ɛ‐poly‐L‐lysine (ɛ‐PL) is a novel commercial food preservative, and glucose and glycerol are two carbon sources commonly used in ɛ‐PL fermentation. Using MALDI‐TOF and NMR, when grown in glycerol‐based medium, but not glucose‐based medium is determined, Streptomyces albulus J1‐005 produces a derivative of ɛ‐PL in which the terminal carboxyl group is modified with the second hydroxyl group of glycerol. Interestingly, this derivative, 2‐ɛ‐poly(L‐lys)‐glycerol, was hydrolyzed back to ɛ‐PL when the pH was adjusted from 3.7 to the neutral range. Antimicrobial assays indicated that, compared to ɛ‐PL, 2‐ɛ‐poly(L‐lys)‐glycerol has similar inhibitory activity against several bacterial species but is less inhibitory to the producing strain. Additionally, in fed‐batch fermentation, product yield was 37% higher in glycerol‐based medium than in medium containing an equal amount of glucose. Hence, we propose that such culture‐based approaches for modifying toxic compounds in vivo can be a promising strategy for antibiotic overproduction. © 2018 American Institute of Chemical Engineers AIChE J, 64: 4187–4192, 2018