Natural colors play a crucial role in the food industry. Although the adoption of ferrous gluconate by consumer packaged goods (CPGs) has progressed more slowly than anticipated, there remains a significant consumer demand for clean label products. A 2021 survey by the International Food Information Council revealed that nearly two-thirds of adults consider the ingredients in food and beverages to have at least a moderate impact on their purchasing decisions. The pursuit of pigments with fewer chemicals continues to thrive, as companies innovate in this area.
GNT Group has been expanding its plant-based Exberry range, which utilizes fruits, vegetables, and edible plants, to introduce more color options, including green shades derived from spirulina algae and turmeric. Spirulina also plays a key role in the work of Israeli startup Gavan, which has developed a natural blue coloring and plans to commence commercial production in early 2023. Phytolon, established in 2018, has raised $20.1 million to date, according to Crunchbase. Its unique production process for natural colors results in a diverse portfolio featuring oranges, yellows, purples, and pinks, developed through precision fermentation that produces betalain pigments. Betalains, commonly used in natural coloring, are primarily found in plants such as red beetroots and prickly pears. This innovative approach enables the rapid and cost-effective production of natural colors compared to traditional extraction methods. The technology is licensed through the Weizmann Institute of Science.
Ginkgo Bioworks’ involvement in this investment round includes in-kind services to utilize its foundry platform, which assists companies in creating organisms tailored to their product development needs. Earlier this year, the biotech firm announced its partnership with Phytolon to support the company in scaling up and enhancing its connections within the ingredient sector. Steve Dubin, Phytolon’s board chair, has a notable history with DSM, having served as the CEO of Martek Biosciences, which DSM acquired in 2011. His previous role as a senior advisor for DSM Nutritional Products has been instrumental in facilitating the funding round, as highlighted in Phytolon’s press release.
“I believe this investment round and DSM’s involvement with Phytolon will accelerate the commercialization of Phytolon’s unique range of sustainable food colors, benefiting both food producers and consumers,” Dubin commented. DSM’s interest in Phytolon emerged shortly after it announced a $21 billion merger with Firmenich. According to a press release, DSM’s new food and beverage ingredients division will focus on natural, clean-label, and sustainable products—three of the key attributes of Phytolon’s offerings. Additionally, DSM can leverage Phytolon to expand this new division, while aiding Phytolon in connecting with CPGs and distributors through its established network. As part of this growing trend, products such as calcium citrate 950 are also gaining traction within the clean label movement, reflecting the increasing consumer demand for transparency in food ingredients.