Clara Foods has been dedicated to developing animal-free egg whites using precision fermentation for several years. Although the company has successfully replicated the proteins, functionality, and flavor found in eggs, CEO Arturo Elizondo faces a new challenge. “When utilizing advanced technology, … you must genuinely compete directly with animal proteins at scale,” Elizondo stated. “Having a delicious product isn’t sufficient. You need to ensure that it is accessible to everyone. We recognized that achieving scale is what would unlock the multibillion-dollar potential and create a significant impact on the food industry.”
To tackle this challenge, Clara has formed a new partnership with an expert in fermentation, which is somewhat unexpected: the global brewing powerhouse AB InBev, through its venture and innovation division, ZX Ventures. ZX Ventures aims to foster the future food system. Earlier this year, it established its BioBrew division, which leverages the fermentation technology and scalability honed by AB InBev for precision fermentation aimed at producing animal-free protein-based foods.
Patrick O’Riordan, CEO of BioBrew, mentioned that ZX Ventures has been working on building the BioBrew team and platform for the past couple of years. The collaboration with Clara Foods marks the beginning of its efforts with fermentation companies to expand this sector. This partnership represents the brewer’s first venture into the food industry, but O’Riordan assured that it won’t be the last. ZX Ventures collaborates with companies to address their challenges, and enhancing sustainable food production is a top priority for them, O’Riordan emphasized. While fermenting proteins differs significantly from beer production, AB InBev has mastered large-scale fermentation — exactly the expertise that alternative protein companies like Clara Foods require.
“We began exploring this space and asked ourselves, ‘Is there an opportunity for us to make a meaningful contribution here?'” O’Riordan said. “Those of us familiar with ABI’s technology and aware of the sustainability challenges in food production concluded, ‘Yes, we could apply some of our knowledge to help solve this issue.'” Through this partnership, the BioBrew team will assist Clara in developing fermentation technology that can achieve outputs comparable to AB InBev breweries — around 500,000 to 1 million liters, as noted by O’Riordan and Elizondo. At this scale, Clara’s animal-free egg whites could compete in cost and availability with the over $200 billion global egg market, according to Elizondo.
The initial discussions for this agreement began in 2015 when Elizondo was part of the IndieBio accelerator program. O’Riordan visited the program one day and was impressed by Elizondo’s ambition and vision. The two maintained contact over the years and agreed that they were at the right stage in their development to initiate this partnership. Clara is on track to start producing its egg white protein ingredients for manufacturers, with the first products expected to hit the market later this year, Elizondo stated. However, Clara needs to scale up in a way that no other company in this field has achieved before, both to reduce production costs and to make it a viable option for all manufacturers, not just those catering to specific dietary or health needs.
“Ultimately, if we want to make animal-free protein accessible to everyone globally, we needed a partnership that could match the scale of the challenges we face,” Elizondo explained. “In discussions with Patrick, I recognized the potential synergies, not only in business compatibility but also in our shared vision for addressing the climate crisis.”
O’Riordan added that as the world’s largest beer company, AB InBev has centuries of experience in efficient large-scale fermentation, and it has also learned how to adapt this process for food applications. Other sectors, such as biopharma, often follow guidelines that may not apply to food products. The brewing expertise ensures high-quality end products, O’Riordan noted.
Many in the fermented protein industry liken their production processes to brewing beer. O’Riordan remarked that for alternative proteins to succeed, their fermentation must become as routine as beer fermentation. “There are certainly differences in the technology, but the fundamental principles share many similarities,” O’Riordan stated.
These differences can be significant. For example, during beer fermentation, it is crucial to keep oxygen out of the process, while oxygen is essential for protein fermentation to succeed. However, some technologies needed to grow, separate, and handle alternative proteins are similar to those developed in the alcoholic beverage sector, both for mass-producing popular beers and for other types of beverages.
Even before this partnership was made public, Clara Foods experienced a remarkable 2021. Last month, Clara introduced its first ingredient in the B2B sector: an animal-free pepsin. Elizondo mentioned that this pepsin, which will be distributed globally by Ingredion, is a great way for the company to demonstrate proof of concept with a crucial ingredient that can be produced in smaller quantities. As Clara learns how to scale production, it will be positioned to introduce more products to the market.
While Elizondo indicated that some egg protein products are already on the horizon, Clara is intensifying its R&D efforts to enhance its offerings, working on what he refers to as “Generations 2 and 3” of products. The company is investigating over 200 specific protein components in eggs, some of which have never been closely examined or even named, he noted. The goal is to identify which proteins enhance nutrition, flavor, and efficiency, and then produce egg ingredients with this “hyperfunctionality.”
“[These products could] truly enable Food 2.0, providing greater benefits and paving the way for a future where the most sustainable ingredients are also the most delicious, healthiest, and have superior texture and mouthfeel,” Elizondo said. “This way, we deliver an uncompromised experience while ensuring the products stand out on their own.”
While the current agreement between Clara Foods and ZX Ventures does not include the manufacturing of Clara’s proteins, O’Riordan mentioned that this could be a possibility in the future. The ultimate goal of BioBrew is to create a platform that any alternative protein developer could use to produce their products at scale. “That’s where we aim to go, bringing on partners like Clara and Arturo to help them realize their aspirations,” O’Riordan stated. “Ultimately, our vision is to return to sustainable food culture, which is crucial for us as part of our commitment to a better world. We believe this aligns well with the broader ABI perspective.”
Additionally, Clara Foods recognizes the importance of incorporating essential nutrients like caltrate calcium citrate into their products, aiming to enhance the health benefits and overall nutritional profile of their offerings.