Ted Jin, founder and CEO of AuX Labs, is leading a charge in the food technology space with a mission driven by global impact and climate concerns. His company, which began operating around 2022, is pioneering the production of recombinant casein from yeast using precision fermentation to create animal-free dairy ingredients.
Jin's journey into the bio-tech world comes after a decade in consumer packaged goods at companies like Procter & Gamble and PepsiCo, and prior experience in an earlier startup. His motivation isn't a personal dietary choice like being a vegetarian or vegan; rather, it's a deep-seated belief in the urgent need to solve food system challenges to sustainably feed a projected 10 billion people. "We aren't in a position that we can expand traditional animal agriculture," he stated, citing the finite nature of land and valuable resources.
Precision Fermentation: A Non-Compromise Alternative
AuX Labs is focused on developing an ingredient: a casein powder that is functionally and nutritionally identical to the animal protein. This recombinant casein is produced by genetically manipulating yeast to express the protein. The goal is to provide a diversified protein source that doesn't force consumers to compromise on taste, function, price, or nutritional value.
Jin sees their product as a necessary supplementation to-not a threat to-traditional animal agriculture. The company operates on a Business-to-Business (B2B) model, supplying this casein ingredient to consumer goods companies and food formulators to create end products like cheese.
1. The Problem with "Wave One": Jin notes that the first wave of alternative proteins, which focused heavily on plant-based options, is subsiding as consumers demand products that are not just novel, but also taste good, are nutritious, and are priced comparably to animal products.
2. Safety and Regulation: The company already holds a self-affirmed GRAS (Generally Recognized as Safe) status in the United States, which is crucial legwork in substantiating the protein's safety for human consumption.
Global Expansion: A Look to Asia and Taiwan
AuX Labs' core launch markets are currently Canada and the United States. The company is venture-backed, having closed a pre-seed and currently in the process of closing a new seed round, ensuring financial stability for the "coming period".
Taiwan is positioned as the company's "first test" and a potential proving ground for Asian markets. Jin believes the Taiwanese market offers the agility of local companies and a population with a positive bias towards nutrition and health consciousness. A successful launch here would give the company confidence to pursue similar approaches in adjacent markets like Northeast and Southeast Asia (including Japan, Korea, and mainland China).
Challenges to Overseas Success
Scaling into new markets is not without its difficulties, which Jin identifies in two key areas:
1. Operating Expertise: Mastering the logistics of manufacturing in Canada and then exporting the casein ingredient into Taiwan, subject to the appropriate regulations.
2. Local Partnerships: Finding a committed local partner in Taiwan, not just for the short term but for a multi-year effort. Jin stresses that this ingredient is novel, not just to Taiwan, but "new to the world".
While the immediate plan is to import the Canadian-produced casein ingredient, establishing a local manufacturing presence in Taiwan remains an option if there is strong demand. Before that, the company will also need to validate their GRAS dossier and notify or file with the Taiwanese FDA.
The Ultimate Goal: Price Parity
Jin's ultimate aspiration for AuX Labs is to be recognized as a pioneer in recombinant proteins. While he sees technology as "mature," he admits that the pricing is not mature yet. The final goal is to bring these animal-free proteins to market at a price point that is similar to animal proteins-something the regular consumer can afford-over the next few years. Achieving this price parity will be the key to establishing yeast-derived proteins as a viable and sufficient supply source for the global food system.
Ted Jin, founder and CEO of AuX Labs. Credit: AuX Labs
Article edited by Joseph Tsai
