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US startup Hoppy Planet Foods claims its patented technology can remove the earthy colour, flavour and aroma of edible insects, opening up new opportunities in the higher-value human food market.
Hoppy Planet founder and CEO Matt Beck told AgFunderNews that while high prices and the “yuck” factor have held back the insect human food market to some extent, the bigger issue is the quality of the ingredients, according to food producers Hoppy Planet spoke with.
”I was talking to the R&D team [at a major candy maker] and they said they had tested insect protein a few years ago but couldn’t solve the taste issues so they gave up, so it’s not a discussion about price or consumer acceptance. Even before that, we showed them our product (a decolorized, spray-dried cricket protein powder with a neutral taste and aroma) and they were blown away.
”That doesn’t mean they’re going to release a product [containing cricket protein] tomorrow, but it does mean we’ve removed the material barrier for them.”
Historically, Baker says, manufacturers have tended to roast and grind crickets into a coarse, dark powder that’s suitable for pet food and animal feed, but has limited use in human nutrition. Baker founded Hoppy Planet Foods in 2019 after spending six years in sales at PepsiCo and another six years at Google, helping food and beverage companies build data and media strategies.
Another method is to wet grind the crickets into a pulp and then spray dry them to create a fine powder that is “easier to work with,” Baker said. “But that’s not a widely used human food ingredient. We’ve figured out how to use the right acids and organic solvents to bleach the protein and remove odors and flavors without affecting its potential nutritional value.”
”Our process (which also uses wet milling and spray drying) produces an off-white, odorless powder that can be used in a wider range of food products. It requires no special equipment or ingredients, and leaves no residue on the surface of the final product. It’s really just a bit of clever organic chemistry, but we’ve applied for a provisional patent and are looking to convert it into a formal patent this year.
“We are currently in discussions with major insect producers about the possibility of processing insect protein for them or licensing the use of our technology to produce insect protein for human consumption.”
With this technological innovation, Baker now hopes to build a larger B2B business, also selling cricket snacks under the Hoppy Planet brand (sold through brick-and-mortar retailers like Albertsons and Kroger) and the EXO protein brand (operating primarily through e-commerce).
“We’ve done very little marketing and we’ve seen tremendous interest from consumers and our products continue to meet or exceed retailer standards, so that’s a very positive sign,” Baker said. “But we also knew it would take a lot of time and money to get our brand into 20,000 stores, so that prompted us to really invest in protein development, particularly getting into the human food market.
“Currently, insect protein is essentially an industrial agricultural ingredient used primarily in animal feed, aquaculture and pet food, but by positively impacting the sensory elements of protein, we think we can tap into a wider market.”
But what about value and consumer acceptance? Even with better products, is Baker still in decline?
“It’s a legitimate question,” said Baker, who now buys frozen insects in bulk from various insect farmers and processes them to his specifications through a co-packer. “But we’ve cut costs significantly, so it’s probably half what it was two years ago. It’s still more expensive than whey protein, but it’s pretty close now.”
Regarding consumer scepticism about insect protein, he said: “That’s why we brought the Hoppy Planet brand to market, to prove that there is a market for these products. People understand the value proposition, the quality of the protein, the prebiotics and the gut health, the sustainability. They care more about that than the fact that the protein comes from crickets.
”We don’t see that aversion factor. Judging from in-store demonstrations, our conversion rates are very high, especially among the younger age groups.”
On the economics of running an edible insect business, he said, “We don’t follow a technology model where we light a fire, burn money and hope that eventually things will work out… As a company, we are cash flow positive at the beginning of 2023. Unit economics, so our products are self-sufficient.
”We did a friends and family fundraiser and a seed round in the spring of 2022, but we haven’t raised much yet. We need funding for future R&D projects, so we’re raising money now, but it’s a better use of capital than needing money to keep the lights on.
“We are a well-structured business with proprietary intellectual property and a new B2B approach that is investor friendly, more attractive to investors and more scalable.”
He added: “We’ve had some people tell us they don’t want to get into the insect protein space, but frankly, that’s a minority. If we said, ‘We’re trying to make an alternative protein burger out of crickets,’ the answer probably wouldn’t be very good. But what we’re saying is, ‘What’s even more interesting is how our protein is enriching grains, from ramen and pasta to breads, energy bars, cookies, muffins and protein powders, which is a more attractive market.’”
While Innovafeed and Entobel primarily target the animal feed market and Aspire targets the North American pet food industry, some players are turning their attention to human food products.
Notably, Vietnam-based Cricket One is targeting the human and pet food markets with its cricket products, while Ÿnsect recently signed a memorandum of understanding (MOU) with South Korean food company LOTTE to explore the use of mealworms in human food products, part of a “focus on high-value markets to enable us to achieve profitability faster.”
“Our customers add insect protein to energy bars, shakes, cereals and burgers,” said Anais Mori, vice president and chief communications officer at Ÿnsect. “Mealworms are rich in protein, healthy fats and other essential nutrients, making them a valuable addition to a variety of foods.” Element.
Mealworms also have potential in sports nutrition, Mori said, citing a human study from Maastricht University that found mealworm protein and milk were superior in tests of muscle protein synthesis rate after exercise. Protein concentrates worked equally well.
Animal studies have also shown that mealworms can lower cholesterol in rats with hyperlipidemia, but more research is needed to determine whether they have similar benefits in people, she said.
Post time: Dec-25-2024