Aiming to create a better-for-you version of a nostalgic childhood staple, Boston-based Slate Milk is tackling the RTD dairy space with a new line of chocolate milks positioned to serve either as a functional protein recovery drink or as a sweet indulgence, depending on the use occasion.
Founded in 2018 by Northeastern University graduates Manny Lubin and Josh Belinsky, Slate produces ultra-filtered, lactose-free chocolate milks targeted at adults. The line comes in Classic, Dark Chocolate and Espresso varieties. Each flavor is shelf-stable and contains 120-130 calories, 17 grams of protein and 9 grams of sugar per 11 oz. can. Espresso also contains 150 mg of caffeine. The line retails for $2.99-$3.99 per unit.
“I had always had this idea for a well-branded, lactose-free chocolate milk for adults, because it’s really a great drink,” Lubin said. “You’ve got your protein in there, it tastes delicious, but everything on the market was high in sugar and meant for kids.”
Slate launched in the Whole Foods North Atlantic region in November and is currently available in about 400 stores nationwide, including Central Market, Roche Bros., and chainwide at Harris Teeter as well as online direct-to-consumer and through Amazon. Primarily focused on the grocery channel, Lubin said the brand was also sold in vending machines and mom-and-pop gyms in the greater Boston area, though that part of the business has been disrupted due to the COVID-19 pandemic.
The company has raised $800,000 to date, including a $50,000 Kickstarter crowdsource campaign and funding from angel investors such as SM Klane Company founder Stu Klane, whom Lubin said has helped to craft the brand’s grocery strategy. Slate has also brought on a team of advisors including SPAR Group chairman Art Drogue, Grillo’s COO Adam Kaufmann, former Nutpods director of sales Mike Barone and former Whole Foods North Atlantic region president Laura Derba.
Lubin and Belinsky also appeared this week on the reality TV series Shark Tank, though the brand did not receive an investment and was poorly reviewed by the panel of investors, which included CAVU Venture Partners co-founder Rohan Oza. However, Lubin said the episode — which was filmed in June 2019 when the brand was pre-launch — was a learning experience and Slate has since reformulated its product line based on the feedback.
“Timing is everything and unfortunately at that time the grocery partners we work with now we were still in conversations with but we weren’t far enough along to feel comfortable saying that, so it was an odd timing for us,” Lubin said. “Now we’ve sold probably 200,000 cans since the show was filmed.”
Though overall dairy milk sales have been in decline as plant-based alternatives rise, Lubin noted that lactose-free and ultra-filtered dairy milks have grown over the past several years. Most notable is Coca-Cola-backed ultra-filtered milk brand Fairlife which, according to market research firm IRI, reported 10.5% dollar sales growth to $107.8 million for its flavored milk lines in the 52-week period ending March 22. Additionally, Fairlife’s lowfat milks grew 18.8% to $212 million and whole milk grew 21.4% to $82 million in the same period. In April, Seattle-based dairy producer Darigold announced it invested $67 million into plant upgrades to support the growth of its ultra-filtered brand FIT.
Lubin noted that since Slate launched, he has noticed increasing competition from other startup dairy milk brands also embracing functionality and ultra-filtered processing. However, he said that Slate’s focus on chocolate flavors, aluminum can format and shelf stability give the brand key points of differentiation.
“When people think of Slate we want them to think of sports, fitness, [lifestyle brands like] SoulCycle and Lululemon, and we’re just organically morphing towards that kind of brand based on the people who are consuming the product and when they’re consuming it,” he said.