Fueled by widespread acceptance for both almond and oat milks, plant-based milk continues to scale at a healthy clip, expanding dollar sales 9.1% through January 23, according to data from IRI. And after scoring a recent big win from the FDA, the segment is poised to continue putting up big growth numbers in 2023. Ahead of Expo West next week, here’s a look at what to expect in plant based milks.
MALK Leads Clean Ingredient Charge, But Others Coming
Texas-based MALK (N710) has long touted its clean ingredient list as its chief post of differentiation, and it doesn’t plan on losing hard-earned ground to competitors that have caught up.
Maybe a few years ago, as almond milk took over grocery coolers and Oatly was helping seed oat milk’s boom at coffee shops nationwide, consumers might have overlooked some of the additional ingredients used in their favorite plant-based milks: browse the back labels of products from some major brands and you’ll find a litany of gums, oils, fillers and binders. But as the space has expanded and options have proliferated, MALK’s unique positioning has helped give the brand a stronger story and message, which it recently began promoting in earnest via the release of a new 30-second commercial running on Amazon Prime, Hulu, YouTube TV and other streaming services in select Florida metro markets.
The advertisement is timed to align with a concerted move beyond natural and into broader conventional grocery distribution. Sensing a shift in the market, the company announced last month it is entering coolers in all 1,300 Publix locations across the Southeast for its Unsweetened Almond, Vanilla Almond, and Oat Original varieties. At this year’s Expo West, the focus will be on product innovation that brings them further into the mainstream — the latest SKU is Chocolate Almond, complementing the previously released Chocolate Oat.
“It’s ensuring that we have product offerings to meet consumers where they are,” explained MALK CEO Jason Bronstad in a call last week.
It’s also putting the brand in stores where its premium positioning and refrigerated-only product make it stand out even more amidst the set. Against the backdrop of a report showing how inflation is pushing consumers to increasingly prioritize price and value over immunity benefits when making shopping decisions, effectively communicating how and why MALK is better than its rivals will be critical.
“We know that not every consumer in America has the resources to buy the premium brand in any segment,” Bronstad acknowledged. “But those that do, we want to make sure that they have the best option available.”
MALK’s advantage as a clean-label brand in the category, however, may be becoming less unique. At the show next week, one of the category’s biggest players, Califia Farms (931), will showcase recently unveiled organic-certified versions of its oat milk ($6.49) and almond milk ($5.99 MSRP) in 48 oz. bottles, each of which contain just three ingredients (purified water, sea salt, and organic oats or almonds).
A brand rep described that pair as a “massive launch” for Califia this year, though its Expo booth will also highlight oat milk innovation in indulgent flavors — Chocolate Oat Milk, priced $5.49 per 48 oz. bottle — and the ever-growing barista milk segment (more below) via Vanilla Barista Oat Milk. The company has also added 72 oz. versions of Unsweetened Almondmilk and Extra Creamy Oatmilk (each $6.69 MSRP), bumped up from the existing 48 oz. bottles.
Barista Milks Still Bubbling
Oat milk’s journey from niche curiosity to grocery essential was paved in part by baristas. From behind the espresso bar, coffee specialists served as de facto brand reps introducing names like Oatly (665) and Califia to consumers and creating an intuitive use occasion and story for a new product category that was just arriving at retail. It’s worked so well, in fact, that there’s no reason to not keep going.
In other words, expect to see plenty of barista-centric products from plant-based milk brands at this year’s Expo West. While RISE Brewing Co. (5721) has marketed its organic oat milks in cartons for several years, including in flavors like vanilla and chocolate, it only recently made the jump into a proper barista edition product. But there’s also innovation happening outside of oat milk: see nut milk specialists Elmhurst (577), which will be sharing samples of its new Maple Walnut Barista Edition (SRP $6.99) at the show as they launch nationwide at Sprouts Farmers Market stores this month. There’s also Vita Coco (413), which quietly debuted its Barista MLK (coconut water and coconut cream) exclusively at cafe chain Alfred Coffee in January.
Minor Figures (N215) has made barista-approved products a focus since the British brand launched in the U.S. in 2020, offering its flagship oat milk in cartons and in its RTD coffee drinks. This month the company is expanding distribution of its Organic Barista and Light Barista oat milks to seven Whole Food regions: Mid-Atlantic South (including Florida), Northeast, North Atlantic (including New York), Rocky Mountain and Northern California.
There are various reasons why the barista segment has remained strong for plant-based milks, according to Melissa Hauser, GM of North America for Minor Figures. She cited a rising vegan population and increase in animal rights organizations and awareness as two factors, though it may be even simpler than that. Coffee and milk, dairy or otherwise, has always been a winning pair, and offering a product specific to that audience and use occasion will likely always be a smart play.
For Minor Figures specifically, it has allowed the brand to create partnerships like its three-month pop-up cafe at Venice Beach natural grocer PlantX Market, where it’s serving oat milk coffee beverages from a selection of local roasters.
“We seek to engage in deep and meaningful ways by providing ongoing training support and offering unique tools that not only uplift the experience for our coffee partners but also enhance the coffee community by creating meaningful and thoughtful programming within the cafe channel,” Hauser said.
Stepping In, Stepping Out
After getting off to a rough start, plant-based milks are starting to play nicer with their dairy counterparts. The FDA’s aforementioned signaling of its intent to settle a long simmering debate over whether non-dairy brands are allowed to use “milk” on product labels (yes, they can) offers hope, while blends from Silk and Live Real Farms tease a potential hybridization of the fluid milk category. And as Chobani (721) has shown, there’s room to play on both sides of the divide.
Against that backdrop, a handful of plant-based brands will be showcasing products at Expo West that take them into new spaces and broaden their respective identities. For creamer brand nutpods (N1436), which has carefully built a profitable business in retail after starting exclusively online, that means making the bold jump into its first-ever RTD product: Creamy Cold Brew, available in Classic and Vanilla Caramel flavors in 32 oz. cartons ($5.99) starting in late March at Sprouts and launching on Amazon Fresh later this summer. Classic is unsweetened, while Vanilla Caramel — representing a blend of nutpods’ two most popular creamer flavors — contains zero sugar and uses a blend of natural sweeteners.
Going the other way is Nestle (527), which is taking its Natural Bliss coffee creamers brand into oat milk starting in May. Each 64 oz. carton, available in original or unsweetened, contains 5 grams of protein per serving. Elsewhere, another one of oat milk’s heavy hitters, Planet Oat (#5757), will be showcasing two new seasonal creamers at its booth.