Berlin startup Formo has captured the spotlight in the alternative dairy sector, raising $61 million in a Series B funding round and launching innovative koji-based cheese alternatives across Europe. With a mission to redefine dairy, Formo’s groundbreaking products are now available in over 2,000 retail stores in Germany and Austria, marking a pivotal moment in the plant-based food movement.
Founded in 2019, originally under the name LegenDairy Foods, Formo has rapidly risen to prominence by developing a new generation of cheese alternatives. Utilizing precision fermentation, the startup is creating animal-free proteins that replicate traditional dairy’s taste and texture. While Formo initially focused on engineering casein through precision fermentation, their first market-ready products employ Aspergillus Oryzae (commonly known as koji) via biomass fermentation. This innovative approach has allowed them to bring their products to market faster while still working on bioidentical casein products that will launch in 2025.
Product Launches: Koji-Based Cheese Hits Major Retailers
Formo’s first product line includes Frischhain, a cream cheese alternative, and Camembritz, a plant-based take on Camembert. Both products are created using koji protein, which offers a neutral flavor and functional properties similar to whey protein. This makes it an ideal base for plant-based cheeses, giving them a taste and texture close to traditional dairy. Koji, a staple in Japanese fermentation processes like miso and soy sauce, is now being utilized to innovate dairy alternatives in a sustainable and scalable way.
The product launch, which rolled out in major retailers such as REWE, BILLA, and Metro, positions Formo to reach a broad audience across Germany and Austria. With over 2,000 stores stocking their products, Formo is already establishing itself as a strong competitor in the plant-based cheese market.
Sustainability at the Core
One of Formo's key selling points is the environmental impact of its products. Traditional dairy cheese production is resource-intensive, involving high water and land usage, as well as significant greenhouse gas emissions. In contrast, Formo's Frischhain produces 65% fewer emissions, uses 83% less land, and requires 96% less water compared to conventional cream cheese. This positions Formo’s products as not only a healthier alternative for consumers but also a more sustainable option for the planet.
Formo's reliance on fermentation, particularly using koji, is what sets it apart from many other alternative protein startups. Fermentation is a well-established process in food manufacturing, dating back centuries in industries like brewing, winemaking, and cheesemaking. Formo's use of Aspergillus Oryzae in a biomass fermentation process allows it to harness the entire fungal biomass, which, combined with plant-based fats, creates a versatile and nutritious base for its cheese products.
What makes this method particularly attractive is its scalability and cost efficiency. Fermentation, unlike some other alternative protein technologies, can be ramped up quickly and doesn’t rely on the long development timelines seen in lab-grown or cultivated meat. This scalability is crucial for achieving price parity with traditional dairy products, a key factor for mainstream adoption.
Strategic Funding and Future Growth
Formo's ability to secure $61 million in funding in a difficult market climate demonstrates strong investor confidence in its vision and technological approach. The round was led by existing investors such as Foodlabs, EQT Ventures, and Lowercarbon Capital, alongside new participants like the REWE Group, Seven Ventures, and The Nature Conservancy. This infusion of capital will enable Formo to expand internationally, diversify its product range, and develop new fermentation technologies, including animal-free casein, which will open the door to hard cheeses by 2025.
Moreover, Formo's future growth strategy aims at long-term profitability, with a target of reaching net profitability by 2027. The company is also focused on building strong commercial partnerships with traditional cheesemakers to scale its operations while maintaining a low-cost infrastructure.
The Road Ahead: Animal-Free Casein and More
While Formo’s current products rely on koji protein, the startup is working toward the commercial production of animal-free casein, a protein essential for creating cheese with the meltability and stretchability that consumers expect from dairy. This next phase in their product development is slated for release in 2025 and will include hard cheese varieties, further expanding Formo’s footprint in the global cheese market.
Formo is also concentrating on building its brand, rather than supplying its proteins to other manufacturers. This approach allows the company to control the consumer experience and differentiate itself in what is becoming an increasingly competitive market for plant-based and fermentation-based products.
Formo is more than just another alternative protein company—it represents the future of sustainable dairy production. With its innovative use of koji protein, strong investor backing, and a clear roadmap for future growth, Formo is poised to challenge traditional dairy and reshape the industry. By leveraging fermentation, a centuries-old process, they are creating cheeses that are not only better for the environment but also delicious and accessible for consumers.
As the world increasingly seeks sustainable food solutions, Formo’s pioneering approach could play a significant role in transforming how we think about—and consume—dairy.
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