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Tnuva Deepens its Investments in Foodtech: Establishing for the First Time in Israel, an R&D Center Dedicated to Alternative Protein through a NIS 5 Million Investment
Tnuva’s Chairman, Haim Gavrieli, “The establishment of an R&D Center for Alternative Protein is a part of the company’s strategy to invest in foodtech through its investment arm ‘Tnuva NEXT’;
Tnuva has so far investef tens of millions of shekels in foodtech through the group’s CVC in addition to its through its partnership in “Fresh Start” the Foodtech Incubator in northern Israel
Tnuva Group is establishing an R&D Center dedicated to alternative protein for the first time in Israel through an investment of NIS 5 million. The new R&D ceter, which is currently under construction near the group’s existing R&D center in Rehovot, is part of the company’s vision to continue being a significant player in the foodtech space. The center, which will include a pilot plant for producing products from alternative protein and innovative raw materials, will be managed by Pnina Sabradalov, Manager of the R&D and Projects Division of Tnuva, and responsible inter-alia, for all of the group’s food development processes.
According to Haim Gavrieli, Chairman of Tnuva Group, “The establishment of an R&D Center for Alternative Protein is a part of the group’s strategy to lead the field while facilitating the products’ accessibility to the wider public in Israel and around the world. Tnuva was already a pioneer in alternative proteins some 18 years ago and has invested hundreds of millions of shekels over the years in developing its alternative protein activities. Through the investment arm ’Tnuva NEXT’ that we established recently, we will be able to continue offering value to consumers while realizing the group’s growth strategy, including investments in foodtech in general, and particularly, alternative proteins. We receive numerous applications and requests from food and technological start-ups, and investments are reviewed according to the group’s strategy and vision, including investments abroad.”
During the past year, Tnuva has established an investment arm operating as a CVC fund – ‘Tnuva NEXT,’ led by Yaakov Chen, the group’s Deputy CEO and CFO, who is also responsible for the group’s business development in Israel and abroad, and Shay Cohen, Tnuva’s Chief Innovation Officer who is in charge of local innovation and business development. The scope of the direct investments through the fund stands at tens of millions of shekels per year.
Eyal Malis, Tnuva Group CEO, said, “Tnuva is part of a complete ecosystem of the foodtech industry and invests through the CVC fund ‘ Tnuva NEXT’ in several ways: directly in start-ups, and through leading partnerships like the “Fresh Start” Foodtech Incubator in Kiryat Shmona in northern Israel, that was established with support from the Israel Innovation Authority, together with companies like Tempo, the investment platform OurCrowd, and the investment fund Finistere, which specializes in food and agriculture. To date, approximately NIS 40 million have been invested by all the partners, and presently eight start-ups are operating in the incubator, expected to grow ti about 40 start-ups in the next few years.
Tnuva also performs joint research with academia, leads programs with the Innovation Authority, and heads a Cultivated Meat Consortium in Israel that was established with the GFI (Good Food Institute Israel), consisting of fourteen additional entities, including academic institutions, like the Hebrew University in Jerusalem, Tel Aviv University, and Reichman University. Recently the consortium was granted NIS 60 million from the State of Israel through the Innovation Authority.”
The CVC ‘Tnuva NEXT’ invested in collaboration with the regenerative stem-cell company ‘Pluristem’ to establish a joint cultured food company based on Pluristem’s proprietary technology and Tnuva’s marketing and production knowledge and capabilities. Tnuva invested $7.5 million in the joint company according to a corporate value of $40 million before funding. In addition, in 2021, Tnuva invested directly through the CVC in Remilk, a company developing cultured milk components, according to a corporate value of $30 million. In January 2022, Remilk raised $120 million according to a value of $325 million before the investment. Tnuva also invested in Blue Tree, a company developing technology for reducing sugar in fruit-based beverages, as part of the company’s funding rounds.
Pnina Sabradalov, Manager of the R&D and Projects Division of Tnuva, said, “As the leading food group in Israel Tnuva bears responsibility for the quality of food on the plate in every home in Israel aiming to offer the most advanced products to the Israeli public and we will work to become the most advanced and innovative R&D Center in the foodtech industry in Israel.
“With dozens of product launches a year, we have the most advanced infrastructures, capabilities, and knowledge in all categories to move Tnuva and its partners forward to the technological forefront in the alternative protein field. Our expertise are in developing large scale production processes and reaching relatively fast a final product, unique production facilities and our profound understanding of marketing. The new R&D center in Rehovot will perform test, experiments and evaluate of alternative proteins and innovative raw materials in various products, including meat alternatives, based on plant-based protein, milk alternatives, cultivated meat, and cultured milk, fish and eggs. We operate together with the leading partners in foodtech, including start-ups and leading technology companies.”
The Israeli foodtech industry is considered one of the world’s leaders. According to Startup Nation Central, in 2021, Israeli foodtech companies raised approximately $640 million – more than the amount raised cumulatively for 2015-2020. Every year, an average of 42 foodtech companies are established in Israel.
In the main photograph
Gabi Triwaks and Dr. Kobi Meiri – Food Technologists at Tnuva’s R&D Division for Alternative Protein working on the Development of Cultured Milk:
Photograph Credit: Tnuva Press Spokesperson
