identifying “signals of change” that reveal potential shifts in the food system’s trajectory. These signals suggest that the global food system of 2050 will be vastly different from today’s. With “alternative futures” as possibilities, foresighting allows companies to anticipate and prepare for multiple outcomes. This approach equips companies to handle disruptions, helping them develop strategies that keep them competitive regardless of how the future unfolds.

How can companies use future exploration to guide today’s decisions?

Exploring future scenarios helps companies make strategic decisions today, even if these futures seem distant. Tony explains that “backcasting”, working backward from a potential future vision, reveals the steps, resources, and strategies necessary to reach it. By establishing adaptable core strategies, companies can respond to evolving industry trends and make timely decisions, staying ahead of competitors.

What are some major consumer trends in agri-food tech?

Tony identifies two transformative trends shaping agri-food tech: personalization and the rise of Generation Alpha. Personalization is now integral to our lives, from Netflix recommendations to loyalty programs, and soon, consumers will demand the same tailored experience in their food choices. He anticipates that personalization in food will become essential to meet consumer expectations around health and wellness.

Generation Alpha, born between 2010 and 2024, represents another significant trend. Expected to number 2 billion by the end of the year, they are not only digital natives but also “technology natives.” Growing up with innovations like robotics, mRNA vaccines, and generative artificial intelligence, this generation will likely embrace food technology seamlessly, profoundly influencing the future food system.

How will the product development cycle change in the future?

Tony foresees a major transformation in the product development cycle for food companies. Traditionally, bringing a new product from concept to market could take 18 months or longer. However, as technology accelerates, this timeline could shrink to as little as 18 weeks. This accelerated cycle will require companies to become more agile, with faster decision-making, leaner development processes, and rapid testing to keep pace.

Tony explains that this shift demands that companies rethink how they approach prototyping, testing, and consumer feedback, making speed a competitive advantage. Those that can quickly adapt will be better positioned to capture emerging consumer trends, meeting demands and maintaining relevance in an increasingly dynamic market.

What would you say in terms of resource efficiency?

Sustainability is a driving factor for the future of food systems, with Tony emphasizing the need to conserve fresh water and arable land. As global freshwater supplies continue to diminish, technologies that reduce water use or enable recycling will be highly valuable. Companies that prioritize resource efficiency not only support sustainable practices but also gain a competitive advantage as resource scarcity becomes more pressing.

What mindset or cultural shifts do organizations need?

“No one can predict the future. There are many possible futures, which means flexibility and agility are essential. When planning ahead, forget the usual three- or five-year approach where you just tack on another year. You have to look longer term, and ten years is a great timeframe. When you ask people what they’ll be doing in ten years, they often respond, ‘I’m not really sure.’ But ask them about next year, next month, or next week, and they’re far more certain. That ten-year view opens up the mind to new possibilities.

In line with this, it’s important to remember that people think linearly—one week is one week, one year is one year—but technology progresses exponentially. So, where people might expect steady progress—1, 2, 3, 4, 5—technology advances at a rate like 2, 4, 8, 16, 32. This makes it dangerous to plan in a linear way in an exponential world. Organizations need to adopt an exponential, rather than a linear, mindset,” Tony says.

Final reflections from Tony

Tony concludes on an optimistic note, emphasizing his belief in technology's potential to address global challenges, including feeding a growing population. “One thing to remember,” he says, “you cannot solve today’s problems with yesterday’s technologies.” For him, embracing technological innovation is key to navigating the future of food. Tony believes that this is the most exciting time in decades for the food industry, especially for those prepared to lead with forward-thinking solutions.

Are you prepared to position your business at the forefront of the sustainable food industry? Connect with Floor Buitelaar, Managing Partner at Bright Green Partners, to explore how we can craft a tailored strategy that aligns with your company’s objectives. Don’t wait for the market to evolve—take proactive steps now to lead in innovation and sustainability.

Hybrid food products: Bridging sustainable food and taste

Why you should read this
Discover how hybrid food products, combinations of animal and plant-based ingredients, are reshaping the sustainable food landscape. This article explores the potential of hybrid foods, their environmental impact, consumer acceptance, and how companies can effectively position these innovative products to capture this growing market.

READING TIME: 8-10 MINUTES

As consumer demand for sustainable food grows, an increasingly interesting option are hybrid products to cater to those seeking environmental benefits without giving up the tastes they love. But hybrids are more than just a compromise. Done right, they offer enhanced flavor, better nutrition, and a lower carbon footprint, making them a unique solution for flexitarians and environmentally-conscious eaters alike. This article dives into why hybrids are gaining traction, the challenges they face, and how companies can leverage innovation to get the right flavor, nutrition, and positioning mix to capture this growing market segment. If you want to understand the future of hybrid foods and how to capitalize on their potential, keep reading to learn about this.

Environmental potential

One of the main reasons to consider hybrids is their potential to reduce the GHG emissions per kg or per nutritional value of a food product. For example, a recent study in Nature, found that if 50% of the main animal products (pork, chicken, beef and milk) are substituted—net reduction of forest and natural land is almost fully halted and agriculture and land use GHG emissions decline by 31% in 2050 compared to 2020. The reduction in animal product consumption can also come in a way of a partial substation with plant-based ingredients in food items such as processed meats and dairy products. These plant-based ingredients have a significantly smaller carbon footprint than their animal counterparts and can drastically reduce the footprint of the blended hybrid product. 

