Millennium Foodtech Partnership Announces Strategic Investment in Portfolio Company Phytolon from Rich Products Ventures to Help Bring Innovative Natural Replacement for Synthetic Food Dyes to Market

Rhea-AI Summary

Millennium Foodtech Partnership announced that its portfolio company Phytolon (10.8% ownership) has secured a strategic investment from Rich Products Ventures (RPV). Phytolon produces natural food colors through precision fermentation, offering a sustainable alternative to synthetic dyes. The investment, supported by existing shareholders including EIT-Food and Arkin Holdings, will help commercialize Phytolon's products pending regulatory approvals. Rich's will explore implementing these natural colors in their bakery and dessert products. Phytolon's technology creates purple, pink, red, orange, and yellow color variants using proprietary yeast strains, providing a reliable and simplified solution for food manufacturers.

Positive

• Strategic investment from Rich Products Ventures enhances commercialization potential
• Partnership with Rich's ($5.8B annual sales) provides market validation and access
• Product testing agreement with Rich's for implementation in their product line
• Additional funding secured from existing investors showing continued support

Negative

• Regulatory approvals still pending for key markets
• Non-exclusive partnership limits potential revenue from Rich's
• to specific color spectrum (purple to yellow) may restrict market applications

TEL-AVIV, Israel, Nov. 20, 2024 /PRNewswire/ -- Millennium Foodtech Partnership (TASE:MIFT) Announces Phytolon (portfolio company in which the partnership holds 10.8%), an Israeli biotech / food tech startup that produces natural food colors using precision fermentation, recently secured an investment from Rich Products Ventures (RPV), the corporate venture capital fund of global, family-owned food company Rich Products (Rich's), to help drive commercialization of its innovative, sustainable and clean-label solution for natural food colorings. As part of the investment, Rich's will explore Phytolon's proprietary color offerings in several of its products, in a mutually non-exclusive manner.

RPV's strategic investment has been paired with additional support from existing Phytolon shareholders, including EIT-Food, Arkin Holdings and Yossi Ackerman. 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.

Phytolon's co-founder and CTO, Tal Zeltzer, commented on the transaction: "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."

Produced 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. Beginning with two base colors derived from fermentation, Phytolon's portfolio provides a full range of color shades, including purple, pink, red, orange and yellow, offering both a reliable and steady supply chain (compared to agriculture-based colors), as well as a simplified process to help food brands achieve vibrant, precise product colors.

Rich's and RPV are laser-focused on driving innovation to create distinctive value for customers. 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 potentially be applied to Rich's portfolio of icings, toppings, baked goods and more.

"Innovation is at the core of both Rich's and RPV," said Dinsh Guzdar, managing director, Rich Products Ventures. "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."

Meet Phytolon Phytolon is focused on offering natural food colors that comply with the consumers demand for clean label, healthy, and sustainable food systems. Leveraging our novel fermentation-based production technology, we are committed to providing cost-efficient and sustainable solutions, while guaranteeing robust supply to customers around the world. Phytolon's portfolio currently includes multiple shades, covering the purple, pink, red, orange, and yellow spectrum, targeting multiple food categories in the food and beverage market

To learn more, visit Phytolon.com and follow us on our LinkedIn. 

Meet Rich's Rich's, also known as Rich Products Corporation, is a family-owned food company dedicated to inspiring possibilities. From cakes and icings to pizza, appetizers and specialty toppings, our products are used in homes, restaurants and bakeries around the world. Beyond great food, our customers also gain insights to help them stay competitive, no matter their size. Our portfolio includes creative solutions geared at helping food industry professionals compete in foodservice, retail, in-store bakery, deli, and prepared foods among others. Working in 100 locations globally, with annual sales exceeding $5.8 billion, Rich's is a global leader with a focus on everything that family makes possible. Rich's®—Infinite Possibilities. One Family.

Learn more at Richs.com or join the conversation on Facebook, Instagram, LinkedIn and Twitter.

For more information:
Meron Aronovitch
+972-50-7797-535
Meron@ohpr.co.il

FAQ

What is the strategic investment in Phytolon announced by Millennium Foodtech (MIFTF)?

Rich Products Ventures made a strategic investment in Phytolon, a portfolio company of Millennium Foodtech, to help commercialize natural food colorings produced through precision fermentation.

What products does Phytolon develop for the food industry?

Phytolon develops natural food colors using precision fermentation, offering purple, pink, red, orange, and yellow variants as sustainable alternatives to synthetic food dyes.

How will Rich Products utilize Phytolon's natural food colors?

Rich Products will explore implementing Phytolon's natural colors in several of its products, including icings, toppings, and baked goods, in a non-exclusive arrangement.

What is Millennium Foodtech's ownership stake in Phytolon?

Millennium Foodtech Partnership holds a 10.8% ownership stake in Phytolon.