Investors lose appetite for Israel's food-tech cos

Published date28 May 2023
At the forefront of foodtech were the cloning companies (or 'cultured' as they prefer to call themselves) - food companies that work to produce food using cell cultures - a process that mimics in the laboratory the biological process that occurs in nature. Three such companies reached the TASE by merging with existing shell companies

The first to do so was Meatech, now known as Steakholder Foods (Nasdaq: STKH; TASE: STKH), which promised the development of cultured meat cuts, followed by Biomilk, now known as Wilk Technologies (TASE: WILK), which works to produce cultured milk, and Beeio Honey (TASE: BHNY), which seeks to produce honey according to the same principle.

However, after a warm reception, and initial rises, the share prices have changed direction, not entirely unconnected from the negative sentiment on the markets plaguing all the dream companies that are still in development stages in a time of sharp interest rate hikes.

The share prices of all three have fallen by about 90% from the record levels of about two years ago, and their coffers are emptying at a rapid rate, without commercial products on the market and no revenue. What's more: they are still looking for a clear business model.

The likelihood that these companies will be able to replace products "from nature" at a competitive price in the near term does not seem high, despite the many benefits that are said to derive from this: the ability to provide well-known and loved food in an ethical manner, without harming the environment, and while severing dependence on the planet's depleting resources.

Beeio Honey - Still seeking the sting

The company was founded in 2018 by brother and sister CEO Ofir Dvash and CTO Dr. Efrat Dvash. The name Dvash is Hebrew for honey and is not coincidental as they came from a family of beekeepers who changed the name to suit the profession. Beeio Honey seeks to develop an artificial beehive to produce artificial honey.

The company, which has a market cap of just NIS 25 million, has successfully produced cultured honey in the laboratory, but will be required to invest millions more shekels to bring the product to market, and this stage is fraught with technological risks. Israeli businessman Adi Zim holds a 24% stake in the company.

In March the company announced that Ofir Dvash will be replaced as CEO and prior to that in December Beeio Honey announced that it was laying off 10 employees - about half of its workforce. In its 2022 financial statement, Beeio...

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