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It’s easy to get swept up in the news and activities of the industry’s global titans, but what about the smaller firms that are out there flexing their creative muscles? In this instalment of ‘Start-up of the month’ – which celebrates the lesser-known companies and their innovations – we speak with Michaela Lindström (pictured left), CEO of Hailia, a company leading a blue food revolution by improving resource efficiency in the seafood industry and making the most of underutilised fish raw materials.

Can you share the story behind Hailia? What inspired you to start the company and focus on resource-efficient seafood processing?

The story of Hailia began with a simple idea: what if we could transform something often overlooked –underutilised small pelagics or filleting sidestreams of salmonids – into something valuable? We wanted to rethink how seafood is processed and utilised, and that’s where the spark came from.

From the beginning, we focused on the product concepts – what the products should look, feel and taste like and how they could be used in cooking to fit seamlessly into modern life. We wanted something that would appeal to today’s busy consumers while staying true to the essence of easy-to-use, tasty, affordable seafood. It was all about creating a product that didn’t just solve a problem but genuinely added value to people’s lives.

At the heart of Hailia is our mission: to change the seafood industry and redefine how sidestreams are handled. We’re here to maximise their use for food, turning what’s often considered waste into high-value, sustainable products. We believe in creating a future where as much as possible of the fish is used efficiently and responsibly for food, contributing to better food systems and a healthier planet.

What challenges did you face when developing and scaling your innovative seafood processing technologies?

Developing our technology and building our factory has been anything but boring! From the beginning, we decided not to go the traditional route of starting with a small pilot and scaling up gradually. Instead, we went full-on and built an industrial-scale factory right from the very start. It was a bold move, but we believed in the potential of our concept and knew we had to prove it worked on a commercial scale.

Of course, jumping straight to industrial production brought its own challenges. The first factory building we were set to rent back in 2021 burned down in a fire – not exactly the start we’d hoped for. Then, just as we got back on track, energy prices shot through the roof in 2022. To top it off, right as we launched our first product to market in 2023, the European Commission proposed a total fishery ban of the raw material we planned to use and that we had gotten different grants for to utilise. Talk about timing!

"Building a start-up like this isn’t for anyone looking for predictable days. There are plenty of challenges to navigate, but we take each one as it came, staying focused on our mission and what we wanted to achieve."

Building a start-up like this isn’t for anyone looking for predictable days. There are plenty of challenges to navigate, but we take each one as it came, staying focused on our mission and what we wanted to achieve. Skipping the pilot stage and going straight to scale-up may not be the usual path, but it’s one we’re proud of – it allowed us to prove that this really works and that it’s ready to make an impact.

Now, when we look at our factory and all the products coming out of it, we can see just how far we’ve come. Every challenge has been a part of the journey, and it’s all been worth it to create something that has the potential to truly change the seafood industry.

How does your technology differ from traditional seafood processing methods, and what impact has it had on the industry so far?

Hailia’s technology stands out because we know how to create a fillet-like texture from fish sidestreams. We, the founders, have a background in plant-based proteins, where we’ve previously worked on creating products with meat-like texture. We took that same mindset and applied it to seafood – creating seafood products with fish fillet-texture, made of underutilised fish raw material.

This approach isn’t just innovative – it’s impactful. By turning underutilised fish sidestreams into high-value food, we’re unlocking a more sustainable future for seafood processing.

Preliminary carbon footprint calculations for one of our products in market, rainbow trout products made with our technology, show that food produced from sidestreams can have a carbon footprint as low as 0.6 kilograms of CO2 per kilogram of food. That’s smaller than the carbon footprint of any other primary animal protein – and even lower than many plant-based proteins.

These figures, calculated using tools from Biocode, highlight the environmental efficiency of using fish sidestreams. We’ve always known the carbon footprint of sidestream-based products would be low, but seeing the actual numbers was a welcome surprise. This demonstrates the huge potential for seafood sidestreams to help meet global food demand while significantly cutting carbon emissions.

It’s not just about the numbers, though. Our products offer consumers a tasty, nutritious and low-emission choice, while also giving manufacturers a solution to lower the carbon intensity of their ready-meal portfolios. We’ve already seen this come to life with partners like Finnish Kalavapriikki and Hätälä.

Hailia's mission is to maximise the use of underutilised fish raw materials. What drives your team to prioritise sustainability and circularity in your operations?

Our mission is simple: we want to make the most out of fish raw materials that usually get overlooked. For us, sustainability and circularity aren’t just nice ideas – they’re at the heart of everything we do.

We’ve set clear goals and KPIs to keep ourselves on track, but it’s really about the everyday choices we make. Whether it’s picking materials, improving how we do things, or deciding who we work with, we always look for options that are better for the environment.

What drives us is a real passion for changing the food industry. We see so much potential in making things smarter and less wasteful, and we know we can make a difference. It’s not just about creating great products; it’s about rethinking how food is made and showing it can be done in a way that’s better for the planet. For us, it’s personal. We truly believe the food industry can – and should – be better. And that’s what gets us out of bed every morning.

