Applied Foods Sciences (AFS) has announced an equity investment and partnership with KÄÄPÄ Biotech, a Finland-based company which specializes in fungi cultivation and research.
 
AFS responded to the booming functional mushroom market and the demand for high-quality ingredients from a partner dedicated to mycology.
 
“We felt that we could strategically add value to KÄÄPÄ’s unique functional mushroom supply chain,” said Loretta Zapp, CEO of AFS. “We are working on enhancing functionality as well as bringing greater awareness and access to the market.”
 
The partnership will add Nordic-grown, organic extracts of Lion’s Mane, Reishi, cordyceps, Chaga, Shiitake, and Maitake mushrooms. Each species contains unique beneficial bioactive compounds.
 
The mushrooms will be grown by KÄÄPÄ biotech in Finland, and extracts are made from mushroom fruiting bodies and are free from excipients and grain fillers. The extracts are standardized to specific concentrations of primary active compounds for optimal bioavailability.
 
Compared to other kinds of botanical ingredients, mushrooms are especially susceptible to quality issues due to environmental contaminants, said Eric Puro, CEO and co-founder of KÄÄPÄ Biotech.
 
“Finland has the cleanest air and cleanest water ever measured in the world,” Puro said. “Mushrooms are strong bio-accumulators, so when we grow them, it’s very important that their environment is clean.”
 
KÄÄPÄ Biotech grows organic mushrooms from local birch wood, instead of more common grain alternatives. The overharvesting of Chaga is a concern in the industry, but the supplier adheres to Finland’s sustainability regulations which are considered progressive worldwide. It sources mushrooms from its own managed forests near the Arctic Circle.
 
Testing and Transparency
 
AFS is working with KÄÄPÄ to supply mushroom ingredients that are USDA-certified organic, GRAS for safe use in approved food and beverage applications, and third-party tested for purity, ensuring they are free from contaminants and pathogens while improving validation methods.
 
“Testing with third-party labs is key to many of our customers. Building trust starts with verifying the product’s safety, efficacy, and purity. In addition to quality, a lot of the allure for AFS to KÄÄPÄ is their transparency and ability to tell the whole story,” said Zapp.
 
As a vertically-integrated supplier, KÄÄPÄ is able to trace every mushroom from spore to extract.
 
“The closer we can get to full transparency, the better we’re all going to be. Everything we do, we want to share with our customers,” said Puro.
 
“When we started our company more than 20 years ago, we wanted to focus on specialized organic ingredients grown with care and attention to quality,” Zapp said. “That’s why I think we fit so well together with KÄÄPÄ. When our partner aligns with that mission, everyone from the wild mushroom forager to the end consumer will benefit.”