Newsletter May 2018

FoodTech Israel

Foodtech is becoming one of the most promising sectors within the Israeli startup ecosystem.

After automotive and fintech, Foodtech is becoming the new and exciting category.

The food industry and the large investment funds already understand that only food companies that can assimilate new and advanced technologies will be able to create an improved added value which will fit the modern consumer.

The increasing awareness over the last decade of unhealthy food, the strict regulation of fair trade in the world, and the depletion of natural resources and raw materials have led to an increasing demand for food products which meet all these challenges.

These are some of the interesting Israeli developments and trends.

The foodtech Israel community is here to support your needs and to deliver value by creating valuable connection.

Environmentally friendly packaging

Plant-based meat

In 2018 and beyond, we will likely see meal kit startups and food companies focus on the environmental impact of their packaging methods.

Few Israeli startups are working on this challenge. Tipa is resolving the challenge; Tipa is creating sustainable and flexible packaging using advanced bio-materials. It's patented technology and strong manufacturing know-how solve a variety of issues concerning the applicability of bio-materials to flexible packaging.

The Israeli startup Milkit developed a unique Tear proof bag, that enables an easy and clean connection to a milk device. The bag makes the milk storage efficient, easy to handle and environmentally friendly.

Milkit’s sustainability strategy promotes economical conservation as well as environmental protection

The global trend can be seen in McDonald’s recent announcement that it aims to use 100% renewable or recycled customer packaging. Due to McDonald›s size, its shift could support growth in renewable packaging production, and encourage other food companies to make the shift.

Plant-based meat substitutes have found new life lately backed by hundreds of millions of dollars in VC funding.  New sources of protein are becoming more popular as  food producers are looking beyond soy and nuts to new types of plant protein.

These new entrants, such as Impossible Foods and Beyond Meat, use ingredients like pea protein and heme and target channels like fast food to convert habitual meat eaters.

Pea protein; may be leading the way. Peas can cater to people with soy allergies or nut allergies, and are low in fat. startups such as Aloha and Beyond Meat use pea protein.

The Israeli startup ChickP has developed a novel production process that uses the whole chickpea seed to produce high concentrations of protein powder. The company’s protein-extraction process enables the removal of the majority of antinutritional factors in chickpeas as well as any bitterness.

ChickP offers an alternative, non-GMO plant protein that is free of allergens and hormones and is neutral in taste. The product can be used as a raw material for the production of commercially valuable products for the food industry, meat alternatives or dairy replacements as well as high-protein bars, snacks, and beverages.

industry leaders like Cargill just entered into a joint venture with PURIS, the largest producer of pea protein in North America. Investors are now backing a range of pea protein startups; Kellogg’s, for example, recently invested in mushroom protein producer MycoTechnology, through Kellogg’s fund Eighteen94 Capital.

It’s All About Convenience

The modern consumer is looking for convenience; The best Israeli example is the smart-oven company Genie Enterprise Ltd. which,  last month, raised a Series A round. Based in north Tel Aviv, Genie Enterprise is a food technology company that develops and markets smart ovens that cook healthy, tasty and affordable meals in 2-3 minutes.

Genie is going to the US market where the company's product is ideally suited for offices, coffee chains, hotels, hospitals and countless other places that have a need for convenient food at the touch of a button. Genie will offer a selection of 8 meals to the US market, such as pasta Bolognese, chicken with broccoli in an Alfredo sauce, oatmeal with apples and cinnamon and molten chocolate lava cake - each prepared by top chefs made from real fresh dried ingredients sourced in the US.

The Health-Conscious Consumer

This trend will continue to see a host of product launches, one of the most promising companies coming from Israel is Day two which provides users with personalized nutrition and behavioral recommendations based on their personal health records and their specific gut microbiome composition. With Day two it is simple to personalized nutrition planning and real-time scoring of dietary choices, including complex meals.