THE FUTUREOF DAIRY

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Ag. fish100

The (r)evolutionof Precision
Fermentation
Tree of the evolution of vertebrates
over the last 500 million years

10 MILLION YEARS

Hélène Briand
Stéphane Mac Millan

THE FUTUREOF DAIRY
The (r)evolution of Precision Fermentation

FOREWORD

6

CONTEXT
Measuring the urgency

801 FEEDING AND SAVING
Food at the heart of the ecological transition

14

02 TECHNOLOGY
Pushing fermentation to the next level

28

03 INTEREST
Advantages of applying Precision Fermentation to dairy

40

04 THE MARKET FOR ALTERNATIVEPROTEINS

Contents

An international, financial and political race

58

AFTERWORD84

ACKNOWLEDGEMENTS

86

ForewordW

hen we decided to create Bon Vivant, several challenges
appeared to us. Not only we created a company fromscratch, but we also faced some of the major issues of
our time which is to effectively contribute to the urgent need tomeet global environmental needs. We quickly realized that oneof the industries that had the most negative impact despite a lotof effort and improvements, on the environment, animal welfare
and human health, is the food industry. Indeed, it is a market thathas a double stake which is to continue to feed a growing world
population with proteins while reducing its impact on the planet.
Being French and given the size of our dairy industry, we foundthat this is where we would have the most impact, precisely inthe production of alternative milk proteins produced by Precision
Fermentation. In short, cow’s milk produced without cows. It is withthis ambition that Bon Vivant was born.
Moreover, our mission is also to help the end customers understandwhat alternative dairy proteins are, to provide transparency aroundthe technology and methods of production, what is behind its
regulation for consumption and to serve as a truthful source forits market scenarios. This is why we produced this white paper toexplain, give more detail and food for thought about these newproteins and their potential.
Unlike scientific works that speak to a community of experts, thiswhite paper is intended to be read and appreciated by as many
people as possible. It brings together data from different sources
and shares the lessons we have gathered from countries that are
more advanced than France and Europe on the subject.
For most countries today, the production of alternative dairy
proteins by Precision Fermentation can contribute to solve somemajor issues:

6

Foreword• Food sovereignty. With an ever-growing population, the risk of
insufficient production capacity is significant. According to the
Food and Agriculture Organization of the United Nations (FAO),
the global demand for animal proteins will increase from 50% to100% by 2050.
• Environmental and animal welfare preservation. In addition topractices sometimes disrespectful of animals, livestock farming is
responsible for 14.5% of greenhouse gas emissions and occupies
27% of the land (FAO).
• Human health. Globally, after the age of 8, more than 80% of
people are intolerant to milk, mainly cow’s milk, which is very often
due to the presence of the lactose sugar in the milk.
Precision Fermentation-produced dairy proteins are an opportunity
to offer complementary healthier dairy products, free of lactose andcholesterol, while preserving the taste and the nutritional qualities
of conventional dairy products, without exploiting animals orpracticing intensive farming.
Thanks to this technology, we want to enable the dairy industry, in
Europe and worldwide, to have a food mix on the model of the energy
mix, in which conventional, plant-based and fermentation proteins
coexist to meet the needs of the population. And we will achieve it
while keeping the taste, the quality, the richness, and the diversityof dairy products, and reducing the environmental impact of thefood industry. The Bon Vivant project complements conventional
agriculture while preserving the land, the environment, and theanimals.
Enjoy your reading!
Hélène Briand and Stéphane Mac Millan
7

MEAS U RING
T HE U RGENCY

Context

Context — Measuring the urgency

Today, the technological innovation in food is presented in
the context of the climate emergency and the new modesof behaviour that entails. For companies wishing to offer
an alternative food, such as non-animal milk protein, the course
is clear: to make the project, in all its dimensions (technological,
economic, and legal), coincide with the criteria of one or moresustainable development models such as those described in thelatest report1 released by the Intergovernmental Panel on Climate
Change2 (IPCC). What are the issues behind this mandate?
Heavily industrialized since 1850-1900, humanity has entered
the Anthropocene. This term describes how human activity has
become the main cause of climate and environmental change.
Such an upheaval involves all living organisms and the planet’s
resources. This is the first time that a geological era is named after
a biological entity that has developed on the Earth’s surface. It isalso the first time that a single species is responsible for a climatechange that could be irreversible.

1
IPCC, 2022: Climate Change 2022: Impacts, Adaptation and Vulnerability.
Contribution of Working Group II to the Sixth Assessment Report of theIntergovernmental Panel on Climate Change [H.-O. Pörtner, D.C. Roberts, M. Tignor,
E.S. Poloczanska, K. Mintenbeck, A. Alegría, M. Craig, S. Langsdorf, S. Löschke, V.
Möller, A. Okem, B. Rama (eds.)]. Cambridge University Press. Cambridge University
Press, Cambridge, UK and New York, NY, USA.

IPCC is an intergovernmental body of the United Nations responsible foradvancing knowledge on human-induced climate change.

2

11

Context — Measuring the urgency

Context — Measuring the urgency

Indeed, greenhouse gas emissions due to human activity are theprimary cause of global warming, which continues to increase
year after year. In this way, ‘Anthropocene’ refers specifically tothe human footprint. It corresponds to the inclusion of significant
changes of human origin in geological time — changes observedin the structure and functioning of the Earth System, particularlyin the climate. The scientific community has demonstrated that
this new era began in the middle of the 20th century. Researchers
in diverse disciplines refer to the Anthropocene to account for
the undeniable causality that links human activity to the Earth’s
current state, to the forces at play and to the future towards which
it is heading.

The situation, however, does not need to take such a disastrous
turn. The latest IPCC report1 states that if all greenhouse gas(GHG) and other emissions were stopped immediately, warming
would not reach, let alone exceed, 1.5°C. This is good news. Even
though we cannot put a complete stop to thermal gas emissions,
we must nonetheless work to reduce them, as quantified by theParis agreements. This indispensable reduction gives the Planetary
Community a concrete and accessible objective in the near futureof one to two decades. Our immediate responsibility is therefore
to act to contain global warming within limits compatible with thepreservation of the conditions of life on our planet.

Already, the anthropogenic pressure on the climate is clear tosee. Of the twenty warmest years recorded since 1850, when themeteorological archives were established, eighteen have occurredin the last two decades. It is likely that this increase will reach orexceed 1.5°C between 2030 and 2052 if it continues at the samerate. The many effects of climate change are now obvious in all
inhabited areas, both continental and oceanic. Not surprisingly, theeffects of climate change are not uniform with different parts ofthe planet unevenly affected. What the scientific data establishes
beyond doubt is that an average surface temperature of 1.5°C overthe entire globe increases, among other uncontrollable events,
the risk of heat waves and precipitation of exceptional intensity.
It is therefore feared that warming due to anthropogenic gas
emissions since the pre-industrial era (1850-1900) will be felt for aperiod extending from several centuries to several millennia. It willcertainly continue to cause other long-term changes in the climate,such as sea level rise and other disastrous consequences that are
currently difficult to predict.

12

But although limiting global warming to 1.5°C is possible within thestrict laws of physics and chemistry, it is an effort that is out of all
proportion to what humanity has accomplished so far. It requires achange to all aspects of society.
1

IPCC, 2018: Global Warming of 1.5°C.An IPCC Special Report on the impacts ofglobal warming of 1.5°C above pre-industrial levels and related global greenhousegas emission pathways, in the context of strengthening the global response to
the threat of climate change, sustainable development, and efforts to eradicate
poverty [Masson-Delmotte, V., P. Zhai, H.-O. Pörtner, D. Roberts, J. Skea, P.R.
Shukla, A. Pirani, W. Moufouma-Okia, C. Péan, R. Pidcock, S. Connors, J.B.R.
Matthews, Y. Chen, X. Zhou, M.I. Gomis, E. Lonnoy, T. Maycock, M. Tignor, and T.
Waterfield (eds.)].

13

F EEDING AND S AV ING
Food at the heart of theecological transition01

01 — Feeding and saving: food at the heart of the ecological transitionBecause it affects the land, its vegetation, water, livestockand our consumption habits, the food sector is one of
the major levers of this transition. As the second maincause of GHG emissions, after the transportation industry,
every action that reduces global warming will have importantconsequences. It is true that technical evolutions during the 20th
century have made it possible to feed a large part of the world’s
population; but an even larger role will be expected from the foodindustry in the 21st century, namely, “1.5°C models”. The common
denominator of these models is that they project a reductionin arable or livestock land. This reduction in agricultural land
reserved for human food or livestock is made possible by a better
exploitation of land for direct yield (human food) or indirect yield(fodder) accompanied by a change in consumption practices.
Since the mechanized and chemical agricultural industry bears aheavy responsibility for the climate’s current state and the damage
caused to the world’s biological diversity the sector is sensitive
to these issues. It is true that what geographers have called ‘thechemical revolution’ has prevented famine in many parts of theworld, and countries such as China and India have been able
to ensure food security for a considerable part of the world’s
population. But the use of chemicals in the cultivation process has
a strong negative impact on ecosystems and consumers.

