The startup Raw Edge takes science-based food technology to international markets

Tehnopol is part of the joint Northbound Scaleups (NBSCALE) project, which helps companies expand into new markets. TalTech’s spin-off Raw Edge went to visit the United Kingdom to look at possible target markets.

Raw Edge is a science-based food technology company that is a trail-blazer in adding value to local biological food products. One of the ingredients that the company uses is carrot juice made from vegetables that are not fit for sale in shops and that would otherwise end up as bio-waste or animal feed.

The fermentation technology that Raw Edge uses substantially extends the shelf-life and nutritional value of raw food products, and it reduces the natural sugars within the vegetables, enhancing their flavour and health benefits.

The company wants to give consumers healthy and low-calorie food as an alternative to sugar-rich and artificially sweetened products. Their technology ensures that the products always contain live bacteria that are highly beneficial for gut health and help in preventing illness. The secret of the fermentation process is not only its use of the live bacteria but also that the bioactive ingredients like vitamins and anti-oxidants are better absorbed by the body.

The Raw Edge business model is built around using local ingredients for its products in each target market and working with local partners to produce them. This reduces transport costs and the carbon footprint, empowers local communities and cuts food waste.

A coincidence of circumstances meant that the United Kingdom was the first target market for Raw Edge, and they did thorough background research there and identified partners that could help extend their range of products and position them in the market. They also have a production partner in the United Kingdom.

The aim within the NBSCALE project was to get to know the market in depth, map competing products and consumer awareness, and analyse price levels. “We based our expectations on what we had heard from our earlier partners, and we certainly didn’t want to just go to the UK with nothing more than our own instincts and assumptions”, said Raw Edge co-founder Mariliis Mia Topp. The aim of the visit was to make the company’s plans sharper and more specific.

However, it became apparent during the visit that expanding to the United Kingdom may not currently be the best approach and that directing capital there was not reasonable for the company at its present stage of development. “We believe it was a very good investment of time, and we will focus for now on finalising our business model and working in neighbouring markets”, said Ms Topp.

Raw Edge has been in the Estonian market for a little over a year now, and consumers have been enthusiastic about their products, which can be bought online, and in shops, cafes, restaurants and sports centres.

The company has achieved a lot in only a short time, taking second place in the 2023 Ajujaht accelerator programme and TV competition for example. Raw Edge has also been one of the finalists in the Food500 list, which is similar to the Fortune500 list. Their products bear the Swallow mark that is used by the Estonian Chamber of Agriculture and Commerce as a stamp of origin and quality, and they have won the ‘Best Estonian Drink’ award from the Estonian Sommelier Association.

Plans for the future focus on product development and neighbouring markets

The company has two main strategic directions for the business, with one focus on product development and optimising new bacteria strains using biotechnology, and the other on identifying and developing ingredients for use in the company’s own products and for licensing.

Raw Edge’s vision is to be a pioneer in promoting healthy lifestyles and the circular economy through natural, live foods, focusing on reducing food waste and built on local production.

Working hard on product development
New products are being developed alongside the soft drinks, such as powered drinks and snacks with lactic acid bacteria that are easy to carry around and use in a range of circumstances, and are well suited to athletes and soldiers among others.

Further strains of bacteria are being produced
The company has identified probiotic strains that have a bactericidal effect against the common human pathogen Helicobacter pylori. Some 50% of the population is infected with this pathogen without even being aware of it, and it can cause reflux, gastritis and even stomach cancer. This infection is under-diagnosed and treating it is becoming ever harder because of antimicrobial resistance. Raw Edge has proved the action of this antibacterial product at laboratory scale and the next step is to use their own technology to optimise the biotechnology in the bacterial strains and make this strain available to people through their eating habits and through accessible food. This would help prevent health problems that are caused by this bacteria and the antibiotic treatment for it.

Scientific research continues to find new ingredients
One aim is isolate the sweet and prebiotic properties from the fibres of the cell walls of the carrots that Raw Edge could then use to add sweetness to its products and boost their fibre content. The goal in the scientific research is to find a natural alternative to sugar. The company is looking to make products that combine healthy properties with exciting flavours, which can then help in the sustainable development of the food system.

Plans to expand the circular economy business model to shops
Biological waste from retail is used as an input in the production process in a way that ensures there is no loss of quality in the final product. The idea is to extend this model to other markets as this would have a major impact on supply chains, where a very large amount of food currently goes to waste.

The focus on foreign markets is on neighbouring countries, and negotiations are under way in Latvia, Lithuania and Finland.

Read more about the company and find the nearest shop selling Raw Edge products at rawedge.ee.

On the photo at the beginning of the article: Raw Edge founders Kristel Vene (on the left) and Mariliis Mia Topp.

Northbound Scaleups (NBSCALE) is a joint project run by Tehnopol, the Turku Science Park in Finland and Movexum in Sweden to help companies expand into new markets.