Next Rung Technology shares tips for scaling alt-protein successfully: Focus on capital investments, personnel
When scaling operations, alt-protein companies must first figure “out the right plant to build [and] the right size to fit their needs” in a capital-efficient way, Ellersick said. Next Rung Technology is an engineering consultant firm that specializes in scaling up biotech operations.
“We start out with chartering projects, getting people to understand the cost and the goals of any facility that they are building and get really good cost estimates ... that allows you to change or adjust what you are doing before you get way down the road and learn unpleasant things that might be a mismatch between the funding you have to what you are trying to scale,” Ellersick added.
Alt-protein companies need to carefully consider facility amenities beyond fermentation tanks, including drainage systems, lighting, etc., CEO of Catapult Commercialization Services Jamie Valenti-Jordan previously shared with FoodNavigator-USA. Fermentation tanks and other processing equipment are often "40% of the cost of the facility," Valenti-Jordan added.
From food scientist to manufacturing plant managers: What’s needed to build the team
Next, alt-protein companies need to build out the production team, including plant managers and supervisors, Ellersick noted.
"There is sort of a pathway of picking up staff as you go. At the start of a project, [you will hire] perhaps one execution person; six months before operations, perhaps a plant manager; and then three months before operation, perhaps a supervisor. And you can progressively build it looking backwards from when your plant will be ready to run. And there is definitely ... differences between the person who is going to run a food-manufacturing facility and all those food scientists and engineers," he elaborated.
Moving operations to a new country: ‘You are going to need a local expertise on rules and regulation’
Alt-protein companies seeking global expansion also must pay careful attention to the difference in regulatory systems, leaning on local expertise to ensure they follow regulations for approval, Ellersick explained.
Next Rung Technology offers a "come to US program," which assists companies seeking to produce in the US, he noted.
“We do lean on local regulatory health for food and for environmental goals. ... You are going to need a local expertise on rules and regulations, but the differences are not huge between countries,” Ellersick said.
He added, “The acceptance of [cultivated] food products is different and folks know Singapore is in first place, the US in second place, and Europe — while a lot of technology has come from there — is more conservative.”
