Phytolon, an Israeli-based biotechnology and food tech company that produces natural food colors using precision fermentation, recently secured an investment from Rich Products Ventures (RPV), which is the corporate venture capital fund of global, family-owned food company Rich Products (Rich’s), to help drive commercialization of its sustainable and clean-label solution for natural food colorings. In connection with the investment, Rich’s will explore Phytolon’s proprietary color offerings in several of its products.
RPV’s investment has been combined with additional support from existing Phytolon shareholders, including EIT-Food, Arkin Holdings and Yossi Ackerman. And the funds will be used to further commercialize and scale Phytolon’s natural, precision fermented food colorants, which are expected to pass key regulatory approvals soon.
Produced by utilizing the fermentation of Phytolon’s proprietary yeast strains, Phytolon’s natural colors offer a cost-efficient and sustainable substitution to synthetic food dyes without compromising performance. Starting with two base colors derived from fermentation, Phytolon’s portfolio provides a full range of color shades, including purple, pink, red, orange, and yellow. This offers both a reliable and steady supply chain (compared to agriculture-based colors) and a simplified process to help food brands achieve vibrant, precise product colors.
As part of this strategic investment, Rich’s will explore Phytolon’s clean-label and eco-friendly solutions in several of its products to understand how the natural colors can be applied to Rich’s portfolio of icings, toppings, baked goods, etc.
KEY QUOTES:
“We are excited to be empowered by Rich Products Ventures as partners in promoting our innovative products in the food industry. Rich’s investment and commercial partnership are key to establishing a strong footprint in bakery, desserts, and related segments, where solutions for natural colors are in high demand.”
– Phytolon’s co-founder and CTO Tal Zeltzer
“Innovation is at the core of both Rich’s and RPV. At RPV, we’re investing in venture and growth stage companies that are shaping the future of food through technology and innovation. Sustainable food production is a key area of focus for us, so we’re excited about the cutting-edge work Phytolon is leading and the opportunity that presents Rich’s to create greater value for our customers.”
– Dinsh Guzdar, managing director, Rich Products Ventures
