With its Ki Tua fund, Fonterra is investing in disruptive tech—from gut microbiomes to light-controlled proteins—to drive dairy innovation.
Fonterra’s corporate venture arm, Ki Tua—meaning “to go beyond”—is at the forefront of the co-op’s strategy to stay competitive in a rapidly changing biotech landscape. Launched two years ago, the initiative has enabled Fonterra to explore advanced innovations such as its Easy Bake UHT cream, already popular in the Chinese cake market. With 100 PhDs at its R&D hub and pilot plant in Palmerston North, Fonterra is building value through strategic partnerships and investments in external technologies.
Led by Komal Mistry-Mehta, Ki Tua evaluates over 100 companies monthly but has selected only 10 for its portfolio so far, including NZ-based BioLumic. These startups are chosen for their alignment with Fonterra’s goals—improving productivity, addressing climate challenges, and enhancing dairy’s nutritional offerings. A four-member board, including independent biotech leaders, guides Ki Tua’s investment decisions, focusing on both strategic relevance and the capability of execution teams.
Ki Tua’s approach is not just about backing promising startups—it’s also about long-term value for shareholders. While financial return remains key, companies that don’t meet investment criteria may still form strategic alliances with Fonterra. Minority investment is the rule, given the high-risk nature of disruptive biotech. Fonterra’s $1.8 million stake in BioLumic exemplifies this philosophy, emphasizing both impact and caution.
Notable investments like Calgary’s Nimble Science and Sydney’s Swan Genomics illustrate Ki Tua’s breadth. Nimble enables direct measurement of dairy protein digestion in the gut using ingestible sensors, adding new clinical depth to Fonterra’s functional protein claims. Swan Genomics, meanwhile, offers a faster, more efficient DNA sequencing alternative that could revolutionize food safety and R&D across the dairy value chain.
The fund’s biotech emphasis is also strengthened through an investment in U.S.-based VC firm SOSV, providing access to thousands of potential deals monthly. Though most portfolio companies are abroad, New Zealand remains central—BioLumic and Pendulum Therapeutics represent homegrown innovations with global potential. From enhancing ryegrass with light to precision cellular control for lactoferrin extraction, Ki Tua positions Fonterra to lead the next wave of dairy science.
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