Hybrid product taste 

Whether this environmental potential will be realized and at what pace, depends on consumers’ acceptance of these hybrid products. Several recent studies (Caputo et al. 2022, Chandler & McSweeney 2022) have tried to estimate consumer acceptance and willingness to pay at different levels of plant-based substitution and in both blind and informed tastings. A common finding is that while all else equal 100% beef burgers are still the first choice, consumers prefer 25-50% plant-substitute over fully plant-based burgers. However, more research is needed to fully understand consumer preferences in relation to substitution share and price. For example, Hormel’s Burke brand research started with a 50/50 mix, but after a lot of trial and error, a 70/30 combination worked best. 

Non-environmental benefits

In addition to the lower GHG emissions, hybrids offer plenty of other benefits compared to pure animal, plant-based or cultivated products. First and foremost is the cost. Plant-based ingredients can significantly lower the cost of meat products, which is especially important in settings like quick service restaurants (QSR), where consumers are less demanding and low costs are paramount. They can also be used to blend in cultivated products to bridge the gap to the time when cultivated products are affordable enough to be sold in a pure form. For example, GOOD Meat’s cultivated chicken nuggets, launched in Singapore in 2020, were a hybrid of plant-based and cultivated ingredients. Compared to fully plant-based products, on the other hand, hybrids offer more product development flexibility by adjusting the share of cultivated/animal component in the final product to achieve the desired texture, taste, juiciness, etc. The animal component also masks certain off-putting flavors such as bitter or ‘green’ notes coming from soy or peas and thus enhances the overall sensory experience.  

Furthermore, hybrid products can be used to cater to consumers with animal welfare or environmental concerns but who are hesitant to completely eliminate traditional meat and dairy from their diets. By blending plant-based with cultivated components or conventional animal proteins, hybrid products offer a middle ground that allows these consumers to make a positive impact while still enjoying the flavors and textures they’re accustomed to. This approach can cater to those who are open to change but prefer a more gradual shift in their eating habits. 

Challenging positioning hybrid products

One of the primary challenges for hybrid products is their complex market positioning, which heavily influences consumer perception and acceptance. For traditional meat consumers, blending animal proteins with plant-based ingredients can be seen as compromising on quality, similar to "watering down" a premium product. This perception of diluted value often leads to resistance, as pure meat is viewed as a higher-quality option. This dynamic is reminiscent of past backlash, such as when rumors spread about fast food chains using soy fillers in their beef patties, causing consumer outrage and forcing companies to emphasize the “100% pure” nature of their products to restore trust. For plant-based consumers, on the other hand, the addition of animal-based components contradicts their motivations for choosing plant-based products, which are often driven by health, ethics, or environmental concerns. This dual challenge can create a scenario where hybrid products fail to resonate with either target group, making it difficult to establish a clear value proposition in the market. Indeed, previous attempts at hybrids such as almond-dairy milk blend Live Real Farms or Tyson’s Raised and Rooted hybrid meat and plant-based burgers underperformed in the markets. However, some products like Perdue’s Chicken Plus are still performing well and indicate that blended products have a place on the shelves in the future. 

New opportunities

Despite challenges with consumer perception and positioning, the hybrid food sector shows strong potential, particularly as new entries and innovations continue to shape the category. Companies are increasingly leveraging hybrid products to cater to flexitarian consumers looking for a balance between taste, nutrition, and sustainability. 

Several recent product launches and R&D efforts illustrate the evolving landscape. For example, Lidl Netherlands introduced a hybrid minced meat product that substitutes 40% of the beef content with pea protein, resulting in a 37% reduction in emissions. This product, which is priced 33% lower than traditional ground beef, reflects how strategic ingredient substitution can enhance environmental benefits without sacrificing consumer appeal. 

In the hybrid dairy segment, innovations are emerging with combinations of hybrid cheese with dairy, fava beans and mealworms. Similarly, Israel-based food tech company Wilk has developed a hybrid yogurt product that blends plant-based ingredients with cultivated milk fat, aiming to address cost and sensory challenges in the alternative dairy market. 

Meanwhile start-ups Meatable and Love Handle plan to release a range of hybrid meat products including dumplings, patties, and cold cuts, which combine plant-based ingredients with cultivated meat to offer a closer match to traditional meat flavors and textures. This approach allows companies to introduce cultivated ingredients more cost-effectively while gradually building consumer acceptance. 

Outlook: Getting positioning, flavor, and nutrition for hybrids right

For hybrid food products to gain wider acceptance, innovators and investors need to focus on a multi-pronged strategy that addresses consumer expectations around flavor, nutrition, and positioning. Successful hybrid products should prioritize delivering enhanced flavor experiences while offering nutritional benefits without compromising on taste. This is particularly important as research shows that consumers still choose traditional meat primarily for its flavor and texture, making it crucial for hybrid products to maintain these sensory qualities while integrating plant-based or cultivated components. 

Positioning strategies should emphasize the unique selling points of hybrids rather than framing them as a compromise. For example, leading with flavor by incorporating ingredients like roasted vegetables, herbs, or spices into blended meats can create a more appealing profile. Highlighting these enhanced taste experiences will attract not just health-conscious flexitarians but also conventional meat-eaters looking for variety. 

From a nutritional standpoint, hybrid products have the potential to offer better nutrition without compromise. By blending animal proteins with high-quality plant-based ingredients, hybrids can achieve a balanced nutritional profile—providing benefits like higher fiber content, reduced saturated fats, and added vitamins or minerals. Innovators should explore combinations that optimize both sensory and nutritional attributes, making hybrid products a truly better-for-you option that doesn’t sacrifice taste. 

