What’s the key to better vegan cheese? Microbreweries, one startup says

Source: TechCrunch

Last week, I overheard someone in a pizza shop ask if a particular slice was vegetarian or vegan. Presumably they wanted to know if the pizza had vegan cheese, and when told it was, they changed the order.

The challenge of vegan cheese

Vegan cheese is widely considered a poor simulacrum of the dairy version. The key missing ingredient is casein, a protein from mammalian milk that gives cheese its structure and helps it melt.

AuX Labs’ solution

A startup called AuX Labs claims it can make casein without the cow, enabling vegan cheese that tastes and feels like the real thing. “Melt and stretch are non‑negotiables,” said Ted Lin, co‑founder and CEO, in an interview with TechCrunch.

AuX uses bioreactors to produce casein. While it isn’t the first company to attempt this, AuX hopes its cheese can be produced as cheaply as dairy cheese by leveraging a surprising partner: microbreweries.

Partnership with microbreweries

In recent years, microbreweries have faced declining demand. The industry once grew to nearly 10,000 breweries in the U.S., but since the COVID‑19 pandemic fewer Americans are drinking alcohol, according to Gallup.

“I don’t want to disparage their existing business because I’m a big supporter of them as well,” Lin explained, noting the excess capacity in brewing facilities. AuX has developed microbial strains and a fermentation process designed for microbreweries. Brewers gain an additional revenue stream, while AuX gains access to fermenters without large capital expenditures.

Funding round

To commercialize its cheese product, AuX raised $4 million. The round was led by NYA Ventures and Nàdarra Ventures, with participation from Bluestein Ventures, Builders VC, Congruent Ventures, and Verdex Capital.

Environmental impact and market potential

The resulting casein is “biologically identical to the one found from animal protein,” but its production requires significantly less land and water and generates roughly 90 % lower greenhouse‑gas emissions.

The global cheese market is worth about $165 billion today, according to Mordor Intelligence. Casein is also used throughout the food system as a stabilizer and emulsifier, suggesting broader applications for AuX’s technology.

Future outlook

Lin envisions a future where AuX sells kits—complete with microbes and detailed instructions—allowing breweries to operate more independently. He hinted that the platform could produce proteins beyond casein, potentially reshaping the food system for the next generation.