SEED Innovations Ltd (AIM:SEED, OTC:FFRIF), the AIM-quoted company investing in fast-growing and industry-leading businesses, has noted investment news from its portfolio company, Clean Food Group Ltd (CFG).
CFG, a UK-based cellular agriculture company focused on the commercialisation of palm oil by fermentation, has received an investment from Doehler Ventures, the venture arm of Doehler Group GmbH, which is focused on early-stage start-ups in the Nutrition & Technology ecosystem.
In a statement, Ed McDermott, CEO of SEED, commented: "I am very pleased to share news of CFG's investment from, and strategic partnership with, Doehler Ventures. For a young company, CFG's opportunity to be involved with an influential and global producer, marketer and provider of technology-driven natural ingredients and systems represents a key milestone.
"This latest investment by Doehler Ventures further highlights CFG's opportunity as a disruptive food-tech business bringing sustainable, cultivated foods to market. The collaboration provides CFG with Doehler Group's industry-leading expertise in production scale-up, to accelerate its proprietary fermentation platform and accelerate the production of its palm oil alternative."
SEED owns a holding of 5,850,000 shares representing 5.38% of CFG's total issued share capital. The investment by Doehler in CFG has no current impact on this position, it said.
In its statement, CFG noted that, as part of an accompanying collaboration agreement between the two companies, Doehler Group will support the scale-up of CFG's technology, demonstrating production at commercial scale as well as manufacturing product batches required for market approval. The two groups plan to continue the strategic partnership in the future, as CFG continues to develop its category offerings.
CFG's revolutionary sustainable palm oil alternative will help reduce the detrimental environmental impact of a range of palm-based ingredients that can be found in nearly 50% of all packaged products on supermarket shelves.
The global palm oil market was valued at US$50.6bn in 2021 and is expected to reach US$65.5bn by 2027. However, palm oil production continues to be a major driver of deforestation of some of the world's most biodiverse habitats, impacting critically endangered species like the orangutan, pygmy elephant and Sumatran rhino. This process combined with the conversion of carbon-rich peat soils, is releasing millions of tonnes of greenhouse gases into the atmosphere, contributing to climate change.
Alex Neves, co-founder and CEO of Clean Food Group commented: "We are delighted to be partnering with Doehler Group, a leading manufacturer and innovator within the area of technology-driven natural ingredients and ingredient systems.
"With Doehler Group's support, we are excited to accelerate the scale-up of our ground-breaking technology, which will allow us to bring our sustainable palm oil alternative to market more quickly."