Summary

Hybrid food products offer a practical solution for consumers seeking both sustainability and familiar eating experiences. By blending animal, plant-based, and even cultivated ingredients, they promise lower environmental impact, improved nutrition, and flexible product development opportunities. However, to succeed in this market, brands must get the balance of taste, nutrition, and messaging right. Positioning should focus on unique sensory experiences and nutritional enhancements rather than framing hybrids as a halfway measure. Innovators who lead with flavor and ensure hybrids offer tangible health benefits, without sacrificing on taste, are more likely to capture the attention of a growing flexitarian consumer base. As more companies enter the space, hybrid products could evolve from a niche offering into a mainstay of the modern food industry. 

Partner with Bright Green Partners

Corporates in the food and beverage sector are increasingly exploring hybrid food products as a response to shifting consumer preferences towards sustainable and ethical choices. Embracing these innovations can enhance market positioning and address reputational considerations in a competitive landscape.

Bright Green Partners offers expertise in navigating the complexities of the hybrid food market. Whether you require strategic insights on consumer trends, due diligence on emerging hybrid technologies, or support in developing a compelling product line, our team is equipped to assist. With a strong background in sustainable food innovations, we can help your business leverage the opportunities presented by this evolving sector.

Schedule a call with our Managing Partner, Floor Buitelaar, to discuss how we can support your exploration of hybrid products and enhance your competitive advantage.

Alternative coffee: Supply chain risk mitigation and beverage growth opportunities

Discover how alternative coffee can address supply concerns and offer growth opportunities for investors.

READING TIME: 8-10 MINUTES

Summary

Coffee, the drink that brings people together—whether in homes, cafés, or offices—is woven into the fabric of daily life worldwide. It is the flavor people wake up to, a ritual that fuels connection. Yet, the future of this beloved beverage is at risk as climate change, rising costs, and labor challenges threaten its supply. Businesses may struggle to sustain supply and control rising costs, which could lead to shortages of consumers' daily cup. This article explores how innovative alternative coffee technologies can not only preserve the availability of coffee but also offer businesses and investors critical opportunities to navigate these disruptions and secure sustainable growth.

Coffee in our society

Coffee has been consumed for centuries, not only as a beloved beverage but also as a ritual stimulant and a vital social lubricant. Historically, during periods when coffee was scarce or too expensive, people turned to various alternatives. These alternatives, often devoid of caffeine, served as makeshift replacements during economic downturns or supply shortages. For example, during World War II and its aftermath, when coffee supplies were limited, products like Caro in Germany and Postum in the United States gained popularity. These beverages, made from ingredients like chicory, barley, and other grains, offered a comforting semblance of coffee's warmth and aroma without the caffeine.

The tradition of brewing coffee-like drinks from other plants dates back even further. In the Middle East, date seeds have been used for centuries to create a rich, dark brew. Similarly, in pre-Columbian Central America, the Mayans utilized ramón tree seeds for their ritualistic beverages. Across Europe and Western Asia, a variety of plants such as dandelion root, chickpeas, and figs have been employed to produce coffee substitutes, often also touted for their health benefits.

These creative solutions were not merely byproducts of necessity but reflected a deep-rooted adaptation to coffee's intermittent availability. By the mid-19th century, as coffee became more widely consumed, the development of these substitutes mirrored the burgeoning coffee culture, providing alternatives that prioritized flavor over caffeine content, and marking an enduring legacy of resourcefulness in human dietary history.

The need for alternatives

The cultivation of Arabica and Robusta, the primary species grown for the coffee consumed worldwide, faces challenges due to its delicate nature and specific environmental requirements. Thriving in the rare stable, moderate climates of highland tropical regions such as Brazil, Ethiopia, and Indonesia, coffee requires shaded conditions, consistent rainfall, and temperatures close to 20°C (70°F). However, the escalating impact of climate change is threatening these ideal growing conditions. Rising global temperatures, erratic weather patterns including severe droughts and floods, and the increasing prevalence of pests and diseases such as coffee rust are reducing yields, and pushing cultivation into new areas, leading to further deforestation and biodiversity loss. This is even further exacerbated by the rising global demand for coffee, especially in developing countries.

Recent extreme weather events in major coffee-producing countries like Brazil have already driven Arabica coffee prices to a 13-year high and Robusta to a 45-year high, illustrating the volatility of the market and underscoring the urgent need for sustainable alternatives. In fact, Lavazza, one of Italy’s largest coffee roasters, has warned that coffee prices are unlikely to decrease anytime soon, signaling long-term financial instability for producers. This financial strain is compounded by fluctuating market prices and the increasing costs of combating climate-related challenges, making the coffee industry economically unsustainable for many farmers as well.

The environmental impact of coffee cultivation extends beyond deforestation. Coffee is also one of the most carbon intensive agricultural products. According to Our World in Data the carbon opportunity cost (carbon lost from native vegetation and soils in favor of agriculture) of coffee beans is only superseded by ruminant meats and cocoa beans. This environmental toll necessitates the exploration and adoption of coffee alternatives that require less resource-intensive farming practices and offer greater resilience to climate impacts.

Moreover, the coffee industry also faces labor exploitation, with many workers receiving inadequate compensation. These issues further emphasize the need for more sustainable and equitable practices.

