Dive Brief:
- Savor, a startup that produces butter from carbon, has entered into a two-year agreement with bakery ingredients supplier AAK to jointly develop a source of saturated fats that does not rely on conventional agriculture.
- The partnership, which also includes an investment from AAK, will scale solutions for bakery applications and the dairy alternative market.
- The new fats could require a thousand times less land use than their conventional counterparts, with up to 98% lower carbon emissions.
Dive Insight:
Savor and AAK's partnership focuses on dairy alternatives and bakery, two segments that face growing demand for functional ingredients at a time of supply chain volatility. The companies' fat alternative could give brands a sustainable alternative that also provides a more stable supply with reliable pricing.
"Food and CPG manufacturers are under real pressure on two fronts simultaneously: supply chain stability and the need to reduce the environmental footprint of key ingredients," Chiara Cecchini, senior vice president of commercialization at Savor, said in a statement. "This collaboration puts a compelling answer to both in front of customers who need it most."
Founded in 2022, Savor takes carbon dioxide from air and hydrogen from water to produce the same kinds of fat molecules found in milk, cheese and vegetable oils. The company, which has received backing from Bill Gates' investment fund Breakthrough Energy Ventures, has highlighted its alternative fats as a potential solution to palm oil, which is widely used in packaged goods products but is also a major driver of deforestation.
Last March, Savor announced the commercial launch of its carbon-based butter for use in bakeries and restaurants. As part of the announcement, the company opened a 25,000-square-foot pilot production facility in Batavia, Illinois.
Savor's technology platform can be deployed anywhere, with no need for land, fertilizers or water. Kim Olofsson, global head of R&D at AAK, said in a statement that Savor's fats can be "designed together with AAK's plant-based oils for a vast array of functionality and solutions."
"The unique solutions that are unlocked by the AAK-Savor strategic collaboration address a market need across the food industry," Ronald van der Knaap, global head of dairy, early life nutrition and savory at AAK, added in a statement. "Beyond supply chain resilience and sustainability, we will create applications with great taste and texture for our customers within two very important segments, and in this way, ticking all the boxes and improving the overall consumer experience.”
