Steakholder Foods Ltd. a leading innovator in alternative proteins and 3D printing technologies, announced a royalties and raw materials supply agreement with Wyler Farm Ltd., a leader in alternative protein production, whereby Wyler Farm will manufacture alternative proteins on a commercial scale using Steakholder Foods’ premixes and know-how, in return for the payment of royalties from sales. The agreement is expected to generate the company’s first commercial revenue, and marks Steakholder Foods’ early transition from R&D to commercialization.
Production of the new plant-based meat products is tentatively expected to begin in Q3 2024. Wyler Farm will manage the production process to ensure product quality and the integration of Steakholder Foods’ advanced production technologies, while leveraging their market influence to make the products are available at a wide range of sales points.
The commercial revenue generated from the agreement is expected to be realized by the end of 2024, from the production and sale of a diverse range of plant-based minced-meat products, including burgers, meatballs, and minced meat. These products will utilize Steakholder Foods’ SHMeat™ premix blends of plant proteins, fats, fibers, and natural flavors. In the future, the parties will consider broadening their cooperation by selling new products, such as sausages and kebab, once Steakholder Foods completes the development of these products.
The agreement is strategic for both parties. While Steakholder Foods will contribute by bringing its unique expertise in producing Premix blends, along with valuable production knowledge, Wyler Farm brings its established brand and robust production and sales capabilities, which could be profitable for both parties.
Steakholder Foods and Wyler Farm are continuing their negotiation to reach a second-stage follow-on agreement, in which Wyler Farm would produce plant-based 3D-printed meat products utilizing Steakholder Foods’ proprietary 3D printing technology and premix blends, including producing Steakholder Foods’ flagship Printed Beef Steak product.
“This transformative collaboration marks a pivotal milestone for our company – a significant step into generating our first revenue and realizing the immense potential of our technology,” said Arik Kaufman, CEO of Steakholder Foods. “It validates years of cutting-edge research and development by our dedicated team and solidifies our position at the forefront of innovation in the plant-based and cultivated food space. This cooperation exemplifies the vast growth opportunities ahead as we extend our highly versatile technology into new markets. We are resolute in our commitment to developing future-forward products that will help to shape the evolution of food production and consumption.”
Oleg Kulyava, CEO of Wyler Farm said: “Our agreement with Steakholder Foods enables us to significantly broaden our alternative protein product portfolio, reinforcing our goal of producing a broad spectrum of high-quality, plant-based foods. We expect our adoption of Steakholder Foods’ technologies will propel Wyler Farm to be a leading brand in the plant-based alternative meat sector.”
The commercialization agreement is consistent with Steakholder Foods’ distinctive revenue-generation strategy whereby the company sells production machines and plant-based Premix blends on a royalty basis, and it exemplifies the company’s commitment to long-term innovation and development within the sector.
Both the minced and the 3D-printed meat alternatives are being engineered to satisfy consumer demand for safe, tasty and health-conscious alternatives to traditional meat and the Steakholder Foods Premix blends are in compliance with food safety regulations, using only ingredients Generally Recognized as Safe (GRAS). This commitment to using only GRAS ingredients underscores Steakholder Foods’ dedication to consumer health and safety.
Designed and built to operate in traditional food factories, Steakholder Foods‘ production machines utilize two types of 3D technologies to mimic the fibrous texture of traditional meat and fish. These include Drop Location in Space (DLS), which is used for fish and seafood production, and Fused Paste Layering (FPL). which is designed for meat production. These machines support the meat and fish industry’s large production scale that can reach tons of meat per day and are designed according to food safety standards set by the European Hygienic Engineering & Design Group (EHEDG).
SOURCE: PRNewswire