Healthy Sugar Substitute: Has a Startup Cracked the Code?

A New Approach to Sweeteners: From Cambridge to Commercialization

Nearly three years ago, at the Computer Science Museum located in Mountain View, California, the founders of a nascent firm originating from Cambridge, England, presented their vision to an audience comprised of prominent figures from the worlds of entertainment, investment, and entrepreneurship during Y Combinator’s August Demo Day.

Their promise centered around a groundbreaking revolution within the field of food science.

The Y Combinator Showcase

This event has evolved into a platform where tech investors and high-net-worth industry leaders can assess promising early-stage ventures, seeking the potential for substantial returns.

It’s known for its relatively unpretentious and cost-effective presentation style.

Cambridge Glycoscience's Bold Claim

Alongside other ambitious entrepreneurs, the scientists from Cambridge highlighted a technology capable of replicating not only the flavor of sugar, but also its desirable properties like caramelization and viscosity.

These characteristics are crucial, as sugar remains the preferred sweetener in approximately 74% of commercially available packaged foods.

Cambridge Glycoscience asserted that their innovation could capture a significant portion of a sweetener market valued at a minimum of $100 billion.

Supplant: A Rebrand and New Funding

The company has since undergone a rebranding, now operating under the name Supplant.

Furthermore, they have secured $24 million in venture capital funding to facilitate the commercial production of their cost-effective sugar alternative.

This alternative is uniquely derived from the byproducts of other plant-based processes, offering a sustainable approach to sweetener production.

A Complex Past Behind a Common Sweetener

The story of sugar begins approximately 10,000 years ago with sugarcane, originating in New Guinea, Taiwan, and China. For the subsequent two millennia, its cultivation expanded, reaching Madagascar before establishing itself in India, where the first refinement processes occurred around 500 BC.

Following this, the use of sugar gradually permeated the ancient world. By the 1st century AD, both Greek and Roman academics documented its potential health benefits. The Crusades then facilitated the introduction of sugar consumption into Europe during the Medieval period.

Sugar offered a preferable alternative to honey, which was a staple in Europe, and the artificial sweeteners utilized by the Romans, some of which contained dangerously high levels of lead.

Sugarcane cultivation faced challenges in Northern Europe’s colder climates. Consequently, the plant flourished in the warmer South and on the islands off the southern European coastline.

These areas also witnessed the emergence of the first instances of agricultural slavery within Europe – a direct consequence of the burgeoning sugar trade. This practice laid the groundwork for the extensive exploitation of both indigenous American and African labor over the following centuries, as sugar production scaled up with industrialization in the New World.

Initially, sugar production in the Americas relied on European indentured servants and enslaved indigenous populations. However, as native populations declined due to European diseases, violent conflicts, and harsh working conditions, enslaved Africans were forcibly transported to the colonies to work in the sugarcane fields and processing mills.

The Rise of Plantation Systems

Plantation systems quickly became central to sugar production. These large-scale operations demanded an immense workforce, which was tragically supplied by the transatlantic slave trade.

The demand for sugar fueled a horrific cycle of exploitation and suffering. The conditions endured by enslaved people on sugar plantations were notoriously brutal and inhumane.

Refined sugar became increasingly accessible, driving up demand and perpetuating the system of forced labor. This created a complex economic relationship between Europe, the Americas, and Africa.

• Sugarcane cultivation spread rapidly.
• The transatlantic slave trade expanded dramatically.
• European economies benefited from sugar production.

The legacy of this history continues to shape discussions about social justice and economic inequality today. Understanding the origins of sugar is crucial for acknowledging the dark side of this seemingly simple ingredient.

Sugar Hangover

The historical atrocities of slavery represent a significant and troubling consequence of industrial sugar production, yet this is not the sole issue stemming from humanity’s desire for sweetening agents.

With the escalating threat of climate change, concerns have emerged regarding increased deforestation driven by global sugar demand, or utilized as justification for further industrial development within untouched forests, particularly due to recent policies enacted in Brazil.

