Phytolon, an Israeli food-tech start-up founded in 2018, has announced it has secured $4.1 million in funding for its fermentation-based technology that produces plant-based food colours. Last week we reported that the GFI had released a report highlighting fermentation as a key concept for the realisation of a sustainable food system.
According to the company, the food colour market reached $2.85B in 2019, with a CAGR of 5.8%, where natural colours comprise 69% of the market. The need for new natural food colours is increasing due to growing consumer awareness and demands for healthier food colours to replace the synthetics that may have adverse effects on our health. The lack of reliable natural alternatives with respect to quality and cost-efficiency has made the use of natural food colours a huge challenge for the food industry.
Participating in the funding were Millennium Food-Tech, EIT Food, Consensus Business Group (CBG), The Trendlines Group, Yossi Ackerman and the Israel Innovation Authority.
Phytolon CEO Dr. Halim Jubran commented: “This round will enable us to reach the market with our healthy and sustainable food colours that offer a high quality and cost-efficient solution to the food industry. The new round will also promote our collaborations with our potential clients, with whom we have been in communications during the past year and a half.”
Chanan Schneider, CEO of Millennium Food-Tech further added: “For us, technologies that make food more natural and healthier are innovations that change the world of food and beverages. It is clear to us that consumers are looking for products with more natural and healthier ingredients and are even willing to pay a premium for them. Phytolon brings a patented solution, perfect for the food colour sector, and has garnered a lot of interest in its technology and products.”