17

01 — Feeding and saving: food at the heart of the ecological transition

01 — Feeding and saving: food at the heart of the ecological transition

It is also a system that faces physical limits: the capacity of soils
to regenerate, of livestock to produce milk or meat quotas havereached their maximum despite the efforts of agricultural practices,
species selection and nutrition. From the end of the 19th century
to about 1950, it is estimated that the average milk yield oscillatedaround 2000 litres per cow per year depending on climatic hazards.
Between 1960 and 2020, this yield increased from 2000 to morethan 7000 litres and some animals can produce nearly 20,000
litres of milk per year!

T H E R EV O L U T I O N
O F T H E S ECO N D D O M ES T I CAT I O N

Simultaneously, primary vegetation lands are receding constantly.
Water, often used without control, is becoming a scarce element.
Let’s remember that to produce one litre of milk it is estimated thatat least 100 litres of water are needed, a figure which can rise to1000 litres if we integrate the Water Footprint Network¹. In short,the over-exploitation of natural resources and the race for purely
quantitative productivity (ever more livestock and cereals planted,
50% of which are used to feed them) have led to the current
situation where our species is living beyond the planet’s means
and at its expense. This is evidenced by the fact that each year
the Earth Overshoot Day, which marks the date when humanity’s
demand for ecological resources and services exceeds what Earthcan regenerate, is a little earlier: in 2022 it was July 28, in 2002 it
was September 19.

However, even if the Anthropocene, with all its consequences, is
now a proven notion, another historical change of considerable
scope is emerging: the second domestication. This is a very ancienthuman activity that consists in selecting wild animals or plants
and controlling their reproduction in order to benefit from foodand services in the long term. During the Neolithic period, ten
thousand years ago, the first systematic domestication took place,that of cereals and animals linked to agriculture. Today, the second
domestication, that of microorganisms, is beginning. While the firstallowed humanity to master macro-organisms, the second one willallow us to ensure the assistance of microorganisms.
Indeed, an often-neglected component of this first domesticationis the vital role played by microorganisms. Microorganisms exist
naturally within macro-organisms, breaking down nutrient inputs
to create useful substances. For example, the microorganisms in a
cow’s digestive tract help produce the proteins and amino acids itneeds to live, grow, and transform its muscle mass into high-protein
food. By selecting livestock and seeds over several millennia,
humans have consciously manipulated the evolution of macroorganisms, but also unintentionally manipulated the evolution of
the microorganisms they contain.

1

The Water Footprint Network is a platform for collaboration between companies,
organizations and individuals to solve the world’s water crises by advancing fairand smart water use. See www. waterfootprint.org

18

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01 — Feeding and saving: food at the heart of the ecological transition

01 — Feeding and saving: food at the heart of the ecological transition

The daily relationship with microorganisms over thousands ofyears of experimentation has led to the identification of theirpower to transform living matter, i.e., the fermentation of foods andbeverages in a more direct way. This gradual process is essentially
due to early fermentation experiments. In controlled environments
such as ceramic pots and wooden barrels, humans slowly discovered
how to make many basic foods such as bread and cheese, how
to preserve fruits and vegetables, and how to produce alcoholic
beverages. Humans were now able, albeit in a rudimentary way,
to control the production of food. Over the millennia, until very
recently in human history, the pattern of food production remained
remarkably stable, based on the lessons learned during the first
domestication.

What is coming is a new kind of agricultural revolution. If we are
to believe Eric Schmidt, former CEO of Google, biotechnologies
will be to the coming decades what micro-processors have been
to the previous ones. Indeed, fast innovation in technologies suchas Precision Fermentation and their application to the agricultural
world is a huge step forward in the ecological transition of the foodsector. It is striking to observe that two of the major documentsthat structure the reflection on the scientific and economic data
related to global warming intersect along the issue of alternative
protein biotechnologies:

Today, we are on the cusp of the next great revolution in foodproduction. New technologies allow us to use microorganisms toa far greater degree than our ancestors could have imagined. We
can now exploit them directly as superior and more efficient unitsof nutrient production. What is now underway is a new kind ofdomestication.
The most important ethical consequence is the absolute respectof the animal’s existence. It is possible to select and breed
microorganisms leaving the animal untouched. For the firsttime since the transformation of the microorganisms into anindustrial product, humanity looks forward to a positive future. Its
relationship with the living is no longer that of a dominant species
facing ‘machine animals’. Thanks to scientific progress, we are
faced with a development of historical significance. If, in order tofeed itself, humanity no longer needs to exploit animals without
regard for them or for the resources that their breeding implies,
then the sharing of the world in a true Planetary Community is
finally possible.

20‘‘Fortunately, there is also good news. Despite the relatively low

budget for green R&D, some technologies such as solar, wind,electricity storage, LED lighting, electric vehicles, or animal protein
substitutes have progressed faster than expected. 1’’‘‘Furthermore, a range of measures could radically reduce

agricultural and land-use emissions and are not yet well-coveredin IAM² modelling. This includes plant-based proteins and cultured
meat with the potential to substitute for livestock products at much
lower GHG footprints. Large-scale use of synthetic or algae-based
proteins for animal feed could free pastureland for other uses.

’’

1
Les grands défis économiques, Olivier Blanchard, Jean Tirole, PUF, 2022.
Les grands défis économiques is a report on the economic aspects of global
warming, the fight against inequality and pensions in France. It was commissioned
in early 2020 by French President Emmanuel Macron to a group of economists
led by Professors Olivier Blanchard, an influential macroeconomist specializing inlabor economics, and Jean Tirole, winner of the 2014 Nobel Prize for Economics.
2
Integrated assessment modelling (IAM) or integrated modelling (IM) is a term
used for a type of scientific modelling that tries to link main features of society
and economy with the biosphere and atmosphere into one modelling framework.

21

01 — Feeding and saving: food at the heart of the ecological transition

With a projected world population of 10 billion in 20501 and ademand for animal protein that will increase by 50 to 100%, it
seems increasingly likely that one of the pivots of agriculturaltransition is the production of non-animal protein through thesecond domestication.
By 2030, it is estimated that 10-20% of the meat, eggs and dairy or
seafood consumed in the world will be alternative substitutes2. Of
course, there is never a single solution to a problem as complex asthat of sustainable human nutrition. With the prospect of feeding
the population while limiting the impact on natural resources, thebiotechnological revolution must find its place in a set of varied
productions likely to suggest new ecological behaviours to theconsumer and reduce the carbon footprint. In the same way thatthe need to rely on an energy mix is now commonly accepted, it isvery likely that the same will be true for the development of a foodmix. Biotechnologies are a complementary mode of production to
traditional modes of production.
In a nutshell, changes in food practices, made possible by theadvances of biotechnology, is located on the front line of thetransition because it represents the simplest way, for the greatest
number of consumers, to alleviate the pressure that our species
puts on the Planetary Community.
However, if Precision Fermentation is indeed a technology likely tochange the rules of the game, questions naturally arise as to how it
works: Basically, how can we produce milk proteins without cows?
And, precisely, what is Precision Fermentation?
1
The 2022 Revision of World Population Prospects, United Nations Secretariat(Population Division of the Department of Economic and Social Affairs).

2 Evaluation d’impact des mesures prises depuis 2017 sur la réduction des gaz àeffet de serre en France à horizon 2030, Boston Consulting Group, February 2021.
22

01 — Feeding and saving: food at the heart of the ecological transition

ALTERN ATIVEPROTEIN S
A t as t e o f t h e f u t u r e 1‘‘What we see today is only
the beginning of the proteintransformation. By 2035, after
alternative proteins reachfull parity in taste, texture,and price with conventional
animal proteins, 11% of all
the meat, seafood, eggs,
and dairy eaten around theglobe is very likely to bealternative. With a push from
regulators and step changes
in technology, that number
could reach 22% in 2035.
By then, Europe and North
America will have reached
the point of “peak meat,”and consumption of animal
proteins will begin to decline.
By 2035, the shift toalternatives will save as muchcarbon dioxide equivalent(CO2-e) as Japan emits in a
year, conserve enough waterto supply the city of London
for 40 years, and promotebiodiversity and food security
About 13 million metric tonsof alternative proteins wereconsumed globally in 2020,
just 2% of the animal protein
market. We expect that
consumption will increase to
more than seven times thatsize over the next decade anda half, to 97 million metrictons by 2035, when thethree types of alternatives
will very likely make up
11% of the overall protein
market. Assuming averagerevenues of $3 per kilogram,
this amounts to a market of
approximately $290 billions’’.

1
The Untapped Climate Opportunity in Alternative Proteins, Boston Consulting
Group, July 2022.

23

01 — Feeding and saving: food at the heart of the ecological transition

01 — Feeding and saving: food at the heart of the ecological transition

G L O SSA RY
O F T H E G R EEN TR A NSIT IO N

into another chemical
substance. Example:
alcoholic fermentation ofbeer or wine.

Animal-freeFirst domestication

A food, cosmetic or
clothing product that
does not use animals in its
production.

Anthropocene
A period in the historyof the Earth defined bya change in the climate
system and the biospheremainly due to humanactivities.

Disruptive
innovation
Disruptive innovation is ademand-led technologicalchange that leads tosignificant system change
and is characterized
by strong exponential
growth.
24

Climate-smart
agriculture (CSA)
An approach that helps
to guide actions needed
to transform and reorient
agricultural systems
to effectively support
development and toensure food security ina changing climate. CSA
aims to tackle three main
objectives: sustainably
increasing agricultural
productivity and incomes;
adapting and building
resilience to climatechange; and, where
possible, reducing and/or
removing greenhouse gas
emissions.

