DouxMatok, an Israel-based food generation startup, has raised $22 million to begin large-scale manufacturing of its sugar reduction solution as it commercializes the product in Europe and North America.
The enterprise’s first product can reduce up to 40% of the sugar content material in diverse foods and baked goods while maintaining the equal taste profile, in step with an announcement. DouxMatok is planning to make bigger its technology to include greater products and flavors consisting of salt.
The funding spherical changed into led using BlueRed Partners from Singapore. Other strategic investors consist of Südzucker AG, the biggest European sugar organization; Royal DSM, a worldwide chief in science-based vitamins; and Singha Ventures, a company task fund of one of Thailand’s biggest meals and beverage conglomerates.
Dive Insight:
As clients grow to be increasingly worried approximately extra sugar in their diets, businesses were trying to find a solution that won’t negatively affect product flavor. With the investment DouxMatok acquired, the organization will possibly be able to quickly scale-up manufacturing. And if it can supply on its claims of decreasing 40% sugar content in a food product without changing taste, mouthfeel or texture, then it could attract the interest of several CPG brands round the sector.
About 71% of customers examine the sugar content on labels and 46% need to lessen their sugar intake, consistent with surveys. In the latest years, food and beverage corporations have invested in developing synthetic sweeteners. Stevia has been one of the distinguished substitutes. However, the non-caloric sweetener and different comparable products have left customers with a bitter taste. DouxMatok claims its products do not have the same off-placing aftermath.
Despite purchaser desire to lessen sugar for fitness motives, the flavor remains the key. This could provide a chief benefit for DouxMatok. Analysts have stated that taste and the beauty that sugar offers is one of the maximum crucial things while it comes to purchasing selections. Americans generally eat more than 13% in their general day by day calories from delivered sugars, consistent with the FDA.
But DouxMatok isn’t on my own in launching sugar-discount improvements. Ingredion brought a line of low-sugar glucose syrups years in the past to help meals manufacturers reduce the amount of delivered sugar proven on Nutrition Facts panels, which the FDA is requiring to be indexed on product packaging as a part of the up to date label beginning in 2020 and 2021. Additionally, Kerry evolved TasteSense, a natural flavoring answer designed to deliver lower back sweetness it is lost when sugar is decreased. These products suggest there might be masses of opposition for DouxMatok in the marketplace.
However, with maximum CPG companies interested in sugar reduction, and a lot of them making it a concern, there will be a possibility in the market place for multiple options.
Danone lately added a Greek low fats yogurt with two grams of sugar referred to as Two Good, and Kind has been running to reduce the sugar content material in its products for years. Additionally, Nestlé researchers have engineered hole and speedy-dissolving sugar molecules to allow manufacturers to deplete to 40% less without reducing the beauty of their merchandise — which sounds very much like DouxMatok’s era. Last yr, the Swiss meals giant launched its first chocolate bar made with its new sugar reduction generation within the U.K. And Ireland.
The ultra-modern investment round wasn’t the first for DouxMatok. In 2017, the corporation received $8.1 million to increase the production of its sugar-reduction generation. More of the present day funding round will move towards its R&D work on salt reduction. Although there may be opposition with different salt-reducing technology if the company establishes its popularity with sugar, salt, and other innovations ought to speedy gain momentum.