Transforming food technology: the protein brewery's journey

Discover how The Protein Brewery is transforming the food industry with innovative fermentation-based protein products.

In brief:

• The Protein Brewery leads in sustainable food technology, focusing on fermentation-based protein products.
• Discussing growth strategies, challenges, and the importance of partnerships.
• Learn about their mission to create a positive impact on the planet and society.

EY has been collaborating with top entrepreneurs worldwide for many years, assisting them on their journey to market leadership. The knowledge gained from their successes has led to the development of the EY 7 Drivers of Growth. This framework, supported by the experiences of successful companies, helps leaders to renew and improve their business strategy.

The Protein Brewery leads in sustainable innovation and food technology as a pioneer in developing fermentation-based protein products. In the series 'Seven Drivers of Growth,' I am interviewing inspiring entrepreneurs about their growth journey, challenges, entrepreneurial lessons, and their vision of success. In the third interview, I have the honor of discussing these topics with Sue Garfitt, Chief Executive Officer at The Protein Brewery. With a mission to transform the global food supply, this company is committed to growth that benefits not only their organization but also has a positive impact on the planet and society.

Sue has an impressive background and extensive experience in the field of sustainable food technology and business growth. She has been with The Protein Brewery for two and a half years, where she has been instrumental in scaling the business. Before joining The Protein Brewery, Sue held the position of CEO of the European division of Alpro, a leading brand in plant-based yogurts and beverages. Her leadership at Alpro demonstrates her expertise in managing and growing a prominent brand within the plant-based food sector.

From start to scale

Wim de Laat, who founded The Protein Brewery and a fermentation specialist and molecular biologist, spent eight years identifying robust and cost-effective strains of fungi that could be fermented and would be accepted by the food industry and consumers. He initially funded the company through a fermentation laboratory service business and with the support of friends, family, and funds. With a small team of scientists, many from DSM and Dutch universities, he developed a proof of concept. This led to institutional funding and the involvement of prominent investors, including Novo Holdings, Unovis and Roquette from France. Wim then brought in Sue to further scale the business after securing their Series A funding.

Lessons learned

The advice Sue would give other entrepreneurs facing the challenging task of competing with industry giants is straight forward. “First and foremost, know your product. Know what your value proposition is,” she emphasizes. “Clarity is key; the more precise and specific you are about the problem you're solving, the better. Entrepreneurs must step into their customers' shoes and understand the significance of their product from the customer's perspective, focusing on market validation and the necessity of their solution.”

Networking is another critical component Sue highlights. “In smaller businesses, unlike large corporations, internal resources are limited, making external networks valuable. Talk to as many people as you can,” Sue advises, stressing the importance of leveraging contacts for support and knowledge.

Cash flow is the third pillar of Sue's guidance. “Cash is king,” she emphasize, acknowledging the essential nature of financial resources for business survival. “Entrepreneurs must be resourceful, seeking investors, grants, subsidies, and other financial instruments to sustain their operations.”

Sue discusses the importance of establishing a recurring revenue line for The Protein Brewery, which is essential for demonstrating consistent financial performance to investors. This involves engaging with food manufacturers, supermarket and grocery chains and foodservice operators thereby expanding the company's impact and scale.

Creating impact

In developing the market, Sue has focused on building partnership arrangements. She hints at a recent agreement with a household brand name, emphasizing the significance of such alliances in the food industry, especially when introducing a novel product to the market. “Collaborations are crucial for gaining traction and acceptance for new products.”

Sue encourages other entrepreneurs to be bold and proactive in seeking partnerships. “Never be afraid to try,” she advises, pointing out that the worst outcome is a rejection. “It's essential to articulate clearly why a potential partnership is beneficial and how it aligns with the interests of both parties.”

Beyond customer relationships, Sue has also sought to connect with competitors, fostering a community where non sensitive information can be shared. This approach has led to the formation of The Funghi Protein Association, which provide a collective voice and the opportunity to advocate for the adoption of new ingredients like those developed by The Protein Brewery. Drawing from her experience at Alpro, where she led the European Plant-Based Association, Sue understands the power of collective action. Major industry players like Friesland Campina, Unilever and Nestlé were also involved, recognizing that creating market awareness and building a consensus is a group effort. “Such collaboration is not only about market development but also about having a stronger voice in regulatory and legislative discussions, particularly in the EU, where the naming and classification of ingredients can be pivotal for industry progress.”

A balancing act

Sue identifies the main obstacles for growth that The Protein Brewery has faced and anticipates for the future. “Funding emerges as a critical enabler, particularly when it comes to building the necessary facilities to scale up production.” She describes the challenge as a ‘chicken and egg’ situation: deciding whether to go to market before having the capability to produce at scale or to build the facility first and then seek market entry. The synchronization of building infrastructure, attracting customers, and securing financing is a complex task that requires careful coordination.

The biggest challenge, according to Sue, is aligning these elements within a reasonable timeframe to create a cohesive strategy. “This is especially difficult when starting from scratch, as opposed to seeking growth on top of an already stable platform.” Another challenge Sue points out is the inherent nature of working with new technology. “The scaling process is iterative, and unexpected problems can arise, such as encountering issues with part of the factory setup that isn't functioning as anticipated. For example, if the milling process, which turns the product into a fine powder, isn't efficient and results in material losses, modifications to the equipment are necessary, requiring additional capital expenditure (capex).”

Balancing financial resources and human resources is crucial in this iterative process. “Deciding where to allocate funds and personnel is a constant consideration, as the company learns and adapts to the challenges of scaling up their innovative product.” She emphasizes the importance of being selective and making tough decisions about what to focus on, acknowledging that sometimes it's necessary to leave certain initiatives for later due to limited bandwidth, both financially and in terms of human capital.

She envisions narrowing down the focus to three or four product applications where The Protein Brewery can be most successful. “Once a winning formula is established, the goal is to take it global.” Sue uses the example of a [well-known chocolate] spread consumed worldwide to illustrate the potential impact of incorporating The Protein Brewery's ingredient into such a product. “If I think about the impact, not just financially, but on the health of our children; no animal product,more protein, more fiber, potentially less sugar, , then to me that is real impact.”

Guiding the team

Sue is passionate about the potential impact of their work, both in terms of health benefits and environmental sustainability and het vision is clear: to create real impact through strategic growth and product integration. This vision serves as a beacon for her and her team, guiding them through the journey of scaling up the business. “It's about translating our mission into something tangible, something that resonates with real life. Once you put it into that language, it clicks for everyone. They get a mental picture, and it becomes much easier to grasp. It's incredibly inspiring.”

She underscores the importance of having the right mix of elements for a successful business. “You need a solid product, the right people, and sufficient funding. We're continually working to attract and nurture scientific talent because that's what enables us to develop our technology. We have strong ties with academic institutions like Wageningen, Delft, and Leiden, and we bring in interns who both learn from us and contribute fresh ideas.” Sue also highlights the importance of diversity within the team. ‘We've achieved a good balance of experience and youth. I've got team members who are fresh out of university and others with years of experience. It's crucial to combine these perspectives to develop a culture where everyone learns from each other. My role is to inspire the team, not to be buried in the content. I'm here to understand, set direction, and enable my team to excel.” Sue's passion for her work is evident. “I'm just as passionate as the founder, even though I'm not one. I care deeply about people and helping them shine, both in their professional and personal lives.”