How Alpha Group and the Biotechnology Group at Callaghan Innovation scaled medicinal mushroom fermentation for global wellness markets
At a glance
- Alpha Group partnered with the Biotechnology Group to develop a novel submerged fermentation process for Ganoderma lingzhi (Reishi mushroom).
- The newly patented process reduces production time from six months to under three weeks.
- The project culminated in the establishment of a world-first production facility in Auckland, showcasing a clear pathway for translating academic research into commercial infrastructure and global opportunity.
This collaboration helped us convert R&D into world-first infrastructure. It’s the kind of partnership that builds industries.
Sammy Wong, R&D Lead, Alpha Group
Unlocking the potential of fungal fermentation
Alpha Group is a premium health supplement manufacturer focused on bioactive natural extracts. A core ingredient in their product line is Ganoderma lingzhi, a mushroom used for centuries in Chinese medicine, now growing in demand across global wellness and functional health markets. However, the process of mushroom development conventionally takes up to six months and is constrained by land availability and seasonal variability - limiting both production scale and quality consistency.
To overcome these limitations, Alpha Group partnered with the Biotechnology Group to explore submerged fermentation as a faster, more scalable alternative for producing Ganoderma mycelia for which the medicinal ingredients are extracted. This approach offers the potential to not only accelerate production but also enhance the quality and yield of key bioactive compounds. These include polysaccharides and triterpenes, which have demonstrated health benefits such as anti-inflammatory, anti-oxidant and anticancer properties.
Designing and validating a new fermentation process
Over four years, Callaghan Innovation’s Biotechnology Group, with expertise in fermentation, natural product chemistry, bioprocess engineering, and product development, worked closely with Alpha Group to deliver:
- Transfer and verification of Alpha Group’s proprietary Ganoderma production strain
- Design and optimisation of a submerged fermentation process tailored to the strain
- Upstream and downstream process development focused on increasing yield and bioactive concentration
- Nutritional and bioactivity validation against traditional mushroom growing benchmarks
- Technical consultancy on the design and build of an Auckland-based fermentation facility
- Process documentation to support the patent application
- Advice on EPA and MPI compliance and facility standards for working with fungal species
Commercial success
Alpha Group now operates a purpose-built fermentation plant in Auckland that can produce Ganoderma mycelia in under three weeks. The fermentation process, designed by the Biotechnologies Group, is reproducible, scalable, and overcomes long-standing barriers to traditional mushroom production. Key outcomes include:
- Significant reduction in production time
- Improved quality, yield and extraction of target bioactives
- A new proprietary process, now patented by Alpha Group
- Establishment of fungal fermentation capability in New Zealand
Through the assistance of the Biotechnology Group, Alpha Group is now positioned for global expansion - with the infrastructure, intellectual property, and technical capability to extend its product line and explore additional high-value fungi.
This project demonstrates how end-to-end R&D partnerships can turn scientific potential into commercial reality. Science commercialisation isn’t just about breakthroughs - it’s also about building capability within companies to become globally competitive. That’s what this project delivered.
Dr Paul Rose, Biotechnologies Group Leader, Callaghan Innovation
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