Woolworths’ venture capital fund W23 has injected new funding into the Sydney-based alternative protein start-up All G Foods.
The amount remains undisclosed but adds to the $16 million in seed capital they raised last year.
The company, which currently produces a range of plant-based products called Love BUDS, will use the funding to expand its existing product lines, including a move into animal-free dairy using precision fermentation technology.
Challenging the food system
All G was founded with the aim of developing sustainable alternatives to animal products.
Love BUDS is now sold at more than 300 Woolworths locations, with mince, sausages, bacon, and nuggets all scheduled to hit the shelves in the very near future.
MilkCELL, the dairy arm of the company, is expected to launch in two to three years, supported by this latest investment from Woolworths.
Precision fermentation dairy is coming
Precision fermentation can recreate animal products without using animals.
It’s similar to brewing beer; in this process, microorganisms consume nutrients and create alcohol, but instead of alcohol, the microorganisms that make animal-free dairy create milk proteins, as food scientists have encoded them with milk-protein DNA.
The technology has huge potential to end animal exploitation and help limit the climate crisis.
The business world is already wise to the upcoming revolution — precision fermentation technology reportedly generated $587 million in revenue over the pandemic, according to The Good Food Institute (GFI)’s 2020 State of Industry report.
Furthermore, it appears that people on the ground are also ready to accept the new technology. A recent study found “solid enthusiasm” for using the technology to make dairy products amongst consumers.
Woolworths on the right side of history
The Australian grocery giant has previously invested in alternative protein companies and has been actively increasing the number of vegan options available in its stores.
It created W23 in 2019 to invest in new innovative food technology, and last year led the seed funding for Harvest B, a domestic alternative protein producer that banked $3.5 million in funding to develop alternative proteins for use by plant-based manufacturers.