Water Consumption and Biodiversity Loss

“Traditional sugarcane cultivation requires substantial amounts of water,” explained Tom Simmons, co-founder of Supplant, during a recent discussion. This presents another environmental challenge as water resources become increasingly strained by the effects of a changing climate.

Furthermore, the decline of species represents a major ecological concern. Simmons highlighted that “WWF identifies sugarcane plantations as the primary driver of biodiversity loss globally.”

Sugarcane is a significant consumer of water, and in comparison, our approach offers a compelling sustainability narrative, utilizing byproducts from existing agricultural practices.

The Rise of High-Fructose Corn Syrup

In the United States, the search for sugar alternatives has brought its own set of health-related problems, notably with the widespread adoption of high-fructose corn syrup.

Developed in 1957, corn syrup has become a prevalent sweetener in numerous American products, and is believed to have profoundly negative impacts on global consumer health.

The increased use of corn syrup has been correlated with a growing incidence of conditions such as diabetes, obesity, and fatty liver disease within the global population.

• Diabetes rates have risen alongside corn syrup consumption.
• Obesity is increasingly linked to diets high in high-fructose corn syrup.
• Fatty liver disease prevalence has also seen an increase.

The Quest for a Healthier Sugar Alternative

Supplant, backed by its investors, aims to become the leading alternative to sugar, entering a competitive field with numerous prior contenders.

The initial chemically-produced, safe sugar substitute emerged in the late 1700s, thanks to the work of a German chemist. Known as saccharin, its popularity surged during sugar scarcity linked to World War I and experienced a revival with the health trends of the 1960s and 70s.

Saccharin, still found in pink Sweet’N Low packets and various food items, was later followed by aspartame – marketed as Equal and used in diet sodas like Diet Coke.

Subsequently, sucralose (Splenda) gained prominence.

While these chemically-created sweeteners have dominated the market for years, increasing consumer preference for natural alternatives, coupled with the limitations of these substitutes in replicating sugar’s functional properties in food, has intensified the need for a superior sugar option.

The desire for a sugar substitute that performs comprehensively as a food ingredient is at an all-time high.

A History of Sugar Substitutes

• Saccharin: Discovered in the late 18th century, gained popularity during wartime shortages and health trends.
• Aspartame: Known as Equal, widely used in diet beverages.
• Sucralose: Marketed as Splenda, a more recent chemical alternative.

Despite their prevalence, these chemical sweeteners haven't fully satisfied the demand for a truly versatile and natural sugar replacement.

Gaining a Competitive Edge

Aydin Senkut, founder and managing partner of Felicis Ventures, a significant investor in Supplant, stated, “While not every investment will revolutionize the world, this one, when implemented broadly, has the potential to do just that.”

Senkut’s conviction stems from the fact that Supplant’s sweetener has secured preliminary approvals from the European Union’s food safety regulatory body, comparable to the FDA in the United States.

This approval encompasses not only the use of Supplant’s product as a sweetener but also its classification as a probiotic, offering demonstrable health advantages.

According to the founders, Supplant presents a superior and more direct alternative to traditional sugar. Furthermore, regular consumption can enhance consumers’ fiber intake, contributing to improved health.

Senkut emphasized the rigor of the European regulatory process, noting, “The European FDA maintains standards even more stringent than those of the U.S. FDA.” He added that pre-approval was successfully obtained.

Following Supplant’s presentation at Y Combinator, Felicis and Senkut promptly made an investment in Cambridge Glycosciences.

“We quickly became the leading seed-stage investors,” Senkut explained.

Key factors driving this investment included the product’s remarkably low glycemic index and its production process utilizing waste plant fibers. This manufacturing method promises lower production costs, as highlighted by Senkut.

Distinguishing Features of Supplant

According to co-founder Tom Simmons, Supplant distinguishes itself from competitors through several crucial advancements.

While companies such as DouxMatok, based in Israel, MycoTechnology in Colorado, and Sensient of Wisconsin are focused on developing sugar-enhancing additives sourced from fungi, tree roots, or bark, Supplant utilizes alternative sugars in the creation of its sweetener, as Simmons clarifies.