Consumer trends

While the major coffee issues are supply-related, it is important to also consider the evolving consumer preferences as more people align their choices with health, sustainability, and ethics.

Health-conscious consumers are driving the demand for products that go beyond just delivering a caffeine boost. Options like protein-infused "proffee" and functional coffees with added antioxidants, vitamins, or adaptogens are growing in popularity. These offer added benefits, such as improved focus, energy regulation, and stress relief, catering to those seeking nutrient-rich, wellness-oriented alternatives.

Alongside health trends, there’s a growing interest in exploration and variety. Many consumers are experimenting with different global coffee origins, alternative brewing methods, and varying caffeine levels, including caffeine-free options that still offer the coffee experience. This desire for exploration stems from curiosity and a demand for personalized experiences tailored to individual tastes and dietary needs, which also includes non-coffee drinks such as matcha.

Consumers are also becoming increasingly mindful of the environmental and social impact of their coffee purchases, favoring brands that adopt sustainable farming methods, reduce carbon footprints, and engage in fair trade practices. This sentiment is also reflected in a statement from Suntory, following an investment in alt coffee maker Atomo: “As consumer awareness of environmental considerations increases worldwide, demand for more ethical products is expected to increase in the field of beverages as well.”

Alternative coffee technology

In a broader sense of coffee alternatives, we have two types: replacers and non-replacers. The replacers, which are the focus of this article, look and taste like coffee, while the non-replacers such as chai or matcha offer a similar drink experience but do not taste like coffee.

These replacer alternatives are designed to reduce the environmental impact of traditional coffee cultivation and provide new options for consumers. Here’s a look at the three key technologies: molecular coffee, cellular coffee, and climate resistant coffee.

Alternative coffee types Bright Green Partners

Molecular coffee

Molecular coffee could be seen as the continuation of the centuries old practice of using different agricultural products that recreate the primary flavor profile of coffee. The difference is the use of modern approaches such as fermentation that achieve a level of precision previously unattainable. One of the leading companies in this space is Atomo Coffee, who has innovated by converting compounds from plant waste, such as date seed extracts, chicory root, and grape skins, into flavors typical of green coffee. This method results in a dramatic reduction in environmental impacts, boasting 83% lower carbon emissions and 70% less farmland usage than conventional coffee production, along with eliminating the need for deforestation. Atomo Coffee's product represents a significant step forward in sustainable coffee production.

Cellular coffee

Another biotech method, cellular coffee uses real coffee cells cultivated in reactor. This method is similar to techniques used in lab-grown meat and involves growing coffee cells in a nutrient-rich medium, which are then processed into a powder form that can be brewed like traditional coffee. Unlike cultivated meat, plant-based cultivated products like cellular coffee and cocoa are less complex. This means the cell culture medium is also less expensive, which is one of cultivated meat’s biggest challenges. The Finish institute VTT, a leader in this technology, grows its coffee by floating cell cultures in bioreactors. This process is pesticide-free, has a significantly lower water footprint, and reduces transport emissions by allowing coffee to be produced in local markets. VTT is currently working on a life cycle analysis to quantify the environmental benefits of its method, promising a much lower impact compared to conventional coffee cultivation.

Cellular coffee progress Bright Green Partners

Climate-resistant coffee

Out of the 100+ known coffee species, nearly all global consumption comes from just two: Arabica and Robusta, which account for 56% and 43% of worldwide production, respectively. A promising alternative approach is the use of climate-resistant species such as the recently rediscovered Coffea stenophylla. This species can tolerate temperatures 6°C higher than Arabica coffee, making it highly resilient to climate change. Coffea stenophylla also boasts a flavor profile comparable to high-quality Arabica, making it a strong candidate for future coffee production in warmer climates. Another approach being pursued by Starbucks and Nestle is the development of different Arabica varieties, better resistant to heat and diseases. However, the issues with environmental and ethical impact associated with traditional Arabica and Robusta coffee farming are still applicable.

Promising startups in alternative coffee

Conclusion

The disruption of the traditional coffee value chain is imminent, driven by climate change, environmental degradation, and shifting consumer expectations. As demand for coffee surges, it is clear that traditional cultivation practices are unsustainable. For corporates in the food and beverage sector, the rise of alternative coffee technologies presents both challenges and opportunities. Embracing innovations like molecular and cellular coffee, or even investing in climate-resilient coffee species, could position companies as leaders in the future of sustainable coffee. On the other hand, failure to adapt may result in lost market share and reputational risks as consumers increasingly prioritize ethical and environmentally friendly options. The future of coffee is evolving rapidly, and forward-thinking corporates must act now to stay ahead of these transformations.

Partner with Bright Green Partners

Corporates in the food and beverage sector must adapt by embracing alternative coffee technologies, or they risk losing market share and facing reputational challenges as consumers prioritize ethical and sustainable choices.

Bright Green Partners is here to help. Whether you need strategic insights, due diligence on emerging technologies, or support in navigating the complexities of the alternative coffee market, our team of experts can guide your organization through the transformation. With deep expertise in sustainable food innovations, we will ensure your business is well-positioned to capitalize on the opportunities in this rapidly evolving landscape. Schedule a call with our Managing Partner, Floor Buitelaar, to discuss how we can assist.

