Remilk in turmoil as directors resign over leadership disputes and unmet goals
Remilk in turmoil as directors resign over leadership disputes and unmet goals
The departure of four prominent board members raises red flags for the future of the startup’s non-animal milk products, initially slated for a 2023 launch. "In recent weeks, Remilk completed an additional $20 million fundraising round from a new strategic investor, furthering the company’s significant progress," the company said.
Four senior directors of the foodtech startup Remilk announced on Sunday that they are leaving the board of directors and resigning from their positions in the company. The resignations come amid a lack of trust in the company's management and direction, despite the fact that the product has not yet been launched. "We have come to the conclusion that the relationship with the company has reached a crossroads that does not advance the interests of the company and its shareholders," reads the resignation notice.
Calcalist has learned that the collaboration with Israeli dairy company Tara, announced about two years ago, is now also in doubt, and it is uncertain whether the company will release Remilk's milk, which was supposed to be launched in June 2023, to the markets.
The Israeli company Remilk, headed by CEO Aviv Wolff, develops non-animal milk products based on proteins produced using fermentation technology. This past April it received approval from the Ministry of Health to market its milk, but it has yet to reach the market.
These are not the company’s only issues. Last year, Remilk began marketing a cheese product in a limited pilot program at several locations in the USA, but it was removed from shelves shortly after. In addition, the company's ambitious plan to establish a factory in Denmark fell through, and it announced that it would produce its proteins locally through a third-party manufacturer.
The directors who decided to leave the companry are: Tomer Harpaz, the chairman of the board and a former executive at Strauss; Alicia Enciso, the former Chief Marketing Officer at Nestlé USA; Pedro Padierna, former CEO and Chairman of PepsiCo Mexico; and observer Floris Wesseling, former President of Danone Europe. The final three all joined the board last June. The board of directors consists of seven permanent members and three observers. The departing board members do not agree with Remilk's management and do not think it will achieve its goals.
In response, Remilk stated: "We thank directors Harpaz, Enciso, and Padierna for their contributions to Remilk. In recent weeks, Remilk completed an additional $20 million fundraising round from a new strategic investor, furthering the company’s significant progress. This fundraising follows the $150 million raised in previous Seed, Series A, and Series B rounds. The company's management and board will continue to operate according to its business strategy and prepare for the launch of its products, which will bring significant innovations to the Israeli and global foodtech industries."
Remilk produces the same protein found in cow's milk, but without using animals, through a unique fermentation process involving yeast. As part of the procedure, the company replicates the segment of DNA needed to produce cow’s milk proteins in the lab and inserts it into yeast. The yeast then becomes a 'factory,' producing the same protein found in animals in nature. These proteins can later be used in the food market for the production of vegan cheeses, ice cream, and yogurt, offering similar taste and texture to traditional dairy products. This process not only saves animals from suffering but also reduces environmental pollution and greenhouse gas emissions, helping mitigate the worsening climate crisis.
According to a market source, Remilk is still far from scaling up to the level of production needed for continuous large-scale marketing of its products. About two years ago, Remilk promised it would bring its milk to the shelves by June 2023 in collaboration with Tara, but the deadline has long passed, and there is no new launch date in sight. Additionally, the collaboration may not be guaranteed, as it is possible that Tara has abandoned the partnership. Remilk declined to directly address whether the cooperation with Tara would continue, stating, "We are currently examining several relevant alternatives for production, marketing, and distribution in Israel and will continue to lead the non-animal milk protein revolution." Tara also refused to comment on the matter.
