In 2021, sugar reduction start-up DouxMatok launched its first product under the Incredo Sugar brand. Two years later, and the company is unveiling a new name – Incredo LTD – to better align with its offerings.
Being known as Incredo LTD enables the company to ‘simplify’ its communications and ‘unify’ its identify, explained CEO Ari Melamud. ‘Incredo’, he said, is a ‘single, powerful brand’ that will stick in consumers’ minds as the business prepares for a period of ‘continuous growth and commercialisation’.
Sweeter than sugar
Incredo LTD was founded as DouxMatok in 2014 by Eran Baniel, who has since transitioned from CEO to executive chairman of the company. The company is rethinking sugar reduction with patented technology based on real cane or beet sugar
The sugar technology wraps sucrose molecules around silica particles to form structures that are perceived to be sweeter than conventional sugar. By replacing sugar with Incredo Sugar, the company believes a 30-50% sugar reduction can be achieved without impacting flavour.
Headquartered in Tel Aviv, the company has also opened offices and labs in Texas, US, and established partnerships with several food majors. Signed deals to date include a partnership with North America’s largest ingredient chocolate supplier Blommer Chocolate and ingredients major Batory Foods.
With the closing of a $30m (€27m) Series C funding round, the company is looking to accelerate its commercial partnerships.
Investing in partnerships
The round was led by dsm-firmenich Venturing and Sienna Venture Capital, along with Teseo Capital and existing investors Pitango and BlueRed Partners.
Teseo Capital is a private investment vehicle related to Ferrero Group, and Ferrero and Incredo have established a joint development agreement for the development of solutions based on Incredo’s technology. The companies are working together in the hope of launching sugar-reduced products in the future.
Aside from accelerating commercial partnerships, Incredo plans to use the investment to expand its research and development for US, European, and Israeli markets.
According to Sienna Venture Capital, Incredo is one of the ‘most promising’ innovations the VC has come across in food. “Incredo has everything in the right place for Incredo Sugar to appear in products around the world, and our injection of capital will help support this mission-driven company to accelerate its growth.”
‘High demand’ observed in Europe
The decision to select the US as Incredo’s first international market was informed by several factors, explained Duska Dimitrijevic, SVP, head of Europe, Incredo. “In North America, there’s a consumer preference for very sweet foods, and along with it there’s a need to address health concerns from sugar overconsumption, such as obesity and diabetes.”
This means, Dimitrijevic explained, there’s a ‘big demand’ for sugar reduction solutions in the region, which allows Incredo to make an ‘immediate’ impact.
“Our decision to begin market entry in North America first was also based on the fact that our current manufacturer, Lantic, is based in Canada” the SVP added.
But Incredo is also working on the other side of the Atlantic, having embarked on projects in countries such as France, Germany, Italy, Spain, Switzerland, Turkey, and the UK.
“A number of European food brands across the continent already have projects under development where they are testing Incredo and creating reduced-sugar recipes with the ingredient, and we expect to reach full commercial availability in the region later this year,” Dimitrijevic told FoodNavigator.
“We can help companies reduce sugar levels and improve their Nutri-Score or traffic light score.”
Incredo links the ‘high demand’ observed in Europe to regulatory pressures and consumer preference. Many European countries have front of pack labelling for products high in fat, sugar and salt (HFSS), for example. “In particular, the UK recently implemented HFSS regulations and many companies are looking for a solution to make their products healthier.”
