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Daily news and analysis about the food tech revolution

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Food Tech News: New Asian e-Grocer, Oatly’s pre-IPO Starbucks Rollout

Umamicart, a new Asian e-commerce grocer, launches in NY metro area

This past week, the new Asian e-grocer Umamicart launched in the NY metro area, and its next-day grocery delivery service is now available in New York, New Jersey, Connecticut, Pennsylvania, and Delaware. The platform offers Asian pantry staples, meats, seafood, tofu, fruits, vegetables, snacks, and drinks, with around 500 different grocery items currently listed. Umamicart also sells kits for making different meals like sushi, dumplings, hot-pots, and Mapo tofu. The platform requires a $30 minimum purchase, and orders less than $49.99 will be charged a $6.99 delivery fee.

Photo from Wix Restaurant’s website

Wix Restaurants Acquires SpeedETab to help enhance online restaurant presence

Wix Restaurants (a subsidiary of Wix) is a website builder for restaurants, and this week the company announced its acquisition of SpeedETab, a tool that allows restaurants to integrate online ordering into existing platforms. The addition of SpeedETab will allow restaurants signed up with Wix Restaurants to streamline orders from multiple channels, manage offline and online orders, and integrate various restaurant POS systems.

Photo from Oatly’s website

Oatly rolls out in Starbucks nationwide before IPO

Oatly, producers of oat-based vegan dairy products, announced this week that it had reached a deal with Starbucks to serve its oat milk in all Starbucks throughout the U.S. Starbucks will feature Oatly’s non-dairy oat milk in several new drinks, including the Iced Brown Sugar Oatmilk Shaken Espresso and Honey Oatmilk Latte. Oatly milk will be available on Starbucks ‘ menu year-round, as it is now part of the core menu. Oatly uses a proprietary process to create its oat milk that incorporates certain enzymes to break down finely milled oats, which results in a naturally sweet and creamy non-dairy milk. The company filed for its initial public offering last week, the details of which will be shared with the public in the next few weeks.

Photo from SIMPLIFY The Brewer’s Kickstarter campaign

SIMPLIFY the Brewer launches on Kickstarter

A first glance, the new coffee brewing equipment called SIMPLIFY the Brewer from Bathtub Coffee looks like a transparent pour-over. However, this brewer was meticulously designed by a former professional barista, Ryo John Ito. Other pour-over brewers depend on the coffee “bloom” (splashing a small amount of hot water over grounds to allow the degassing of carbon dioxide) for a good cup of coffee, and the pour-over brewing method often takes three to four minutes to complete. SIMPLIFY the Brewer’s design includes a larger opening for coffee to flow through and minimal contact between the brewer and paper filter. As a result, a strong cup of coffee is brewed in one to two minutes, which is convenient for busy coffee shops. The Kickstarter campaign for the coffee brewer is live, and pledging ¥2,720 (about $26 USD), guarantees a SIMPLIFY the Brewer shipped to you in May 2021.

NotCo’s Milk Alternative Launches in the U.S. Today

Chile-based food tech company NotCo, best known for its alt-protein products, announced today it is launching its plant-based milk alternative in Whole Foods stores across the U.S. These alt-milk products will be available in Whole and Reduced Fat varieties at stores as of today, according to a press release from NotCo sent to The Spoon.

The launch follows an $85 million Series C funding round from September, an investment the company said would help NotCo expand internationally through both retail and restaurant partnerships. Previously, NotCo raised $30 million in 2019 from a pool of investors that included Amazon head honcho Jeff Bezos. The company’s total funding to date is $115 million.

All that funding and expansion aside, the company has undergone some changes in the last year, including having to restructure its business and do layoffs. NotCo also shut down its Santiago-based production plant for its NotMayo product, passing production of that item on to an unnamed third party. Currently, the NotCo website only lists the milk alternative under its products. A spokesperson for the company told The Spoon that the milk products are currently for sale across Latin America.

Like other milk alternatives out there, NotMilk is comprised of a number of plant sources, pea protein being the main one. Pineapple juice concentrate, cabbage juice concentrate, and chicory root fiber are others. NotCo claims that, with these ingredients as well as AI and machine-learning algorithms, it is able to recreate the taste, texture, and mouthfeel of regular ol’ milk. As of today, U.S. consumers can see how it stacks up in terms of those elements to other choices already in grocery stores.

