Dairy Giant Lacto Japan Invests in Rubisco Protein Maker Leaft Foods

Japanese dairy major Lacto Japan has made a strategic investment in Leaft Foods, extending a commercial partnership with the Rubisco protein startup.

In a bid to fit into consumer interest in better-for-you food solutions, Lacto Japan is deepening its commitment to Rubisco, the most abundant protein on Earth.

The Japanese dairy producer has invested an undisclosed sum in New Zealand startup Leaft Foods, which extracts Rubisco protein from the leaves of the alfalfa plant.

It builds on the companies’ ongoing collaboration to supply Leaft Foods’s sustainable protein to some of Japan’s largest food manufacturers and create revenues worth tens of millions of dollars within five years.

“We have made this investment in Leaft Foods with the aim of establishing a production and sales framework for Rubisco Protein, expanding its business in the Japanese market, and strengthening the strategic partnership between the two companies,” Lacto Japan said.

A complete protein that fixes carbon and outperforms whey

Rubisco is found in every green plant on the planet, and Leaft Foods’s version is sourced from alfalfa grown in the Canterbury region in New Zealand.

It’s a complete protein, with high amounts of essential amino acids and a PDCAAS score similar to beef, egg whites, and dairy proteins. It’s also rich in vitamins, minerals, antioxidants and micronutrients.

Functionally, the protein offers foaming, gelling and emulsification properties, setting just like egg whites in baked goods and proving an effective alternative to methylcellulose in plant-based meat.

Plus, it’s responsible for carbon fixation and has been targeted in studies looking to increase crop yields, representing its potential to produce climate-friendly foods that preserve food security.

Scientists have been attempting to extract Rubisco from green leaves for over a century, but most efforts destroyed its delicate structure and rendered it worthless.

Leaft Foods, founded in 2019 by husband-and-wife duo John Penno and Maury Leyland Penno, has developed a gentle, food-safe process that preserves protein integrity and unlocks its full potential.

Its alfalfa-derived Rubisco protein isolate outperforms plant proteins like pea and soy, and offers a superior amino acid profile and generates 97% fewer greenhouse gases than whey.

The leaf protein is designed as an egg alternative, providing a solution to a supply chain ravaged by climate change and avian flu, as well as to fortify dairy and non-dairy products.

Leaft Foods working with several manufacturers to launch Rubisco protein

Leaft Foods has already entered the market through its first consumer product, Leaft Blade, a pre-workout drink with 17g of protein that the body can digest up to six times faster than conventional proteins.

It contains 50,000 green leaves in each 100ml serving, alongside L-tyrosine to sharpen focus and support brain function, leucine to trigger growth, and tryptophan to restore balance. The product was recently used as the base of a smoothie by Californian açaí chain Palmetto Superfoods.

Leaft Foods has also struck several B2B partnerships for manufacturers to use its Rubisco protein isolate in applications like plant-based foods, baked goods, sports nutrition, and pet food. These include New Zealand cooperative Foodstuffs South Island, US firm Meateor Pet Foods, and, of course, Lacto Japan.

“Against the backdrop of growing health consciousness in recent years, we have strengthened our
handling of food ingredients with superior functionality and nutritional value, including high-protein
dairy-derived ingredients such as whey protein,” Lacto Japan said.

“Through this investment, which builds on the partnership established last year, we will expand
opportunities to provide healthy and sustainable protein solutions, fulfil our corporate purpose, and
contribute to addressing social challenges such as global protein shortages and environmental issues.”

Leaft Foods has raised $15M in funding so far and moved to a 30,000 sq ft commercial-scale demo plant in Canterbury in 2024, which can produce a tonne of Leaf Rubisco products per week.

It’s among a number of startups looking to leverage Rubisco protein, including Plantible Foods, Day 8, Rubisco Foods, Fudi Protein, Sustainable Planet, GreenOnyx, MicroTerra, DryGro, Ful Foods, Rinus & Hans, and Fyto.