Fermenting fungi are a type of fungi that are capable of producing alcohol and other compounds through the process of fermentation. Yeasts (6 letters) and YEAST (5 letters) are two examples of fermenting fungi. Yeasts are single-celled organisms that are found in many different environments, including soil, plants, and even the human body. YEAST is a specific type of YEAST that is used in baking and brewing. It is responsible for the production of carbon dioxide and alcohol during the fermentation process.