Fermentation
Metabolic processthat converts sugar

Period dating back to the
Neolithic period (10,000
years ago) during whichmacro-organisms, animaland plant species wereselected and reproducedby humans for use andconsumption.

Food security
A situation that exists
when all people, at all
times, have physical,
social, and economic
access to sufficient, safeand nutritious food thatmeets their dietary needs
and food preferences foran active and healthy life.

Integrated
water resourcesmanagement(IWRM)A process which
promotes the coordinateddevelopment andmanagement of water,
land, and relatedresources in order tomaximize economic
and social welfare inan equitable mannerwithout compromising
the sustainability of vital
ecosystems.
Life Cycle Assessment or
LCA (also known as Life
Cycle Analysis):
A methodology forassessing environmental
impacts associated withevery stage of the life cycleof a commercial product,
process, or service. For
instance, in the case of amanufactured product,environmental impacts areassessed from raw material
extraction and processing25

01 — Feeding and saving: food at the heart of the ecological transition(cradle), through the
product’s manufacture,
distribution and use,to the recycling or final
disposal of the materials
composing it (grave).

Micro-organism
Living organism (yeast, fungi,
bacteria) that can be seen
only through a microscope
whose metabolism produces,by fermentation, chemical
substances such as proteins.

Mitigation (ofclimate change)
A human intervention
to reduce emissions
or enhance the sinksof greenhouse gases.
Mitigation measures aretechnologies, processes orpractices that contributeto mitigation: for example,
renewable energy (RE)technologies, waste
minimization processes
and public transport
commuting practices.
26

Precision
Fermentation
Biotechnologicalinnovation that allows the
production of targeted
proteins by reorienting
the metabolism of
microorganisms during
fermentation.

RennetCoagulant of animal
milk extracted fromthe abomasum (fourth
stomach) of young
ruminants. Traditionallyused in the manufactureof cheese.

01 — Feeding and saving: food at the heart of the ecological transition

Sustainability
A dynamic processthat guarantees thepersistence of naturaland human systems in an
equitable manner.

Sustainable
development (SD)Development that meetsthe needs of the present
without compromising
the ability of future
generations to meettheir own needs (WCED,1987) and balances
social, economic, andenvironmental concerns.

Seconddomestication
Period during whichmicroorganisms wereselected and reproducedby humans for use andconsumption.

27

T ECHNOL OGY
Pushing fermentation
to the next level02

02 — Technology: Pushing fermentation to the next levelAmong the most innovative technologies in the food sector
and, as a direct consequence, within the scope of the UN
recommendations on reducing emissions from AFOLU,
the production of milk proteins by Precision Fermentation
occupies an exceptional place. It forms part of several models ofsustainable development, and it corresponds perfectly to a needof intelligent re-industrialization based on sustainable Researchand Development for de-industrialized countries, including France.
Precision Fermentation comes at an opportune moment, witha considerably limited impact on natural resources. It meets thelarge demand for protein that demographic pressure will place on
the food industry for decades to come.
As with all food products, the origin is living organisms. In the 21st
century biology has taken a decisive step forward by becoming
aware of the beneficial potential of microorganisms. These microsized life forms are of interest in inverse proportion to theirsize. They are ubiquitous companions exploited for thousandsof years by humanity. Fermentation, a process carried out by
microorganisms, was first used for food preservation. Very early inhistory, techniques to produce alcoholic beverages from fermented
plants also appeared such as beer and wine.
In short, microorganisms (yeasts, bacteria, fungi) are small but
powerful. In the course of their metabolism (multiplication andgrowth) they have the power to transform simple foods into anothersubstance of use, e.g., sugar into alcohol during beer or wine
production. By learning about their metabolism, it was possible tocontrol their production capacity and harness the natural processof fermentation.
In 1857 Louis Pasteur completely renewed the concept: since
all active substances come from living nature, fermentation is awork of the living. His contribution was decisive because before
him, fermentation was not associated with the living but with31

02 — Technology: Pushing fermentation to the next level

02 — Technology: Pushing fermentation to the next levelits decomposition. In his eyes, fermentation was a fundamental
mechanism of the chemistry of life. More precisely, he discoveredthat micro-organisms could transform sugar into other substancesby a process that is largely controllable.

Precision Fermentation is a modern method, but it is not at odds
with the traditional knowledge that has allowed mankind to tame
microorganisms in an empirical way, by making beer and wine forexample.
When we investigate the heart of the manufacturing process,we can see that it relies on a natural biochemical process whichscientists re-orientate. It exploits the power of microorganisms’
metabolism to convert sugars into proteins and it does so in a very
precise way, by targeting substances of interest.

Precision Fermentation is responsible for well-known substances
which are vital in several relevant industries including pharmaceuticaland food. For years insulin used for the diabetes treatment was
extracted from pork or cow’s pancreas and presented several
secondary effects to human health. Nowadays, insulin is produced
through Precision Fermentation. Another example is Rennet, a byproduct of cattle breeding and an essential protein. Extracted fromthe abomasum, the fourth stomach of the calf, it was traditionallyused in the manufacture of cheese. Currently a vast majority of thecheeses we consume have been made using rennet produced by
Precision Fermentation.
Independent of breeding animals, Precision Fermentation allows
for the production of multiple substances, often more valuable forhuman health (less allergen, greater purity; Figure X – Rethink X).

This is a remarkable engineering of a microorganism’s function, andit gives rise to the production process of non-animal milk proteinsin four phases.

1

D ES IGN OF THE
MICROORGAN IS M’SGEN OME

Source: rethinkX

The design phase consists in inserting inside a
microorganism’s genome (yeast, bacteria, fungi)
the DNA sequence of milk proteins. Once the DNA
sequence is integrated into the microorganism, thebiological tool is built, and the microorganism canconvert sugar into milk protein.

32

In summary, through these genetic modifications, weare simply diverting the ability of a microorganism
to produce a natural protein to produce specificallythe milk protein.

33

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02 — Technology: Pushing fermentation to the next level

PREC I S I O N F E R M EN TATIO N
The designed microorganism is than fed withmainly sugar, water, minerals, and vitamins inside afermenter
This bioreactor is therefore the place of growth andmultiplication, where the microorganisms content
increases as the sugar content decreases while themilk proteins are produced. The proteins are either
produced inside the microorganism or excreted
into the fermentation media. Bioreactors also
allow the regulation of essential parameters suchas temperature, pH, agitation and maintain the
microorganism growth and the protein production
in highly controlled and optimal conditions. A tankcan reach an average volume of 200m3, that is tosay a container of 5m wide and 13m high. This makes
it an artifact comparable to a beer tank in a brewery
or a wine vat in a winery.
At the end of the fermentation period, which lasts on
average between 48 to 150 hours, what does remainin the fermenter? A biomass consisting mainly of
microorganisms, its quantity is multiplied by 1001000 during the fermentation and represents at theend of the process 5-35% of the total volume. The
rest is a suspended liquid containing the culture
media metabolic residues, water and the milk
proteins.

34

3

02 — Technology: Pushing fermentation to the next level

FILTRATION
Next comes the separation phase of the
microorganisms and the proteins of interest. Thisis the most important of the 4 phases because
it allows the recovery of the milk protein and theremoval of any trace of DNA and yeast’s debris.
This precision is more than a terminological nuancebecause, in the long run, it is not a GMO itself which
is produced but a product resulting from GMO likemany other products already present on the foodmarket. It should be noted that the efficiency ofthese separation techniques, commonly appliedin several sectors of industry, has already beenvalidated, particularly in the pharmaceutical andfood-processing fields. By using very high precisionfilters, the milk proteins are filtered and retained,
and the residual impurities are removed during
cleaning and washing operations.
This phase of the production process is completedwith the removal of all moisture by drying in a tower.
The result is a milk protein powder ready to be usedin the production of food and other dairy products.

35

4

02 — Technology: Pushing fermentation to the next level

C REAT I O N O F L A C T O S E -FR E E
AN D A N I MA L - F R EE D A IRY PR O DU C TS
The basic product that is presented in this lastphase is therefore an ingredient and dairy substituteperfectly suited to the preparation of food forhuman consumption and equivalent to proteinsfrom animals. It is important to remember that
although genetically modified organisms are usedin Phase 1 in order to target the production of milk
proteins, the final product is not a GMO. It has all thenutritional, taste and functional values of cow’s milk
protein and is suitable for all its uses. The nutritive
values are enhanced by the high degree of purity
permitted by the filtration step.
This use is based entirely on the properties of thetwo main milk proteins: casein and whey protein,which are subsequently combined with plant-based
fat sources, mineral salts, etc. to make complete
and as nutritive as dairy products.
In short, the production of milk proteins by Precision
Fermentation is a powerful technology which meetsthe growing need for protein for human consumption.
With it, the industry can count on a sustainablesupply of milk proteins. The functionalities of themilk proteins are the same and already present
in many food recipes ranging from classic dairy
products to the complementary areas of nutritionand health for seniors and children.

