Domestic Yeast Could Reduce The Cost Of Craft Beer In Brazil

A FAPESP-supported startup has developed its own propagation and drying method to lower the cost of an ingredient that can account for up to 30% of the price of the beverage.

It’s a common scene in bars across Brazil: full glasses, creamy foam, and lively conversation. However, what you almost never see is the essential ingredient that makes all of this possible: yeast. Invisible to the naked eye, this microorganism is the true alchemist of beer, transforming the sugars in the wort into alcohol and carbon dioxide. Without yeast, fermentation is impossible. Yeast defines the soul of beer, shaping everything from the delicacy of the aroma to the complexity of the final flavor.

Beer production in Brazil has grown significantly over the past decade, primarily due to small and medium-sized craft breweries. According to data from the 2025 Beer Yearbook, published by the Ministry of Agriculture and Livestock (MAPA), Brazil ended 2024 with 1,949 registered breweries, which is a 5.5% increase from the previous year. According to the National Beer Industry Union (SINDICERV), Brazil is already the world’s third-largest beer market by volume, with reported production reaching 15.34 billion liters.

Despite the strength of the sector, virtually all the dry yeast used in domestic production is imported. This ingredient arrives in powder form and is dehydrated. It mainly comes from countries with a long brewing tradition, such as Germany, Belgium, and the United States. This technological dependence puts a strain on the budgets of those who brew beer, especially small and medium-sized breweries.

To help the sector overcome this bottleneck, Biosab, a startup based in Ribeirão Preto in the interior of the state of São Paulo, is developing a domestic method for propagating and drying brewer’s yeast. Supported by FAPESP’s Innovative Research in Small Businesses Program (PIPE), the project aims to offer a product that is up to 30% cheaper than its main competitors.

The ingredient accounts for a significant percentage of production costs. “About 30% of the cost of beer comes from it, depending on the scale and style produced,” explains biologist Paula Gouvêa Bizzi, the company’s co-founder and CTO. Localizing the ingredient increases the economic sustainability and technical autonomy of local producers, protecting them from exchange rate fluctuations.

The entrepreneur says the idea came from the experience of her partner at Biosab in breweries, where dependence on imported yeast is a constant concern. As for Bizzi’s motivation, it blends scientific curiosity with the pleasure of seeing – and tasting – the results. Watching science transform into cheaper beer brings a special kind of satisfaction.

Liquid or dry
Yeast can be supplied in two forms: liquid or dry. In the Brazilian market, there are suppliers of liquid formulas, but they face major logistical challenges. However, the difference between the two options goes far beyond physical state. The liquid form is extremely perishable and contains active cells ready for immediate use. This can be advantageous in some processes, but it shortens the shelf life and requires constant refrigeration during transport and storage, which increases logistics costs and limits geographic reach.

The dry version, on the other hand, is more stable and easier to transport. It undergoes a controlled dehydration process that reduces the metabolic activity of microorganisms. With less water available, the cells remain preserved for longer periods. Thus, the shelf life is extended, and transport does not require a strict cold chain. Therefore, the ingredient can be shipped anywhere in the country or abroad.

This feature is a major advantage for small and medium-sized breweries outside major urban centers. “The dry version can reach anywhere, including outside Brazil, and has a longer shelf life,” Bizzi summarizes. Therefore, there is a twofold opportunity for Biosab: to reduce costs here and, in the future, to operate in other markets. The company is already evaluating expansion into neighboring countries as a long-term goal rather than an immediate plan. It sees these countries as markets with real potential.

Biosab’s drying method includes a strategic choice of sugar to feed the yeast. The idea is to use a cheaper source than that of international competitors without compromising fermentation efficiency. This reduces the cost of the product without affecting the quality of the yeast obtained. Another advantage is the use of domestic equipment to minimize infrastructure investment and facilitate maintenance.

How yeast is made
Commercial-scale yeast production involves two main stages: propagation and drying. Propagation involves multiplying the cells in a controlled environment with an adequate supply of nutrients, as well as the appropriate temperature, oxygenation, and pH conditions. The yeast consumes sugars and divides to increase the biomass available for beer fermentation.

However, not all yeast tolerates the drying process well. Some strains lose viability – that is, they die or become unable to ferment – when water is removed. For this reason, the initial focus is on the most commonly used species in the market to ensure the final product meets the quality standards of master brewers.

In this context, two yeast varieties dominate. Saccharomyces cerevisiae is associated with top-fermented beers, or ales, which ferment at higher temperatures (15 to 21 °C) and produce complex, fruity aromas.

Saccharomyces pastorianus, on the other hand, is used in lagers, the most widely consumed beers in Brazil. According to the 2025 Beer Yearbook, lagers account for 58.3% of domestic production. Lagers ferment at lower temperatures (between 7 °C and 12 °C) and have a cleaner, more neutral profile. The project aims to develop at least one dry yeast strain for each of these major groups.

Major yeast manufacturers have dominated the international market for decades with heavy investment in research and development. European and North American companies offer dozens of strains with distinct sensory profiles. Competing in this environment requires microbiological consistency, contamination control, and guaranteed performance from batch to batch.

Regulation and challenges
As an ingredient in the beverage industry, yeast is subject to agro-industrial oversight. Biosab’s innovative initiative raised questions about how to classify the activity since there were no clear precedents. Unlike ready-to-drink beverages, yeast is an industrial ingredient, which changes the regulatory framework and requires compliance with specific standards under the jurisdiction of the Ministry of Agriculture and Livestock (MAPA).

Once the product is on the market, Biosab will be the first company in the country to produce and market dry brewer’s yeast on an industrial scale. Bizzi is ambitious but remains focused. “We want to finalize development and, if possible, start selling by the end of this year or in the first half of next year,” she says.

Even if the change goes unnoticed by the end consumer – because the beer in the glass will look the same – for the producer, the difference will be on the invoice. Having a domestic supplier means less exposure to exchange rate fluctuations and disruptions in international supply chains for the industry.

From prototype to factory
Currently, the startup has a prototype ready and has received private investment to make production viable. The next step is practical testing in partnership with a midsized brewery. The brewery will use Biosab’s dry yeast in its recipes to validate the effectiveness of the product under production conditions – not in a lab, but in a real brewery with actual volumes, variables, and requirements. Based on the results, the team will refine the propagation and drying stages and standardize the process.

Biosab’s production goal is ambitious, and the projected scale-up is expected to occur in two stages. In the first stage, production capacity is expected to reach approximately five kilograms of yeast per day. The second stage aims to reach 15 kilograms per day. The volume required per brewery varies depending on the style and recipe since different concentrations are inoculated into the wort. Therefore, the startup’s production can serve dozens of producers simultaneously.

Bizzi admits that she can’t wait for the product to reach the breweries. “There’s the beer perk,” she jokes, referring to the most direct benefit of working with the ingredient. She notes that the satisfaction of tasting the result is already present. All that’s missing is the scale.