Finnish food-tech company Happy Plant Protein has raised €1.8m in pre-seed funding led by Nordic Foodtech VC, with Butterfly Ventures and Business Finland also participating through a grant.
The start-up, a spin-out from VTT Technical Research Centre of Finland, will use the funding to further develop and license its patented technology.
Happy Plant Protein is commercialising a new manufacturing process that can produce high-quality plant protein ingredients with a 70-80% protein content.
According to the company, its method can enable rapid development of new products and faster market entry, thanks to its ability to integrate with existing machinery and without needing to overcome time-consuming regulatory hurdles. It can also empower local food manufacturers and brands to produce their own plant protein, removing reliance on overseas sources.
High pricing of materials and the end products sold in grocery stores can mean current methods of producing plant protein isolates do not meet the demands of the food industry or consumers, Happy Plant Protein said in a statement. Establishing a protein isolate factory can cost around €100 million, and traditional processes to produce isolates also use large amounts of energy and water.
Jari Karlsson, CEO and co-founder of Happy Plant Protein, said: “There is a need for cost-efficient, environmentally sustainable methods to produce high-quality protein ingredients”.
“The approach uses standard extrusion to extract high-quality plant protein from legumes, such as peas, lentils and cereals. The protein ingredients produced in this process can then be incorporated into many plant-based food products.”
Happy Plant Protein claims its method can reduce energy consumption to one-seventh of the isolate process, and cuts down the investment required. The process is chemical-free, generates no waste and uses almost no water. The method can benefit from the many extrusion lines already in operation worldwide across the food industry, and the company aims to license it to food manufacturers globally.
“This offers multiple opportunities to utilise the technology we have developed,” added Karlsson. “By combining existing technology with Happy Plant Protein’s process, the investment and operating costs of producing plant protein can be slashed by up to 90% compared to current technologies.”
With the technology, he explained that local mills could produce plant protein independently and increase the value of certain crops, like pea or fava bean.
“This model bypasses the traditional global supply chain, allowing for the use of local crops and reducing the carbon footprint associated with food production and transport. By offering the license and technical know-how for its customers’ existing factories, Happy Plant Protein supports the creation of sustainable food systems and provides economic opportunities for farmers and local food processors.”
Mika Kukkurainen, from lead investor Nordic Foodtech VC, said that first-generation plant-based food products did not meet consumer expectations around taste, structure, price and nutrition, mainly due to the current high-capex chemical isolate production making food products expensive, highlighting off-flavours and lacking beneficial dietary elements like fibre.
“As Happy Plant Protein is licensing its technology globally, more natural, healthier and affordable food from local ingredients will become available to consumers,” Kukkurainen added.
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