Sustainable food: driving industry change – with expert Thomas Nagy

BGP Expert Talk

In our second BGP Expert Talk, Floor Buitelaar, Managing Partner at Bright Green Partners, engaged in a detailed conversation with Thomas Nagy, a renowned strategic and technical biotechnology expert. With over 30 years of senior leadership experience in biotech companies such as Novozymes, BioInnovation Institute, and Astanor Ventures, Thomas merges his extensive expertise with a passion for sustainable food solutions. The discussion focused on the current state and future potential of alternative proteins and their implications for traditional industries.

How would you describe alternative proteins, and what should we consider about the solutions in this category?

Thomas: Alternative proteins are essentially substitutes for traditional animal-based proteins. The term "alternative" signifies that these proteins are developed to provide alternatives to those derived from animal farming or husbandry. The primary advantages of alternative proteins include their potential for more sustainable production and the ability to offer unique functionalities that are not present in current market proteins. Biotech can leverage various sources for alternative proteins, such as plants, cell cultures, and fermentation processes. The most commonly discussed applications for these proteins are in feed and food products.

Floor: At Bright Green Partners, we work across various elements, and a noticeable trend is the growing recognition of the term "alternative proteins." We are now focusing on "complementary proteins" or, as we at BGP describe it, "sustainable food alternatives." This approach highlights that it is not just about proteins but also about considering the supporting ingredients required to create a new protein diet.

Will alternative proteins disrupt traditional industries, and if so, how and when?

Thomas: I hope so, and I hope we won't have to wait much longer to see this transformation. Traditional animal farming practices are incredibly resource-intensive and contribute significantly to greenhouse gas emissions, which drive climate change. Therefore, a swift shift towards more sustainable alternatives is crucial.

The technologies for alternative proteins are advancing rapidly and are ready for industrial scaling. However, many of these alternatives are currently more expensive compared to cheap animal-based proteins. Luckily, I would say that the technologies that I just spoke about and that you added to as well, there's a lot of opportunities for this to happen and to scale this industrially. Unfortunately, many of these alternatives are more expensive than the cheap animal-based proteins that we have today. One of the significant issues is that traditional proteins are priced too low when we consider their environmental and societal impacts.

The introduction of carbon taxes in Europe, including Denmark, is a positive step towards addressing this issue. Such policies help level the playing field by accounting for the true cost of traditional protein production. I anticipate a gradual transformation where alternative proteins become more competitive as we scale up production, improve technologies, and achieve economies of scale.

Initially, alternative proteins may find success in niche markets where their benefits—such as better functionality or unique taste profiles—can be highlighted. For instance, competing with whey protein, which is a byproduct of cheese manufacturing and thus very inexpensive, is challenging. Nevertheless, I see a gradual change and introduction as we scale and as we get to the economy of scale and that learning curve and pricing gets more and more comparable to what we have today.

In which categories do you foresee the most significant disruption from alternative proteins?

Thomas: The categories where I expect to see the most significant disruption are dairy, meat, and functional foods. I also have a dream of hybrid products, which combine plant-based proteins with functional additives. These hybrid solutions can offer improved taste and texture, potentially making them more attractive to consumers.

It is not a revolution, but we need to get in and grow the industry. I think this is happening as we speak, because many of the technologies are available. There is political pressure for change, as we discussed earlier, but there's also a growing willingness within the agricultural and food manufacturing sectors to acknowledge that our current practices are unsustainable in the long term. We need to change, and I believe the conditions are aligning for a market-driven approach to this transition.

The goal is to move beyond just offering something novel or trendy that consumers try once and then return to their usual choices. Instead, we aim to create products that are healthy, tasty, sustainable, and in harmony with society as a whole. Whether it's food, meat, or dairy, our focus is on developing solutions that meet these criteria.

For traditional organizations in the meat and dairy sectors, what opportunities do you see for them in the alternative protein market?

Thomas: For companies traditionally focused on meat and dairy, I would recommend exploring partnerships to reassess and redefine your product portfolio for the future. Consider whether you want to continue relying solely on traditional products, or if you also want to innovate by capturing new markets and attracting younger consumers. If your company lacks in-house technological capabilities, it's essential to reach out and map out the possibilities. Look for innovations, technology companies, startups, or even larger established protein companies that could be potential partners in developing new alternative products and shaping the future together.

For food companies and dairies in particular, consider whether you have byproducts that could be upcycled through fermentation processes or used as feedstock for other ingredients in these new products. It’s important to take a step back and adopt a holistic perspective: What do you want to create within your company? Where do you want to take it? And how can you re-engineer your current processes with external support? While some might argue that this approach is too complex, I believe it's a necessary step to stay competitive and forward-thinking.

It's also important to recognize the risk of doing nothing simply because you don't fully understand the changes happening around you. As you've pointed out, there’s now a carbon tax in Denmark, which is just one example of the regulatory pressures increasing globally. On a personal note, as someone nearing retirement age with grown children who have moved out, I’ve noticed that when I visit them, their refrigerators look very different from what mine did at their age. Consumer preferences are evolving rapidly, and the regulatory landscape is shifting as well.

For those entrenched in the traditional food value chain, change is essential. While I’m not suggesting that these companies are being overtaken, I strongly advocate for collaboration—especially innovative collaborations—focused on bringing new, sustainable, healthy, and tasty solutions to the market. This approach will be crucial in serving a growing consumer base not just in Europe and North America, but around the world.

What are some of the most pressing challenges facing the alternative protein industry today?

Thomas: The primary challenges include achieving price parity with traditional proteins and scaling production. To become a truly bankable industry, it's crucial to move beyond the technical and commercial risks, reaching a stage where replication and rapid growth are feasible. These would be the three key steps.

