Multiple startups are now making dairy proteins without cows, says Verley (previously Bon Vivant) cofounder Stéphane Mac Millan. To stand out from the crowd, however, they will have to deliver some added value in addition to compelling unit economics, he claims.
And Lyon, France-based Verley is delivering on both fronts, with a new suite of “functionalized” dairy proteins made via precision fermentation it aims to bring to market in 2026 that have advantages over both native recombinant proteins and conventional (animal-sourced) whey proteins.
The basic rationale behind animal-free dairy proteins produced in fermentation tanks is clear, he tells AgFunderNews. “Demand for dairy is growing but milk production is decreasing, so we have a protein gap. And companies want to reduce scope 3 emissions [animal-free dairy proteins are claimed to have a lower environmental footprint than their conventional counterparts].”
But at the end of the day, he says, “We are in a market where you can only charge a premium if you’re delivering more functionality. If you are not, you can maybe charge a small premium for helping people reach net zero targets, but can you charge more than 10-20% above the market price just for that? I don’t think so.”
Verley quickly recognized that “simply mimicking conventional dairy proteins wouldn’t unlock the full potential [of animal-free dairy],” he adds. “With unmatched purity and consistency, precision fermentation can go further… delivering proteins with superior nutrition and advanced functionalities.”
As for the “animal-free” moniker, some customers are keen to promote that term, but most are just focused on price, nutrition, functionality, and reducing GHG emissions, he said. Few cheese manufacturers, for example, actively promote the “animal-free” nature of chymosin, an enzyme used in cheesemaking that used to be extracted from calf stomachs and is now produced by genetically engineered microbes.
High protein with a clean label
Like most players making whey via precision fermentation, Verley makes a lactose-free, fast-absorbing native whey protein (beta lactoglobulin) that works especially well in sports nutrition products and clear beverages.
However, it has also developed two functionalized versions of beta lactoglobulin it claims will unlock novel applications and add value for food and beverage formulators:
FermWhey MicroStab is a micro-particulated whey protein promising “unprecedented heat and acid stability,” making it ideal for UHT drinks, fresh dairy, and high-protein low-fat formulations, claims the firm, which notes that native whey proteins can be unstable under heat and acidic conditions, leading to a grainy or sandy texture and viscosity issues.
Using a proprietary thermo-mechanical process, Verley adapts the protein’s structure to prevent denaturation during heating, fermentation, or acidification.
FermWhey Gel, meanwhile, has gelling properties enabling formulators to replace stabilizers, gums, carrageenan, or modified starch in spoonable dairy, fresh and meltable cheese, and meal replacements, explains Mac Millan.
“We’ve enhanced the natural gelling ability of whey proteins, eliminating the need for casein in acid-gelled dairy applications such as yogurt. This allows manufacturers to make high-protein, clean-label yogurts and dairy gels using whey alone, which has nutritional and functional advantages.”
“By applying our patented functionalization technologies, we are unlocking high-value applications that were previously unreachable by standard precision fermentation proteins or even by conventional dairy proteins such as very high-protein dairy products.” Stéphane Mac Millan, cofounder and CEO, Verley
Unlocking new applications
The dairy industry has been “functionalizing proteins for decades,” says Mac Milan. “So we need to do the same for our recombinant dairy proteins, and because we’re working with a highly purified beta-lactoglobulin, we’re able to achieve functionality you can’t get even with [animal milk derived] whey protein isolate.”
He adds: “For example, whey protein isolate doesn’t gel, whereas our FermWhey Gel can serve as a replacement for all these texturizers that formulators want to get rid of to meet clean label requirements.”
With FermWhey MicroStab, meanwhile, formulators will be able to add whey at higher inclusion rates without causing sensory issues, he said. “Our product also has 11% more leucine than native whey protein isolate, so we are bringing more to the table in terms of quality of the nutrition.”
Manufacturing and scale up
Verley has secured self-GRAS (Generally Recognized as Safe) status for its whey proteins in the US and has submitted a GRAS notification to the FDA with the hope of securing a “no questions” letter by the end of the year. Regulatory filings are also planned in “multiple other” geographies, says Mac Milan.
While Verley envisages building its own facilities at some point, the initial plan is to scale up with co-manufacturers, he says. “We’ve already signed with two, but this year is all about proving our strain and process is robust enough at 50 cubic meters [50,000-L], and if it works at 50, it will work at 150 and so on.”
While Verley has developed microbial strains that can produce other dairy proteins in addition to beta lactoglobulin, he said, the economics of recombinant casein production are more challenging.
“For the moment, casein doesn’t fly, although in the long run, we strongly believe we will be a huge player in this market. We are also working on other proteins including lactoferrin as the long-term vision is to offer a portfolio of different proteins.”
