The Disruptive Potential of Alternative Dairy

The dairy industry is undergoing significant changes due to the rise of alternative dairy products. Gerrit Suhlmann from Bright Green Partners highlights challenges for traditional dairy, including low margins, price volatility, and a growing consumer shift towards plant-based and fermented alternatives.

Innovations in Alternative Dairy

• Time-travelling Milkman: This start-up focuses on enhancing creaminess in plant-based products by developing sustainable fats from EU-grown sunflower seeds, aiming to replace less sustainable options like coconut and palm oils.
• Those Vegan Cowboys: Founded by entrepreneurs behind The Vegetarian Butcher, this company is working on producing caseins through fermentation to create vegan cheeses that replicate traditional dairy cheese qualities.

Strategies for Traditional Dairy Companies

Suhlmann outlines five potential responses for conventional dairy businesses:

1. Neglect the trend: Continue operations without changes.
2. Adapt within traditional dairy: Focus on segments less affected by alternatives.
3. Invest in start-ups: Support alternative dairy ventures as a form of portfolio diversification.
4. Establish separate plant-based units: Create dedicated divisions for alternative products.
5. Transform core business: Fully integrate alternative dairy into the main business model.

Success in the evolving market will depend on:

• Technological expertise: Understanding and leveraging new production methods.
• Production and distribution capabilities: Utilizing existing networks to scale alternative products.
• Branding: Developing new brands that resonate with consumers seeking sustainable and healthy options, rather than rebranding existing traditional products.

For more detailed information, you can read the full article here: FoodNavigator.com.