The EVERY Co—which pioneered technology to make egg proteins via precision fermentation—says it will have “profitable unit economics” next year as it ramps up manufacturing capacity to meet demand.
While manufacturers have been looking to replace eggs for years amidst ongoing volatility in the egg supply chain, the latest Avian Flu outbreak has brought the issue into sharper focus as prices have surged and firms have struggled to secure supplies, says business development exec Chris Quevedo.
And although plant-based eggs are picking up traction in this environment, they are not suitable for every application, notes Quevedo, who says that at base, manufacturers want eggs’ functionality and clean label credentials, without the associated hassle.
AgFunderNews caught up with Quevedo at the Future Food Tech summit in San Francisco to discuss what’s in The EVERY Co’s portfolio, which application areas have the most potential, labeling options, and how the unit economics of precision fermentation stack up for egg proteins.
Egg proteins… without chickens
The EVERY Co, which was founded by Arturo Elizondo and David Anchel in late 2014 as Clara Foods, has raised $233 million to date, a pretty jaw-dropping sum although markedly less than the $825 million raised by Perfect Day to try to get its animal-free dairy business off the ground.
Based in south San Francisco, the firm engineers yeast (Komagataella phaffii) strains to express proteins found in eggs via precision fermentation and has secured ‘no questions’ letters from the FDA in response to its GRAS (Generally Recognized as Safe) determinations for its proteins.
The proteins are secreted into the broth in the tank and removed via a simple filtration process. The genetically engineered yeast is not present in the final proteins, which is not classified as ‘bioengineered’ under US labeling laws, says the company.
‘Customers aren’t actually paying a premium’
To date, the startup has developed several products, but is laser-focused on two:
- OvoPro: Ovalbumin, which replaces the functionality of egg and egg whites in a range of applications and delivers functional properties including aeration, whipping, gelling, binding, and foam stability.
- OvoBoost: A highly soluble, ‘near-invisible’ protein bio-identical to a glycoprotein (ovomucoid) found in egg white, enabling “new-to-the-world, protein-boosted beverages and food products with a neutral sensory profile and optical clarity.”
As for pricing, ovalbumin comprises just over 50% of the protein in egg white, but is responsible for most of its functionality, including binding, emulsification, foaming, and gelation. So a little goes a long way, says Quevedo “Customers aren’t actually paying a premium. They are either finding something that is equivalent or even generating costing savings [by using OvoPro, as they can use less vs egg white].”
On labeling, he says, “The label that is most consumer friendly is ‘animal free egg white protein’ for both products. The other one that also works well is ‘egg white from yeast,’ so those are typically the two labels we recommend to customers. But ultimately it’s up to them to figure out what works best for their target audience.”
Asked about the commercial viability of using precision fermentation for egg proteins, he said: “We are producing today in the metric tons, and next year we’ll be in the hundreds of tons, and then we’ll start to see multiples of that every recurring year. Essentially, next year, we will have profitable unit economics.”
