The Rise of Vegan Cheese: New Culture Raises $25 Million to Revolutionize the Industry
The United States cheese market is a behemoth, valued at $34.3 billion in 2019 and projected to reach $45.5 billion by 2027, growing at a compound annual growth rate of 5.25%. In stark contrast, the vegan cheese industry is still in its infancy, with a mere $1.2 billion in size in 2019 and expected to reach $4.4 billion by 2027 (Allied Market Research). Despite this significant gap, investors have taken notice of New Culture, a Bay Area-based startup that has secured $25 million in Series A funding to develop an animal-free mozzarella that rivals the taste and texture of traditional dairy-based cheese.
A Game-Changing Solution: Precision Fermentation
New Culture’s innovative approach lies in its use of precision fermentation, a process that involves inserting DNA sequences into microbes to instruct them to produce specific proteins. In this case, the company is targeting the production of casein protein, previously only available from milk. By leveraging giant fermentation tanks and feeding the microbes a sugar solution, New Culture can produce large amounts of casein protein. This breakthrough technology has allowed the company to create a mozzarella that not only tastes and smells like traditional dairy-based cheese but also stretches in a similar way.
A Healthier and More Sustainable Option
The benefits of New Culture’s vegan mozzarella extend far beyond its taste and texture. As investor Steve Jurvetson notes, it is both cholesterol-free and lactose-free, making it an attractive option for those with dietary restrictions or preferences. Furthermore, the environmental impact of dairy-based cheese production is significant, requiring an estimated 56 gallons of water to produce just one ounce of cheese. New Culture’s process, on the other hand, is far more sustainable, using significantly less water and land.
A Bright Future Ahead
While New Culture’s vegan mozzarella may not be available in local grocery stores just yet, the company has plans to distribute its product through pizzerias across the country beginning next year. Co-founder and CEO Matt Gibson, a New Zealander with a background in genetics and microbiology, envisions a future where his company expands its product line to include yogurts, ice cream, and even milk.
A Strong Network of Investors
New Culture’s $25 million funding round was led by Ahren Innovation Capital and CPT Capital, with additional investment from ADM Ventures, Be8 Ventures, S2G Ventures, Marinya Capital, and Future Ventures. Earlier backers, including SOSV’s IndieBio program, Bee Partners, Mayfield, Bluestein Ventures, and Evolv Ventures (the corporate venture arm of Kraft Heinz), also participated in the financing.
The Road Ahead
As the vegan cheese market continues to grow and evolve, New Culture is poised to play a significant role. With its innovative approach to precision fermentation and commitment to sustainability, the company has the potential to disrupt the traditional dairy-based cheese industry. As investor Steve Jurvetson notes, "New Culture’s mozzarella is not just a great-tasting vegan option – it’s a game-changer for the entire food industry."
Key Takeaways
- The U.S. cheese market is projected to reach $45.5 billion by 2027.
- The vegan cheese industry is expected to reach $4.4 billion by 2027.
- New Culture has secured $25 million in Series A funding to develop an animal-free mozzarella.
- The company uses precision fermentation to produce casein protein, previously only available from milk.
- New Culture’s vegan mozzarella is both cholesterol-free and lactose-free, making it a healthier option for those with dietary restrictions or preferences.
- The company plans to distribute its product through pizzerias across the country beginning next year.