RAIKU, Estonian  cleantech startup, that has developed a 100% natural packaging material, started cooperation with the world’s largest luxury goods manufacturer LVMH – Moët Hennessy Louis Vuitton and plans to build a factory in France.

The company just received an €8.8 million deal from the European Innovation Council as a strategic technology and is now entering into collaboration with top global brands to bring its novel material to the market.

The company was accepted into the LVMH Accelerator, which brings together 75 international brands with RAIKU’s packaging material. RAIKU is one of 30 companies chosen from over 1,500 applicants to participate in the program, achieving a success rate of just 2%.

GOOD TO KNOW
RAIKU produce 100% natural, compostable, highly protective packaging material to substitute single-use plastics. It has excellent shock absorption and the lowest carbon footprint figures on the market. Their product is 100% natural and safe for the environment.

Created in 1987, the LVMH Group now encompasses over 75 exceptional Maisons, each known for producing high-quality products, including Louis Vuitton, Christian Dior, and Moët & Chandon, to name a few. RAIKU, aiming to replace single-use plastics and help companies reduce their environmental footprints, is ready to introduce its innovation to the luxury sector.

“LVMH, the world’s most valuable luxury brand, generating €85 billion annually, has shown interest in our material—this is a clear indication of its enormous potential to transform the packaging market. I highly recommend that startups apply for the LVMH Accelerator, as we’ve seen firsthand how they focus on bridging innovations between their brands and emerging companies. We’re now seriously considering setting up our next factory in France,” stated Karl Pärtel, Co-Founder of RAIKU.

Raiku helps luxury brands become more sustainable

Sustainability is increasingly crucial for luxury brands, driven by consumer demands, regulations, and the need to preserve essential resources, said Selma Delic, Sourcing & Listening Manager at LVMH Open Innovation.

“LVMH addresses this with a strategic, comprehensive approach, integrating sustainability across its entire value chain. This includes regenerative agriculture in vineyards, biodiversity protection, and promoting sustainable practices in fashion, cosmetics, and leather goods. Through its LIFE 360 program, LVMH commits to restoring 5 million hectares of wildlife habitats by 2030, balancing resource use with environmental restoration,” stated Delic.

GOOD TO KNOW
The LVMH accelerator has fostered over 700 collaborations. Recent successes include Berluti x LivingPackets: Developed “THE BOX,” a reusable, smart packaging solution that secures high-value products while promoting sustainability, and Stella McCartney x BioFluff: Launched Savian at COP28, an eco-friendly luxury textile line featuring vegan materials like hemp, linen, and nettle, underscoring McCartney’s commitment to sustainable fashion.

La Maison des Startups LVMH offers acceleration and direct connections with LVMH Maisons through global pitch sessions, bespoke demo meetings, and exclusive sessions where Maisons pitch their needs to startups. “We also provide a luxury market acculturation program with conferences, coaching, and insights into Maison needs. Each startup is paired with an in-Maison mentor and receives a year-long office space at Station F in Paris, the largest startup campus,” shared Delic what startups gain from the LVMH accelerator.

RAIKU will participate in LVMH’s Business Accelerator Program Season 10 from July 2024 to July 2025. In addition, RAIKU is raising more capital to build a second factory in France.

Are you interested in trading with Estonia? Enterprise Estonia is providing sourcing service for foreign enterprises. Contact Estonian export advisors or use our free e-consulting service to start trade with Estonia.