NEOH secures further capital from TAUROS Capital

The Viennese food tech scale-up Alpha Republic GmbH, known for its sugar-free NEOH products, is continuing on its growth path. With a further revenue share from TAUROS Capital, the company is strengthening its financing and increasingly focusing on international markets. The focus is on the top-secret sugar substitute ZERO+, which is to be sold to large confectionery manufacturers in the future.

Financing without the sale of shares

NEOH already used revenue-based financing from TAUROS Capital in 2022. A second seven-figure investment is now following. In contrast to traditional investments, TAUROS does not receive any company shares, but instead receives a pro rata share of the turnover. The additional financing round is primarily intended to contribute to the internationalization and further expansion of the B2B business.

We are increasing our flexibility and bridging the time until the next round without having to give up shares. The fast and cooperative implementation with TAUROS allows us to concentrate fully on the operational business.

Manuel Zeller, CEO NEOH

Founded in 2016 by Manuel Zeller, Alexander Gänsdorfer, Patrick Kolomaznik and Adel Hafizovic, the company pursues the goal of replacing sugar in food with a better alternative. After more than twelve years of research, they achieved their breakthrough with ZERO+: a sugar substitute that tastes great and scores highly in terms of health. Today, the range includes bars, wafers, chocolate bars and co-creations with partners such as Dunkin'.

Sugar substitute ZERO+ at the heart of the expansion strategy

The core of the next growth phase is ZERO+, a specially developed sugar substitute based on plant-based fiber and prebiotics. ZERO+ not only imitates the taste of sugar, but also has positive effects on intestinal health. Particularly interesting: ZERO+ has only minimal effects on blood sugar and insulin levels. According to the manufacturer, this is a key criterion for modern nutritional products. To be fair at this point, sweeteners in general do not trigger insulin levels or blood sugar.

NEOH plans to sell the product on a large scale B2B, for example to international confectionery manufacturers who want to integrate ZERO+ into their recipes. The first major customers, such as SPAR, REWE Austria and Dunkin' Donuts, are already relying on NEOH's sugar-free product solutions.

United Kingdom as a strategic target market

Part of the funding will be used specifically for market entry in the United Kingdom. The introduction of a sugar tax there offers new opportunities for providers of healthy alternatives. The United Kingdom is one of over 115 countries that have introduced a tax on sugary drinks. According to current data, this affects around 57% of the population worldwide.

With ZERO+, NEOH wants to strike a nerve in this environment and offer products that meet both regulatory requirements and the desire for a healthy diet.

Significant growth and positive development since 2022

Since the first financing by TAUROS Capital, NEOH has expanded its portfolio and successfully launched new products such as "Crisp N Cream". The team has also grown from 14 to 20 employees. The double-digit growth rates since 2022 underline the company's successful course.

NEOH is a prime example of how to scale innovations with flexible financing

Werner Edlinger, Member of the Management Board of Tauros Capital

The global sugar market in transition

Sugar consumption is considered a health risk worldwide. In Europe alone, average consumption recently stood at around 36 kilograms per capita per year, well above the amount recommended by the WHO. The market for alternatives is correspondingly large. Analysts currently estimate the global volume of the confectionery market at over 180 billion euros, with growth to over 230 billion euros by 2030.

With ZERO+, NEOH is positioning itself as a pioneer in a growing segment that aims to combine innovation, health and indulgence.