Achieving this involves various factors, including technological and commercial development, as well as leveling the playing field against traditional protein sources. We've discussed these issues before, and there are certainly parallels to other industries.

What does it take to overcome these challenges and achieve scale in the alternative protein industry?

Thomas: To achieve bankability, maturity, and the point of replication in the industry, I believe setting clear and ambitious targets is crucial. While I may be overly optimistic about the role of politicians, there have been positive steps, such as Denmark's introduction of a carbon tax on agriculture, which is a move in the right direction. However, more decisive action is needed.

What could truly drive this transformation is if we establish clear targets for what we aim to achieve, similar to the EU's targets for greenhouse gas reductions, renewable energy adoption, and electric vehicle deployment. Why not set similar targets for the inclusion of alternative proteins or the decarbonization of the food value chain? Such targets would spur innovation and reduce commercial risks, making new, sustainable technologies more commercially viable for both suppliers and consumers.

Let me provide a couple of examples where political targets have successfully driven industry development. One is the offshore wind and solar farm sectors. The mandated inclusion of renewables in the energy mix has led to significant innovation and engineering advancements. With off-take agreements in place, these industries have matured to the point where there is no longer any significant commercial or technological risk.

Today, pension funds invest in these sectors with the same risk-return profile as any other infrastructure investment.
Another example is the electric car industry in Europe. Not long ago, many major car manufacturers were slow to recognize the growing consumer demand for alternatives to fossil fuel vehicles. However, with supportive measures like bans on fossil fuel cars in certain cities and countries, and tax exemptions for electric vehicles, the industry has shifted dramatically. Today, every major car manufacturer offers a line of electric cars, and this trend is only accelerating.

If we could apply similar strategies to the food and protein sectors, setting targets and providing the right incentives, we could see rapid changes in the value chain and the range of products available to consumers. This would lead to the development of healthier, more sustainable options, benefiting everyone.

True or false: Companies can afford to wait before investing in alternative proteins.

Thomas: No one is forcing you to act immediately. However, based on everything we have discussed, it is clear that significant changes and trends are emerging in society, and it is essential to invest in them.

If you currently lack capabilities in areas like cell culture or fermentation, now is the time to reach out, form partnerships, and engage with the ecosystem of alternative proteins. This will allow you to understand the available offerings and assess how they align with your own capabilities.
While waiting might seem like an option, in the long term, it is a losing proposition. The real opportunity lies in stepping into this space, investing time in understanding it, and then deciding where to focus your development efforts. By doing so, you can shape the markets and products that will define the future, and that is a winning proposition.

Are you prepared to position your business at the forefront of the sustainable food industry? Connect with Floor Buitelaar, Managing Partner at Bright Green Partners, to explore how we can craft a tailored strategy that aligns with your company’s objectives. Don’t wait for the market to evolve—take proactive steps now to lead in innovation and sustainability.

Revolutionizing food production: The rise of molecular farming

As the global population continues to grow, the demand for innovative agricultural solutions has never been more urgent.

Molecular farming represents a significant advancement in this field, involving the use of genetic engineering to insert genes that code for useful proteins into host plants, creating genetically modified organisms (GMOs). This method allows plants to produce high-value proteins and chemicals, which are typically difficult or expensive to manufacture by conventional means.

Molecular farming not only complements existing plant-based, fermentation, and cultivated technologies but also proposes a scalable solution to meet the increasing demands for sustainable protein sources. As such, it is emerging as a significant investment opportunity in the pursuit of innovative and sustainable agricultural solutions.

How molecular farming works

Figure 1: Molecular farming process

Molecular farming transforms ordinary plants into bio factories that can produce beneficial proteins, pharmaceuticals, or chemicals. Here’s a simplified breakdown of the process:

  1. Gene selection and modification: Scientists select a gene responsible for the desired protein.
  2. Vector construction: This gene is inserted into a plasmid, a type of DNA molecule used as a vehicle to transfer genetic material.
  3. Plant transformation: Using methods like Agrobacterium-mediated transformation or gene gun, the modified plasmid is introduced into plant cells.
  4. Selection and cultivation: Only the cells that successfully take up the gene are grown into full plants.
  5. Harvesting and processing: Finally, the target protein is extracted and purified from the plant, ready for use in various applications.

Origins and milestones of molecular farming

Molecular farming traces its roots back to the 1980s, marking the start of a transformative journey in biotechnology. It began when researchers first synthesized recombinant human proteins—such as insulin and growth hormone—in the bacterium Escherichia coli. However, the limitations of bacterial systems, particularly their inability to perform complex post-translational modifications essential for protein functionality, led scientists to explore more sophisticated eukaryotic systems.

This led to the use of plants and plant cells as bio factories for producing valuable proteins and chemicals, leveraging their more complex cellular machinery capable of proper protein folding and modifications. This shift was pivotal, as it combined the advantages of eukaryotic protein processing with the scalability and cost-effectiveness of plant-based production.

Applications and success story

Golden Rice stands out as a landmark achievement in molecular farming, specifically designed to combat vitamin A deficiency, a severe public health issue affecting millions worldwide, particularly in Southeast Asia and Africa.

Golden Rice was first developed in the late 1990s by genetically modifying it to produce beta-carotene, which the body can convert into vitamin A. This was achieved by introducing genes from daffodils and later from maize, which significantly increased the beta-carotene content.

