Fungi fermentation specialist MycoTechnology has discontinued its fermented plant proteins and shelved plans to produce a fungi-based meat alternative in Oman in order to focus on its core flavor modulation and sweetening portfolio, says CEO Jordi Ferre.
An industry veteran with stints on his resume at Tate & Lyle, PureCircle and Chupa Chups, Ferre joined Colorado-based MycoTechnology in January, taking over from CTO Ranjan Patnaik, who had been serving as interim CEO since May 2024 following the departure of Mike Leonard.
“Before I arrived, there had already been some radical changes to move away from alternative proteins as we decided to focus on FMPs [flavors with modifying properties] and sweeteners,” Ferre told AgFunderNews.
“And I think with my background in non-caloric sweeteners and flavor modulators, I can bring the leadership to make it happen,” said Ferre, who described MycoTechnology as “well-funded, but not yet profitable.”
As for the alt meat plant in Oman, which was set to become operational this year fueled by feedstocks from upcycled dates, “There were a lot of trips and discussions, but in the end, it did not happen,” said Ferre.
“I think it was an interesting idea, but Oman is a long way away, we don’t have an army of people, and we need to focus on executing what we can do well.”
Oman Investment Authority (OIA), which led an $85 million Series E round in MycoTechnology in March 2022, “continues to sit on our board and is very supportive of what we’re doing,” he explained. “The fact that we did not do that plant in Oman does not mean that they have pulled back. They’re very involved and very supportive.”
60% growth in Clear IQ in 2024
Funded by $220+ million from investors including OIA and Nourish Ventures (Griffith Foods’ VC arm), MycoTechnology sees “a lot more potential” to grow its flagship product, natural flavor ClearIQ, said Ferre.
Produced in fermentation tanks by mushroom mycelium, Clear IQ can enhance certain flavors and offset bitter, sour, or astringent notes in everything from high intensity sweeteners to plant proteins, botanicals, coffee, and cocoa.
The ingredient—which Ferre says is profitable—is now used by 100+ customers in a range of products from protein beverages to dietary supplements and over the counter drugs, he said.
“It is doing very well. Last year, we grew over 60% and this year we continue to do double-digit growth. I think we have a lot more potential to grow, especially with large food and beverage companies. So I’ve been making sure we have the right team in place to sell to the big guys.”
As for potential applications, he said, “We don’t really call it a bitter blocker now. We like to call it a flavor harmonizer in the sense that it can suppress or reduce the off notes when you use certain ingredients in your formulation but it can also enhance certain flavor notes, so it’s a very multipurpose ingredient.”
Honey truffle platform
MycoTechnology is also betting big on new product Clear HT, a flavor modulator from an ultra sweet protein found in rare honey truffles that MycoTechnology is producing more cost effectively via precision fermentation, he said.
“Clear HT has just got GRAS (Generally Recognized As Safe) status from the Flavor and Extract Manufacturers Association (FEMA) for use as a flavor with modifying properties, and we expect to have a good amount of product available this summer.
“We’re manufacturing small amounts [in-house] but we’re also working with an external CDMO. So we’re not putting in more capex, we’re using somebody else’s capabilities.”
Clear HT enhances flavors such as citrus and caramel, and offers new ways to modulate sweetness, so it can “take a little bit off the off notes you get from [stevia-based sweetener] Reb A,” he said. This might mean that food companies could use Reb A instead of the more pricey but better-tasting steviol glycoside Reb M in some formulations, for example.
He added: “We also have a sweetener from the honey truffle platform, which has a different type of spec to Clear HT and would have higher usage permissions.” This would likely be labeled as ‘honey truffle sweet protein’ or ‘honey truffle sweetener,’ he said.
While there are no silver bullets in the world of sugar reduction, he noted, formulators need more tools in the high-intensity natural sweetening toolbox, which right now only contains monk fruit, stevia, and, most recently, the sweet protein brazzein.
Fermentation as a Service
Asked about MycoTechnology’s Fermentation as a Service (FaaS) initiative, pitched by then-CEO Alan Hahn in late 2023 as a way to sweat the firm’s fermentation assets, Ferre said:
“I’m open to it, but see it more as a strategic tool, not just I will manufacture for you, but is there a way we could partner in any way, in go to market, or even in cross investment, or something like that?
“I cannot say more now, but this could help us develop more strategic relationships.”
