Good Karma Foods, Boulder Colorado-based producer of milk and yogurt from flaxseed, has re-bought its ownership after dairy giant Dean Foods filed for bankruptcy. The move comes after an undisclosed investment from the early-stage food fund Valor Siren Ventures, along with their existing investors.
Dean Foods had become a majority shareholder of Good Karma Foods after making numerous investments in the company since 2017. The 94-year-old traditional milk company saw sales drop steeply in 2019, causing profits to drop by 14% as the trend in consumers ditching dairy for plant-milk continued. Dean had also invested in Uncle Matt’s, an organic juice brand which also regained the majority of stock in its own company after the dairy giant filed for bankruptcy.
Dairy consumption in the United States fell by more than 25% from 2000 to 2018. In Canada, sales of cow milk have fallen by approximately 10% in recent years, while plant-based milk sales have increased by over 60% over the same period. In Great Britain, consumption of cow milk dropped from 79% to 73% for 16-24-year-olds between 2017 – 2018.
Meanwhile, new plant milk categories continue to emerge, with 35 categories of dairy free options ranging from oat, barley and pea milk all the way to cellbased, continuing to surge in popularity. In the US, plant milk is the most developed category, and market studies have shown that consumers are willing to pay double the price for plant milks compared to those of bovine origin, and 25% of Brits now prefer plant-milk.