DouxMatok increases $22M to commercialize its sugar reduction technology

DouxMatok, an Israel-based food-era startup, has raised $22 million to start massive-scale production of its sugar reduction solution because it commercializes the product in Europe and North America.
The enterprise’s first product can reduce up to 40% of the sugar content in diverse foods and baked goods even as preserving the identical taste profile, in step with an announcement. In addition, DouxMatok is planning to increase its technology to consist of extra products and flavors, including salt.
The investment spherical changed into led by BlueRed Partners from Singapore. Other strategic investors encompass Südzucker AG, the biggest European sugar employer; Royal DSM, a global leader in technology-based total nutrition; and Singha Ventures, a corporate task fund of one in every of Thailand’s biggest meals and beverage conglomerates.
Dive Insight:
As consumers become more and more involved with approximately extra sugar in their diets, agencies were trying to find a solution that won’t negatively affect product flavor. With the investment DouxMatok obtained, the organization will, in all likelihood, be capable of quick scale-up manufacturing. And if it could deliver on its claims of lowering 40% sugar content in a food product without altering the flavor, mouthfeel, or texture, it could entice the interest of many CPG brands around the world.
According to surveys, about seventy-one % of clients study the sugar content material on labels, and 46% want to reduce their sugar consumption. In current years, meals and beverage corporations have invested in developing synthetic sweeteners. Stevia has been an outstanding substitute, but the non-caloric sweetener and similar merchandise have left consumers with a bitter taste. DouxMatok claims its merchandise does not have equal off-putting aftermath.
Despite consumer choice to reduce sugar for fitness motives, taste is still an important thing. This should provide a primary benefit for DouxMatok. Analysts have said that taste and the wonder that sugar offers is one of the most crucial aspects whilst it comes to buying choices. According to the FDA, Americans generally consume greater than 13% of their general everyday calories from added sugars.
But DouxMatok is not by myself in launching sugar-discount innovations. Ingredion added a line of low-sugar glucose syrups years ago to assist meal manufacturers in lessening the amount of sugar shown on Nutrition Facts panels, which the FDA requires to be indexed on product packaging as a part of the updated label starting in 2020 and 2021. Additionally, Kerry evolved TasteSense, a herbal flavoring answer designed to bring back sweetness lost when sugar is decreased. These products suggest there can be lots of opposition for DouxMatok available on the market.
However, with most CPG corporations inquisitive about sugar reduction and many of them making it a priority, there might be an opportunity within the marketplace area for more than one option.
Danone lately added a Greek low fats yogurt with grams of sugar known as Two Good, and Kind has been operating to reduce the sugar content material in its merchandise for years. Additionally, Nestlé researchers have engineered hollow and rapid-dissolving sugar molecules to permit manufacturers to deplete to 40% much less without reducing the beauty of their products — which sounds very just like DouxMatok’s era. Finally, last year, the Swiss food giant released its first chocolate bar made with its new sugar discount technology within the U.K. And Ireland.
The modern-day investment round wasn’t the first for DouxMatok. In 2017, the company acquired $8.1 million to boom manufacturing of its sugar-discount era. More of the latest investment spherical will go closer to its R&D work on salt reduction. Although there is opposition with other salt-reducing technology if the enterprise establishes its popularity with sugar, salt, and different improvements could quickly gain momentum.