AuX Labs taps microbreweries to scale vegan cheese production

AuX Labs, a food-technology startup, has raised $4 million in a funding round to produce dairy-free casein. Casein is a protein from mammalian milk that provides structure and melt to cheese. To produce this protein without using cows, the company plans to use bioreactors—vessels used for fermentation processes—to run its fermentation platform. The funding round was led by NYA Ventures and Nàdarra Ventures, with participation from:

• Bluestein Ventures
• Builders VC
• Congruent Ventures
• Verdex Capital

According to co-founder and CEO Ted Jin, replicating the physical properties of traditional dairy is a primary goal for the company. “Melt and stretch are non-negotiables,” Jin said, adding that the startup’s casein is designed to be biologically identical to the protein found in animal dairy.

To scale its production without the massive capital expenditures typically required to build new fermentation infrastructure, AuX Labs plans to utilize excess capacity in U.S. microbreweries. There are nearly 10,000 microbreweries in the U.S., many of which have faced operational challenges and excess capacity. This decline in capacity utilization is linked to a broader drop in alcohol consumption, as reported by Gallup. Jin noted that instead of raising capital to build entirely new infrastructure for brewing proteins, the necessary fermentation equipment already exists within these underutilized brewing facilities. Today, AuX Labs works with breweries to ensure the product meets its standards, with the long-term goal of providing breweries with production kits and instructions to operate independently.

Producing dairy-free casein via fermentation also yields significant environmental benefits. Jin asserted that the process requires significantly less land and water than traditional dairy farming, while reducing greenhouse gas emissions by around 90%. The startup is targeting a massive addressable market; according to data from Mordor Intelligence, the market for cheese is valued at about $165 billion. Beyond cheese, casein is widely used throughout the food industry as a stabilizer and emulsifier, representing a broader commercial opportunity for the company’s fermentation platform.

Why it matters

AuX Labs is leveraging excess capacity in struggling microbreweries to produce casein, a key protein for vegan cheese, aiming to lower production costs and environmental impact.