The primary goal of Golden Rice is to provide a dietary supplement of vitamin A in areas where people rely heavily on rice as a staple food but get inadequate vitamin A from other dietary sources. Regular consumption of Golden Rice can significantly reduce the incidence of vitamin A deficiency, improving health outcomes and reducing mortality rates among children and vulnerable populations.

Despite its potential health benefits, the journey of Golden Rice towards widespread adoption has faced numerous hurdles. These include public and regulatory apprehensions about genetically modified organisms (GMOs), intellectual property issues, and various technical and cultivation challenges related to ensuring that Golden Rice can be grown with the same yield and pest resistance as local rice varieties.

After decades of development and testing, Golden Rice has received regulatory approvals in several countries, including the Philippines and Bangladesh, where vitamin A deficiency is prevalent. These approvals mark a significant milestone and pave the way for the distribution of Golden Rice to farmers and consumers. Ongoing efforts focus on gaining acceptance among local communities, demonstrating the rice's safety and nutritional benefits, and integrating it into existing agricultural and food systems.

Comparison with other alternative protein categories

Figure 2: comparison alternative protein categories

Molecular farming represents just one of several innovative strategies aimed at addressing the growing demand for sustainable protein sources. Here’s how it compares with other alternative protein categories:

Molecular farming stands out for its potential to enhance the nutritional profiles of existing crops (as seen with Golden Rice) and produce novel biomolecules in a way that is inherently integrated with traditional agricultural practices. It offers a unique advantage in terms of leveraging the existing agricultural infrastructure and potentially lower production costs at scale.

Promising startups in molecular farming

Addressing safety concerns and managing risks

While molecular farming holds great promise for revolutionizing food production, it also carries inherent risks that must be carefully managed. A primary concern is the potential for genetically engineered plants to cross-contaminate traditional food crops. Such cross-contamination could inadvertently introduce new allergens or non-food substances into the food chain. Moreover, the escape of engineered genetic materials into the wild could impact biodiversity and ecosystem balance.

To mitigate these risks, rigorous safety protocols, careful biocontainment strategies, and comprehensive monitoring systems are essential. These measures are necessary to safeguard public health and maintain consumer confidence in agricultural innovations and the broader food industry.

Enhancing nutritional value through molecular farming

Molecular farming significantly reshapes our approach to food production, enabling the creation of food items with superior nutritional profiles and serving as an alternative to animal-derived products. By engineering plants to synthesize increased levels of essential vitamins and healthier fats, this technology can enhance the dietary benefits of common agricultural products. Moreover, molecular farming facilitates the production of animal-free proteins that closely resemble the taste and nutritional value of dairy and meat products.

This capability not only promises a more sustainable and ethical approach to meeting global food demands but also caters to the growing consumer interest in plant-based diets. Through these innovations, molecular farming could help alleviate nutritional deficiencies in underserved populations by fortifying staple crops with critical nutrients.

Sustainable and cost-effective agricultural advancements

The environmental and economic advantages of molecular farming are profound and multifaceted. Environmentally, this method offers a cleaner alternative to conventional agricultural practices and pharmaceutical production, significantly reducing the ecological footprint associated with these industries. By employing plants as bio factories, molecular farming minimizes carbon emissions and drastically cuts down on water and energy use, aligning with global sustainability goals.

Economically, this approach has the potential to revolutionize protein production by lowering operational costs and minimizing reliance on elaborate supply chains. This reduction in production and logistical costs makes high-quality proteins more affordable and accessible on a global scale, especially in regions where traditional infrastructure is lacking. As a result, molecular farming not only promises to make food production more environmentally friendly but also economically viable for a wider range of markets.

Molecular farming offers a transformative investment opportunity in the growing market for sustainable and scalable food production. It aligns with global food security and health needs while leveraging existing infrastructure to reduce costs and complexities. For investors, this represents a strategic opportunity to lead in a sector aligned with global sustainability goals and poised for growth as regulatory and technological landscapes evolve.

Partner with Bright Green Partners to navigate and capitalize on these opportunities. Our expertise in the field will help you stay ahead in the rapidly evolving molecular farming industry. Contact us today to learn more about how we can support your investment journey. Schedule a call with our Managing Partner, Floor Buitelaar, to discuss how we can assist.

Cultivated fat: The flavor frontier in meat alternatives

The field of alternative proteins has witnessed remarkable innovation, particularly in the quest to replicate the sensory attributes of traditional meat in the form of cultivated meat. The narrative has been dominated by efforts to replicate muscle tissue. However, a transformative ingredient is poised to elevate the culinary landscape of meat alternatives: cultivated fat.

Cultivated fat refers to fat grown in a lab setting through cellular agriculture, the production of animal-based products from cell cultures rather than directly from animals. Beyond its role in texture and juiciness, fat is integral to the flavor that defines meat's appeal. This pivotal component, once overlooked, is now recognized as the key to unlocking authentic taste experiences in meat alternatives.

The technological innovation of cultivating fat in labs, a process underpinned by cellular agriculture, the precise replication of animal cells in controlled environment, offers a sustainable path forward, bypassing the environmental and ethical dilemmas of traditional livestock farming. This presents a significant opportunity for investors and corporates in the food sector.