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02 — Technology: Pushing fermentation to the next level

CASEINAN D WHEY
The essential amino acids
content that makes up milkcorresponds to 39%. Caseinsare proteins that constitute amajor part of the nitrogenous
components of milk with 34%
essential amino acid content.
Whey proteins have a strong
nutritional interest becauseof their high composition inessential amino acids (43%).
The most important are
beta-lactoglobulin (ß-LG),alpha-lactalbumin (α-LA) andglycomacropeptide (GMP).
This makes it a high-quality
protein source for humannutrition.
From a nutritional point ofview, casein and whey protein
are complementary: unlike
casein, which is absorbed
gradually and is therefore
called ‘slow protein’, whey
protein passes more quickly
through the stomach. They

can therefore be consideredas ‘fast’ proteins, leading
to an immediate increasein the amino acid content
of the blood plasma. By
reducing its formula to thesetwo proteins only, the milk
proteins obtained by Precision
Fermentation contains nolactose, no animal fat, no
animal hormone residues, andno trace of antibiotics.
In addition to the nutritional
interest, there is an importantfunctional interest: whey
proteins have a foaming andemulsifying capacities whichallows them to mix withfats. This property plays adetermining role in what thephenomenology of taste calls‘mouthfeel.
Casein, thanks to its ability
to coagulate in the presenceof rennet or in an acidic
environment, is the basis ofcheese making.

37

02 — Technology: Pushing fermentation to the next level

Produced by Precision
Fermentation, whey, andcasein, therefore allow for
the creation of dairy products
without the use of animals
and offer, in strict parallelwith cow’s milk proteins,essential organoleptic
properties:

02 — Technology: Pushing fermentation to the next level

SAME
TEXTUREFEEDAN D S AV E

SAME
TASTE

Precision Fermentation is an innovative biotechnology thatmeets the growing need for proteins without compromising theenvironment, pleasure, taste, or animal welfare.

SAME
NUTRITIONAL POWER
AS THE ANIMAL PROTEIN

The interest in milk from a non-animal origin is to meet thedemands of milk processing by producing an ingredient with highadded value. This alternative milk production process has a lower
impact on the planet without compromising the taste, texture, andnutritional value for the consumer.

THE TIME
FA CT O R
Phase 1 of the selectionof microorganisms takes
between 6 months and5 years, depending on
the optimization of
productivity and readinessof the strains. Phase 2 and3, the development of theprocess and purificationof the protein, requires
6 months to 2 years. On
the administrative side,
registration, and regulationon the administrative side,takes between 1 and 2 years
depending on the country.
38

In its total production, thisis a technology which was
taking 5 years to develop
before 2018. It has become
faster thanks to scientificadvances that have improved
the tools used in thelaboratory and industrial
scale. As for Precision
Fermentation, it is a green
technology increasingly
used in many fields such as
pharmaceutical, cosmetics
and now food. Currently, it
only needs 2 to 3 years to
become effective.

This biotechnology is circular since even its by-product is used.
During the final processing, the genetically modified elements areneutralized by a thermal process that leads to the destruction of
the DNA. Thus, the final residue (biomass) can be converted into
biogas or re-injected into innovative agro technology such asanimal feed. The inclusion of the Precision Fermentation process
in a circular technology is an essential component of its green
credentials.
Since the environmental footprint of the whole process is almost
zero, there is every reason to consider milk proteins obtainedby Precision Fermentation as a clear progressive step in using
biotechnology for sustainable food. Companies developing thisprocess are bound to experience strong growth in the coming
decades.

39

INT ERES T
Advantages of applying
Precision Fermentation to dairy

03

03 — Interest: Advantages of applying Precision Fermentation to dairy

LIF E CYCL E ASSESSMEN T
In the case of Bon Vivant, it
is a working document forauditing purposes that was
carried out independently
by Lorie Hamelin, professor,
and holder of INRAE
research chair on sustainabletransitions towards low fossil
carbon use, and followed
methodologies set out by theEuropean Union. It is basedon a basic premise: milk
produced by cows in Europe¹.

The result, according to the 15
impact criteria, is that if Bon
Vivant produced this quantity
using its process, it would
correspond to 65,662 tons of‘‘animal-free’’ milk by 2028.
In terms of climate change
impact, this means that wewould be able to save:

These data were comparedwith the impact of Precision
Fermentation if Bon Vivant
produced 2160 tons/y of milk
protein (80% pure). As Bon
Vivant only produces the milk
protein and not per se milk,
to be comparable to cowbased milk it was decided to
add water, sugar, plant-based
fat, and minerals into the LCA
model.

on climate change (Kg GHG eq)-92%

on land use (Pt)

-96%
-99%

on water scarcity (m3 depriv.)
Finally, at the end of the
production process, theultimate residue (biomass)can be converted into biogas
or re-injected into innovative
agro technology such as pet
food nutrition.

1

The ecoinvent Database, a Life Cycle Inventory (LCI) database that supports
various types of sustainability assessments. See www.ecoinvent.org
43

03 — Interest: Advantages of applying Precision Fermentation to dairy

03 — Interest: Advantages of applying Precision Fermentation to dairy

La test officia l data wi th the i nput sc h eme:

COMPARISON OF BON VIVANT LCA
VS CONVENTIONAL MILK LCA OVERVIEW 1
ENVIRONMENT
Resources

ENVIRONMENT

Complementary
plant-based resources

Consumptions
are taken frombenchmark /databanks

Lipid replacement
2 495 t/y

Lipids2 495 t/y
Carbohydrates
3 086 t/yDairy
farming

Minerals
525 t/yProteins
2 160 t/yConsumer:Foodapplication(Nutritional
intakes must
be the same:
quantity andnutritional
profile)Liquid milk

TODAY

1

44

Resources

Impact comparison

Data taken from a report by L. Hamelin’s Lab, Lorie Hamelin, professor and holder ofan INRAE Research Chair on Sustainable Transitions towards low fossil Carbon use.

Consumptions
are calculated(Processium)

Carbohydrates
3 086 t/yMinerals
525 t/yProteins
2 160 t/ymilk substitute

TOMORROWThis LCA was made at the request of Bon Vivant and is basedon the figures of the Bon Vivant process.

45

03 — Interest: Advantages of applying Precision Fermentation to dairy

D I VE R S I TY IS TH E K E Y
T O T R A NS ITI O N A N D
SUSTA I NA B L E B A LA NC E
It is in parallel withconventional or local ‘terroir’
production that Precision
Fermentation can make themost of its many assets. The
nest idea is that of respecting
diversity, including at thelevel of dairy production.

Far from wanting to take theplace of traditional producers,
the milk protein obtainedby Precision Fermentation
is part of a food mix. In
terms of food supply as wellas ecology, what counts isdiversity.

A N E W C Y C L E O F F INANC E
The circulation of capitalwhich accompanied theindustrial revolutions was,until now, a one-way street:capital goes to capital,
money goes to money. Withthe transition economy
which the climate emergency
requires, money becomes aresource like any other. The
money invested in Precision

Fermentation biotechnology
will not only turn a profit;
it offers the possibility of
redirecting the money which
no longer goes into arable
land or livestock structuresin the ecological transition.
Even in terms of finance,
circularity is the signature of
new forms of production in
the innovative food industry.

03 — Interest: Advantages of applying Precision Fermentation to dairyNon-animal milk production is capable of meeting precisely
two demands: that of an ambitious transition to mitigate
the impact of climate change and that of more efficient
food production to feed humanity.

THE N EED FOR A 180° CHAN GE
TO P RES ERV E THE P LAN ET
We are on the verge of the most profound, rapid, and significant
change in food and agricultural production since the first
domestication of plants and animals ten thousand years ago. At
the time of the first domestication, in the Neolithic period, the real
danger was the shortage of food. By domesticating living species,
mankind has learned to avoid this risk by building up reserves.
Today, we are producing food in a damaging and unsustainable
way: the consumer has become aware of the individual impact offood on the planet and the consequences of his way of eating on
his health.
‘‘While a growing population benefits from an average increase in
its capacity to consume, the demand for food products is exploding.
At the same time, the limits of nature are becoming more and more
concrete. The global community, without exception, must therefore
make a collective intelligent effort to build a circular economy
centred on food.’’1

1

46

The food revolution, The future of food and the challenges we face, UBS Report,
July 2019.

47

03 — Interest: Advantages of applying Precision Fermentation to dairy

03 — Interest: Advantages of applying Precision Fermentation to dairy

It is clear that the main disruptive force in stopping climate
breakdown is consumer behaviour. People are demanding a new way
to produce food and are driving certain industry directions throughthe choices they make. The primary cause of this unprecedented
influence is that the technology to revolutionize the food systemalready exists. Of course, a big step has yet to be taken to satisfy
the trends that are emerging and to transform food behaviours.

Is the new consumer ready, however, to adopt a diet derived inpart from biotechnology?

At a time when consumers want to get closer to what they eat inevery sense of the word, the material conditions of their lives are
increasingly keeping them away from it. Despite the desire to eat‘locally’, a single litre of milk, for example, travels a long way before
reaching the consumer; sometimes it is first reduced to powder
and then rehydrated to be reincorporated into the dairy productsthat will eventually be consumed. These mass food requirements
are subject to industrial or commercial logics which put a brakeon the consumer’s desire to eat healthily and with respect for theplanet. Moreover, they still delay the implementation of adequate
responses to this crisis.
The societal reflection and sensitivity on these issues correspondto what many observers refer to as ‘mindful eating’. An example of
the growing influence of ‘mindfulness’ in food practices is the need,strongly expressed by consumers, to substitute, in their regular
way of eating, protein of animal origin with protein from anothersource, vegetable or alternative.

