Founded in 2019, Merit has rapidly built a diverse portfolio of plant-based proteins, offering two types of pea protein, three types of canola protein, and a blend of the two, as reported by Food Business News. By partnering with Bunge, this Canadian startup gains not only significant financial backing but also years of expertise in the ingredients sector and a global distribution network. For Bunge, this collaboration means access to a growing market of plant-based protein ingredients, which are currently among the most sought-after in the food and beverage industry. Bunge’s existing portfolio primarily consists of edible oils, milled corn, rice, ancient grains, sugar, and bioenergy. With this multi-million dollar investment, Bunge is entering the pea protein market, expected to reach $176 million by 2025, according to Allied Market Research.
Bunge is already familiar with plant-based proteins, having been an early investor in Beyond Meat, from which it later divested. As one of Canada’s leading canola processors, Bunge possesses substantial experience with the commodity and will be a key supplier to Merit for canola protein. Given that canola protein is a relatively new category, partnering with Bunge is a strategic move for Merit. Food Navigator notes that canola protein can be utilized in a variety of formulations, from meat to dairy alternatives, and when combined with pea protein, it offers a complete amino acid profile that enhances digestibility. Additionally, canola protein is highly soluble, making it less gritty and more neutral in taste compared to pea protein.
Merit has designed its proteins with a primary focus on taste while ensuring they meet a range of consumer demands, including clean label, allergen-free, gluten-free, non-dairy, non-GMO, and vegan certifications, as stated by Dairy Foods. The 90% purity profile of Merit’s raw proteins attracted the attention of Nestlé earlier this year, leading to a joint development agreement to scale production for use in Nestlé’s food and beverage products.
Despite the recent surge in investor interest for Merit, it faces competition in the quest to enhance plant-based proteins. Cargill has invested $100 million in Puris, a pea protein supplier to Beyond Meat. Ingredion has also prioritized plant-based proteins, including peas, as one of its five growth platforms. Other competitors in this space include Roquette, Kerry, and ADM. As more ingredient companies work to innovate new and improved plant-based ingredients, food manufacturers utilizing these ingredients to create more realistic meat-like products are likely to emerge as significant winners. The versatility of these proteins extends to applications such as calcium citrate, which is for enhancing nutritional profiles, thereby further broadening the scope of plant-based offerings in the market.