After some initial speculation, it is now official – America’s second-largest dairy company, Dean Foods, has acquired a majority stake in the vegan brand Good Karma. This is in response to the growing demand for plant-based milk alternatives in the food industry.
With Good Karma Foods, Dean Foods wants to establish itself in the market for vegan milk alternatives. The dairy-free brand is known for its flax-based, vegan yoghurts and dairy products. “Good Karma is a fast-growing brand that will help us to enter the plant-based food and beverage market, making it an excellent addition to our portfolio,” said Ralph Scozzafava, CEO of Dean Foods. “Our investment in Good Karma is just one example of how we are executing against one of the major pillars of our strategic plan to build and buy strong brands.”
Despite the majority holding, Karma Foods will continue to hire its existing employees and act as an independent brand. Dean Foods has recently terminated dozens of contracts with milk suppliers in Pennsylvania. Other major dairy companies are also moving in the same direction as Dean Foods. The world’s largest yoghurt producer, Danone, has expanded its range by buying WhiteWave Foods and introducing vegan brands such as Silk and Alpro. The US dairy Elmhurst has gone one step further and completely switched to vegan milk.