Tnuva enters the field of cultured meat: The food giant will establish a joint company with the listed biotech company Floristem, which will deal with cultured protein-based food. The companies announced this morning (Monday) a framework agreement for the development of a technological platform for growing cultured meat through a joint company, with the possibility of expanding to the field of fish and cultured milk as well. The companies’ goal is to launch their first raw product in 2023. Tnuva will invest $ 7.5 million in the joint venture, valued at $ 40 million before cash, with an option for continued investments of up to an additional $ 7.5 million over a period of one year. Stock Floristem Is currently soaring by about 30% in trading.
Floristem is a Haifa biotechnology company engaged in the development of drugs based on cells extracted from the placenta after birth. Floristem’s technology for the rapid development of cells under laboratory conditions for the pharmaceutical industry now allows it to develop into the civilized meat market, where high quality cells, mass production and competitive costs are required. The joint venture will be based on Floristem’s unique multi-cell technology, developed as part of an investment of approximately $ 500 million in the company, and will adapt it to the world of civilized food. The platform will enable the development and production of a variety of cultured food products from various sources including beef, chicken, fish and milk. According to the companies, Floristem has the ability to design and develop technologies and processes for the production of cells in commercial quantities, based on a unique three-dimensional platform, which simulates the natural environment of the cell and allows it to multiply.
The meat substitute market is one of the fastest growing in the world, and according to forecasts, the world is expected to reach $ 140 billion by 2030. Therefore, Tnuva hopes that the cooperation will enable the production of the next generation of protein substitutes for the company. Final to the consumer, and later the distribution and marketing system of the products that will be sold and distributed in Israel and around the world, with Tnuva being the sole distributor of the products in Israel.It is estimated that the product will have technological feasibility (POC) , Subject to the required regulatory approvals.