Trendlines Portfolio Company Achieves FDA Milestone, Paving The Way for Portfolio Company Sale?

As consumers increasingly demand products free from synthetic dyes, the race for sustainable natural alternatives has intensified.

On February 9, 2026, The Trendlines Group announced a landmark regulatory victory that positions its portfolio company, Phytolon, at the forefront of this multi-billion dollar market.

The U.S. Food and Drug Administration (FDA) has officially issued an order allowing the use of Phytolon’s beetroot red food color for human consumption.

This approval, expected to take effect on March 23, 2026, clears the path for the commercialization of Phytolon’s hue across the entire U.S. food supply.

"The approval enables application in a wide range of food categories, including confectionery, dairy products, beverages, and condiments," said Trendlines.

Beyond Agriculture: The Power of Precision Fermentation

Phytolon's innovation lies in technology using precision fermentation of baker's yeast while traditional natural colors rely on resource-heavy agriculture—requiring vast fields of beets or other crops.

Phytolon's biotech approach can produce vibrant purple, red, orange, and yellow hues.

This approach offers several game-changing advantages:

Unmatched Efficiency: Through a strategic partnership with Ginkgo Bioworks, Phytolon recently nearly tripled its manufacturing efficiency, ensuring its colors remain cost-competitive with synthetic dyes.
Industrial Scalability: Phytolon is preparing to supply the U.S. market through its production lines with subcontractors in Europe.
Sustainability: By eliminating the need for land-intensive agriculture, Phytolon provides a "clean-label" solution that significantly reduces water and land use.

A Critical Pivot in Labeling Regulations

Perhaps just as significant as the product approval itself is a simultaneous shift in FDA guidance.

Big exit coming?

Phytolon co-founders: Dr Halim Jubran (CEO), Dr Tal Zeltzer (Chief Technology Officer).

Fund-raising:
• US$4.1 million in Sept 2020 (seed funding)

• US$14.5 million Series A in July 2022

• Additional funding in Oct 2023

• Investment from Rich Products Ventures in Nov 2024

The agency has revised its framework regarding "no artificial colors" labeling.

Under these new rules, manufacturers can use this highly desirable label when incorporating natural additives like Phytolon’s, provided petroleum-based dyes are absent.

Trendlines CEO Haim Brosh noted, “These developments represent a pivotal inflection point for Phytolon, positioning the company to accelerate market entry, secure initial commercial sales, and pursue strategic partnerships with major food manufacturers in the U.S.

"The Trendlines Group believes that this milestone meaningfully strengthens Phytolon’s growth trajectory and long-term value creation potential.”

The Investment Thesis: A High-Potential Exit?

For shareholders of The Trendlines Group (which holds a 25% stake in the company), this milestone represents a pivotal inflection point.

Phytolon has already secured strategic backing from heavyweights like DSM Venturing (the investment arm of a large food ingredient company) and Rich Products Ventures, alongside a global distribution deal with DSM-Firmenich.

With U.S. commercialization now imminent, Phytolon is no longer just a "promising startup".

As part of Trendlines' broader portfolio, which has seen companies raise over US$100 million in just two years, Phytolon is cementing its position as a prime candidate for a strategic exit. And it has several existing strategic investors which may set off aggressive bidding for the entire Phytolon.

Watch for these developments:

1. Commercial Deals: Announcements of supply agreements or partnerships with major food or beverage brands.
2. Follow-on Funding: News of a new funding round for Phytolon at a significantly higher valuation.
3. Exit Rumors or Announcements: Reports of acquisition talks or an official sale of the company.