When Sustainability Meets Profitability: How Hubcycle is Making Waste-Free Food Production Commercially Viable
An interview with Julien Lesage, CEO and Founder of HubCycle
Tell us about yourself and why you founded Hubcycle
My background is in sports rather than business. I trained as an elite archer from 12 and aimed at the 2012 Olympics for the French national team. When I wasn’t selected for the Olympic team, I turned my focus to entrepreneurship since that was something I had always been interested in alongside sports. Thanks to my sports training, I was adept at dealing with massive pressure and knew I wanted to work for myself with a great team.
At 22 years old, I founded Hubcycle. The concept is simple: to create strategic raw materials from resources that are wasted by manufacturing. We focus primarily on addressing wastage and the food industry’s carbon footprint. We work with the seeding industry, for instance, taking the seeds that don’t germinate and aren’t in the interest of farmers to then sell to the bulk food business. The more you identify whatever someone is wasting, the more you realise there is a market for it. We create a hub where we can find leftovers and a new route to market in which we can add value. Ultimately, we produce products that are more sustainable and more competitive.
What is the growth trajectory for Hubcycle?
Every market we address and verticalise is growing, from vanilla producers to juice concentrates, cocoa and coffee. Our competitors are historical suppliers of foodstuffs that we can replace with a better price since we have a more sustainable and waste-free approach. We can be aggressive in taking market shares because we are significantly more competitive than our suppliers, meaning the potential for our market growth is explosive, reaching a multiple of three times per year. Our next challenge is to build the right team to be able to deliver this level of growth.
How has your business evolved over the last 12 to 24 months?
The first stage of the business was confirming our ability to work on different types of manufacturing leftovers by creating the side stream process and ensuring it was highly duplicatable. Over the past year, we began verticalising categories like spices and confirming the growth margin, meaning that we tripled in growth in 2023 and 2024. We have moved from a transversal approach to a vertical one, which requires internationalising and involving the entire team since we grew quickly from a French customer pool to global customers. This year, 65% of our sales have been international. That has shifted our mindset and the market aggression we need. We also successfully completed a third fundraising round last year of €15 million, which involved investment from ETF Partners, meaning we can continue to expand.
What is one business accomplishment that you are most proud of?
I’m very proud of creating a business that doesn’t just address one vertical but has produced a systemic concept that provides solutions for the global problem of food waste. We have a deep conviction only to produce products that work with leftovers and waste rather than produce sustainable solutions only part of the time. We could make €2 million more per year if we took on projects that are not sustainable by design, but that isn’t an option for us. Our conviction is what sets us apart.
What advice would you give to first-time founders?
Entrepreneurs have to think about the relationship between profit and purpose. Businesses need to build products that are not only sustainable but also commercially viable and competitive. If your product is sustainable but more expensive than its competitors, you won’t create the potential for explosive growth. If you can address the price point, sustainability can be an asset to your bottom line rather than a hindrance since it’s challenging for clients to move away from a more sustainable product than their other options. Plus, it’s a way of thinking that helps you attract the right people and mindset to your team.
What are your key milestones and plans for 2025?
One milestone is reaching €10 million in sales by the end of the year and expanding our team to achieve that goal. We’re currently on a mission to identify 4,000 new waste sources, launch 400 new ingredients, and hire 80 new employees thanks to the successful completion of our Series A funding round.
How has ETF Partners’ support helped shape the business?
Working with ETF Partners and Remy de Tonnac has transformed the business. Remy is highly supportive and understanding because he is an entrepreneur himself. He has decades of experience and wisdom to share with us, and I always look forward to our discussions and the opportunity to learn. The ETF Partners network is also invaluable, allowing us to connect with other entrepreneurs and learn from each other. I look forward to seeing our partnership grow and develop in the years to come!
