Coca-Cola Israel invests in Biomilk to develop cultivated dairy products
The Central Bottling Company, also known as Coca-Cola Israel, has signed a strategic agreement with Israeli startup Biomilk to invest and collaborate with the company to develop products based on its cultured milk technology.
The Central Bottling Company is a privately-owned Israeli manufacturer and distributor of non-alcoholic beverages, alcoholic beverages, and dairy products. The company owns the Israeli franchise of Coca-Cola products from Coca-Cola International.
Biomilk, whose shares are listed on the Tel Aviv Stock Exchange, said in a filing that the collaboration would help boost its R&D operations. Biomilk isolates the milk-producing cells from the udders of cows and transfers them to a bioreactor, where they are exposed to materials patented by the company to produce milk, but without the need for a cow in the final milk production process. milk.
Under the memorandum of understanding signed between the parties, the Central Bottling Company will invest a total of $ 2 million in Biomilk. Half of the amount will be invested when a final agreement is signed, with the remaining $ 1 million to be invested when the milestones are met.
For the initial investment, the Central Bottling Company will get shares, priced at NIS 6.24 per share, and options on Biomilk. The Central Bottling Company will provide Biomilk with access to its experts and the two companies will work together to further develop the cultured dairy products, which will then be tested in the Central Bottling Company’s dairy manufacturing plant.
Biomilk shares rose nearly 3% on Monday, at 4:55 p.m. in Tel Aviv, after jumping nearly 8% earlier today.
The companies said they hoped to formulate a final deal within 60 days.