A study published in October 2022, signed by the French CNRS andthe Centre for International Cooperation in Agronomic Research,
looks at the plate of the future. Projections show that the average
individual consumption of meat will be divided by three, and thatof animal milk by 1.4 compared to today.
‘‘Some consumers have already adopted this diet, which consistsof reducing their consumption of animal proteins by half without
suffering from deficiencies’’, acknowledges Carine Barbier, anenvironmental economist at the CNRS and co-author of the report.
In this scenario, the protein source of animal origin is only 49% anddairy products are mostly substituted by non-animal milk proteins.
The clearest result of this study is therefore to underline the desire
for change in consumer habits. They are ready to adopt a diet inwhich the protein source will be alternative, especially in the fieldof non-animal milk proteins obtained by Precision Fermentation.

Times are changing, in an irreversible way. The need for protein
is increasing like never before and at the same time the originof acceptable proteins is pivoting on its axis. It is pointing in a
direction that tends to move away from the domesticated animals
on which we have always relied. And nobody has the desire or themeans to consider the breeding and use of other sensitive species
as an inexhaustible source.
1

48

The food revolution, The future of food and the challenges we face, UBS Report,
July 2019.

49

03 — Interest: Advantages of applying Precision Fermentation to dairy

03 — Interest: Advantages of applying Precision Fermentation to dairy

Another study conducted by the Hartman Group in 20221
demonstrate a raising environmental awareness and will to
consume in a more sustainable way from end customers:• 69% of American consumers acknowledge a need for meeting
our society’s nutritional needs with fewer resources (energy, water,
carbon), 5 points more than in 2019. Another striking fact: younger
generations are the most convinced this should be achieved (74%of millennials).

Again, the Hartman Group study¹ gives us a good idea of the importanceof communication in driving change in the food industry:• To do so, science is deemed a good option: 61% of consumers
believe science and technology are our best hope to address
climate change (67% of millennials). 60% of Americans believethat scientific and technological innovations can make food moresustainable (64% of millennials) and 56% more healthy (62% of
millennials).
• As they feel concerned, they are more and more ready to change
their habits: consumers are increasingly concerned by the impactof their lifestyle on the environment, and 52% of them are willing todrastically change their lifestyle to live in a more environmentallyfriendly fashion, 8 points more than in 2019.
• Consumers are already changing their diet and habits: 35% of
American consumers like trying foods produced in an innovative
way; and 50% of them look for products from companies thatprioritize sustainability and animal welfare.

TH E NE E D FO R E D UC AT I O N O N PR E C ISIO N
FE RM E N TAT I O N T O I N D UC E T R UST A ND B U Y ING• Pedagogy increases the purchase intent. When being presented
with a brief description of the process, the share of consumers likely topurchase precision fermentation issued products switches from 43 to
56%. Precision fermentation has a lot to gain from pedagogy.
• The main aspects on which consumers should be reinsured are taste
and health issues. When asked about what they would need to know to
try precision fermentation, the three main issues raised by consumers
are safety (60%), good taste (59%) and healthiness (53%)• Pedagogy about environmental and animal welfare benefits
boosts purchase intent significantly. Learning a little about precision
fermentation’s benefits for the environment raises purchase intent by

P ROD UCIN G BETTER AN D GEN ERATIN G
WEALTH FOR ALL
No significant progress is possible without guarantees of efficiency
in production. However, the least efficient and most economicallyvulnerable sector of the world food system is livestock. The products
derived from cows, meat, and milk, will be the first to feel the disruptive
impact of the new needs of modern food. Are new technologies likely
to change the configuration of food production in the coming decade?

For this 180° change in our food production habits to happen foodindustrials have a major responsibility in explaining pedagogically tocustomers what Precision Fermentation is. This effort on transparency
is the cornerstone to build trust and trigger the rapid adoption that weneed if we want to collectively meet our net-zero objectives.
1

50

Hartman Group white paper, page 5 & 6

1

Hartman Group white paper 2022, page 7, 8, 951

03 — Interest: Advantages of applying Precision Fermentation to dairy

RESOURCES

There have been unexpected advances in nonanimal protein production in recent years. Precision
Fermentation seems to effectively combats the waste of an essential
and already strategic resource: the water. It considerably reduces theuse of arable land for livestock production. It uses another source offeedstock, sugars, that doesn’t not compete with livestock sector.
It lowers the cost of the carbon and energy bill in the food sector. It
contributes to the global health of humanity, which has an increasingneed for proteins.
In short, it provides a tailor-made answer to the question of foodefficiency. Thanks to it, among other elements of a food mix, the major
agricultural paradigm shift away from high carbon food production
is within reach, made possible by the technologies of the Second
Domestication.

THE WASTE

Intensive farming is characterized by an inefficientuse of land, water, time, and money that also
contributes to several environmental andhuman health impacts. Leaking and overflowing
holding tanks and excessive application of manure as fertilizer cause
eutrophication (artificially enriched water) in nearby aquatic habitats,resulting in toxic algal blooms, anoxic conditions (total depletion ofoxygen in the water), fish kills, and habitat destruction. Faecal bacteria
accumulate in surface and groundwater, contaminating water which
can be used for drinking or irrigation. Particulates from manurespraying on agricultural fields are also a significant health problem
and nuisance to people living near farms.

52

03 — Interest: Advantages of applying Precision Fermentation to dairy

It should be noted that there is no manure created by modern foodproduction because there are no animals involved in the process.
An initial study¹ estimates that a product made from Precision
Fermentation generates 92% fewer pollutants than a comparable
animal product.

PRODUCTION
COSTS

The cattle industry is very resource-intensive,with huge amounts of feed crops, land, water, andtime devoted to the production of animal-based
foods. Currently, farmers essentially raise a whole
cow before breaking it down into specific products, such as milk, steak,leather, or collagen. The system is about to run into its own limits interms of efficiency and resource management. There is little room for
improvement in production costs. Over the past 30 years, there has
been little improvement in livestock feed and reached a “plateau” ofproductivity” due to a genetical potential that have been achieved. On
the contrary, with a technology such as Precision Fermentation, it isassured that the cost of production will continue to fall considerably.
One of the advantages of the process is that it produces only theprecise number of individual molecules of interest needed. We have
not yet achieved and discovered all the power of microorganisms.
In short, just as the first domestication, that of macro-organisms, has
undergone considerable evolution, especially during the industrial
period of the 20th century, the second domestication, that of
microorganisms, is still in its infancy. No one can say today what ourworld will look like when new techniques utilizing microorganisms
will lead to increasingly sophisticated fermentation or purification
processes.

53

03 — Interest: Advantages of applying Precision Fermentation to dairy

03 — Interest: Advantages of applying Precision Fermentation to dairy

So, it should come as no surprise that modern means of production
will be about 10 times more efficient at converting directly sugars into
proteins. Because a cow needs energy from the feed it consumes tomaintain and develop its complex physical structure over time before
producing proteins (meat/milk). With microorganisms, by contrast, lessfeed needs to be consumed to grow and produce proteins. This means
also less time spent on feeding the livestock, with its rumination andmethane production phases. Less land is needed to grow the grain on
which the cattle are fed. Less water is used, and less waste is produced.
The savings are considerable: 10 to 25 times less raw materials, 10times less water, five times less energy and 100 times less land.¹

Existing livestock supply chains rely heavily on extensive infrastructure,large-scale farms, and slaughterhouses. With new food production
structures, packaging facilities and distribution intermediaries, will
become largely redundant and thus tend to disappear as the boundary
between producers, wholesalers and retailers blurs. Food production is
on the move. It is moving from large, peripheral agricultural areas tosmaller, easily accessible urban areas. Another asset is the possibility
for countries currently without milk production, for structural climatic
reasons, to benefit from Precision Fermentation technology. This
would have the benefit of reducing costly, carbon intensive road or sea
transport.

1

Rethinking Food and Agriculture 2020-2030, The Second Domestication of
Plants and Animals, the Disruption of the Cow, and the Collapse of Industrial
Livestock Farming, A RethinkX Sector Disruption Report, Catherine Tubb & Tony
Seba, September 2019.

SUPPLYCHAIN
COSTS

The cultivation of microorganisms, complementary
to conventional production, will also bring with itan entirely different food production system that
won’t compete each other for the same resources.
Production now moves from the field to the fermentation tank. The
reduction of the supply and value chains currently associated with cattle
production is expected to significantly reduce costs. Fermentationbased production allows to localized production units which are much
more efficient, virtually eliminates waste and reduces the transportation
burden. This will result in a more rational distribution network, withcheaper and more stable end-product prices as well.

54

55

03 — Interest: Advantages of applying Precision Fermentation to dairy

T H E I O WA
PA R A L LEL 1

By 2035, about 60% of theland currently being used forlivestock and feed production
will be freed for other uses.
This represents one-quarterof the continental USA The

156

opportunity to reimagine
the American landscapeby repurposing this land iswholly unprecedented. These
485 million acres equate to 13
times the size of Iowa.

Rethinking Food and Agriculture 2020-2030 [...], RethinkX, 2019.

THE MARKET FOR
ALTERNATIVE PROTEINS:
An international, financial andpolitical race04

04 — The market for alternative milk proteins: an international, financial and political raceThe main alternative protein market is currently driven by
three countries: the United States, India, and Israel. One
might expect these three bridgeheads to have points incommon that could inspire other countries to develop this sector
in their turn. Let’s try this comparison.