The demand for seafood is rising, yet supply constraints persist. How does Hailia address this growing gap?

Studies/estimates show that demand for seafood keeps growing, but the supply just can’t keep up and that’s where we come in. At Hailia, we’re all about making better use of what’s already there. Instead of focusing only on the prime fillets, we upcycle the parts of the fish that often get overlooked, like sidestreams.

These raw materials are already being produced but are usually turned into things like animal feed or discarded entirely. We’ve developed a way to transform them into delicious, high-quality seafood products that feel and taste like cooked fish fillet. By doing this, we’re not just reducing waste – we’re increasing the amount of seafood available for people to eat without putting extra pressure on fish stocks (taking the focus off fishery and aquaculture and focus on smarter food processing methods where utilisation is key).

Our approach doesn’t just help close the supply gap; it does so sustainably. With more people looking for nutritious, sustainable food options, we’re showing the industry that sidestreams aren’t waste – they’re a massive opportunity to meet demand without overfishing or harming the environment. At the end of the day, it’s about working smarter with what we have to ensure seafood can remain a big part of the global diet, without the catch running out.

What role do partnerships with investors like Nordic Foodtech VC and Heino Group Oy play in advancing your mission?

These partnerships have been absolutely key to helping us move our mission forward. They’re not just providing funding, they’re bringing expertise, networks, and a shared belief in what we’re trying to achieve.

NFT, for example, really understands the impact food innovation can have on the world. They’ve been incredibly supportive in helping us refine our vision and connect with others who are just as passionate about creating a more sustainable food system.

Heino Group, on the other hand, brings a lot of knowledge about how to get products to market. Their insights have been invaluable.

What makes these partnerships so special is that they’re not just about business, they’re about shared goals. Both Nordic Foodtech VC and Heino Group understand the importance of sustainability and circularity, and they’re helping us turn our ideas into real, impactful change.

Circularity is often seen as a sustainability goal, but you also frame it as an economic opportunity. Can you elaborate on this perspective?

We see that circularity isn’t just about sustainability – it’s a huge economic opportunity, especially for the secondary fish processors who do the filleting. Right now, these processors often sell their sidestreams – what’s left after the fillets are removed – for very little money, sometimes barely breaking even. It’s a waste, not just environmentally but economically too.

With our technology, these processors can upcycle those sidestreams under their own roof into high-value food products. This doesn’t just reduce waste - it gives them the chance to expand their product portfolio and tap into entirely new markets. For example, they can create affordable seafood products for the food industry, like ingredients for salads or sandwiches. Or they can target Food Service and HoReCa channels with protein options for pastas, soups and other ready-to-serve meals.

By adding this kind of value, processors aren’t just cutting waste - they’re boosting their profitability and strengthening their position in the market. Circularity, in this sense, becomes more than a sustainability goal. It’s a way to create new revenue streams, reach new customers, and future-proof their business in a world that’s increasingly focused on making smarter use of resources.

It’s exciting to see how this shift can turn what used to be seen as 'waste' into a real driver of growth for both the processors and the broader food industry.

What advice would you give to start-ups looking to innovate in the food and beverage industry, particularly in sustainable practices?

Be ready to challenge industry standards and face hesitations. Innovating in food and sustainability means you’re often ahead of the curve, and not everyone will see the solution the way you do. Plan for things to take more time than you expect, changing mindsets and systems doesn’t happen overnight. Stay persistent, believe in your vision and surround yourself with people who share your forward-thinking approach.

How do you balance profitability with sustainability, and what lessons can others learn from your approach?

For us, profitability and sustainability go hand in hand. By upcycling fish sidestreams into high-value products, we’re not only reducing waste but also creating new revenue streams for processors and affordable seafood options for consumers. The key is designing a model where doing the right thing for the environment also makes economic sense.

Focus on solutions that create value at every step of the chain – environmental, financial and consumer value. When sustainability drives innovation, profitability can follow naturally.

Where do you see Hailia in the next five years? Are there any exciting developments or new projects on the horizon?

In the next five years, we see Hailia scaling our technology globally, working with seafood processors across different regions to transform sidestreams into high-value products. Our goal is to become a leader in enabling sustainable seafood innovation, helping the industry rethink how resources are used and maximise what’s already available.

New products made of sidestreams have just hit the market as canned seafood, opening up new possibilities for how they can be used and enjoyed. This is just the beginning – we see so much potential to expand our reach, develop new products of new fish species and continue changing the way seafood is processed and valued.

How do you envision the seafood industry's transformation over the next decade, and what role do you hope Hailia will play in that shift?

Over the next decade, we envision the seafood industry becoming much more focused on maximising the use of different part of the fish as food. And sustainability will no longer be optional – it will be the standard.

We of course hope Hailia will be a driving force in that shift, showing the industry how sidestreams can be turned into high-value food products, not just low-value byproducts. By leading with innovation and proving that circular solutions are both profitable and practical, we aim to inspire a broader change in how seafood is processed and valued globally.

Hailia also took home a FoodBev World Food Innovation Award last year.