Kern Tec: Cracking the nut nobody wanted to address fruit waste
An Austrian food-tech company is turning discarded stone fruit pits into valuable plant-based ingredients, helping reduce food waste, lower emissions and build a more circular food system.
Every year, millions of tonnes of apricot, plum, cherry and peach pits are discarded after fruit processing. While the fruit itself is used in juices, jams and preserves, the pits are typically treated as waste and sent for disposal.
But hidden inside these hard shells lies an overlooked resource: nutrient-rich kernels packed with oils, proteins and functional ingredients. Recognising this untapped potential, Austrian food-tech company Kern Tec has developed a way to transform stone fruit by-products into sustainable ingredients for the food industry, creating value from a waste stream that has long been ignored.
Turning a Waste Problem into a Food Innovation Opportunity
Every year, the fruit-processing industry generates large volumes of by-products that are often discarded despite containing valuable nutrients and functional ingredients. Stone-fruit pits from apricots, plums and cherries are one such overlooked resource. Hidden inside these hard shells are kernels rich in oils and proteins, yet they have traditionally remained unused because extracting them safely and efficiently requires specialised technology. In addition, the kernels contain naturally occurring cyanogenic compounds that must be removed before they can be used in food applications [1]
As a result, significant quantities of potentially valuable raw materials have been treated as waste rather than being reintegrated into the food system. This challenge reflects a broader issue facing Europe’s food sector: the need to reduce waste and make better use of available resources. The European Commission identifies food waste prevention and the transition to a circular economy as key priorities for creating a more sustainable and resilient food system [2][3]
Kern Tec addresses this challenge by transforming underutilised stone-fruit by-products into safe, high-value ingredients [4]. By unlocking the potential of resources that would otherwise be lost, the company demonstrates how innovative processing technologies can help create a more circular food system while generating new value from existing agricultural streams.
What one day is a hidden potential the next is a market breakthrough
Kern Tec has rapidly expanded its portfolio of upcycled ingredients, which are now being used in plant-based dairy alternatives, confectionery products, spreads and specialty oils.
The company has demonstrated strong commercial momentum through partnerships with established food manufacturers. In 2025, Kern Tec partnered with Swiss chocolate producer Stella to launch a vegan chocolate made with upcycled apricot kernels, showcasing how circular ingredients can successfully enter mainstream food markets.
Its innovation has also attracted significant industry recognition. Kern Tec received an award for its apricot kernel butter at the prestigious Anuga Taste Innovation Show and has become a leading example of how agricultural by-products can be transformed into commercially viable food ingredients.
Investor confidence has followed. To support its next stage of growth, Kern Tec secured €12 million in Series A funding led by Telos Impact, with participation from PeakBridge and the European Innovation Council Fund. The investment is helping the company expand production capacity and accelerate market adoption across Europe and beyond.
Delivering Environmental and Economic Impact
Kern Tec's environmental impact is rooted in its ability to unlock value from an existing waste stream. Life cycle assessments indicate that the company's upcycled kernel ingredients use up to 95% less water and generate approximately 50% lower CO₂ emissions than conventional nut ingredients. Because the kernels originate from existing fruit-processing by-products, no additional agricultural land is required.
This approach demonstrates how circular economy principles can be applied within the food industry to reduce environmental impact while creating economic value.
For fruit processors, what was once a costly disposal challenge becomes a new revenue-generating resource. For food manufacturers, Kern Tec provides a sustainable ingredient alternative with a significantly lower environmental footprint. And for consumers, it offers innovative products that support a more resource-efficient food system.
Perhaps most importantly, Kern Tec's solution integrates seamlessly into existing supply chains. Rather than requiring major changes in farming practices or consumer behaviour, it leverages infrastructure that already exists, making large-scale adoption both practical and commercially attractive.
The positive impact of Kern Tec
Accelerating Growth Through EIT Food
Kern Tec's journey has been supported by EIT Food, Europe's leading food innovation initiative.
The company was selected as an EIT Food Rising Food Stars in both 2022 and 2023, gaining access to mentoring, strategic guidance, industry connections and visibility across Europe's agrifood innovation ecosystem.
In 2024, Kern Tec's achievements were further recognised when it won the EIT Food Marketed Innovation Prize in the category of Best Food Waste Reduction Solution. The award highlighted the company's success in translating circular economy principles into a scalable, market-ready business.
EIT Food's support helped Kern Tec strengthen its commercial strategy, validate its environmental impact and build partnerships across the food value chain. This support played an important role in accelerating the company's journey from promising startup to recognised leader in sustainable food innovation.
EIT helped Kern Tec most in connecting us with the lead investor Telos Impact from our Series A, through one of the flagship events in Lisbon.
What can we learn from Kern Tec?
- Large-scale food waste often sits inside existing supply chains, not at the consumer end.
- Upcycling works best when it fits industrial requirements for quality, volume, and consistency.
- Circular ingredients can deliver clear environmental gains without adding pressure on land or water.
- Infrastructure, not just innovation, determines whether impact can scale.
Building the Future of Circular Ingredients
As demand grows for sustainable, lower-impact food ingredients, Kern Tec is focused on expanding production capacity, strengthening partnerships with food manufacturers and bringing its upcycled ingredients into more products and markets.
The opportunity is significant. Increasing regulatory pressure on food waste and emissions, combined with growing consumer demand for sustainable products, is creating favourable conditions for circular ingredients to move from niche innovation to industry standard.
Kern Tec has already demonstrated that food waste can become a valuable resource. The next challenge is scaling that impact fast enough to meet the needs of a rapidly changing food system.
About the EIT Food Protein Diversification Think and Do Tank
Bringing protein diversification to the mainstream for the people and planet is one of EIT Food's three priority areas, cross-cutting EIT Food Missions to deliver system change. Established in 2022, the EIT Food Protein Diversification Think and Do Tank convenes selected stakeholders and partners, fostering broad and inclusive participation to overcome barriers to innovation in the field of protein diversification.
Building on this collaborative approach, the Think and Do Tank provides a neutral platform where industry, researchers, investors, policymakers and entrepreneurs work together to identify shared challenges, generate evidence-based insights and develop practical solutions that accelerate the adoption of diverse protein sources across Europe.
Learn about the latest opportunities, research and innovations shaping the food industry.
References
- Monash University. (2022). Literature review: Valorisation options for stone fruit waste. Sustainability Victoria. https://assets.sustainability.vic.gov.au/susvic/Report-Waste-Valorisation-options-for-stone-fruit-waste-Monash-University_2022-07-18-051339_ehur.pdf
- European Commission. (2024a). Food waste. https://food.ec.europa.eu/food-safety/food-waste_en
- European Commission. (2024b). Circular economy. https://environment.ec.europa.eu/strategy/circular-economy_en
- Kern Tec GmbH. (n.d.). Upcycled apricot kernels: B2B food and cosmetic ingredients. Kern Tec. https://www.kern-tec.com/en/
