ISRAEL – Israeli startup Blue Tree Technologies, which utilizes a patented process to remove sugars from juice, milk, and beer selectively, has secured US$2.26 million in a funding round led by OurCrowd with participation from Sucden Ventures, the venture capital arm of food commodities trader Sucden.
The funding boost comes as Blue Tree recovers from disruptions caused by relocating from its northern Israeli facilities and the reserve call-up of some employees at the onset of the October war.
Despite these challenges, Blue Tree has achieved self-affirmed FDA food-safe status for its sugar reduction technology, meeting US Food and Drug Administration requirements.
Michael Gordon, Blue Tree’s CEO, remarked, “On 7 October, our primary focus was on the safety of our team, as many faced reserve duty and had to evacuate their homes along with their families. We quickly adapted to the situation with a reduced team but heightened determination.”
Founded in 2020 by Didier Toubia, co-founder and CEO of cultivated meat startup Aleph Farms, and Yuval Klein, Blue Tree graduated from Israel’s Fresh Start incubator in June 2022.
During this period, the company transitioned from lab scale to prototype scale and signed an agreement with Priniv. In 2023, Blue Tree fully scaled up its solution and expanded development to other categories beyond orange juice.
Gordon added, “Our customer is the final decision-maker for product launch, contingent upon regulatory approval which is expected to be received any day. We anticipate a Q4 market entry aligned with the ‘back to school’ campaign.
We plan to license the system to juice producers worldwide and are currently negotiating with large-scale manufacturers in Latin America, Southeast Asia, and Europe.”
Gregory Merran, Sucden’s chief investment officer, commented, “At Sucden Ventures, we believe that effective sugar reduction strategies must be tailored to specific applications. We don’t adhere to a one-size-fits-all approach in the effort to reduce sugars in food and beverages.
In the context of juices, Blue Tree’s technology, which selectively removes sugars, is especially relevant and perfectly complements our portfolio of solutions.”
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