Austrian start-up Kern Tec specializes in upcycling side streams – such as apricot, cherry, and plum pits – from jam and juice processors to produce ingredients for plant-based dairy and confectionery products. With a recent $12m Series A funding round, the company is preparing to scale-up production and commercialize its ingredients. Co-founder and managing director Luca Fichtinger said, “This investment will accelerate our global scaling capabilities and enable more products to enter the market that are derived from the valuable stone fruit seeds. This will scale our impact of reducing waste, whilst unlocking further growth in the plant-based dairy industry.”
Founded in 2019, Kern Tec aims to tackle the massive amount of stone fruit pits ending up in landfills across Europe – an estimated 50,000 metric tons. These pits contain nutritional value in the form of oils or protein, with apricot kernels, for instance, containing up to 23% protein depending on the variety. They are also rich in unsaturated fats and vitamin E. The challenge lies in the dangerous chemical amygdalin present in stone fruit kernels, which converts into cyanide when digested. However, Kern Tec has developed proprietary technology to extract amygdalin, ensuring cyanide-free ingredients for human consumption.
Kern Tec believes that its alternative dairy products made from upcycled ingredients could be among the most sustainable in the world. Fichtinger explained that a life cycle analysis showed their seeds have up to 95% less water use, 50% fewer CO2 emissions, and no extra land use compared to other nuts.
In the alternative dairy sector, Kern Tec’s ingredients can be used in various applications, including plant-based milk, yogurt, and cheese alternatives. The company already sells branded dairy alternatives to Austrian retailer REWE and has partnered with Swiss retailer Coop to develop a product line in the snack category. Kern Tec plans to enter the German market soon through collaboration with a significant German dairy company.
With the new funding, Kern Tec aims to boost production capacity, supply chains, and new product development. They plan to quadruple production capacity and introduce new technologies to their processing lines. The funds will also be used to expand the team and double down on product development efforts for dairy alternatives and new categories.
The Series A funding round was led by Telos Impact, with participation from the PeakBridge Growth 2 fund and the European Innovation Council (EIC) Fund. Svetoslava Georgieva, EIC Fund Board Chair, commented that the investment will help Kern Tec scale their business in Europe while saving resources and supporting farmers and businesses.
By focusing on food ingredients innovation, Kern Tec not only contributes to transforming the food industry towards healthier and more sustainable products but also offers enhanced flavor possibilities. Erich Sieber, PeakBridge co-founder and general partner, emphasized the pivotal role played by Kern Tec’s initiatives in responsible production and consumption.
Overall, Kern Tec’s upcycling of stone fruit pits showcases its commitment to sustainability and reducing waste in the food and beverage industry. With its innovative technology and focus on plant-based dairy alternatives, the company is well-positioned to make a significant impact in the market.
