VinaCapital Ventures invests in South Korea's INNOHAS

Terms of the investment were not disclosed. INNOHAS, a South Korea-based food-tech startup founded in November 2021, is a manufacturer of a variety of home meal replacement products utilising plant-based meat.

The company’s products are sold in Korea and major global markets such as the United States, where their products have significantly contributed to the recent popularity of frozen kimbap. Due to restrictions on the export of animal-based proteins from South Korea, INNOHAS has garnered acclaim for replacing such proteins with plant-based alternatives, allowing the company to promote a wider range of Korean food internationally.

In 2023, the estimated size of the plant-based alternative meat market was $6.4 billion, according to Euromonitor, suggesting enormous room for growth. INNOHAS is well positioned to capitalise on the trend towards plant-based protein alternatives.

Its patented core technology naturally eliminates odours and tastes that can sometimes be present in plant-based proteins, with other manufacturers preferring to ineffectively mask them with other ingredients. In addition, INNOHAS possesses advanced technology that enables the structuring of plant-based proteins to closely mimic the texture of meat.

Earlier this year, INNOHAS opened its second facility, the largest plant-based specialised factory in South Korea, which expanded the company’s total production capacity to three times the output of its first factory. This factory exclusively uses plant-based ingredients, eliminating the risk of cross-contamination with animal-based ingredients and ensuring higher product quality. In addition to fulfilling pre-ordered sales at the new factory, the company plans to further expand its market into Southeast Asian countries such as Vietnam and Indonesia.

By successfully scaling to mass production early on, INNOHAS has secured competitive market pricing and quality consistency. The company manufactures OEM products for renowned food companies and retailers in South Korea and the US under private brand labels, and separately has launched its own brand 'Sunlit Foods' with distribution in the US, Canada, France, Germany, the United Kingdom, South Africa, Australia, and the Netherlands. Since INNOHAS was launched in 2021, annual revenue has steadily increased, and in 2023 the company achieved 90 per cent year-on-year revenue growth. The company has also been consistently profitable.

Jeesu Park, CEO and co-founder of INNOHAS, said, “Partnering with VinaCapital Ventures is a tremendous opportunity for us. Their extensive network and deep understanding of the local market will significantly aid us in successfully entering the Southeast Asian market and providing superior products and services to local consumers. Through this investment, we plan to develop products tailored specifically to the Vietnamese and Southeast Asian markets, while also strengthening our local production and distribution networks. This will enable us to further expand our global market share and achieve sustainable growth.”

Hoang Duc Trung, partner at VinaCapital Ventures, stated, "We are proud to invest in INNOHAS and help them introduce their healthy and delicious products to Vietnam and Southeast Asia, as well as further expand their reach globally. The challenges related to consumer health, environmental sustainability and animal welfare are significant, and require innovative solutions like those from INNOHAS. Furthermore, this investment seamlessly aligns with VinaCapital’s environmental, social, and governance values and initiatives, which include doing what we can to promote sustainability and reduce carbon emissions.”

Vietnam’s food and beverage market is emerging as a hotbed of opportunity, with several companies from neighbouring nations as well as those further afield ramping up activity.

Beacon Investment Fund and Vietnam's Lotus Group on April 15 unveiled a substantial collaboration, committing millions of dollars to bolster the expansion and development of Lotus Group's food and beverages (F&B) arm.

With an average annual growth rate of over 10 per cent, the food and beverages (F&B) market in Vietnam is a dynamic sector. Director of Consumer and Marketing Insights at NielsenIQ Dang Thuy Ha discussed with VIR’s Oanh Do the latest consumer trends helping businesses achieve success in the market.