Investments & Acquisitions

New Zealand’s ANDFOODS Raises $2.7M for Legume-Based Dairy Alternatives

New Zealand startup ANDFOODS, a spinoff from Massey University and the Riddet Institute, has raised $2.7 million in seed funding for its technology to produce legume-based dairy alternatives.

The startup has developed plant-based creams and milk powders, produced by using fermentation to remove flavour off-notes while retaining excellent nutritional benefits and functional properties. The creams are claimed to have “eclipsed all other plant-based creams” in testing, with an overrun (ability to take on air and maintain shape) comparable to the UHT dairy creams used by commercial kitchens and food manufacturers. The products are also allergen-free.

The funding round was led by Icehouse Ventures, and the capital will be used to commercialise the dairy alternatives and accelerate R&D. ANDFOODS launched less than a year ago, but has already begun developing products with some of the world’s largest food companies. The startup recently appointed Leon Clement (former Synlait CEO and ex-Fonterra MD) as its chair.

ANDFOODS legume-based dairy alternatives
© ANDFOODS

“Incredible position”

New Zealand has seen increasing innovation in dairy alternatives over the past year, with Haven recently launching what is claimed to be the world’s first 100% oat-based toddler drink and Miruku developing novel dairy proteins and fats using molecular farming and oilseed crops.

In December, EatKinda rolled out its innovative cauliflower-based ice cream at over 90 Woolworths stores across New Zealand, and the following month Daisy Lab revealed that it had scaled up its animal-identical whey protein produced using fermentation. Additionally, Free Flow Manufacturing announced last year that it would open what was said to be New Zealand’s first dedicated plant-based milk manufacturing facility.

“With the amount of R&D that’s been invested, ANDFOODS is in an incredible position as we go into the market with a product that has years of science behind it,” said ANDFOODS CEO Alex Devereux. “As well as being one of the few allergen-free dairy alternatives, our process uses fermentation to help give ANDFOODS greater control of flavour profile and other important properties.”

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