“A fundamental distinction lies in their reliance on cane sugar,” Simmons stated. “Our approach centers on producing sugars from fiber, thereby eliminating the need for cane sugar altogether.”

Simmons suggests that other startups may be misidentifying the core issue. He believes their technology addresses a symptom, not the root problem. “Their technology tackles issues of texture, bulk, caramelization, and crystallization,” Simmons explained. “Conversely, our technology delivers equivalent sweetness on a gram-for-gram basis.”

Understanding Sugar Varieties

Simmons detailed that there are six distinct types of sugars that provide calories. These include lactose, present in milk; sucrose, derived from sugarcane and sugar beets; maltose, found in grains like wheat and barley; fructose, the sugar in fruits and honey; glucose, prevalent in carbohydrate-rich foods; and galactose, a simple sugar resulting from lactose breakdown.

The company’s sugar alternative isn’t based on a single compound, but rather a spectrum of components originating from fiber, Simmons noted. Because these compounds are fiber-derived, the body processes them as fiber within the digestive system, while still providing the taste and functionality of sugar in food products.

“These fiber-derived sugars fall within the sugar category, but are not calorific sugars,” Simmons emphasized.

A Novel Approach to Sugar Alternatives

Supplant’s innovative technology employs enzymes to deconstruct and fragment diverse fiber types. According to Simmons, this process results in a molecular structure resembling sucrose – common cane sugar – thereby eliciting comparable behavioral characteristics.

This breakthrough stems from years of dedicated research initiated by Simmons during his tenure at Cambridge University. He stated his initial ambition was to pursue a professorship, not entrepreneurship.

Simmons’ primary focus was scientific advancement and the creation of inventions with broad societal impact, believing academia was the optimal path to achieve this.

However, as his doctoral studies progressed and his post-doctoral work evolved into the foundation of Supplant, Simmons recognized the necessity of establishing a company. He concluded that leaving the university was essential to realize meaningful change.

Supplant uniquely integrates Simmons’ passions for health, nutrition, and environmental sustainability. The company intends to broaden the application of its processing technology to various consumer goods in the future.

Currently, however, Supplant’s primary focus remains the substantial $100 billion market for sugar substitutes.

Simmons explained that several fundamental scientific methodologies are being explored across different sectors. These include applications in personal care and household cleaning products, specifically concerning chemical compositions. A key industry objective is to develop both gentler and more sustainable chemicals, derived from renewable sources and readily biodegradable.

Future Plans for Supplant

Having secured funding from investors such as Manta Ray, Khosla Ventures, Felicis, Soma Capital, and Y Combinator, Supplant is poised to demonstrate the efficacy of its products through a series of focused trials.

Simmons hinted at an initial, high-profile collaboration with a renowned chef, details of which remain undisclosed at this time.

Strategic Market Entry

Senkut explained that Supplant’s market strategy will mirror that of Impossible Foods, starting with limited releases in upscale dining establishments and specialty food stores.

This phased approach will precede any attempts to penetrate the broader consumer market.

The raw materials utilized in Supplant’s sugar substitute production are derived from sugarcane bagasse and wheat.

Notably, the processing technology is sourced from the brewing sector, which will prove advantageous as the company expands its operations and establishes a U.S. presence to support future manufacturing scale-up.

Leveraging Established Science

“We are applying established scientific principles to the food industry, recognizing their inherent value,” Simmons stated.

“Our process doesn’t rely on novel enzymes, and each individual step is based on existing technology.

The breakthrough lies in the discovery that these sugars effectively mimic the properties of cane sugar in food applications.

This is a unique achievement, as most alternative sugars lack the functional characteristics of cane sugar – often being either excessively dry, overly moist, or exhibiting undesirable textural qualities.”

A Commitment to Sustainability

The core mission of Supplant’s consumer product deeply resonates with Simmons and his team of 20 individuals.

“We aim to utilize readily available, renewable resources sourced globally,” he emphasized.

Note: This article has been updated to reflect the inclusion of Manta Ray and Khosla Ventures among Supplant’s investors.