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A Canadian Company Turned Mushroom Stems into a Multimillion-Dollar Business

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This post is also available in: English

A Canadian Company Turned Mushroom Stems into a Multimillion-Dollar Business

The Canadian biotechnology company Chinova Bioworks has made it its mission to transform ordinary mushroom stems into an innovative ingredient that is reshaping the food industry. Their flagship product, Chiber™, has become a natural alternative to artificial preservatives, and the company’s success is a testament to the growing demand for sustainable solutions.

Chinova Bioworks was founded in 2016 when Natasha Dhayagude and David Brown combined their expertise to create an innovative business at the intersection of science and sustainability. Dhayagude, who immigrated from India to Canada at the age of 10, had always been interested in biotechnology and startups. After graduating from university, she worked at Planet Hatch, a startup incubator, where she met David Brown, a microbiologist with deep knowledge of fungal structures.

They discovered that the food industry faced a significant challenge: manufacturers needed ways to extend product shelf life without using synthetic additives, which consumers were increasingly rejecting. At the same time, mushroom farms were discarding tons of mushroom stems daily, as only the caps were commonly used in culinary and food production. Dhayagude and Brown saw an opportunity—to turn these agricultural byproducts into a valuable ingredient.

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Chiber™: A Revolution in Natural Preservation

This led to the creation of Chiber™, a natural preservative derived from mushroom stem fibers. This ingredient possesses antimicrobial properties, effectively combating mold, bacteria, and yeast, thereby helping manufacturers extend the shelf life of food products without synthetic additives.

Chiber™ does not affect the taste, color, or texture of food, making it an ideal solution for the natural products industry. It is suitable for a wide range of products, from dairy items to plant-based meat alternatives and beverages. Unlike traditional preservatives such as sorbates and benzoates, Chiber™ is allergen-free and fully compliant with the “clean label” trend.

One of Chinova Bioworks’ key innovations is its commitment to circular economy principles. The company partners with mushroom farms to collect unused mushroom stems and process them into Chiber™. Instead of being discarded in landfills, these mushroom byproducts become a valuable ingredient that promotes sustainable production and reduces food waste.

This approach not only minimizes environmental impact but is also economically beneficial: farms gain an additional revenue stream, while the food industry gains access to a natural preservative that reduces spoilage and financial losses.

Chinova Bioworks quickly established itself as a leader in natural preservatives. The company secured a place on the approved suppliers list of Whole Foods Market, one of the world’s largest retailers of natural and organic products. This milestone not only granted Chinova Bioworks access to a massive consumer base but also reinforced trust in the product among manufacturers and consumers.

Recently, the company formed an exclusive partnership with Hawkins Watts to distribute Chiber™ in Australia and New Zealand. This strategic agreement allows Chinova Bioworks to expand into international markets and increase the range of applications for its product.

A significant milestone in the company’s growth was securing $6 million in Series A funding. These funds enabled Chinova Bioworks to scale up production, accelerate research and development of new products, and strengthen its marketing strategy for global expansion. The company attracted investments from leading venture capital firms specializing in sustainable technologies and biotechnology.

In addition to Chiber™, Chinova Bioworks developed another innovative product—MycoKleer™, a natural fining agent for beverages. Traditionally, the filtration and clarification of wines and beers involve animal-derived ingredients such as fish gelatin or egg whites. MycoKleer™, made from the same mushroom fibers as Chiber™, offers a completely vegan alternative, making it ideal for producers focused on sustainable development.

In just a few years, Chinova Bioworks has grown from a small startup into a company that attracts the attention of major players in the food industry. Thanks to a well-planned strategy and a strong focus on sustainability, the company is not only creating effective products but also changing the way food resources are utilized.

Natasha Dhayagude and her team continue to develop new solutions, proving that even waste can become the foundation of a multimillion-dollar business. Chinova Bioworks is a shining example of how science, entrepreneurship, and environmental responsibility can come together in a single project and transform the global food industry.

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