Compound Foods Raises $4.5M to Revolutionize Coffee Production

A Sustainable Alternative to Traditional Coffee

Maricel Saenz, the founder and CEO of Compound Foods, shares a common affinity with over 80% of Americans: a daily enjoyment of coffee. Alongside this passion, she harbors a deep commitment to environmental preservation.

The Costa Rican-born entrepreneur, currently based in the Bay Area, recognized the detrimental impact of climate change on coffee cultivation globally. Coffee ranks as the fifth-most polluting crop within its supply chain, prompting her to seek a solution.

The Impact of Climate Change on Coffee Production

Saenz explained to TechCrunch that rising temperatures, coupled with unpredictable rainfall patterns, are resulting in diminished crop yields. The suitability of existing growing regions is also being compromised, leading to reduced product quality.

Farmers in Costa Rica are increasingly forced to sell their land or relocate to higher altitudes. Predictions suggest that up to 50% of current farmland may become unsuitable for coffee cultivation within the next two decades.

Compound Foods' Innovative Approach

Established in 2020, Compound Foods employs synthetic biology to produce coffee without relying on coffee beans. The process involves extracting and recreating key molecules responsible for coffee's characteristic properties.

The company dedicated significant effort to analyzing the components that define coffee's flavor and aroma, then correlating these elements to achieve a desired sensory experience.

Despite the absence of coffee beans, the product can legally be labeled as “coffee” due to the lack of a formal regulatory definition.

Sustainable Production and Flavor Profiles

Compound Foods utilizes food science to formulate a base that incorporates sustainable ingredients and minimizes water consumption. Traditional coffee production requires approximately 140 liters of water for each cup consumed.

The company aims to replicate the nuanced flavors associated with coffee from various regions, such as the distinct profiles of Costa Rican and Brazilian varieties, including chocolate notes.

Seed Funding and Future Plans

Compound Foods recently secured $4.5 million in seed funding, bringing its total funding to $5.3 million. Key investors include Lowercarbon Capital (Chris Sacca’s climate fund), SVLC, Humboldt Fund, Collaborative Fund, Maple VC, Petri Bio, and angel investors like Nick Green, CEO of Thrive Market.

These funds will be allocated to refining the formulation and scaling up the brand in preparation for a soft launch later this year.

Competition and Team Expansion

Several companies are exploring alternative coffee production methods, including Atomo, based in Seattle, which utilizes “other fruits and plants that had seeds similar to coffee beans.”

Compound Foods is actively recruiting individuals passionate about coffee to contribute to its technological advancements and expand its marketing, product, and business teams.

A Complement, Not a Replacement

Saenz emphasizes that Compound Foods is not intended to compete with traditional coffee.

“We deeply appreciate coffee and maintain relationships with its farmers,” she stated. “We are offering a complementary solution, aiming to recreate the coffee experience and potentially even enjoy it on Mars, while ensuring the coffee industry and its farmers are included in this evolution.”