Seaweed Milk Latte? Israeli’s Largest Drinks Company to Make Dairy Alternatives with Microalgae

The Central Bottling Company, Israel’s largest beverage manufacturer, has teamed up with microalgae specialist Brevel to develop functional drinks and dairy alternatives.

Israeli beverage giant The Central Bottling Company (CBC) – the national distributor for Coca-Cola – is betting on microalgae for its next phase of products, establishing a 10-year partnership with food tech startup Brevel.

The deal will give CBC access to Brevel’s microalgae protein, oils and antioxidants, which it will use to develop dairy alternatives and functional drinks.

It’s an extension of CBC’s relationship as an investor in Brevel, having participated in the fermentation startup’s $18.5M seed funding round in 2023.

“As we pursue our strategy of continuous innovation to deliver superior products that respond to evolving trends and customer demands, partnering with Brevel is a natural fit,” said Lihi Rothschild, CBC’s head of innovation.

How Brevel makes its microalgae protein

Brevel was founded in 2017 by CEO Yonatan Golan and his brothers Ido (CTO) and Matan (COO), and employs a technology that unites light with sugar fermentation into a single process, a feat Golan has described as akin to “putting an electric motor into a Tesla car”.

The cultivation process happens in indoor bioreactors and allows Brevel to produce large quantities of microalgae, without any need for genetic modification. Microalgae’s natural makeup of nutrients – including protein, lipids, fibre, and pigments – depends on photosynthesis for their development and growth, which is why Brevel opted to separate its fermentation process from traditionally dark environments.

It uses a strain of microalgae from the Chlorella family, a widely commercialised and highly important source of single-cell protein. This gives the company a regulatory advantage – it’s been classed as safe for human consumption by the FDA’s GRAS system in the US and has been part of the EU’s safe list of novel foods for decades.

To extract the protein, it has developed a downstream minimal process that does not involve any solvents or chemicals and retains the quality, functionality, and nutritional value of the microalgae. The resulting ingredient is a white powder with 60-70% protein concentration and a full amino acid profile.

This can be integrated into a range of meat and dairy analogues, thanks to functional attributes that allow it to replicate the taste, texture and behaviour of animal proteins. But it’s targeting the alt-dairy market first because the doesn’t yet have a plant protein solution with zero flavour or colour compromises, as Golan told Green Queen last summer.

Commercial factory and joint ventures to fuel global expansion

CBC is Israel’s national franchiser of global brands like Coca-Cola, Carlsberg, and Muller, as well as major domestic juice and dairy producers. It also has a strong presence in Eastern Europe and Africa.

“[Brevel’s] groundbreaking approach gives us the opportunity to explore new categories and solutions and opens new doors in terms of the range of exciting consumer applications we can offer,” said Rothschild.

“We feel extremely fortunate to collaborate with, and enjoy the support of, such a major force in the beverage arena not only in Israel, but also internationally,” said Brevel CEO Golan. “This co-venture will be instrumental in keeping Brevel at the forefront of developments in food-tech and climate tech.”

CBC is one of several companies Brevel has partnered with, having strategised several joint-venture partnerships in the US, Europe, and Asia, which would result in the construction of large facilities with fermentation capacities of 900,000 litres and beyond, and the ability to produce thousands and tens of thousands of tonnes of microalgae ingredients annually.

The startup opened its own 27,000 sq ft commercial factory in southern Israel last year, which can produce hundreds of tonnes of microalgae protein powder every year. But the microalgae biomass won’t just be used to extract protein, but also co-products like polar lipids, fibre, pigments, and more.

“Our first commercial pilot plant is already primed to meet the first wave of our joint business development goals, delivering great tasting, better-for-you, sustainably sourced products to the growing population of health-conscious consumers,” Golan added.

The Israeli startup is among a host of firms leveraging the potential of microalgae for planet-friendly foods, which is set to be a $25.4B market by 2033. These include Checkerspot, Algae Cooking Club, Mewery, Quazy Foods, Ocean Kiss, Algama, Sophie’s Bionutrients, and Triton Algae, among others.