Startup Savor Raises $33M to Develop Lab-Grown Butter Without Cows
San Jose-based food startup Savor is pioneering the development of cooking fats such as butter, palm oil, and cocoa products created entirely from carbon — without relying on animals or plants. Founded in March 2022, the company aims to replicate the taste and texture of traditional fats while addressing the environmental impact of agriculture, a major contributor to global greenhouse gas emissions. Backed by $33 million in funding from Microsoft co-founder Bill Gates’ Breakthrough Energy Ventures and Synthesis Capital, Savor is positioning itself as a sustainable alternative for farmers, chefs, manufacturers, and consumers alike.
Reviving Nearly Century-Old Science to Reinvent Butter
Co-founders Kathleen Alexander and Ian McKay, both 38 and recipients of the Hertz Fellowship, drew inspiration from scientific breakthroughs dating back to the 1920s and 1930s. Early German and American chemists used heat, pressure, and oxygenation to convert gases into edible fats. Building on this foundation, the duo developed a proprietary process to produce cooking fats that closely mimic animal and plant-based counterparts. Alexander, a materials scientist, began experimenting in early 2021, refining temperature, airflow, and mixing parameters to consistently create fats with the desired melting points crucial for authentic taste and texture. Agriculture accounts for a significant share of global pollution, with fats alone responsible for 7% of greenhouse gas emissions. More than one-third of U.S. agricultural land is dedicated to cattle feed, limiting space for crops. Savor’s technology could reduce reliance on dairy cows, freeing land for fruits and vegetables, while also mitigating deforestation linked to palm oil production.
“We wanted to save the world. The fact that we do make these foods that are just so delicious, that I can’t wait to share with the people I love, is a very special thing.”
Kathleen Alexander, Co-founder and CEO, Savor
From Lab to Table: Progress and Challenges
Savor’s initial public tasting occurred in partnership with San Francisco’s One65 patisserie, where its chocolate bonbons featuring Savor’s fats sold out rapidly. Despite this success, widespread retail availability is still years away, with CEO Alexander projecting 2029 as the earliest for grocery shelves. The startup operates a 25,000-square-foot pilot plant in Batavia, Illinois, but currently utilizes only 1% of its capacity due to production costs and limited revenue. This has shaped their business model to focus on supplying fats as ingredients to food manufacturers and restaurants rather than direct consumer sales.
Strategic Partnerships and Market Entry
Michelin-starred restaurants such as SingleThread in California and Dirt Candy in New York plan to incorporate Savor’s butter into select dishes this fall, attracted by its superior flavor and functionality compared to other dairy-free alternatives. Savor is also exploring collaborations with major food brands, including Mondelez, with whom it participated in an accelerator program. Such partnerships could accelerate scaling and brand recognition by featuring Savor’s ingredients in mainstream products.
Regulatory Path and Funding Environment
The company adheres to strict food safety standards, operating under a self-affirmed Generally Recognized as Safe (GRAS) status with the FDA. It anticipates receiving a “no questions” letter by late 2026, confirming regulatory approval for its products. However, the alternative food sector has faced investor skepticism since 2022, leading to funding challenges. Synthesis Capital’s managing partner Costa Yiannoulis notes that while generalist investors have retreated, renewed interest may return with technological progress. Political resistance to lab-grown foods in some U.S. regions also highlights the strategic advantage of Savor’s ingredient supply model, which integrates with existing grocery brands.
Health and Consumer Reception
While some nutrition experts caution that replicating the full nutritional profile of plant-based fats is complex, Savor emphasizes that most consumers do not rely on oils like olive or avocado oil for daily nutrients. The company’s focus remains on taste, price, and climate benefits. Consumer research indicates a strong interest in Savor’s products, particularly if they can be offered competitively on price and health attributes, supporting the startup’s mission to reduce environmental impact through innovative food technology.
FinOracleAI — Market View
Savor’s approach to producing lab-grown cooking fats positions it at the forefront of sustainable food innovation, addressing critical environmental challenges posed by traditional agriculture. The company’s ability to replicate butter’s chemical and sensory profile better than existing vegan alternatives is a notable scientific achievement.
- Opportunities: Growing consumer interest in sustainable and ethical food options; potential partnerships with established food brands; regulatory approval expected within three years; environmental benefits from reduced livestock farming and deforestation.
- Risks: High production costs limiting near-term scalability; investor caution in the alternative protein/fat space; regulatory and political uncertainties surrounding lab-grown foods; challenges replicating full nutritional profiles.
Impact: Savor’s innovation could significantly reduce agriculture’s environmental footprint if it achieves commercial viability, representing a meaningful advancement in sustainable food technologies.
