Seattle is the birthplace of coffee giant Starbucks with its first store opening in the city in the 1970s. The coffee-loving city played an important role in the popularization of the chain. Now a new Seattle-based e-commerce coffee retailer is hoping to become the next big name but with one caveat — it doesn’t use coffee beans in its drinks.
Atomo Coffee was founded in 2019 and produces ready-to-drink cold brew beverages from “plant-based ingredients,” according to a company statement. Atomo’s Classic Black cold brew, for example, contains date seed, chicory root and grape extracts. Despite not using coffee beans, Atomo’s drinks still contain caffeine.
On Tuesday, the food tech company announced that it secured a $40 million Series A round from S2G Ventures, AgFunder and Horizons Ventures. Atomo had previously raised $11.6 million across two seed rounds and crowdfunding initiatives, according to Crunchbase.
Atomo produces beanless coffee drinks by upcycling ingredients to create the molecular compounds that are found in coffee. In the food industry, upcycling refers to the process of using ingredients that are not typically consumed by people and have a positive impact on the environment.
By upcycling rather than using coffee beans in its production, Atomo makes drinks with a process that creates 93 percent less carbon emission and uses 94 percent less water compared to traditional cold brew methods, according to the company.
“The demand for coffee is increasing year over year with climate change significantly impacting the farming regions, which in turn will impact the consumer through price and availability,” Rob Leclerc, founding partner at AgFunder, said in a statement. “Breakthrough technologies pioneered by Atomo are going to be a part of the solution for future generations to be able [to] continue enjoying their favorite brews.”
Despite using several ingredients to recreate the iconic coffee taste, Atomo says that its products taste identical to traditional coffee drinks made with beans. In fact, the startup said that in a study conducted by the National Food Labs, participants preferred Atomo’s beverages two to one over its competitors’ beverages.
With the fresh funds, Atomo is looking to increase the manufacturing of its products and also launch in retail stores later this year.
