Evolva secures multi-year US$39M agreement to supply precision fermentation vanillin for fragrances
05 May 2023 --- Evolva, a company which harnesses industrial biotech to produce natural molecules, has signed a multi-year agreement with an undisclosed contract manufacturing organization (CMO) partner. Evolva’s fermentation-based vanillin – which harnesses microbes for its sustainable production – business has secured a global food and fragrance customer of around CHF 35 million (US$39 million) until 2026.
Thanks to its proprietary precision-fermentation platform and the newly signed CMO agreement, Evolva is now able to supply vanillin to a global customer in the flavors and fragrances industry within a framework of defined volumes and very competitive pricing over a multi-year period.
“The signing of this agreement is a huge and exciting milestone for the new Evolva,” comments Christian Wichert, Evolva CEO. “It demonstrates our ability to successfully deliver commercial growth to bring Evolva to the next level.”
“I am very proud of the team having successfully created the basis for this exciting new business for Evolva, combining Evolva’s core competencies along the entire value chain.”
When plant-derived, vanillin is only available in limited quantities and often subject to price and supply fluctuations.Projected revenue estimates
Based on the newly signed agreement with the selected CMO partner, Evolva expects to generate revenues of around CHF 35 million (US$39 million) over the next three and a half years from supplying a global customer with vanillin for use as a natural ingredient to the fragrance and flavor industry.
As such, the agreement further substantiates Evolva’s mid-term plan.
In 2023, the corresponding revenues are expected to be in the mid-single digit range. For production reasons, these revenues will fully accrue in the second half of the year, leading to a shift in revenues from the first to the second half of the year when compared to 2022.
Last August, the Swiss-based biotech player released its half-year report for 2022, presenting a total revenue from customer contracts of CHF8.1 million (US$8.4 million).
Cleaning up sourcing and labeling
Vanillin is a widely used ingredient in the food and fragrance industry. When plant-derived, it is only available in limited quantities and often subject to price and supply fluctuations as crop yields are heavily dependent on climate conditions.
Based on its proprietary precision-fermentation platform, Evolva claims it is well positioned to resolve supply bottlenecks of nature. Using this platform, the company produces nature-based vanillin of European origin with an ideal sensory profile.
Precision fermentation as an emergent technology in the beauty sector has previously been leveraged to craft natural “raspberry and violet” scented alpha-Ionone, as well as rare polyphenols and “rare” or endangered beauty ingredients.
Harnessing fermentation, Evolva enables its customers to replace expensive vanilla bean extracts as well as synthetic vanillin – which is obtained through a chemical process – meeting the increasing demand of consumers for more natural ingredients which are responsibly and sustainably produced.
British researchers previously delved into the exact biomechanics of using microbes to create consumer grade fragrances and flavoring. Scientists at the University of Edinburgh discovered a novel way to upcycle plastic waste by converting post-consumer PET into vanillin through a series of chemical reactions.
The team lab-engineered E. coli to transform terephthalic acid – a molecule derived from PET – into the molecule known for giving vanilla its characteristic taste and smell. The scientists demonstrated the technique by converting a used plastic bottle into vanillin.
By Benjamin Ferrer
