Eden Brew’s Strategic Shift in the Animal-Free Dairy Market

Melbourne-based precision fermentation startup Eden Brew has announced a strategic pivot aimed at targeting higher-value markets within the animal-free dairy sector. This decision comes as the company aims to enhance its product offerings by leveraging technology that enables the fortification of casein micelles with essential minerals such as iron, magnesium, and zinc.

Revamping Strategy for Market Position

Initially, Eden Brew planned to collaborate with dairy co-op Norco to produce animal-free milk using its proprietary casein proteins. However, CEO Jim Fader disclosed that the company has now shifted to a business-to-business (B2B) strategy, specifically targeting supplements, sports nutrition, and food fortification.

Leveraging Nature’s Delivery System

During an interview with AgFunderNews at the recent Future Food-Tech event in London, Fader explained the science behind casein micelles. These micelles are naturally occurring structures formed during the production of cow’s milk, which encapsulate proteins along with essential minerals in a slow-release system.

“As we scaled to commercial readiness, we discovered that the casein micelle is not just about replicating dairy. It’s nature’s slow-release delivery system,” Fader stated. “When you consume caseins, they form a curd in the stomach that takes over 5 hours to break down, gradually releasing calcium.”

Unlocking New Nutritional Opportunities

By utilizing this discovery, Eden Brew has positioned itself to deliver enriched caseinates suitable for various sectors, including dietary supplements and functional foods. “These micelles are programmable, and the powders can be included in many food categories,” Fader mentioned.

He further explained that simply replicating dairy sensory attributes with a sustainability message is no longer sufficient. “The alternative protein sector has struggled to deliver on its potential; we have evolved our strategy to focus on health outcomes,” he added.

Revolutionizing Supplement Delivery

Fader elaborated on the benefits of loading minerals into casein micelles instead of mixing them directly into foods or supplements. “This is a real advantage over many supplements that dose straight into the stomach, which can lead to nausea or upset stomach,” he said, highlighting iron as a prime example.

“By loading these minerals into our micelles, partners can potentially improve bioavailability and reduce side effects while increasing nutrient density in their formulations.”

Consumer Perspectives on ‘Animal-Free’

Fader expressed skepticism about the effectiveness of ‘animal-free’ branding, suggesting that it may confuse consumers. “Most plant-based products are also animal-free, so this doesn’t set us apart. The focus should be on creating great foods that customers want to eat,” he stated.

He emphasized the importance of prioritizing customer preference over purely technology-driven approaches, noting that the company has already secured a letter of intent with a global market-leading supplement firm for its initial production run.

Future Directions and Investor Sentiment

Discussing manufacturing plans, Fader mentioned that Eden Brew is forming partnerships with key manufacturing organizations to ensure supply chain resilience. Regulatory filings in Australia and the U.S. are slated for submission this year, with the aim to offer a like-for-like substitute for current dairy products.

With a successful raise of $15 million in 2023 from a mix of investors across various regions, Eden Brew plans to initiate another funding round to support its go-to-market strategy for next year. “Investor interest has shifted to a more informed thesis in alternative protein. The focus is now on health and supplementation,” Fader concluded.