Beer dregs become premium food ingredients… RE:harvest's 60-step innovative process
– Diversification of business from supplying to large corporations to launching our own brand, "Ugly Bites Club."
"We will usher in the era of food upcycling 2.0"…including the development of nanocellulose materials.
RE:harvest is a food upcycling company that develops an innovative food ingredient called RE:nergy powder by utilizing byproducts from the beer and sikhye manufacturing processes. Food upcycling refers to the process of giving new value to discarded food byproducts, transforming them into upgraded ingredients.
'RE:harvest' continues to challenge itself for a sustainable future under the vision of 'a world without food waste.' The product name 'RE:nergy' is a compound word combining 'RE' (again) and 'Energy' (energy), and contains the meaning of turning byproducts into valuable raw materials and giving energy back to the Earth and people. The company name 'RE:harvest' also combines 'RE' (again) and 'harvest' (harvest), meaning 'to harvest again.' Both the company name and the product name contain the common philosophy of rebirth and circulation.
Since its founding in 2019, RE:harvest has successfully upcycled 12 types of byproducts. It established a corporation in Indonesia to expand into the Southeast Asian market and is preparing to establish a US corporation to accelerate its global expansion. It is currently seeking Series B funding.
We met with CEO Min Myeong-jun at the RE:harvest office in Gangnam-gu, Seoul, and talked about the meaning of food upcycling, the process and technology for processing byproducts, and the outlook for global food upcycling.
By-products are selected according to strict selection criteria
RE:harvest discovered the value of previously discarded food byproducts and began creating RE:nergy powder from beer and sikhye byproducts. This RE:nergy powder replaces wheat flour, a key ingredient in a variety of foods, including cereal, pizza, cookies, and baked goods.
Byproducts are selected based on four criteria. First, they must be sufficient in quantity. Without economies of scale, byproduct businesses cannot thrive. Second, they must be free of regulations, as each byproduct must be collected according to specific standards. Third, they must be nutrient-rich. Without sufficient nutrients, they cannot be marketable. Fourth, they must be clean. Contaminated byproducts increase the cost of the treatment process.
'RE:harvest' is currently upcycling 12 different types of by-products, including beer and shikhye by-products that meet these conditions, as well as kale (kale residue), carrots (carrot residue), chocolate (cacao shell), and wheat (wheat bran).
CEO Min emphasized the limitless market for food upcycling. "Most raw materials are imported from overseas, and with so much byproduct left over, there's nowhere to process it, so it's being discarded. I believe food upcycling is the only way to deal with these byproducts. Food upcycling is increasingly recognized as the new normal, especially in the West, and the Asian and Southeast Asian markets are also growing rapidly," he explained.
Excellent nutritional, economic, and environmental value
By-products that were once considered waste have high nutritional, economic and environmental value.
Byproducts are rich in nutrients essential to our bodies. Most byproducts are the remaining portions after extracting the most delicious parts from the original plant. For example, the most delicious sugars are extracted from apples to make jam. The byproducts left over from jam production are rich in nutrients. Wheat bran, the husk removed from wheat during flour production, is rich in dietary fiber and protein. It contains twice as much protein and a whopping 20 times more dietary fiber than wheat flour. While wheat flour has 364 kcal per 100g, RE:nergy flour is actually lower in calories at 338 kcal.
Byproducts are also economically valuable. Their stable supply means low price volatility. Furthermore, byproducts can reduce costs because a single raw material can perform multiple functions. For example, cocoa byproducts are rich in protein and also act as a chocolate flavoring. This eliminates the need for flavoring and protein powder simultaneously, significantly reducing costs.
Byproducts are also valuable as carbon credits. Producing 1kg of RE:nergy powder has significant environmental benefits, including reducing carbon emissions by 11kg, saving 3.7 tons of water, and upcycling 3kg of byproducts. CEO Min explained, "RE:harvest provides a practical solution for achieving Net Zero by 2030. RE:harvest's RE:nergy powder directly contributes to reducing carbon emissions, waste generation, and water usage."
Produced through 60 strict processes
CEO Min used the expression "byproduct journey" to explain RE:harvest's core technology. This refers to the meticulous and systematic multi-step process RE:harvest uses to process byproducts. These processes include collection, washing, drying, sterilization, flavor enhancement, and crushing. To maintain nutrition and quality, semiconductor technology was incorporated into the raw material processing process.
- Smart collection system
South Korea has a food traceability system, requiring all raw materials to be traced. RE:harvest established a thorough system from the beginning to register byproducts as food ingredients. Their dedicated collection bins are not simple storage containers; they are smart devices. Sensors mounted on the bin analyze temperature and humidity every five minutes and automatically sterilize the waste. This is because byproducts begin to spoil the moment they are discharged.
- Systematic preprocessing process
Upon arrival at the factory, the products undergo a systematic inventory process and are systematically managed. Raw materials are pre-treated with ultraviolet and far-infrared rays, and byproducts are sterilized with a dedicated cleaning solution. RE:harvest processes byproducts without chemical additives, as they are derived from pre-processed raw materials.
