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How Nourish Ingredients Made Its Milk Substitute Creamy

A close-up of cream.
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Dairy substitutes aren’t as popular as they once were. According to recent consumer statistics, US retail sales of plant-based milk, such as almond and soy milk, fell 5.2% in 2024. Several factors could be behind this trend, most notably economic ones such as rising prices and stagnating living standards. But certain experts in the industry believe one simple change could pull these customers back: fat. 


The thinking goes that, despite their recent popularity, most plant-based milks just can’t compete with the genuine creaminess of the real-deal dairy products; if this inferiority issue persists, customers will simply continue to drift back to the more flavorsome originals. But, if dairy substitutes could somehow be made to be more dairy-like, if they could actually emulate the texture of milk and butter, then, the theory goes, customers could be drawn back.


This is the founding principle of Nourish Ingredients, a Canberra-based food company spun out of the work of two scientists from Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO)


With two tailor-made lipids in its inventory, one created to resemble milk, the other resembling meat, the company believes it has the answer to the industry’s difficulties. Technology Networks caught up with its founder and CEO, James Petrie, to learn what makes the company’s lipids unique. 

Leo Bear-McGuinness (LBM):

How did you find your way into Nourish Ingredients?


James Petrie (JP):

My background is R&D. I worked for the CSIRO, which is Australia's national research agency. One of the things that we did was to build a fish oil-canola crop. From a technical perspective, we managed to get the levels that we needed, the levels of eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) – key omega-3 fatty acids. More importantly, we got the crop regulated in several countries around the world, and it has since become quite a successful commercial crop. It was really great to see that you can take an animal fat and create an animal free-platform for it. At the end of that journey, we looked around and thought, “What else can we do that with?”

At the beginning of the journey we looked at some of the other cellular companies growing animal products via yeast precision fermentation. The conclusion we reached is that, yes, it is possible to do, but the problem is the economics don't stack up; precision fermentation is expensive. The amount of carbon you have to feed into a system to produce a bit of tallow fat, well, it just doesn't stack up in terms of the economics; you've got to put too much sugar in the front end, which then gets converted into fat.

Instead, we started looking at the other end of the spectrum, the much more potent fats that give animal products their characteristic taste experience. In the case of dairy, this is something called the milk fat globule, which is a really special structure inside of milk and goes a long way to giving it the creaminess and taste of milk.

We’ve managed to nail down both dairy-type fat and a meat-type fat, and we've been able to show numerous customers that this really does tick the box in terms of making something taste animalic. More importantly, with regards to your original question,  we're able to do it in a manner in which the economics do stack up, because now we're talking about one percent inclusion rate for fats and oils, the really special lipids that have an outsized effect in terms of the taste experience they turn into.


LBM:
Nourish Ingredients has two prime product types: meat and dairy lipids (fats), is that correct?

JP:

Correct. Those are the two that really stood out to us in terms of the gaps in the market. Five years ago, when we began Nourish Ingredients, there was a huge amount of focus on plant-based foods. Our assumption back then – and it has stood the test of time – is that such foods were not yet good enough to really convince consumers to become repeat purchases. 


Our thinking was, “What do you need to do in order to make them better?” And, to us, it all came down to authenticity. If you follow that thought process through, you arrive at these two ingredient categories, one of which is meat and one of which is dairy fat. Creamilux is the dairy one – this is a short-chain phospholipid and it acts both from a mechanical physio-chemical function and a taste modulator. It gives it something that's noticeably dairy. Tastilux is the meat analogue. This is a long-chain omega-6 phospholipid which we derived from a fungal strain. Both of these are non-GMO but very carefully selected and cultivated, because doing anything else via fermentation is really expensive to produce.



LBM:
Does Creamilux contain any lactose?

JP:

Our product doesn't have any lactose in it at all. Usually with a dairy-free milk or cheese you add in flavors which taste dairy-like, and these are usually chemically derived, synthesized flavors. The approach we’ve taken is a little different.


What we did was look back to normal milk and try and figure out what is it that was present in milk that makes it creamy and tastes the way it does. And it really comes down to this structure called a milk fat globule, which contains a triglyceride wrapped with phospholipids. This is present in natural milk, but not in any of the plant-based type milks. The structure of Creamilux is the same as the normal milk fat globule. 


Being able to do this sort of thing with ingredients is really relatively new, to create a version which is sort of halfway between the natural version and can be low cost and yet have a larger size impact in terms of flavor and taste. It’s really the best of both worlds.



LBM:

So, when compared to genuine dairy and meat products, do Creamilux and Tastilux have health benefits?


JP:

We are at the very low-inclusion, high-potency end of the ingredient spectrum, so that means what we are adding into the final food is 1% or less of the total food in the product. So any health effect that we're having is going to be relatively minor. But we can help displace less-than-healthy ingredients.

Take coffee creams, for example. These often have really high levels of saturated fats. So this is something that we can add Creamilux into to give it a certain type of mouthfeel, a certain consistency, and do away with most of those saturated fats.

Another example is on the meat side where, in order to make it taste meaty, a plant-based food will need flavor packs, some of which might have 30 different chemicals, not to mention the yeast extracts, a lot of salt and a myriad of reagents. So, by adding in an authentic ingredient at the beginning you can do away with a whole bunch of that stuff.


LBM:
And what of the business itself? 

JP:
We are working on our first sale delivery at the moment. When we look globally at the dairy space and plant protein space you see that there's a mixture of company types. You have some very large global multinationals who operate in the space and who are keen to improve the types of food that they and their customers are building. Then you have the smaller companies who are quite aggressive in terms of their growth prospects. And so we are simultaneously trying to work with both those types of companies.


LBM:
As an Australian company, are you primarily selling to the Australian market or elsewhere?

JP:
No, Australia is not our primary market. It's all about Southeast Asia and Europe, which have different regulatory opportunities and challenges. It's about picking the path to market that gets us there quickly while not cutting any corners. Even then, it'll be a long process; we’ll be talking with regulatory authorities for many years to come.


LBM:
And, when it comes to the Asian and European markets, do you plan on marketing different kinds of products?

JP:

Yeah, there are differences between the regions in terms of the precise formulation that ticks the local taste box. The goal for us is – when you think about the supply chain and the logistics around it – how far back in the process can you go to have a common element that ticks all of those boxes?

It’s a lot of effort. I think initially, naively, I had a view that we'd build just a chassis product and then that would be it. But the supply chains are a bit more complex and you have to at least do some level of tailoring to make it fit. 



LBM:
What about sustainability?

JP:
We launched because of the products; we like making new lipid ingredients, and we love the tech behind it. But this statistic shocked me when I first saw it: 70% of global agricultural land is for livestock, less than 20% of the food supply. So, as you consider the growing populations in some countries, the growing demand for animal-type foods, this is also why we exist. It's about how we can make that same experience that people rightly enjoy and want, but without that sort of land cost? That’s really the challenge that we’ve taken on, and I think nailing this approach, where you have truly authentic ingredients to make that step change in terms of taste, authenticity, experience, that's how you unlock the sector as a whole.
So there you go; that's our story.