Nongshim invests $7.4 million in food tech startups

Korean food giant Nongshim is investing $7.4 million in venture funds to discover and foster food tech startups, particularly in the fields of smart farms and cultivated meat.

Nongshim logo [NONGSHIM]

Nongshim is investing 10 billion won ($7.4 million) in venture funds aimed at discovering food tech startups, the company said on Wednesday.

The food giant behind the popular Shin Ramyun instant noodles will be investing 5 billion won each in the funds operated by Stonebridge Ventures and IMM Investment.

They are both Seoul-based investment companies. Stonebridge Ventures was established in 2017 as a spinoff from Stonebridge Capital, which split off from IMM Investment Corporation in 2008.

Nongshim plans to spend the investment in fostering startups with technologies that are able to innovate the food value chain, including the fields of smart farms and cultivated meat.

Nongshim runs Veggie garden, an alternative meat brand. Its products range from bibimbap to grilled steak, dumplings, cheese and bulgogi, all of which are made of plant-based ingredients. The company also runs a vegan fine dining restaurant called Forest Kitchen in Jamsil, southern Seoul, which opened in May last year.

The company expects cultivated meat to become the closest meat alternative in coming years amid a continued rise in global trends for sustainability.

The food company also operates a smart farm and is pushing to export the business to the Middle East.

“Investment in startups was decided following internal reviews,” said a spokesperson for Nongshim in a statement. “But we’re investing through specialized investment funds to conduct a more in-depth evaluation and to explore more deeply.”

The company added that it hopes to discover a new growth engine by investing in food tech startups with new technologies and ideas.

Nongshim also accepts startups that sign up to be evaluated for cooperation or those seeking investment opportunities.

Nongshim began investing in startups through the launch of the program Nongshim techUP+ in 2018. The value of the stake it has invested has more than doubled, according to the company.

BY JIN MIN-JI [jin.minji@joongang.co.kr]