- Innovative drying system
CEO Min emphasizes that drying is the most crucial process. It removes moisture, oil, and other elements contained in byproducts to prevent rancidity and block all factors that could cause them to deteriorate. Drying is achieved by monitoring the nutritional and sanitary conditions of the raw materials in real time through feedback control (a method in which the machine automatically determines the need for control and continuously adjusts and repeats operations to achieve the desired results). While the typical hot air drying time is 20 hours, RE:harvest has shortened this to 30 minutes. This milling technology is being recognized as a groundbreaking innovation.
- Fungal control and flavor enhancement
After drying, sterilization is performed mechanically instead of chemically. The flavor is then enhanced by storing under vacuum.
- 4 precision grinding
Byproducts are tough. Therefore, hard, coarse byproducts require multiple grindings to become a smooth powder. While conventional grinding processes typically involve only one, RE:harvest undergoes four grinding processes. After washing and drying, the byproducts undergo a grinding process that ensures the finest possible grinding while removing any foreign matter. Once the grinding process is complete, they are divided into small portions to complete the raw material processing process.
Byproducts that would otherwise be discarded are being transformed into premium food ingredients through RE:harvest's 60 precise processes. RE:harvest holds four patents for its raw material processing processes and safely produces its raw materials in its HACCP-certified factory.
"Beer byproducts generate 4.2 million tons annually. We needed robust technology capable of upcycling all of this byproduct. Over time, we've accumulated experience and know-how to perfect our byproduct processing technology. Now, even people from overseas are turning to RE:harvest to learn about food upcycling technology."
RE:harvest technology is recognized internationally. I've visited the US, Indonesia, Canada, and other countries to benchmark RE:harvest factories.
From supplying to large corporations to selling directly to consumers
RE:harvest has signed an exclusive supply agreement with Korea's largest beer manufacturer, a craft sikhye (Korean rice wine), and a craft beer factory for byproducts. It is currently in discussions with major corporations to secure byproducts such as wheat bran, red ginseng, medicinal herb residue, pineapple, and sikhye residue.
The 'RE:nergy' powder produced in this way is supplied to food companies that need it. They also created and released a high-protein food upcycling food called 'RE:nergy' bar with OB Beer by adding sunflower seeds and other ingredients. They are making bread with 'RE:nergy' powder with Company B, and companies N and B are using it in making pizza dough. Company T is making whole wheat bread with wheat bran, 'RE:nergy' powder, and beer starter. 'RE:harvest' is also providing barley powder, which is needed for kimchi fermentation, to Company J.
RE:harvest plans to launch its own brand this year to connect directly with consumers. RE:harvest's "Ugly Bites Club," a low-sugar, high-protein food upcycling brand, is scheduled to launch in October.
Global market entry and overseas expansion
RE:harvest is working with Bintang Beer, Indonesia's largest beer company, on a food upcycling project. To achieve this, RE:harvest established a corporation in Indonesia four years ago and has been collaborating with them. RE:nergy powder has been registered as a raw material in Indonesia and is being supplied to local restaurants.
This year, RE:harvest plans to establish a US subsidiary. This move goes beyond simply expanding overseas; it's a strategic move to secure leadership in the global food upcycling market. CEO Min explained the rationale behind the US expansion, saying, "California is the largest food upcycling market. This is because California prioritizes eco-friendliness and has the highest consumer acceptance of food upcycling. California has strict environmental regulations and a strong focus on sustainability, so demand for food upcycling products is naturally forming."
The establishment of RE:harvest's US subsidiary is the first step in a grand vision to establish Korea as a global hub for food upcycling. The strategy is to validate the technologies and know-how developed in Korea in the US and then expand them globally.
'RE:harvest' plans to actively pursue overseas expansion together with ABInBev, the parent company of OB Beer, which accounts for 30% of the global beer market, and the Food Upcycling Association (UFA), which has a global network.
Food Upcycling 2.0 Declared…Development of Nanocellulose from Byproducts
By breaking down dietary fiber, which is abundant in byproducts, into nanoscale pieces, we can extract materials with diverse applications, from sensors to automotive interiors and medical supplies. RE:harvest plans to pioneer new business areas based on this material.
This is an innovation that completely changes the existing paradigm of food upcycling. If food upcycling 1.0 was about developing food ingredients from food, food upcycling 2.0 is about developing industrial materials from food into applications in the electronics, automobile, and medical industries.
Demand needs to be identified to develop the food upcycling industry.
CEO Min spoke candidly about the challenges food tech startups face. "The biggest challenge is creating demand for new industries," he said.
Representative Min emphasized the importance of creating market demand and proposed specific measures. He explained, "We can create demand by, for example, supplying raw materials made from byproducts to school lunches." He continued, "Demand must arise for a market to emerge, and then, if necessary, regulations can be implemented. However, it's unfortunate that regulations are sometimes imposed before demand is generated."
To address these challenges faced by food tech companies, CEO Min is preparing to establish a Food Upcycling Council with food tech companies and organizations. Launching in October, the Council will provide a diverse voice for the advancement of the food upcycling industry.
The future envisioned by RE:harvest is simple yet clear. A small challenge born from a love of food becomes the starting point for a major change that creates a sustainable future for the entire planet. While he humbly admits, "It's difficult to do alone," RE:harvest's journey is already becoming a model of innovation that is attracting global attention.
You must be logged in to post a comment.