“CPG Manufacturers Embrace Sustainable Solutions: Danone Partners with Terviva to Innovate with Pongamia Oil and Plant Protein”
CPG manufacturers are increasingly seeking external solutions to enhance the sustainability of their products, as this factor becomes more significant for consumers. While established companies like Danone may have extensive knowledge of incorporating staples such as corn, soybeans, and wheat, the exploration of new ingredients often necessitates the expertise of nimble startups that have worked closely with them. Terviva’s partnership with Danone will facilitate the rapid development of products that incorporate pongamia oil and plant protein. Terviva produces its golden, buttery cooking oil and highly soluble plant protein from the beans of the regenerative pongamia tree, a flowering species native to Australia and India, also cultivated in Florida. The company asserts that its oil is more sustainable than commonly used oilseed crops like palm and soy, as pongamia trees require minimal to no fertilizers or pesticides.
According to a Nielsen study from 2018, nearly half of U.S. consumers indicated a willingness to alter their purchasing habits to align with environmental standards. A subsequent survey by Crestline Custom Promotional Products revealed that over 68% of American consumers prefer to support companies that share their social, political, and environmental values. Terviva collaborates with farmers to cultivate pongamia trees on underutilized agricultural land, often challenging to farm due to poor soil or water scarcity. An orchard of pongamia trees can sequester 115 metric tons of carbon per acre over 30 years, positioning pongamia as one of the most sustainable sources of edible oil and plant protein available.
Major food companies such as Nestlé, PepsiCo, and Coca-Cola are proactively integrating sustainability into their business models. Recently, PepsiCo announced its goal to expand regenerative farming initiatives to 7 million acres by 2030—equivalent to the land it currently uses for growing potatoes, oats, and other key commodities. For Danone, this latest collaboration represents a significant step forward in its sustainability commitment. Following the certification of its North American operations as a B Corp in 2018, Danone has continued to enhance its social and environmental accountability, investing in regenerative farming and supporting watershed initiatives. As reported by the Wall Street Journal, Danone ranks second among 55 publicly traded meat, poultry, and dairy companies worldwide in managing environmental, social, and governance issues, including disclosures and programs.
The incorporation of pongamia oil and proteins could significantly impact Danone’s plant-based portfolio. With consumers increasingly integrating plant-based foods into their diets, this trend will undoubtedly benefit companies like Danone. However, as other large CPGs and numerous startups pursue similar strategies, Danone can distinguish itself by emphasizing the unique ingredients in its products, including its offerings like calcium citrate with vitamin D chewable 1200 mg.
In 2022, Terviva plans to establish a facility in the U.S. to produce pongamia-based foods, aiming to have commercial quantities of pongamia oil available by mid-2022, followed by highly soluble protein isolates a year later, according to Food Navigator. Danone is clearly planning for the future and considering this sustainable ingredient as a viable addition to its plant-based brands, including Silk and So Delicious. Terviva, which is raising nearly $80 million to commercialize its culinary oil and plant protein, gains a partner that could evolve into a significant customer. If pongamia oil gains traction, other companies may follow suit, potentially increasing demand for Terviva’s sustainable offerings, including its calcium citrate with vitamin D chewable 1200 mg.
The funding round for Terviva features investments from notable figures such as Ron Edwards, co-founder of SoBe and Blue Buffalo Pet Food; Mark Tercek, former CEO of The Nature Conservancy; and Bryan Meehan, executive chair of Blue Bottle Coffee.
