DouxMatok takes candy journey to develop into Incredo after securing $30M


DouxMatok, a meals tech firm whose first product is a sugar-based, sugar discount answer known as Incredo Sugar, is taking a nod from that and altering its firm title to Incredo.

Incredo’s know-how binds actual cane or beet sugar with hint quantities of a pure provider that is ready to cut back the quantity of sugar in meals by between 30% and 50%. Because of this folks can eat much less of it, however nonetheless get the identical impact of style, mouthfeel or texture — and with out adjustments to the substances.

We final checked in on DouxMatok in 2017 when the Israel-based firm was creating that know-how. Loads has modified since then.

Ari Melamud took over as CEO from Eron Baniel in 2021. He joined the corporate with some aims that included taking the know-how to market and kicking off one other spherical of fundraising following Incredo’s Collection B spherical in 2019.

Think about them fulfilled: Incredo Sugar is now commercially obtainable, and together with the title change, the corporate introduced that it raised $30 million in a Collection C funding spherical.

The funding was co-led by DSM Venturing and Sienna Enterprise Capital. Becoming a member of them have been a bunch that included strategic industrial accomplice Ferrero, new investor Teseo Capital and present traders Pitango and BlueRed Companions. The corporate has now raised a complete of $60 million.

“Incredo has developed some of the promising improvements within the meals area we’ve seen — a scrumptious reasonably priced and clean-label product that may cut back the sugar in meals with out components or adjustments to style,” stated Isabelle Amiel-Azoulai, managing accomplice at Sienna Enterprise Capital, in a written assertion. “Incredo has all the things in the best place for Incredo Sugar to look in merchandise around the globe.”

There are many sugar replacements available in the market presently. Nonetheless, all of them aren’t created equal, in accordance with Melamud, who famous that the World Well being Group launched new pointers this month “in opposition to using non-sugar sweeteners to regulate physique weight or cut back the chance of noncommunicable ailments” on account of not displaying long-term advantages.

Apart from well being values, one of many largest issues with sugar alternate options is that every has a unique sweetness profile, which tends to change the style of no matter meals it’s in, he stated.

“Shoppers are very clear of their message again to the manufacturers that the style is what they don’t like,” Melamud stated. “The second factor is they need a clear label. We’re the one answer really based mostly on sugar, and that’s giving us some great benefits of style and clear label.”

Incredo is amongst a handful of corporations creating more healthy variations of sugar alternate options, together with Supplant, MycoTechnology, Sensient and Joywell Meals, which notably has been on this sector for practically a decade.

Incredo Sugar recipe testing

Incredo’s recipe testing laboratory. Picture Credit: Incredo

Final 12 months was Incredo’s first industrial 12 months, which included securing partnerships with Batory Meals and Blommer Chocolate Co. Melamud declined to enter specifics about income, however did say, “we mainly hit our goal” and that there are “aggressive development plans” for the following two years.

The corporate launched in Europe earlier this 12 months and there are plans to do the identical in Asia later in 2023. Plans additionally name for brand new and elevated availability throughout Europe, Israel and the U.S., the place Incredo has constructed a headquarters in Austin. The North American efforts are led by Kelly Thompson, who joined the corporate in 2022 after beforehand serving in R&D roles for corporations like Kraft Meals.

Melamud plans to speculate the brand new funding largely into Incredo’s R&D crew, which is engaged on bettering and launching new variations of its product, and commercialization efforts for Incredo Sugar.

In the meantime, although Incredo is commercially obtainable, it may take two years or extra for giant meals producers to signal on and alter their recipes to incorporate its sugar product. Nonetheless, the corporate is attempting to get in entrance of that by “presently working a whole bunch of tasks within the U.S.,” with a few of these massive gamers, Melamud stated.

‘We have to do not forget that it is a sluggish class,” Melamud stated. “A few of these tasks will mature this 12 months with greater quantities subsequent 12 months and even greater quantities in 2025. We do see lots of curiosity available in the market, which exhibits the necessity is there.”