March 29, 2017

Japan’s Ajinotmoto has agreed to invest $15 million in Hinoman, an Israeli plant protein company focused on the Mankai plant. Under the terms of the agreement, Ajinomoto also will gain the exclusive rights to sell Hinoman’s Mankai plant protein products on the Japanese market.

Launched by Hinoman at the Institute for Food Technologists in Chicago in 2015, Mankai is a tiny aquatic plant of the duckweed family native of Southeast Asia. And at 0.5 millimeters (less than 1/5 of an inch), it is the smallest vegetable in the world. The plant is naturally high in  vitamins A, E, and B, minerals, and fatty acids, and due to its small size, can be easily incorporated into a range of food or vegetables.

“All the protein parameters are high in Mankai,” Ron Salpeter, CEO for Hinoman told Israel21c. “With its high PDCAAS rate of digestibility—0.89—it is more potent than super vegetables, such as spinach, spirulina, and kale. Mankai has a light vegetal flavor, superior to algae-derived ingredients in the market.”

After eight years of trials, Hinoman’s team developed a sustainable strain and high-tech closed hydroponic production system that allows for the year-round rapid growth and harvesting of Mankai with a minimum 45 percent protein by dry weight.

Production can be carried out either indoors or outdoors through a protected hydroponic system that incorporates remote computerized monitoring of year-round production, creating a stable price metric. Production also uses a relatively small amount of water, light, and nutrients, leading to a light ecological impact.

When harvested,the final product is a whole food that when processed into a powder, has a milder flavor than spinach, kale, or spirulina, Udi Alroy, VP of marketing and business development at Hinoman, told Food Navigator.

Demand in Japan and Abroad

Through this deal, Ajinomoto plans to launch a new business that will focus on the sale of Mankai as a whole food, and on the development and production of processed foods that incorporate Mankai as an ingredient.

Consumer interest in protein and amino acid intake is spreading in Japan, and with it, the demand for processed foods that can answer the societal challenges of malnourishment and nutritional deficiencies is increasing too.

Between 2010 and 2016, the market for protein-source foods in Japan saw a 12 percent increase, according to a survey conducted by Ajinomoto, which also found that the market will continue to grow at a rate of between two and three percent.

Meanwhile, globally, alternative protein sources have been increasingly on the radar of both consumers and investors. Global protein consumption is expected to climb at a CAGR of 1.7 percent, reaching 943 million tons by 2054, according to Lux Research. Over this same time period, alternative plant-based protein sources are forecast to command up to a third of the protein market as they fill the void created by slowing growth in meat and seafood production.

 Plans for New Protein Sources

As Ajinomoto strives to use specialty ingredients and proprietary methods to respond to the challenges of consumer nutrition and sustainability within the food supply chain, it plans to launch new Mankai products beginning in fiscal year 2018 and beyond.

“The paradox is that this tiny, single-strain microgreen delivers huge health benefits to a wide range of market targets and addresses not only the race for new protein sources but also offers perfect solutions to trendy diets, such as Paleo and vegan,” Alroy told Israel21c.

Indeed, plant proteins are taking the food sector by storm. In addition to the more established almond, hemp, soy, cashew, rice, and coconut products hitting the market, Mankai is not the only new-to-us alternative plant protein to make its debut and secure capital backing recently.

In January of this year, Eighteen94, the venture capital unit of Kellogg’s, announced its first investment, taking the lead in a $4.25 million Series A for Kuli Kuli, a manufacturer and distributor of bars, powders, and energy shots that incorporates moringa –  a plant protein that grows in tropical climates and whose leaves, pods and oils provide higher levels of iron calcium and protein than leafy greens. Additional investors in the round included S2G Ventures and InvestEco.

-Lynda Kiernan

Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration please contact Ms. Kiernan at lkiernan@globalaginvesting.com.