Coca Cola Israel investing in cultured milk co Biomilk
The Central Bottling Company (Coca Cola Israel) has agreed on collaboration with Biomilk on research and development to expedite the arrival on the market of products based on cultured milk, Biomilk reported to the Tel Aviv Stock Exchange this morning, Trend reports with reference to Globes.
The Central Bottling Company is investing $2 million in Biomilk in exchange for an allocation of shares. Biomilk's share price is up 7.75%, at NIS 5.35. At its opening price today, Biomilk had a market cap of NIS 223 million.
Cultured milk is milk produced in the laboratory from a sample of protein cells from cow's milk, in a similar way to cultured meat. The protein cells are replicated in the laboratory, which saves the cows the suffering involved in constantly producing milk (continual pregnancies and separation from their calves), and saves the environment the enormous amounts of energy required in raising cattle for the milk and beef industries.
The food industry is taking giant strides towards cultured food. The Central Bottling Company will not wish to miss out on this trend. One of the company's brands is Tara Dairy, via which the cultured milk products to be developed under the agreements will be marketed.
Under the agreement, $1 million will be invested in Biomilk on the signing of a final agreement, and the remaining $1 million in accordance with milestones.
For the initial $1 million investment, the Central Bottling Company will receive 522,000 shares in Biomilk, reflecting a price per share of NIS 6.4. The Central Bottling Company will also receive warrants with an exercise price of NIS 10.9 per share, exercisable within 24 months.
Biomilk will committed to exclusivity with the Central Bottling Company, which will be committed to buying raw materials based on Biomilk's cultured milk only.