On that note, NotCo joins the likes of Oatly, Take Two, and others that already have plant-based milk alternatives in the U.S. market. Further down the line, all these companies may have to compete with Impossible, which is developing its own milk alternative. Whether other alt-protein heavyweights like Perfect Day and Eat Just ever come to market with milk alternatives remains to be seen. Regardless, NotCo faces more than a little healthy competition when it comes to retail shelves in the U.S.  

Oat Milk Pioneer Oatly Raises $200 Million on $2 Billion Valuation

Oatly, the Swedish company that pioneered the oat milk category back in the 90s and reinvented itself as a global plant-based food brand in 2013, announced today it has received $200 million in funding on a $2 billion valuation led by the Blackstone Group.

The deal is further validation that venture investments in plant-based alternatives is red-hot despite the pandemic. Alt-dairy is especially hot, as Oatly’s funding comes after a $225 series D in Califia Farms, a maker of a variety of alt-milks, back in January.

The company plans to invest the funding in expanding its production capacity and personnel in North America, Europe and Asia. From the release:

The injection of capital will fund the company’s overall growth plans, which include expansion in current markets and new production plants and related jobs in Europe, the United States and Asia. By bringing facilities closer to consumers, the company will make the Oatly product range more readily available to the growing community of health and environmentally conscious consumers worldwide.

Investment in additional production capacity comes on the heels of the launch of the company’s first production plant last year in Millville, New Jersey. That plant, which cost $15 million to build, produces roughly 750 thousand gallons of oat milk base per month which is, apparently, not enough.

The rapid growth in demand for Oatly shouldn’t be surprising. Prior to the addition of the production plant last year, you could find speculators trying to sell 12 packs of Oatly barista edition online in the US for $200. Add in oat milk’s eye-popping growth in 2019 and you can see why investors have put such a high valuation on a company with an almost cult-like following.

In addition to the Blackstone Group, other investors on the round include high profile individual investors like Oprah Winfrey, Natalie Portman, and Howard Schultz as well as Orkila Capital and Rabo Corporate Investments (the investment arm of Rabobank).

The Blackstone Group investment in Oatly is led by Blackstone Growth, an investment vehicle within the private equity group. Blackstone itself is one of the largest private equity firms in the world, owning a diverse array of companies ranging from dating app company Bumble to hotel chains (they own both the Bellagio Resort and Motel 6 budget motel chain) to drug companies like Ferring.

Blackstone’s investment in a sustainable brand like Oatly is a new turn for a company that saw some controversy in 2019 after one of the firm’s investment holdings, a Brazilian logistics operator named Hidrovias do Brasil, was accused of deforesting the Amazon to help make way for a highway into the jungle to access one of the company’s terminals.

SKS 2019: Plant-Based Foods Aren’t Going Anywhere, But Taste is Key

Ask almost anyone in the food space about the biggest trends they’re seeing, and odds are they’ll mention one thing: plant-based. From meat to dairy to eggs, plant-based alternatives to traditional animal products are becoming more and more commonplace — and tasting better and better.

Considering the ubiquity of plant-based dining, we invited a few experts to come speak about the trend at SKS 2019 earlier this month. Author and scientist Dr. PK Newby, Bjorn Oste, co-founder of Oatly, and Daniel Scharff Director of Strategy & Analytics for JUST,  took the SKS 2019 stage to unpack the plant-based dining trend: who’s catalyzing it, what products they want, and why is it gaining so much popularity right now?

If you’re curious about why ‘plant-based’ has suddenly become the buzzword du jour, it’s worth watching the whole video below. Here are a few high-level takeaways from the conversation:

Health is a big driver
There are many reasons that people shift towards a plant-based or flexitarian diet: ethical concerns, environmental motivations, etc. But according to Scharff, health is another big driver. “The number one reason for dietary change isn’t weight loss,” he said. “It’s health.”

Dr. Newby echoed this idea, siting studies which showed that plant-based diets are key to longevity and chronic disease prevention — as well as the health of our planet. Since millennials are motivated by health and sustainability, she said, they’re a primary driver for the adoption of plant-based food.

