Formo

Formo's business model is primarily direct-to-consumer (B2C), aiming to establish a strong brand presence rather than supplying ingredients to other companies. The company targets consumers who are looking for sustainable and ethical food choices without compromising on the taste and texture of traditional dairy products. Its market strategy involves launching products directly into retail and food service channels. A significant milestone was achieved in September 2024 with the launch of its first cheese alternatives, 'Frischhain' (a cream cheese style) and 'Camembritz' (a camembert style), in over 2,000 stores across Germany and Austria, including major retailers like REWE, BILLA, and Metro. This launch was supported by a $61 million Series B funding round, bringing the company's total funding to over $115 million.

The company employs a dual-technology approach. The initial product line utilizes micro fermentation with Koji, a fungus with a long history in Asian cuisine, to produce Koji protein. This protein serves as the base, which is then combined with plant-based fats and carbohydrates. This process is more environmentally friendly, reportedly reducing emissions, land use, and water consumption significantly compared to conventional cream cheese production. Concurrently, Formo is advancing its precision fermentation platform to create bio-identical dairy proteins like casein. This technology involves encoding microorganisms with milk protein DNA sequences and growing them in fermenters, similar to brewing. The resulting proteins are identical to those from cows, enabling the creation of cheeses with the meltability and stretchability consumers expect from traditional dairy, a feature the Koji-based products do not yet fully replicate. Products featuring these precision-fermented caseins are anticipated to launch in 2025 and will allow Formo to expand into hard cheeses. These products are also free from lactose, antibiotics, and hormones.