The science behind cultivated fat

Cultivated fat involves the precise replication of animal fat cells in a controlled environment, a process that harnesses the power of cellular agriculture. This innovative technology mimics the natural development of fat tissue, providing a way to produce fat without requiring animal farming. This method not only promises an authentic taste and texture but also a significantly reduced environmental footprint. Additionally, fat cell cultivation might be easier to commercialize than muscle as fat cells grow faster. However, developing tasty fat requires careful calibration of the cell media because the "cells become what they eat," meaning that the media used to grow the cells are crucial to their final taste and quality. Also, other factors like the scaffold's complexity and the regulatory approval process must be considered.

Animal fat plays a crucial role in creating the intense flavors that characterize meat. This insight drives the progress of the field, as scientists and companies work hard to replicate the specific composition and properties of animal fat. The development of cultivated fat not only advances our culinary capabilities but also presents an opportunity for investors looking to pioneer in the food technology space. The potential for scalability and lower environmental impact positions cultivated fat as a lucrative area for investment.

Alternative approaches: Fermented fats and oleogels

Diving into the broader spectrum of alternative fats, we find innovative methods like fermentation and the creation of oleogels. Fermented fats, such as those developed by companies like Melt&Marble and Yali Bio, are produced by microbes such as yeasts and mirror molecular properties of animal fats. This fermentation process is a promising alternative that could contribute to the sustainability and scalability of future food production.

Oleogels, on the other hand, are encapsulated plant fats that mimic the attributes of animal fat. They offer a slow release of fat during cooking, contributing to the sensory experience of meat consumption. Companies like Shiru and Cubiq Foods are advancing this technology, creating solid oleogels from liquid sunflower and olive oil, thus providing a plant-based fat alternative that holds the potential to transform the texture and flavor of plant-based meats. This breadth of innovation underscores the potential for investment in alternative fats, each approach offering unique benefits and opportunities for shaping the future of food.

Elevating plant-based burgers

A very promising use of cultivated fat is to improve plant-based burgers. By adding lab-grown fat to these products, they can taste much better and more like a regular beef burger. This novel method could change the plant-based meat industry, giving consumers a product that not only imitates but surpasses the real flavor and texture of meat. It can serve as a link between the plant-based and fully cultivated meat technologies, which are more distant from widespread market availability. This achievement highlights the possibility for cultivated fat to become a key ingredient in the wider alternative protein market, driving a change in consumer tastes and eating habits.

For example, Hoxton Farms, a leading cultivated fat start-up recently opened a 14,000 sqft pilot plant in London and indicated that the initial market will be plant-based meat. While some brands do not want to lose their 100% plant-based labels, many are targeting flexitarians and meat eaters who do not mind seeing animal fat on the ingredients list. This evolving consumer base presents an opportunity for investors to support the growth of companies that bridge the gap between traditional and alternative proteins, fostering innovation and sustainability in the food sector.

Another example is the collaboration between Mission Barns and Silva Sausage, where Mission Barns' cultivated fat is being integrated into Silva's artisan sausages, showcasing a promising venture into enhancing traditional meat products with sustainable, lab-grown alternatives.

Food quality and customer perceptions

The journey of cultivated fat from lab to table also presents an opportunity to reshape consumer perceptions of meat alternatives. Moreover, the ability to customize the nutritional profile of cultivated fat—engineering it to be healthier while retaining its flavorful qualities—addresses growing consumer demand for nutritious yet indulgent foods, opening new possibilities for product differentiation and market leadership.

Opportunities and challenges for investments

Cultivated fat is an area that offers both opportunities and challenges for investors. The innovation in this sector can transform the alternative protein market by providing a key to realistic taste and texture, but it also raises issues on how to scale, reduce costs, and win consumer acceptance.

The journey of cultivated fat to dining tables worldwide also depends on regulatory approvals. For instance, in the US, companies like Eat Just have made headway with their cultivated chicken, setting a precedent for regulatory approval of cell-based foods by the FDA. This paves a path for cultivated fats, yet each region's distinct regulatory landscape, such as the European Union's EFSA, presents unique challenges to gain market access.

Moreover, there's a significant opportunity for established food and beverage companies to innovate from within by developing or integrating cultivated fat technologies into their existing product lines. This approach not only accelerates the path to market for these novel ingredients but also leverages the company's brand strength and distribution channels to educate and introduce consumers to these sustainable options. Internal development strategies can serve as a powerful complement to external investments, allowing companies to be at the forefront of innovation while potentially reducing reliance on startups for breakthrough technologies.

As we explore this new territory, the possibility of high returns on investment is clear, given the increasing consumer demand for food options that are both sustainable and ethical. However, this path involves navigating the complexities of biotechnological innovation and consumer education. Investing in cultivated fat is not just supporting a product; it's fostering innovation in food production, with the potential for significant returns as the technology matures and gains prevalence in mainstream food markets.

To conclude, the development of cultivated fat marks a significant advancement in the pursuit of ethical food systems, offering a prime opportunity for investors and corporates looking to make a meaningful impact in the food sector. The technological advances in cultivated fat present a unique opportunity to engage in the evolution of food practices, while also tapping into a market poised for substantial growth. As the narrative around food production evolves, investors have the chance to drive significant advancements in the food sector, ensuring a future where delicious, nutritious, and ethical food is accessible to all.

Interested in exploring the potential of cultivated fat or other alternative proteins for your business?
Schedule a 30-minute call with our managing partner, Floor, to learn more about how we can help drive your success in the alternative protein space. Discover innovative strategies that can differentiate your products in the market and enhance your goals. Let us help you navigate the complexities of this rapidly evolving industry and transform challenges into opportunities for growth.