Chinova Bioworks: Revolutionizing Beverage Preservation with Mushroom Science

[Disclosure: AgFunderNews’ parent company AgFunder is an investor in Chinova Bioworks.]

Chinova Bioworks, a Canadian innovator, is making waves with its natural preservatives and fining agents sourced from upcycled mushroom stalks. The company is poised to triple its revenues this year, fueled by a surge in demand for non-alcoholic beers and high-end sodas.

Origins and Innovations

Founded in 2016 by David Brown (COO) and Natasha Dhayagude (CEO), Chinova has gained recognition for its Chiber natural preservative. Labelling it as ‘mushroom fiber,’ Chiber effectively replaces synthetic preservatives across various food and beverage applications. It boasts heat stability and efficacy within pH levels of 2-6.5, having already received a favorable ‘no questions’ letter from the FDA regarding its GRAS (Generally Recognized as Safe) status.

The exact mechanism behind Chiber’s efficacy remains under study. However, current hypotheses suggest that chitosan, which is positively charged, interacts with negatively charged microbial cell membranes, leading to their eventual destruction.

The MAHA Effect

While technologies such as vacuum packing and aseptic packaging allow companies to avoid preservatives entirely, many brands face consumer pressure to adopt ‘clean label’ alternatives to synthetic options. Brown noted, “The demand for natural alternatives has been on the rise, especially with recent scrutiny around preservatives.” This trend has opened doors for Chinova to engage with brands previously uninterested in eliminating synthetic preservatives.

Currently, 50% of Chinova’s business emerges from the beverage sector, with expanding interest from yogurts, dressings, and dips. Chiber’s versatility enables it to combat a variety of spoilage organisms, including pathogens such as Listeria, E. coli, and Salmonella.

Explosive Growth and Expansion Plans

Chinova is not merely riding the waves of consumer preference; it is experiencing tremendous growth. Staff levels have increased from 35 to 60 in just two years, and the company has begun selling in the US, Canada, and Mexico, with expansions into Australia, New Zealand, and South America. Regulatory approval in the EU is anticipated by early next year.

“We’re not looking to raise more funds right now, as we turned cash-positive about three years ago and have started servicing larger clients,” Brown explained. “Doubling our business annually makes us optimistic that we can triple it this year.” Plans to expand production capabilities in Prince Edward Island are also in place, collaborating with US-based mushroom farmer Giorgio to upcycle mushroom stalks for Chiber production. Additional smaller processing facilities are being set up in Australia and Brazil.

Targeting Non-Alcoholic Beverages and Beyond

One area of significant growth for Chinova is the non-alcoholic beer market. As demand escalates, many craft breweries are hesitant to use synthetic preservatives, leading them to alternative solutions. Brown stated, “Tunnel pasteurization is an option, but it compromises freshness and carbonation. Chiber offers the same shelf-life benefits without those downsides.”

The natural preservative is also gaining traction in sodas, energy drinks, and sports beverages. “Thermal pasteurization can impair flavor and decrease nutrient integrity,” he said. “Chiber competes effectively with these processes, offering customers enhanced taste and reduced costs.”

MycoKleer: The Vegan Fining Agent

Chinova is also innovating with its vegan fining agent, MycoKleer, which is becoming popular for clarifying various beverages, including beer and juice. MycoKleer binds with unwanted particles like yeasts and tannins, serving as a substitute for traditional synthetic and animal-based fining agents.

The fining agent has demonstrated its potential to eliminate multiple mechanical filtration steps, offering significant cost savings for brewers. “Many brewers spend hundreds of thousands annually on filters, but MycoKleer can streamline that process,” Brown explained. “In some cases, it may even eliminate the need for filtration altogether.”

Conclusion

With its forward-thinking approach to natural preservation and continued alignment with health-conscious consumer trends, Chinova Bioworks is positioning itself as a key player in the food and beverage industry. The company welcomes a future where sustainable practices are not only beneficial for the environment but also essential for building a loyal consumer base.