August 13, 2024

Israeli startup Oshi moves plant-based salmon production to California, US

Oshi, an Israeli startup, has relocated its plant-based salmon production operations from Israel to California, US, Food Business News reported.

The company was founded in March 2021 by Ofek Ron, Ron Sicsic, PhD, Ariel Szklanny, PhD, and Hila Elimelech, PhD. The decision to move, initiated in October 2023, was driven by the company's strategic focus on the US market.

Ofek Ron explained that the move was necessitated by regulatory challenges. "Unfortunately, in Israel, mycelium is not accepted by mainstream health authorities, whereas it is accepted by the FDA in the US," Ron said. "This regulatory difference meant that our products could not be sold in Israel, leaving us with little reason to stay unless we focused solely on development and regulatory adjustments, which would require considerable time and effort."

Oshi invested approximately six months to establish machines and set up a co-manufacturing production facility in the US, completing the move in July. "This ensured we could efficiently serve the American market and capitalise on the growing demand for plant-based alternatives," Ron added.

The company's plant-based salmon is produced using a process called modular layering, which involves placing fat between layers of blended plant-based protein and algae extracts to mimic the texture of salmon. "Before we started Oshi, the available technology could only create ground fish products," Ron noted. "To create a real market for fish alternatives, we believed it was essential to replicate the true fish fillet experience. Our focus on salmon stems from its opportunity, ensuring that our product resonates with a wide audience and meets demand for authentic fish alternatives."

For its US market entry, Oshi plans a phased approach, starting with a foodservice launch in 2024, followed by a retail product launch. The company will initially partner with Earth Fare and Besties. In 2026, Oshi aims to expand its US retail presence and test its product in the EU, in collaboration with Co-op. Expansion into the EU market is expected to continue through 2027.

To date, Oshi has raised $14.5 million across two funding rounds. "This helped us create new technology, build machinery, develop materials and formulations to mimic the taste and texture of salmon, and launch our product successfully in restaurants across the states," Ron said.

Looking ahead, Oshi aims to scale its machinery to produce larger quantities of its fillets at a lower cost. "We see ourselves in five to 10 years becoming a mainstream product in every supermarket or restaurant," Ron concluded.

-      Food Business News