Mission matters
It may seem like new companies (of Big Food corporations) are popping up every day promising a unique twist on plant-based foods. But according to Oste, companies can’t just slap the term “plant-based” on their products and expect to see a loyal customer base spring up overnight. “Consumers care about companies on a mission that are authentic, transparent, and value-driven,” he said. In short: You can’t just talk the talk. You have to walk the walk, too.

Taste is king
All of our panelists agreed that, while mission and health are key, taste is still king. “Taste will always be first,” said Dr. Newby. “It’s the primary driver.” The others? Cost, followed by convenience. But the overall conclusion was no matter how sustainable, healthy, or affordable a plant-based product is, if it doesn’t taste amazing — it doesn’t have a chance.

Scarff went one step further. He said that animal product alternatives don’t only have to taste great, but also has to look, cook, and eat like the original product. “It has to replicate the experience that they’re used to,” he said, referencing consumers. That’s one of the reasons that JUST is so adamant that they sell their plant-based egg next to actual egg cartons in the grocery store.

Dr. Newby finished her talk with a bold claim. “The future is absolutely meatless,” she said. It’s too early to say if her prediction is correct, but there’s one thing we can be sure of: the plant-based revolution is here now, and it doesn’t look like it’s going anywhere anytime soon.

If you want to hear the full conversation, check out the video below.

SKS 2019: The Plant-based Revolution

I Tried Oatly’s New Oat Milk Ice Cream, Headed to Your Freezer Aisle This Fall

As someone who is lactose intolerant I try to limit my dairy intake, but the absolute hardest thing for me to say “no” to is real ice cream. Especially since most plant-based options out there aren’t great.

But this week I was able to give a new milk-free ‘scream a try when Oatly sent me a shipment of its new plant-based ice cream made from its signature oat milk.

For those who aren’t familiar with Oatly, check your hippest neighborhood coffee shop — odds are they’ll have a pint of the stuff next to the espresso machine. Swedish company Oatly helped to catalyze America’s oat milk obsession when it came stateside in 2016.

Now, oat milk is one of the most popular alternative milks out there, attracting droves of fans with its creamy texture and neutral flavor. In fact, Oatly is so popular in the U.S. that recently it has been hard to keep in stock. To combat production issues the company just opened a new production facility in New Jersey and already has plans for another one to open next year in Utah.

In the U.K. and Europe, Oatly is already capitalizing off its popularity to create new products — such as savory spreads, yogurt, and ice cream — featuring its oat milk. Now it’s slowly releasing those products in the U.S., starting with ice cream.

Oatly gave American consumers a first taste of its dairy-free ‘scream earlier this summer with a roaming ice cream truck in Southern California. According to an email from Oatly, their ice cream is now available at small bodegas, Wegmans stores, and through FreshDirect in NYC. It will start rolling out to Whole Foods nationwide this fall. A pint will put you back $5.99, which isn’t especially cheap but is certainly in line with other non-dairy options from Ben & Jerry’s, Haagen-Dazs, and more (though more expensive than most regular ice cream).

Photo: Catherine Lamb

So how did Oatly ice cream taste? Creamy, smooth and rich — though it wouldn’t fool me into thinking it’s real ice cream. The texture is thick and scoopable, and significantly better than other alternative milk ice creams I’ve tried, even other oat-based ones. But the flavor is a bit off.

First of all, it was a lot less sweet than most ice creams I’m used to, which might be a pro for some people but didn’t quite hit the mark for me (I added chocolate sauce to hit my sugar high). In fact, Oatly ice cream has 18 grams of sugar per 2/3 cup serving, which is significantly below the sugar in an equivalent amount of Haagen Dazs (29 grams) or Ben & Jerry’s (31 grams), my typical ice cream picks. It’s also significantly lower in calories and protein.

Unsurprisingly, Oatly’s ice cream also carries the distinct taste of oat. That’s probably why my favorite flavor of the bunch was the Oat one, which leaned into that oatiness instead of trying to cover it up like the mint or strawberry flavors do, with varied success.