WHY THEM?
They are three parliamentary democracies. But whereas the USA is atranscontinental state in North America, India is a sub-continental
state in South Asia and Israel is a Mediterranean state in the Near
East without a continental dimension. Their surface areas also
differ greatly, with more than 9 million sq. km for the USA, morethan 3 million sq. km for India and barely 22,000 sq. km for Israel.
In terms of population, the ratio is reversed in favour of India, with
1.3 billion inhabitants, compared to 331 million for the USA and alittle over 9 million for Israel. From the point of view of economic
development, the USA has been highly industrialized for more thana century, whereas India is a newly industrialized country and Israel— born as a state at the same time as the Indian subcontinent— reached what one might call immediate industrialization in theyears following its creation. One point of convergence, however, isshared by several other countries that are not yet prominent in thealternative protein market: confidence in advanced technologies.
It is as if the differences in scale, structure, historical and cultural61

04 — The market for alternative milk proteins: an international, financial and political race

04 — The market for alternative milk proteins: an international, financial and political race

context could not account for the leadership role of these states,
which are too different to be comparable.
To understand their position, we must go further and question theway in which they perceive their position in this market, and above
all, what justifies, in their eyes, their leadership.

Of course, American certainty of excellence is based on something.
The United States is at a crossroads in protein policy. In recent
years, alternative meats, eggs, and dairy products have gained
media attention and market share. A few very active players set
the scene: Plantible, Impossible Food, Beyond Meat, Perfect Day orMemphis Meat.

3

LOGICSOF SUCCESSTHE USA:THE FORCE
OF NATURE

A report by Good Food Institute (GFI) bluntly
answers the question of USA market perception
and leadership:‘‘Traditional USA strengths in agriculture, food processing, andbiomedical technology, as well as some of the best research anddevelopment capabilities in the world, give the USA a naturaladvantage in what promises to be a global race for innovation.’’1
The heart of the argument is that in this new alternative protein
sector, the USA economy will expand its natural dominance. It is,in other words, a form of hegemony based on the nature of theAmerican people, their capacity for innovation, hard work andinvestment. In ordinary words, we find the well-known confidenceof the United States in the global role it plays, in high-tech
agriculture as elsewhere. It is this factor that explains their positionof superiority.
1

American National Competitiveness & the Future of Meat, Why the United Statesneeds to build up a domestic alternative protein industry, Good Food Institute,
2022.
62

Today, ‘cellular agriculture’ is a factor that could upset the economic
balance because of its considerable development potential.
Reproducing, thanks to biotechnologies, animal by-products suchas meat or milk, without the need to raise or slaughter animals,
is a revolution in food. The foreseeable benefits are enormous:
economic growth and stronger national competitiveness in global
markets, new tools to meet climate and biodiversity goals, andmitigation of pandemic and antibiotic resistance risks.
It is therefore quite natural that alternative proteins, already on
the American domestic market, seem destined to become the foodof the future. It should be noted that the USA is the first country
after Singapore to have given its approval, through the FDA, forthe commercialization of cellular meat, the beneficiary of thisimportant advance being the start-up Upside Foods.
The strength of the protein sector, in addition to technology, isthe new consumer trends. The USA economy, as we know, is used
to projecting itself into the global market as if it were a naturalextension of the domestic market. In this context, it recognizes
that the world’s population is growing in number and wealth, whichmeans an increased demand for protein-rich foods. At the sametime, consumer concerns about personal health and environmental
sustainability are driving an openness to animal-free options.
Among the growing market segments, these expectations are
particularly relevant to middle-aged and younger consumers
who will dominate future demand. These factors have led to an63

04 — The market for alternative milk proteins: an international, financial and political race

explosion of investor interest in alternative proteins. The year
2021, for example, saw record transactions as production capacity
indicated strong growth. According to GFI, the total amount of
capital raised in this sector in 2021 was $5 billion.
America is therefore well positioned to benefit from the proteintransition. In the short to medium term, both alternative andconventional proteins can grow in an expanding market. But
alternative proteins are growing faster and, over time, are likely tocapture more and more of the food market. As investments follow
or anticipate consumer spending, the effects will ripple acrossthe value chain, generating real impacts for local communities
throughout the US and beyond.

INDIA:THE VITALNEED

In a very different context, the Indian perceptionof alternative proteins’ prevalence in thesubcontinent is also unambiguous. A pragmatic

approach provides the key to understanding this. The Indian foodpolicy of the last few years is primarily based on an observation: theagriculture of the green revolution (or chemical revolution) is out ofbreath. Many farmers, in debt, are committing suicide. The figures
are terrifying: according to a report by the Indian administration
relayed by the British channel Sky News, more than 256,000 Indian
farmers committed suicide between 1995 and 2010.
A considerable mass of workers is employed in the agricultural
sector while the industry lacks the manpower to develop. The
yields are not up to the needs. For many Indian entrepreneurs andinvestors, the situation has become unacceptable.

04 — The market for alternative milk proteins: an international, financial and political race

A SECTOR SUPPORTEDBY GOVERN MEN T IN VESTMEN T
IN THE UN ITED STATES 1
House Representative Ro
Khanna (Democrat for
California) led a request
supported by 10 membersof Congress to the USDA
to increase funding foralternative protein research.
This is the latest major
policy step in support ofalternative proteins after theconsiderable step forward in
FDA approval of cell meat.
In a December 17, 2021 letter
Representative Khanna andother members of the House
Agriculture Committee asked
USDA Secretary Tom Vilsack
to include alternative protein
research in USDA’s FY 2023
budget request.

1

64

The letter also requested that
$50 million of the Coronavirus
Relief funding be allocated toalternative protein researchto ‘‘improve the sustainability
and resilience of our foodsystems’’ and ‘‘create new
economic opportunities
for American farmers, newbenefits for consumers, andhelp reduce agriculturalemissions.’’www.vegconomist.com/politics-law/congress-funding-alternative-protein/65

04 — The market for alternative milk proteins: an international, financial and political race

04 — The market for alternative milk proteins: an international, financial and political race

Another observation recognises that the Indian population is
the largest on Earth and will probably remain so in the decades
to come.1 Managing to feed 1.3 billion people properly (i.e., withproteins) is a real challenge.

more than one billion consumers with traditional proteins. The
significant development of the alternative protein sector is anindication that the Indian economy is impartial in banking on its
domestic market’s unprecedented size and on biotechnology tomeet its vital need for protein.

Today, more than one child out of five (22%) is stunted, even in therichest Indian households. This rises to one in two children (51%) in
the poorest households. In total 38% of children under the age offour are affected by malnutrition, according to a UNICEF report on
The State of the World’s Children (SOWC). In fact, India, despite its
emerging economic power, is the third country in the world withthe highest rates of underweight children, just behind Djibouti andSouth Sudan.
India therefore sees the development of alternative proteins as
the answer to a vital need. More commonly known as ‘alternative
proteins’ around the world, the term ‘smart protein’ is preferred inIndia where it resonates strongly with consumers. It encompasses
the vegan, cultured and precision-fermented meat, egg and dairy
sectors. The whole sector is growing exponentially and is set to
explode if the large amount of investment it attracts is anything
to go by. As Indian consumers are much more open to these new
products than Westerners, and the Indian demography is notcomparable to that of Western countries, everything seems toconfirm the immense potential of the Indian cultured meat andalternative milk protein industry.
In short, India’s conventional agriculture is reaching its structural
breaking point and is not, on its own, able to supply a market ofAnanta Hempworks Solutions (hemp seeds as an active sourceof fat, protein, sugar, fiber and minerals), AyurNosh (gluten-freevegan ready meals), Mountain Tribe (kombucha), Nutriplay (100%organic diet snacks to ensure balanced intake and fight obesity),
Only Earth (oat, coconut and almond drinks, rich in vitamins, protein
and fiber) Rooted Active Naturals (dietary supplements based on
mushrooms and plant principles), Saral Proticons (plant protein
powder), Snill Burger (vegan burgers), Upbites (snacks based on
seeds rich in proteins and minerals guaranteed without chemical
inputs), Wellversed (line of plant-based protein foods, general andsports nutrition), are often ranked as the ten most dynamic startups in the sector.

ISRAEL:
EXISTENTIAL
SECURITY

Israel’s understanding of its leadership position in
the alternative protein market is deeply linked tothe country’s recent history and the challenges it
faces simply to exist.

The Israeli position in the food sector has the advantage of clarity.
Without a proactive policy of food sufficiency, the very existenceof the State of Israel is threatened. If ‘‘Israel leads the world in foodtechnology,” said Nir Goldstein, president of the Good Food Institute
Israel, it is because it is a matter of survival for the country.¹

1

According to INED, the French National Institute for Demographic Studies, India
will be the most populous country in the world in 2050 with 1.7 billion inhabitants.

66

1

Times of Israel, January 2022.
67

04 — The market for alternative milk proteins: an international, financial and political race

04 — The market for alternative milk proteins: an international, financial and political race

Indeed, more than any other state, Israel must be able to count on foodsovereignty and self-sufficiency, which is primarily intended to allow
its population to feed itself despite the almost permanent tensions at
its borders. In this context, a strong food industry can guarantee thecountry’s food security and become a strategic asset for Israel.

An example? Announced in early 2022, the second largest fundraisingby an Israeli food technology start-up went to Remilk, a producer ofanimal-free milk and dairy products through Precision Fermentation,
like Bon Vivant, for $120 million.

