Koppie: Transforming Coffee Alternatives with Innovative Technology

Belgian startup Koppie is revolutionizing the coffee landscape by creating a single-ingredient coffee alternative derived from peas. Recently, the company secured an undisclosed amount of funding from DOEN Ventures to bolster its production capabilities, targeting a capacity of 1,000 tons by 2026. This move aims to ensure that Koppie can meet demands from its initial launch partners.

Innovative Production Techniques

Utilizing patent-pending fermentation and roasting technologies, Koppie transforms pulses into “beans” that can be ground and brewed akin to traditional coffee. The startup is actively engaging with coffee roasters, retailers, and ingredient manufacturers, with plans to launch hybrid coffee products by the end of this year.

Diverse Product Range

Koppie offers a variety of B2B products, including beans with customized flavor profiles, espresso and filter coffee blends, and concentrates suitable for ready-to-drink coffee, ice cream, and bakery applications. While Koppie’s beans are effective on their own, the company identifies a significant opportunities in blending them with conventional coffee to mitigate fluctuating prices and supply issues, as explained by the firm, which previously raised a pre-seed round led by Nucleus Capital.

Funding and Growth

With the recent follow-on funding from DOEN Ventures, Koppie has surpassed €2 million (approximately $2.4 million) in cumulative funds. This financing is complemented by a subsidy from the Food Pioneer Accelerators program, which supports agrifood startups in Belgium and the Netherlands in scaling their manufacturing processes.

Scaling Up Production

After a successful 4-ton industrial trial run, co-founder Dr. Pascal Mertens expressed confidence in scaling up. “Our focus now is on further cost optimization and developing all product variants,” he stated.

Asset-Light Business Model

Cofounder Daan Raemdonck shared insights about Koppie’s asset-light strategy: “We opted for a model that leverages existing infrastructure. We’ve partnered with companies that possess the necessary process capabilities and surplus capacity. We have tested our production processes on their equipment, yielding an indicative capacity of 1,000 tons at the partner site.”

“A significant number of potential customers are interested in roasting our fermented and dried beans themselves. Our technology allows for this because the end product roasts similarly to conventional coffee, giving them more control and unique branding opportunities,” he added.

Market Insights

According to Raemdonck, “Most of our partners are considering a blend that ranges from 15% to 50% Koppie. The blend ratio depends on brand objectives, target price points, and specific coffee blends.” Notably, for products currently using coffee concentrates, Koppie’s product could potentially serve as a complete replacement.

The Future of Coffee

Climate change poses a significant threat to traditional coffee cultivation, as the area suitable for growing coffee is declining. Arabica coffee, the preferred variety, suffers from weak genetic diversity and specific temperature requirements. A recent analysis suggests that by 2050, land capable of sustaining Arabica could diminish by 50%, jeopardizing production levels as demand continues to grow, particularly in emerging markets like China and India.

Raemdonck pointed out the volatility of coffee prices, noting that while harvests may improve short-term, structural issues persist. “Though prices have decreased from last year’s highs, stocks remain at a 20-year low,” he added.

Conclusion

Koppie is poised to play a crucial role in the coffee alternative market, offering innovative, sustainable solutions to current challenges facing traditional coffee producers.

Further Reading

• 🎥 Koppie’s secret weapon? A fermented ‘bean’ that roasts like coffee
• Preference raises $4.2m, launches soluble bean-free coffee and cocoa powders
• Compound Foods launches ingredient platform to future proof coffee and cocoa
• Atomo beanless coffee makes UK debut, but firm will ‘not be profitable on the back of small coffee shops’