New Culture Raises $25M for Animal-Free Mozzarella | Food Dive

The U.S. Cheese Market and the Rise of Vegan Alternatives

According to Allied Market Research, the American cheese market, significantly driven by sales of cheddar and mozzarella, held a value of $34.3 billion in 2019. Projections indicate this market will expand to $45.5 billion by 2027.

This growth is anticipated to occur at a compound annual growth rate of 5.25%. In contrast, the vegan cheese sector remains considerably smaller.

A Smaller, But Growing, Vegan Market

Allied Market Research’s data reveals the vegan cheese industry was valued at approximately $1.2 billion in 2019. Forecasts suggest it will reach $4.4 billion by 2027.

Despite the substantial difference in size, the potential for disruption has attracted significant investment.

New Culture: Creating Dairy-Free Cheese

A consortium of investors has committed $25 million in Series A funding to New Culture, a company focused on producing “cow cheese, without the cow.”

Investors believe this Bay Area-based startup, established three years ago, can substantially influence the market. Their strategy centers on an animal-free mozzarella.

Investor Confidence in New Culture’s Product

Investor Steve Jurvetson asserts that New Culture’s mozzarella replicates the taste, aroma, and texture of traditional milk cheese. He contrasts this favorably with many existing vegan cheeses, which he describes as unpalatable.

The key to this advancement, Jurvetson explains, lies in the production of milk’s casein protein.

Precision Fermentation: The Core Technology

Historically, casein protein could only be obtained from milk. New Culture utilizes a precision fermentation process to generate substantial quantities of this protein.

This process, as detailed in a prior VegNews report, involves inserting DNA sequences into microbes. These microbes, when fed a sugar solution, are programmed to express specific proteins – alpha caseins, kappa caseins, and beta caseins.

The resulting casein is then combined with water, plant-based fats, and essential vitamins and minerals to create mozzarella.

Benefits of New Culture’s Mozzarella

Jurvetson highlights the health advantages of the product, noting its cholesterol and lactose-free composition.

Furthermore, the production process is significantly more environmentally sustainable. Producing one ounce of dairy-based cheese requires an estimated 56 gallons of water, a resource demand New Culture aims to drastically reduce.

Initial Distribution Strategy

Currently, New Culture’s mozzarella is not available in typical supermarkets. The initial distribution plan involves supplying pizzerias across the nation, starting next year.

Future Expansion and Leadership

Matt Gibson, co-founder and CEO of New Culture, envisions potential expansion into other dairy products. A New Zealander with a background in genetics and microbiology, Gibson previously founded and sold an education review website.

However, he emphasizes that the company’s primary focus remains firmly on mozzarella for the foreseeable future.

Investment Details

The funding round was spearheaded by Ahren Innovation Capital and CPT Capital. Additional investors include:

• ADM Ventures
• Be8 Ventures
• S2G Ventures
• Marinya Capital
• Future Ventures (led by Jurvetson and Maryanna Saenko)

Existing investors also participated, including SOSV’s IndieBio program, Bee Partners, Mayfield, Bluestein Ventures, and Evolv Ventures – the venture capital arm of Kraft Heinz.