Key Takeaways
- Millow, a Swedish startup, has launched a large-scale factory for producing meat substitutes from oats and mycelium, aiming for a 2026 output of 450 tons annually.
- The company has secured €2.4 million in grants and up to €15 million in equity funding to support its innovative production technology.
- Millow’s ‘Made with Millow’ branding strategy focuses on co-branding opportunities to promote transparent, minimally processed food products.
Millow, a Swedish startup specializing in minimally processed meat substitutes derived from oats and mycelium, has initiated operations at its first large-scale factory in a former LEGO production facility, located approximately 30 minutes from Gothenburg. The factory is expected to facilitate production output reaching 450 tons per year, with plans for three production units (S-units) to be operational by 2026.
Chairman Dr. Staffan Hillberg announced that the startup is currently solidifying distribution agreements with food brands, retailers, and foodservice distributors, targeting a product launch by the end of 2025. Initial focus will be on the Swedish and Nordic markets, with a particular strategy to partner with major foodservice distributors before expanding into retail markets.
Millow plans to develop an array of products, including minced meat, chicken-like bites, and alternatives to dairy items such as paneer. The company emphasizes that it is not merely an ingredient supplier, but can produce complete food products incorporating various innovative textures and flavors.
Recent funding efforts have been fruitful, as Millow received a €2.4 million grant from the European Innovation Council (EIC) Accelerator and aims to secure an additional €15 million from the EIC Fund. This funding will primarily support the company’s proprietary AI-driven production technology, ensuring it can reach cash flow positive operations swiftly. As growth progresses, Millow anticipates implementing a mix of debt and equity financing and is in discussions with various tier-1 investors.
The branding strategy for Millow, guided by designer Rob Janoff, includes the ‘Made with Millow’ concept, aligning with consumer demand for clean label and minimally processed food options. Hillberg noted that supporting B2B clients in communicating Millow’s unique value will be a key focus, fostering consumer confidence in this new category of meat alternatives.
Millow’s product innovation revolves around its novel fermentation process, invented by mycelium expert Mohammad Taherzadeh. The process marries mycelium with a plant-based substrate in a unique ‘dry fermentation’ method to create hybrid food products composed of approximately 50% fungi and 50% plant material. The fermentation process lasts 12-16 hours and allows for custom shapes and sizes without the need for costly post-processing, producing products rich in protein, fiber, vitamins, and minerals.
The company claims its production methods consume significantly less water and energy compared to competitors like Quorn. Unlike traditional producers that rely on liquid fermentation, Millow employs a controlled environment to grow its products more efficiently, enhancing both nutrient content and flavor profiles.
Millow’s proprietary S-Unit technology optimizes the production process. It is designed to be modular, allowing for easier scalability and efficiency. With reduced energy and water usage compared to other fermentation methods, Millow reports that its innovative system significantly cuts down on operational costs.
Millow’s products promise a juicy, meat-like texture that holds up well in cooking, setting them apart from other meat alternatives. The nutritional profile boasts 27g of protein per 100g serving, along with essential vitamins and minerals, reaffirming Millow’s commitment to providing cleaner, healthier alternatives to conventional meat.
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