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Formo, a Berlin-based biotechnology company, thinks it has found the answer in a minuscule fungus, Koji, that has given that distinctive umami flavor to soy sauce, miso and other staples of Japanese cuisine for thousands of years. Formo ferments the Koji to produce a protein that provides the base of its dairy-free cheeses.

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He is not alone.In recent years, consumers have flockedto dairy-free substitutes for cow’s milk, guzzling its oat and almond-based cousins, for example, and to plant- and fungus-based meats, such asburgers.

But shoppers have not taken to vegan cheeses with the same enthusiasm, according to Carmen Masiá, an application scientist at Novonesis, a Danish biotech firm producing the bacteria and enzymes needed to make fermented foods like yogurt and cheeses.

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“If you talk with vegans or vegetarians or flexitarians, most of (them) say, ‘I cannot give up on cheese’ because it’s so difficult to replicate that flavor,” she added. “The code has not been cracked yet.”

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“In the end, if you develop something that is really sustainable, really nutritious but it doesn’t taste good, people are not really going to buy it.”

Formo’s cheeses seem to have finally tickled some tastebuds. In September, the company secured $61 million during its latest funding round and announced that it would begin selling some of its products — three flavors of cream cheese — in more than 2,000 stores across Germany and Austria.

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Formo has put its own spin on fermentation to make its cheeses: It puts a strain of the Koji fungus into a tank, adds oxygen, and stirs in sugars and nutrients to cultivate proteins in large quantities. It calls this process “micro-fermentation”.

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In “all the (cheese) products based on cashews or soy, you taste cashew or soy, (and in) the products based on potato, you taste potato starch,” he said.

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Formo is also testing a process called precision fermentation, which uses microorganisms that have been genetically engineered to produce proteins identical to the casein proteins found in animal milk. These copycat proteins can help give Formo’s vegan cheeses the taste, texture and “meltability” of traditional cheese, according to the company.

“If you think about the nice stretchiness of a mozzarella on your pizza, that is really coming down to the protein structure of casein,” Wohlgensinger said. Formo is in the process of getting the cheeses produced via precision fermentation approved for sale by food regulators in the US and Europe. Securing approval for these cheeses is a complex process partly because the production process is novel, Wohlgensinger added.

“We’re not here to put small-scale dairy farmers out of their business — they will always be a very valuable part of a very diverse, resilient food system — but at the same time, I think there is a very big chunk of the market… that is bound to be replaced by a more efficient technology,” he said.

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Formo hopes that as it scales its production it can lower its retail prices to below those of milk-based cheeses. Now, 100 grams of Formo’s cream cheese product costs €1.59 ($1.68), making it €0.32 ($0.34) more expensive than the average price of milk-based cream cheese, Wohlgensinger said.

Dairy-based cheeses have a unique “crave-ability,” according to Julie Emmett, vice president of marketplace development at the Plant Based Foods Association, that has made it harder for its dairy-free alternatives to truly compete, unlike plant-based milks.

“You can’t necessarily say that milk is crave-able. You can say meat is crave-able. But with cheese, it is unique in that respect, (it’s) something that’s an indulgence,” said Emmett.

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