An Israeli alt-protein start-up Brevel has signed a deal with an Israeli peer, The Central Bottling Company (CBC Group), to develop functional beverages and dairy alternatives containing microalgae protein and oils.
Under a ten-year long-term purchase agreement, Brevel will supply CBC with its algae-driven raw ingredients, such as protein extract, functional oils, and antioxidants.
Brevel's proprietary technology focuses on an innovative process that involves fermentation of sugar using light inside the bioreactor. This way, a massive amount of nutrient-rich microalgae is produced without the genetic modification.
Microalgae's natural nutrient content includes proteins, lipids, fiber, and bioactive antioxidants derived from photosynthesis. The process of fermentation produces microalgae at extremely high yields at low costs; however, this traditional process has limited the method to dark environments.
Technology in Brevel develops a white, neutral tasting powder consisting of 60-70% microalgae protein concentrate that can be easily added to a wide range of meat and dairy alternatives to enrich nutritional profile. Moreover, it possesses functional properties that enable it to mimic the textures, flavors and behavior of animal proteins.
CBC Group is Israel's biggest beverage company, and the country's national franchiser of worldwide brands, which include Coca-Cola, Carlsberg, Muller, alongside major local juice and dairy brands. CBC is also well-represented across Eastern Europe as well as the South Africa/MENA region.
As part of the partnership, CBC invested in Brevel through the start-up's latest seed funding round which raised nearly $20 million.
According to Yonatan Golan, co-founder, and CEO, Brevel states: "It feels like great fortune to get to work side by side together with such an important player across the beverage ecosystem, not merely in Israel, but across countries. This alliance would put Brevel way ahead when it comes to innovations born of food tech and climate technology.
Golan said Brevel's first commercial pilot plant, which started operations in June 2024 in Southern Israel, is geared to fulfill the first wave of the two companies' joint development goals. It has the capability to produce hundreds of tons of microalgae protein powder a year.
CMI Research: Key Dairy Alternative Industry Insights
According to Coherent Market Insights, the dairy alternative industry is projected to hold a significant CAGR between 2023 and 2030, driven by low fat content and low cholesterol. In the assessment period, the market growth will exhibit a high trend.
Analyst Opinion: Strategic Role in Dairy Alternative Industry Growth
An increase in the obese and vegan population along with health awareness within the global public is expected to boost growth in the dairy alternative industry, says Pankaj Poddar, senior research analyst.
Conclusion: Business Takeaways
The dairy alternative industry is proliferating fast with consumers opting for more plant-based products for reasons of health, sustainability, and ethics. Brevel and CBC's functional beverages and dairy alternative developments using microalgae are a perfect example of innovation and sustainability coming together. Microalgae is a nutritionally beneficial and sustainable source of protein, fitting well with consumer demand for environmentally friendly and healthy products. Together, these two companies are better positioned to capture the increasing demand while helping create a more sustainable and diverse food and beverage landscape.
