Organic plant-based dairy alternative company Mooala is targeting growth through the dry shelf with a new line of shelf-stable milks and creamers, launching this month.
The new products include non-perishable versions of the brand’s existing SKUs, including Original Bananamilk, Unsweetened Coconut Oatmilk, and original and vanilla bean versions of its Unsweetened Almondmilk. The milks retail for $4.33 per 1 liter carton while the creamers, available in Banana Nut, Oats ‘n’ Creme and Vanilla Bean flavors, sell for $3.74 per 11 oz. Tetra Pak. The line is currently available at Albertson-Safeway and Central Market stores.
According to founder and CEO Jeff Richards, entering the dry shelf is an opportunity to introduce modernized branding and new flavors to a set that has seen little category innovation over the last decade and that is largely represented by leading companies such as Blue Diamond and Whitewave Foods.
“In years past, the center store has become a less sexy thing,” Richards said. “So it’s been really nice and refreshing to meet with center store buyers and show them how we’re bringing our products there. We’ve had a lot of really positive conversations because it’s a part of the store that’s kind of been lacking for innovation and quality and it’s been home to a lot of the same players for a long time.”
By nature of center store placement, Richards said he anticipates the shelf-stable products will have a lower velocity than Mooala’s refrigerated drinks. However, he said the company will take an “aggressive marketing approach” to promote the line.
Mooala’s core refrigerated line will be available in about 6,500 retail stores nationwide by January, including Wegmans, Whole Foods, Walmart, H-E-B, Costco, Giant, and Kroger. Richards said the company is also in talks to add at least two more “major” chains, expected to be announced in the coming months.
Although he acknowledged that the refrigerated plant-based milk set is highly competitive, with brands often fighting against both dairy and heavily-funded competitors for limited shelf space, Richards noted that Mooala has grown to be the largest all-organic dairy alternative brand in the U.S. Market research firm IRI reported that in the 52-week period ending July 12, Mooala’s almond milks grew 56.3% to over $2.2 million in retail dollar sales, while its products classified as “other” grew 89.5% to over $1.5 million.
Richards said the relative lack of organic options within the plant-based space has been particularly beneficial to Mooala’s growth, giving it a key point of differentiation. He said some competitors have discontinued their own organic products, noting that as a small fraction of the category the cost of production outweighed the benefits.
“If you’re selling half a billion dollars on traditional almond milk, organic may be optional,” he said. “But for us, it’s our bread and butter.”
The launch also opens up one key new channel for Mooala: ecommerce. According to Richards, Mooala previously had no online sales presence but has now launched the new line on Amazon, with the milks available in 6-packs for $25.95 and the creamers in 4-packs for $14.95.
Richards noted that the company’s lack of an ecommerce platform this year caused it to miss out on the increase in online sales that began over the spring. However, as Mooala has expanded its operations to support an expanded retail presence, he said the company will be able to launch shelf stable online at scale.
“We’ve kind of gone about it backwards, we’ve gotten to scale first and now we’re backing into the online portion,” he said, “Our focus certainly will still be brick and mortar retail, but I’m starting to feel like an old man. I keep telling people that I hear you can make money on the internet.”