According to a GFI report published in March 2022, the alternative
protein sector — part of the dynamic food technology industry —would have grown by about 450% in 2021 in Israel compared to theprevious year. Israeli start-ups in the sector are also reported to haveraised some $623 million.
This is understandable as the food technology industry ecosystem isamong the most dynamic in the world. It includes nutrition, packaging,food safety (control and standards), processing systems and newingredients, in addition to alternative proteins. The latter alone includes
plant-based alternatives for meat, dairy and eggs, aqua cultured
seafood, insect proteins and fermentation products and processes.
According to the report, 11 new alternative protein companies were
founded in Israel in 2021 — 6 aqua cultured meat and seafood
companies, 4 plant protein companies and 1 Precision Fermentationcompany.
The report indicates that the significant growth of the Israeli alternative
protein sector would be linked to massive investments in companies
whose products are close to commercialization and whose diversified
offerings would allow them to target global markets.
This movement of capital, which consists firstly of moving towards
companies whose innovations make it possible to ensure the country’s
food security and then to conquer new international markets from astrategic perspective, truly characterizes the Israeli paradigm in thedevelopment of food biotechnologies.

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THE PARTICULAR CASE OF EUROPE
Europe offers a contrasting landscape in the production of alternative
proteins. Because of its historical position as a leader in agri-food, one
might expect to find it at the forefront of the leading sectors in foodbiotechnology. This is not the case. It seems that until very recently, it
had difficulty in grasping the issue of protein transition.
In response, several answers present themselves. Should regulatory
obstacles be blamed? It is true that the administrative structures of
the European framework piles up the levels of reflection and decision,
which lengthens the inevitable back and forth between the proposalof companies and the decisions of the Commission or the member
states. It is not always clear who has the final say in authorizations. Yet
the law is a principle dear to Europeans and has always accompanied
innovation. There is therefore no reason to believe that foodbiotechnologies are only encountering legal inertia in Europe.
Should we consider, then, that the Old Continent’s market is not ready?
This would be to miss certain features of the global food market thatare clearly expressed in Europe. For example, European consumers
are also unambiguously expressing their desire for food that is moreconcerned with health and respect for the planet’s resources, aswell as animal welfare. Moreover, Europe as a whole is very sensitive
to environmental issues and has made them a spearhead of its
development actions. Cop 21, Paris Agreements, this localization of
the political commitment to the ecological transition owes nothing
to chance. Economically and sociologically, the European market has
nothing to envy the North American or Israeli markets.

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04 — The market for alternative milk proteins: an international, financial and political race

Are we then simply too conservative? Certainly, Europe is a
fragmentation of terroirs, all committed to offering exceptional
products while playing a role of conservator of foods and tastes. Yet
there is no indication that alternative proteins should take the placeof meat or dairy products, which are rightly considered the best ofEurope. On the contrary, the idea of a food mix has gained ground andis now imposed on all those who think, invent, and propose in the foodsector.

is specific to the EU and that is part of a logic of success. This could
be the demand for taste and gastronomic culture or a more efficient
way to accompany the ecological transition. Whatever the reason, it
is up to the market players and the public or private funding bodies todefine it. There is every reason to believe that the industrial justification
phase, which consists of clearly and distinctly formulating the reason
why the alternative protein must be present on the European market,
is indispensable. It corresponds to the broad vision that, in anotherindustrial context, allowed Europe to come together around the Airbus
project, for example. The time has come, in the field of smart proteins,to create champions on a European scale.

In the end, is it a matter of questioning the quality of alternative
proteins and the products they make? Here again, there is no room for
doubt. It has been proven that Precision Fermentation, for example,
contributes to providing pharmaceutical products (insulin) andfood products (milk and dairy products) of very high nutritional ororganoleptic quality. The problem is not to be tackled in these terms.
So, how can we make a measured but exploitable diagnosis thatwould allow Europe to play its role in this new and incredibly
promising market?
What emerges from the study of the drivers of the alternative protein
market, which are the USA, India, and Israel, is that due to the structural
diversity of these countries, each has developed, as we have just seen,
its alternative technologies for different motives. Rightly or wrongly
considered as special cases, these reasons have the advantage ofbeing recognized and proven by national actors in these markets. Ina word, the United States attributes its leadership to what it sees as
the natural right of the American people and economy to exercise
hegemony. India, on the other hand, sees it as an expression of a vitalneed of its population. For Israel, it is a matter of existential security.

This vision is all the more necessary as we cannot ignore the encouraging
signals that indicate a willingness on the part of European startups to take a place in the market. Ynsect, Gourmey, Mosa Meat, Bon
Vivant, among others, are beginning to make a name for themselves.
The underlying economic logic is one of domination. Nature abhors
a vacuum, and if European entrepreneurs and politicians remain too
timid in the alternative protein sector, there is no doubt that initiatives
from other countries will result in their products being sold in Europe.

WHO INVESTS?
What justifies capitalization in the sector of alternative proteins and milk
proteins in particular, is the meeting between an available technology
and the power of transformation of the production structures that it
implies. A transformation that is in line with sustainable ecologicalchange.

If European companies want to enter the game, they must in turn —and this is the lesson of the advance of the three driving countries— define a reason for the development of alternative proteins that70

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04 — The market for alternative milk proteins: an international, financial and political race

According to Sharyn Murray, senior Investor Engagement specialistat GFI, ‘‘The investment community is beginning to see the enormous
potential of alternative proteins to transform our food system, as
well as the strong ability to meet their return targets. As more andmore investors recognize that climate risk is also an investment risk(stranded assets), alternative proteins offer a scalable solution thatmoves the Global Community closer to a safer, carbon-neutral foodsystem. It is impossible to manage climate risk without addressing
food, and agriculture and alternative proteins offer us a tool to do so.’’The question of investment is therefore central and is divided into two
components: public and private financing.
PUBLICFUNDING

Caroline Bushnell, GFI vice president of Corporate Engagement, says,‘‘Given the magnitude of emissions reductions that would occur witha shift to alternative proteins, this is a critical time to invest in thetechnologies and innovations that can move our food system to net zero,and quickly. Increased investment in sustainable alternative proteins
will allow companies to fund fundamental R&D, increase production,and reduce costs to effectively compete with conventionally produced
animal proteins and, ultimately, put alternative proteins on more andmore plates.’’

The world’s leading governments are growing their economies byinvesting in cutting-edge research. There is no doubt that publicresearch pays off. For example, the technologies used in our cell
phones (two-way radios, microprocessors, the Internet, miniaturized
sensors, touch screens) were all developed in part through publicresearch funding.
Governments around the world already spend billions of dollars on
agricultural research for innovation, tens of billions on renewableenergy, and even more on health. Allocating just a fraction of thatamount to alternative protein research would have significant benefits
in all these areas and more. Benefits include long-term job creation,
protection against infectious diseases, and reduction of agriculture’s
negative impact on the climate.

In this massive market, what about the financial appeal of Precision
Fermentation in particular?

BENEFITS OF
PUBLIC FUNDING

Fermentation companies dedicated to alternative proteins havesecured $1.7 billion in investment in 2021, nearly three times the $600
million raised in 2020. Fermentation companies have raised $2.8
billion in capital since the first investment GFI tracked in the industry
in 2013. Even more surprising: 60% of that amount has been raised in
2021 alone. This includes Nature’s Fynd’s $350 million Series C, Perfect
Day’s $350 million Series D, Motif Foodworks’ $226 million Series B
and The EVERY Company’s $175 million Series C. In 2021, the sector’s
investor base increased 43% from the previous year, bringing the total
number of unique investors to 434.1

ECONOMIC GROWTH

Public funding of alternative protein research could prime thepump to dramatically improve food system productivity andeconomic growth. This growth will translate into new opportunities
for farmers and more skilled jobs, including engineers, biologists,and food scientists. Government-funded research would benefit
public programs by increasing tax revenues or reducing tax rates.
Former USA Secretary of Agriculture under the Obama and Biden
administrations, Tom Vilsack, recognized the economic benefit ofinvesting in public research, ‘‘Studies have shown that every dollar
invested in agricultural research creates $20 in economic activity.’’¹
172

WHY DO WE NEED PUBLIC FUNDING FORFERMENTATION RESEARCH?

GFI.
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04 — The market for alternative milk proteins: an international, financial and political race

IN VE ST M EN TS
IN CR E A S I NG LY F O C U SE D
O N I M PA C T‘‘

We have had an internal
nomenclature for a few
years now with three
categories: ESG integration(Environmental, Social andGovernance) in all asset
classes for which this ispossible, then the «focus»
category, with a more
important ESG dimension,
such as the implementationof ESG filters or measures
like carbon intensity, etc. The
third category is specifically
about impact and includes
all sustainable themes,
credit bond funds that
integrate objectives related

74‘‘We are facing a tsunami

to sustainable development
into their management, andfunds that focus on impact.
The third category is more
specifically about impact
and includes all sustainable
themes, credit bond funds
that integrate sustainable
development objectives into
their management and impact
funds oriented towards theSustainable Development
Goals.
As far as we are concerned,
an impact fund is therefore afund that has a sustainability
objective in addition to its
risk/return objectives.

