Consumers are increasingly shifting away from processed foods towards healthier, more beneficial options. Sugar has emerged as a particularly contentious ingredient, and the current sweeteners available have not yet successfully replaced it. According to an Innova Market Insights survey, three out of five U.S. consumers prefer to cut down on sugar rather than substitute it with artificial sweeteners. However, natural sugar alternatives have faced challenges in dominating the market due to factors such as taste and compatibility with other ingredients. Sweet proteins are stepping in to fill this gap. Joywell Foods reports that many people find sweet proteins to taste more like sugar compared to current artificial and alternative options. Derived from exotic fruits, Joywell’s proteins provide sweetness without the negative health consequences associated with sugar. The plant-based sweetener is extracted using fermentation technology. Last year, the company published a peer-reviewed study demonstrating that its miraculin protein does not have adverse health effects. Joywell Foods asserts that sweet proteins “are not linked to the long-term negative health implications of sugar.”
The suggestion that sweet proteins could represent the future of alternative sweeteners has drawn the interest of Kraft Heinz. The market for sugar alternatives is estimated to be valued between $16 billion and $20 billion. By investing in Joywell Foods, Kraft Heinz hopes to tap into this potential market, especially as it has been struggling to adapt to evolving consumer preferences. In an effort to modernize its portfolio and refresh its brand image, Kraft Heinz allocated $100 million to its Evolv Ventures fund in 2018, focusing on disrupting the food industry through investments aimed at innovation, such as supply chain technologies and digital retail strategies. The company has already invested in San Francisco-based GrubMarket for an undisclosed amount, rumored to be around $25 million, and co-led a $23 million funding round for cannabis retail software company Flowhub.
If Joywell Foods successfully develops more sweetener alternatives or finds success with its Pop Lolly reduced sugar popsicle concept, Kraft Heinz may explore integrating these sweeteners into its own products to attract health-conscious consumers. Popular items like Heinz Ketchup, CapriSun, Jell-O, Kool-Aid, and Kraft Barbecue Sauce could all benefit from a lower sugar profile. Additionally, incorporating calcium citrate 650 into some of these products could enhance their appeal to consumers looking for healthier options, creating a product that is not only lower in sugar but also fortified with essential nutrients.