New Zealand-based start-up Andfoods has received a US$2.7 million investment for its fermentation technology that extracts plant-based milk from seeds or ‘pulses’ of a legume to formulate sustainable dairy alternatives like creams and milk powders.

The plant-based creams have a consistent 140% overrun (its ability to take on air and maintain shape) and creamy taste profile. These overrun results are “more comparable” to the standard bearing ultra high-temperature creams preferred by commercial kitchens and food manufacturers.

The company — spun out from research at Massey University and the Riddet Institute in Palmerston North, New Zealand — will use the cash injection to take its product to market and accelerate R&D efforts, says Alex Devereux, CEO of Andfoods.

“With the amount of R&D invested, Andfoods is in an incredible position as we go into the market with a product that has years of science behind it. As well as being one of the few allergen free dairy alternatives, our process uses fermentation to help give Andfoods greater control of flavor profile and other important properties.”

“An orphan crop”
The legume used by the start-up was originally utilized as an “orphan crop” that regenerates soil between harvest, says Dr. Arup Nag, CTO and co-founder at Andfoods.

Orphan crops are indigenous, highly rich in nutritional profile and grown by small and marginal farmers in suboptimal growing conditions. Since they can withstand heat and erratic rainfall patterns that are increasingly impacting crops worldwide, orphan crops are beginning to receive renewed attention across the globe, states a study.

While examining candidates for plant-based milks, Dr. Nag recalled the “latent potential” of a similar orphan crop’s legume seed from his homeland, India, which guided the ensuing multi-year R&D efforts.

“This has been a unio of the special ingredients native to my home in India, combined with the resources and expertise from the team at the Riddet Institute. With Andfoods, we now have the means to commercialize this scientific discovery and provide the best plant-based cream and ingredients to the world,” he reveals.

Riding the demand
New Zealand-based venture capital firm Icehouse Ventures led the investment. According to Barnaby Marshall, Icehouse Ventures partner, Andfoods ingredients has the potential to become a “fundamental ingredient” for all kinds of food producers, at a high enough quality that it’s “immune” to changing trends.

“No one is doubting the demand for dairy-free products. Consumers want them, the environment needs them, but at the end of the day, they have to stand up to the taste test,” says Barnaby Marshall, Icehouse Ventures partner.

Taste is one aspect alt-dairy dairy alternative companies are focusing on, as the segment’s launches are growing with an 11% average annual growth rate from 2019 to 2023, as indicated by Innova Market Insights’ data.

For instance, US-based Nutpods formulated a dairy-free, plant-based creamer that received positive consumer response based on taste and creaminess, besides diverse flavor offerings and “wholesome” ingredients.

Agrana’s creamy, organic plant-based dessert replicates the texture and mouthfeel of a panna cotta without gelatine, while Chr. Hansen’s dairy-free cream cheese made from fava beans can be tailored to various tastes and applications by adding flavorings or spices.

Meanwhile, IFF developed a vegan protein-free solution that allows stable air incorporation in plant-based whipping creams.