Israeli Startup Plantopia Raises $9 Million to Revolutionize Cheese Alternatives

Israeli startup Plantopia announced a $9 million funding round led by American dairy giant Schreiber Foods, with participation from Israeli food companies Tnuva, Yotvata, and Tempo. The funds will be used to establish a production facility at Kibbutz Sdot Yam, expected to begin operations in the third quarter of 2026. Plantopia’s technology grows oat sprouts that produce casein protein, the key component responsible for cheese’s melting and stretching properties, which is typically missing in plant-based cheese alternatives.

Founded in 2018 in Kiryat Shmona by Professor Alexander Weinstein, CEO Tal Lotzki, and Amir Tiruler, Plantopia is based on biotechnology developed at the Hebrew University’s Faculty of Agriculture. The company claims its product melts and stretches like real mozzarella, overcoming a major limitation of current vegan cheeses that often have poor texture and taste.

The startup’s innovation addresses a growing market need as demand for dairy protein surges, partly driven by increased use of GLP-1 weight-loss drugs requiring higher protein intake to prevent muscle loss. According to RethinkX research, alternative dairy protein technologies are expected to reach price parity with animal-derived proteins by 2024-2025. Plantopia is preparing to submit a GRAS (Generally Recognized As Safe) safety recognition request to the U.S. Food and Drug Administration (FDA) in the coming months.

CEO Tal Lotzki stated, “Our technological achievement will enable us to produce products as good as the original, providing an economic alternative to one of the world’s major polluters.” This development could significantly impact the plant-based cheese market by offering a product with authentic cheese qualities and a sustainable production method.