Protein Industries Canada has committed $607,000 toward a $1.4 million project with British Columbia-based Crush Dynamics and applied AI company Atomic47 Labs to develop an AI-enabled fermentation monitoring platform for Canadian food manufacturers.
The system will draw on existing industrial sensors and machine learning models to continuously infer fermentation conditions, food safety indicators, energy performance and process health in real time, according to a joint announcement published June 24. The goal is to shift fermentation management from manual oversight to a more autonomous, data-driven process.
Turning sidestreams into ingredients
Crush Dynamics, formerly known as Winecrush Technology, operates a patented fermentation process that converts grape pomace, a byproduct of winemaking, into polyphenol-rich ingredients used for sugar and sodium reduction, texture improvement and shelf-life extension in food formulations. The company raised $3.6 million in Seed 2 financing in 2022 and has since expanded its ingredient portfolio and distribution partnerships.
Atomic47 Labs brings expertise in digital twins, data infrastructure and industrial process optimization to the collaboration. According to the companies, integrating AI into Crush Dynamics’ commercial fermentation platform is expected to reduce energy consumption, improve product consistency, strengthen food safety controls and increase production efficiency, while helping convert agricultural sidestreams into higher-value ingredients.
“This project is about moving fermentation from reactive decision-making to intelligent, real-time control”
Kirk Moir, CEO of Crush Dynamics, explained, “This project is about making more from what we already grow. We’re combining our fermentation technology with advanced AI to help transform agricultural sidestreams into high-value ingredients more efficiently and consistently. It’s an important step toward reducing waste, improving sustainability and strengthening Canada’s food manufacturing sector.”
Backed by federal AI funding
The investment is drawn from Protein Industries Canada’s artificial intelligence funding stream, itself financed through the federal government’s Pan-Canadian Artificial Intelligence Strategy. The organization has previously directed AI funding toward plant-based ingredient and crop breeding projects, including a $15 million genomics and AI allocation announced earlier this year.
Protein Industries Canada CEO Tyler Groeneveld said the project reflects the broader push to strengthen domestic ingredient processing. “With the development of a new AI system that helps improve energy usage while reducing waste, Canada’s food processors can make great strides in not just strengthening our domestic food supply chain, but also in improving food options for families here and around the world,” he said.
“This project is about moving fermentation from reactive decision-making to intelligent, real-time control. By combining Crush Dynamics’ fermentation expertise with Atomic47’s AI, digital twin and industrial control capabilities, we are building a platform that can improve consistency, reduce waste, and help Canadian food processors scale more sustainable ingredient production,” stated Karen Olsson, CEO of Atomic47 Labs.
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