Plant-based cheesemaker Climax Foods has rebranded as Bettani Farms and appointed former Califia Farms CFO Sandeep Patel to serve as CEO and chairman. The move follows the $6.5 million initial closing of its Series A round led by S2G Investments.
Founded by astrophysicist Dr. Oliver Zahn in 2020 at the peak of the alt protein funding boom, Climax Foods wowed industry stakeholders and investors alike with its award-winning ‘zero compromise’ signature blue cheese.
The startup began supplying a small number of restaurants in 2023 along with select online and brick-and-mortar retailers from its plant in Petaluma. It also struck a partnership with Bel Group—the multinational firm behind cheese brands Babybel, The Laughing Cow, and Boursin—to develop plant-based versions of its iconic brands.
However, former employees claimed the unit economics of producing the award-winning cheeses at scale were challenging, telling AgFunderNews late last year that, “Everyone is passionate about the products, but food is not like software, you can’t just push a button and it happens. There’s a difference between being able to make something to show investors or take to a trade show versus something that is scalable in a food manufacturing environment.”
Like a lot of alt protein players seeking to adapt to a more challenging funding environment, the company has experienced a challenging couple of years during which time it dramatically reduced its headcount in order to stay afloat while Zahn attempted to secure fresh funds.
Founder Oliver Zahn ‘no longer part of the team’
Patel, who said Zahn “is no longer a part of the team,” told AgFunderNews that Bettani paused production of blue cheese earlier this year.
It is now focusing “exclusively on much larger segments of the global cheese market that we can serve at scale profitably, such as mozzarella, which represents roughly 40% of the 14bn lbs of cheese consumed in the US each year,” he said.
The products will feature a plant-based protein dubbed ‘Caseed’ that is claimed to mimic the functionality of casein (melting, stretching), said Patel, who has extensive industry experience across packaged food, agriculture, and consumer products.
Bettani will focus on commercializing Caseed and Caseed-based cheeses in partnership with frozen-food makers, foodservice operators, and existing dairy-free cheese brands seeking to improve their formulations, he explained.
“We shifted our focus in January to focus exclusively on products and segments of the market where we can achieve great scale profitably. Mozzarella and other mass market cheeses like jack and cheddar are where the unique stretch, melt, and mouthfeel of our Caseed protein can truly shine. We are also focused on applications such as, feta, where the clean flavor and creaminess of Caseed can shine.”
He added: “We’re in a much stronger place than we were a year ago. The crops we are using [to source the protein in Caseed] are sustainable, regenerative, easy to work with, and eminently scalable. They have been grown for thousands of years in multiple geographies, ensuring a reliable and diversified supply chain.”
AgFunderNews understands that to make its plant-based casein, Bettani must first isolate and then functionalize storage proteins that are present in several seeds and legumes but has not disclosed which crop it is using for commercial-scale production.
“Based on numerous production trials we have conducted over the past year, I am confident we can produce large quantities profitably and provide a compelling value proposition in the marketplace,” said Patel.
‘$6.5 million in new capital led by S2G Investments’
Asked about the status of the partnership with Bel Group, Patel said: “Bel Group remains a supportive investor, and we continue to have constructive dialogue regarding potential opportunities to collaborate.”
He added: “Bettani Farms is in firm growth mode with $6.5 million in new capital led by S2G Investments. While we plan to remain lean, we have strengthened our team with decades of food and plant-based food experience.
“I’ve joined as CEO, and we’ve recently added top talent where it matters most, in R&D, sales, and manufacturing. We’ve brought on Rajiv Dave as SVP of R&D (formerly at Califia Farms, Nestlé, and Great Lakes Cheese); Tom Zilligen as head of sales (formerly at NUMU, Pacific Foods, and Schwann); and Maxwell Brown as process engineer (formerly at Ingredion and Meati).”
The company has also established a formal board of directors, which Patel chairs, he added.
“As Bettani starts this new chapter, we believe it’s clear the company has the strong leadership and vision needed to make protein-rich, dairy-free cheeses commonplace,” said Sanjeev Krishnan, managing partner at S2G Investments.
Further reading:
Plant-based cheesemaker Climax Foods secures bridge funding, plans restructuring
Plant-based cheesemaker Climax Foods disqualified from Good Food Awards on eve of awards ceremony
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