Nicolas Bénéton
Senior client portfolio manager
at ROBECO

04 — The market for alternative milk proteins: an international, financial and political race’’that will turn everything
upside down! At Tikehau
Capital, we are convincedthat within ten years, no one
will invest in a purely financial
logic without considering theextra-financial consequences.
Responsible investment

will become the norm. Thisis already the case for thelargest assets, the younger
generations, and our clientsin general.
Our ambition is therefore
to quickly standardize thenotion of impact in all ourmanagement activities.

’’

Raphaël Thuin, Director of
Capital Markets Strategies at
TIKEHAU CAPITAL‘‘This year, we conducteda survey of a panel of
institutional and private
investors, which clearlyshows the interest in thistype of strategy: 60% of theinvestors surveyed want toincrease the proportion of
their investments devoted toit. Institutional investors have
led the way, but awarenessis now widespread, with theCovid-19 pandemic being acatalyst. All players want tofinance the economy in this
way.

’’

Thibault Amand, Director of
Sales for France at VONTOBEL

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04 — The market for alternative milk proteins: an international, financial and political race

FOOD SAFETY AND SECURITY
Public funding of alternative protein research will also help diversify
the food supply by ensuring both variety and food safety. For
example, alternative proteins do not introduce zoonotic diseases(diseases of animal origin) because they do not require live animals.
By protecting the food supply from extreme weather conditions,disease outbreaks, and the emergence of diseases and parasites,
alternative proteins offer greater security, reliability, and flexibility.

EXAMPL ES
OF PRIVATE IN VESTMEN TS
IN PRECISION FERMEN TATIONMIL K PROTEINPRIVATE With greater flexibility and often considerable
FINANCING volume, private investment is a good indicator ofmarket vitality. To get an idea of this, nothing beatsa recent review of private capital flows into food biotechnology.
Here is a non-exhaustive list of venture investments by operationin 2020 and 2021 in the non-animal milk protein production sector
alone, produced by Precision Fermentation.

PERFECT DAY United States
Fermentation Dairy$750 million
Latest: September 2021 ($350M)
The $350 million Series D funding round was led by Temasek and CPP
Investments, including participation from Horizons Ventures and Bob
Iger, as well as SK, Inc. The round brings Perfect Day’s total funding up
to $750 million.

REMILK Israel
Fermentation Dairy$120 million
January 2022
The Series B funding round of $120 million was led by Hanaco Venturesand included Rage Capital, CPT Capital, Precision Capital, Atento
Capital, Tal Ventures, Chartered Group, Israeli dairy giant Tnuva and
OurCrowd.

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04 — The market for alternative milk proteins: an international, financial and political race

FORMO Germany

Bee Partners, Mayfield, Bluestein Ventures, and Kraft Heinz’s venture
capital arm Evolv.

Fermentation Dairy$50 million
Latest: September 2021 ($42M)
The last Series A funding round was led by EQT Ventures, with Elevat3
Capital and Lowercarbon Capital. The round brings Formo’s total
funding up to $50 million.

IMAGINDAIRY Israel
Fermentation Dairy$28 million
Latest: May 2022 ($15M)
The $15 million funding round was led by Target Global and joined by
Strauss Group, Emerald Technology Ventures, Green Circle Foodtech
Ventures, Collaborative Fund, New Climate Ventures, and FoodSparks.
The round brings Imagindairy’s total funding up to $28 million.

NEW CULTURE United States
Fermentation Dairy$25 million
November 2021
Led by tech investor Ahren Innovation Capital and alternative
protein investor CPT Capital. Other investors include the American
food ingredients giant’s ADM Ventures, Dr. Oetker’s-backed Be8
Ventures, and S2G Ventures, Marinya Capital and Future Ventures,
run by Jurvetson and partner Maryanna Saenko. Earlier backers also
participated in the financing, including SOSV’s IndieBio program,
78

BETTER DAIRY United Kingdom
Fermentation Dairy$24 million
Latest: February 2022 ($22M)
The latest $22 million series A funding round was led by RedAlpine
and Vorwerk, and joined by Manta Ray, Acequia Capital and Happiness
Capital and Stray Dog Capital. The round brings Better Diary’s total
funding up to $24 million.

HELAINA United States
Fermentation Milk
$20 million
November 2021
Co-led by early-stage tech investors Spark Capital and Siam Capital.
Participating investors included Primary Venture Partners and Plum
Alley Investments, as well as American celebrities like Tom Williams,
Hannah Bronfman, Gabrielle Union, and Matt Rutler among others.

STOCKELD DREAMERY Sweden
Fermentation Dairy$20 million
September 2021
The round was led by existing investors Astanor Ventures andNorthzone, and saw participation from new investors like Gullspång
Re:food, Eurazeo, Norrsken VC, Edastra, Inventure and Trellis Road.

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04 — The market for alternative milk proteins: an international, financial and political race

CHANGE FOOD United States

REGULATION AND THE NEEDFOR A COHERENT POLICY$15.3 million
Latest: February 2022 ($12M)
The $12 million round was led by Route 66 Ventures, with participationfrom Upfield, Blue Horizon, Sigma, British soccer player Chris
Smalling, and more. Additionally, Change Foods has signed strategic
collaboration agreements with both Upfield and Sigma. The roundbrings Change Food’s total funding up to $15.3 million.

STANDING OVATION France
Fermentation Dairy$12 million
September 2022
The Series A funding round was led by Astanor Ventures with theparticipation of Peakbridge, Seventure Partners, Bid Idea Ventures andGood Startup.

Since the volume, nature and origin of the capital flowing into foodbiotechnology and Precision Fermentation are clearly observableand quantifiable, what matters now for all countries is clear, strong,and flexible regulation.
Above all, we can expect politicians, when faced with decisions
to be made in today’s rapidly changing food sector, is to resist
ideology. More than ever, government and legislative bodies mustbase their actions on factual data. We still hear too often, at alllevels of public discourse, a confusion between GMOs and ‘from
GMOs’. It is important to understand that the production of nonanimal milk protein provides the consumer with a non-GMO food.
It is equally important to know that the microorganism modified
to enter the Precision Fermentation process leaves no trace in thefinished product. Working to clarify this distinction is not only amatter of intellectual honesty, it also involves knowing what you
want.
Faced with the challenges of food self-sufficiency and climate
urgency that are far beyond what we have ever known, it is also up
to the political class to take responsibility. It is a question of vision.
But it is also a question of facts in which objective elements countmore than irrational blockages. To illustrate a scientific advanceconcerning the absolutely positive use of a GMO product in our
modern societies, one example will suffice: it would not occur toanyone to question the contribution of insulin in the treatment
of diabetes. Let us remember that before its production byfermentation, insulin of animal origin (bovine and porcine) was used,
the availability of which is no longer assured in many countries.
Insulin obtained by Precision Fermentation does not face a resource
problem and therefore meets a real need for pharmaceutical self-

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04 — The market for alternative milk proteins: an international, financial and political race

sufficiency. This substance, once again, derived from GMOs anddirectly injected into the patient’s body, contributes to his healthand well-being. And this is an unambiguous development. On
what argument could one therefore rely on to consider as unfit forhuman consumption what is attested as essential to public health?

DYN AMICS OF
THE PRECISIONFERMEN TATIONMARKET

The only opinion that can change reality is the one that has theforce of law. It is the power to decide what our world should look
like. It is an essential element of politicians who are educated by
the results of scientific research. In these matters, only the facts
established by impartial study and demonstrable results if we areto address the challenges of global food and climate emergency. It
is up to the regulatory authorities to understand the necessity ofprotein production through innovative biotechnologies.
Firstly, to defend its merits to consumers, who are also its
beneficiaries; and secondly, to support companies that havedecided to find their place in a highly competitive global market.
Finally, it is the responsibility of the legal authorities to put in place
the regulations necessary for the development of the industry andits supervision.
More than ever, and more than anywhere else, the requirements oftraceability and quality must be satisfied by a clear framework thatallows all parties to commit themselves fully.

DETERMINING FACTORS• Significant investments and funding in the field of Precision
Fermentation.
• Growing adoption of vegan and vegetarian lifestyles.
• Production of precision fermented ingredients with a smaller
carbon footprint.
CONSTRAINTS• Initially, higher manufacturing costs associated with the
production of ingredients using Precision Fermentation.
OPPORTUNITIES• Development of new protein production systems.
• Reduced production and supply chain costs.
• Competitive cost of products compared to animal-based
proteins and other alternative proteins.
CHALLENGES• Commercialization and scale-up of production.
• Customer acceptance of precision fermented products.

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83Afterword
The environment-related topics have never been so prominent.
The distressing speech is often the same, forecasting increasingly
worrying futures. This subject makes us react and concerns us all,that is why we must act.
While the challenges we face in this green transition are significant,so are the technological advances we make every day. This is the
purpose of our mission, to find and develop sustainable solutions
for the planet community.
Now that we are aware of what is at stake and that each of us
can help improve the situation, we can act and work together forthe greater good. Whether we are a consumer, a researcher, anentrepreneur, an industrial, a politician, a banker, or an international
civil servant, we all have a role to play.
At Bon Vivant we are optimistic and believe that we are at aturning point. We hope that this white paper has contributed tothe understanding of this complex and exciting subject, which iscentral to the fight against global warming.

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Acknowledgements

We warmly thank all those who contributed to the making of
this white paper, and especially Alban, Tatiana, Victor,
Géraldine and Raùl.
We would also like to thank those who agreed to be interviewed
and who helped to shed light on our documentary work.