Austrian start-up Kern Tec is upcycling aspect streams – apricot, cherry and plum pits – from jam and juice processors to make components for plant-based dairy and confectionery merchandise.
Having closed a $12m Sequence A funding spherical, the founders are getting ready to scale-up manufacturing and commercialisation of its components. “This funding will speed up our international scaling capabilities and allow extra merchandise to the market which might be derived from the dear stone fruit seeds,” stated co-founder and managing director Luca Fichtinger.
“This may scale our affect of decreasing waste, while unlocking additional development within the plant-based dairy trade.”
Kernels – with out the cyanide
Kern Tec was based in 2019 to make use of those would-be-waste streams that juice processors or pitting stations principally promote onto biomass corporations ship to landfill. In Europe, an estimated 50,000 metric tons find yourself in landfill alone.
However stone fruit pits, and extra particularly their seeds – or kernels – have dietary worth within the type of oils or protein. Apricot kernels, for instance, can include as much as 23% protein relying on the range. They’re additionally excessive in unsaturated fat and vitamin E.
The issue is that stone fruit kernels include a harmful chemical often called amygdalin. When digested, the physique converts amygdalin into the poisonous substance cyanide. Kern Tec has developed proprietary expertise to extract amygdalin, making certain cyanide-free components for human consumption.
Kern Tec suspects various dairy merchandise made utilizing its upcycled components may very well be amongst essentially the most sustainable on the earth. “We have now carried out a life cycle evaluation and located that our seeds have as much as 95% much less water use, 50% much less CO2 emissions and, what I believe is value essentially the most – no additional land use in comparison with different nuts,” Fichtinger instructed FoodNavigator.
Kern Tec in the marketplace: ‘Shoppers love the thought of a round ingredient’
In various dairy, Kern Tec’s components can be utilized in throughout a variety of purposes, from plant-based milk to yoghurt and cheese options.
The corporate is already promoting branded dairy options into retailer REWE in Austria and has developed a product line within the snack class with Swiss retailer Coop.
The beginning-ups plans on getting into the German market within the close to future, having established a collaboration with a ‘notable’ Germany dairy firm, Fichtinger revealed. Outcomes from this partnership will ‘come to market very quickly’, launching with an expansive vary of dairy options based mostly on Kern Tec components.
General, Kern Tec has signed buy orders for its components value ‘tens of millions of euros’ in revenues in over the approaching years.
The merchandise are branded in accordance with whether or not they’re for B2B or B2C markets, defined the co-founder. Kern Tec’s B2C vary for its native Austrian market is offered beneath the Wunderkern model. The initiatives helps the start-up take a look at its merchandise in the marketplace and get a really feel for client perceptions.
“This this info, we are able to enhance our recipes and create higher merchandise,” we have been instructed. “General, the notion of our dairy options, in addition to chocolate spreads, was very constructive – persons are curious to strive the merchandise and love the thought of a round ingredient.”
Plans for €12m Sequence A funding
With the brand new funding, Kern Tec has plans to spice up manufacturing, provide chains, and NPD.
Particularly, the start-up plans to quadruple manufacturing capability and introduce ‘new applied sciences’ to its traces. “Secondly, [we’re] scaling the worth chain all through Europe, Asia and the US,” Fichtinger instructed this publication.
The funds may even assist improve its group dimension, and to ‘double down’ product growth efforts for dairy options and new classes.
The Sequence A was led by Telos Affect, with participation from the PeakBridge Development 2 fund and the European Innovation Council (EIC) Fund. The latter was established beneath the EU Horizon Europe programme and is solely funded by the European Fee.
“Our funding will present Kern Tec with the means to scale their enterprise in Europe and, due to their progressive expertise, contribute to saving assets and supporting farmers and companies,” commented EIC Fund Board chair Svetoslava Georgieva.
For PeakBridge, which additionally participated within the fundraise, meals components innovation – resembling that pioneered by Kern Tec – play a ‘pivotal’ position in reworking the meals trade in the direction of more healthy and extra sustainable merchandise at inexpensive prices.
“Kern Tec’s initiatives pave the way in which for accountable manufacturing and consumption, whereas additionally providing enhanced flavour prospects,” stated Erich Sieber, PeakBridge co-founder and common companion.