Photo: Catherine Lamb

My other qualm was a slightly off-putting thickness to the ice cream that left my tongue feeling coated after I ate it. That’s likely due to the coconut oil and rapeseed oil added to the oat milk to give the ice cream a creamy texture. Oatly also uses several types of gum to stabilize and thicken the product — which actually make the product scoop and melt very similarly to real ice cream. Bonus: One time I accidentally left a pint of Oatly out on my counter for a few hours and stuck it back in the freezer, after which the texture was largely unaffected.

Photo: Oatly.

It’s an opportune time for Oatly to expand the footprint of its plant-based ice cream. People are screaming for dairy-free ice cream: According to Future Market Insights, the alternative ice cream market is projected to reach more than $620 million by 2027. And while it seems like there are new plant-based pints every time I walk by the freezer aisle, the brand recognition Oatly has built up through milk sales will help it stand out from the competition.

Overall, I would definitely buy Oatly ice cream at the grocery store, especially if I was planning to dress it up with toppings or use it to melt on top of a pie or fruit crisp.

However, once Perfect Day brings its flora-based ice cream (lactose-free!) to market, all bets are off. I know it’s not really fair: Perfect Day’s ice cream is made with real dairy proteins so it tastes exactly like the real thing, whereas Oatly has the heavy lift of transforming oats into a totally new product. Perfect Day’s ‘scream is also significantly more expensive than Oatly right now — almost four times as much — so that could deter curious consumers until it gets its cost down.

But when it comes to ice cream, the heart — er, stomach — wants what it wants. And mine isn’t quite satisfied by Oatly. But that won’t stop me from gladly polishing off the pints in my freezer.

Oatly Brought the Oat Milk Craze to America. Now They’re Hustling Not to Lose Their Grip

Chances are if you’re going to a fancy coffee shop, you’ll have the option to swap the cow’s milk in your latte for almond, soy, or oat milk.

If you haven’t heard of the last option, you’re kind of behind the times (don’t worry, that was me until recently). Oat milk is on a path to soon usurp almond milk as the top alterna-milk in coffee shops around the U.S. According to Nielsen, oat milk sales grew by 50 percent from 2017 to 2018, while almond milk sales grew only 11 percent.

Oat milk lovers can thank one company in particular for kickstarting the oat milk craze to the U.S. Ironically, they’re from Sweden.

Founded in 1994 in Malmo, Oatly was developed by brothers Bjorn and Rickard Oste, who were looking for a sustainable alternative to dairy milk. They began experimenting with oats and later patented their oat milk production process. In 2001 they launched a consumer-facing brand.

Oatly may have been around quite a while, but recently it has been experiencing meteoric growth. When I spoke to Bjorn Oste on the phone (who’s now on the board of Oatly’s parent company), he told me it took the company 18 years to reach a billion kronor (~$104 million) in sales. In the past year, they’ve doubled that number.

Oatly’s sales really started to climb when they made their way into the U.S. in 2016. They originally started out in coffee shops, but now their business is split 50/50 between cafés and retail. Oatly products are now in over U.S. 1,500 grocery stores including Whole Foods and Target. It’s also in over 2,500 coffee shops.

Unsurprisingly, Oatly’s explosive uptick in sales has brought its fair share of problems. The company is currently struggling with product shortages. To address this demand, Oatly — which is so secretive about its technology it doesn’t like to outsource production to copackers — recently cut the ribbon on a plant in New Jersey: its first in the U.S. They’re already building another plant in Utah set to open early next year.

“When we launched [in the U.S.] it was very hard to predict growth,” said Oste. “It’s been a shocking reception.” In fact, Oste told me that the non-dairy market is actually bigger here than in Oatly’s native Europe.

Photo: Oatly.

Oatly’s entrance into the U.S. was also strategically timed to take advantage of the growing alternative protein market. “We’re seeing a paradigm shift towards plant-based consumption,” Mike Messersmith, General Manager of Oatly, told me over the phone. He explained that Oatly waited to enter the U.S. until they thought that the market was strong enough to support their product.

And strong it is. Nielsen data indicates that sales of plant-based milk beverages rose 9 percent in 2017-18 and took in $1.6 billion. This growth is driven by flexitarians who are eschewing dairy milk for health or environmental reasons. Oatly is lactose-free and also friendly for those with nut allergies. It’s also markedly more sustainable than dairy from a cow and also takes much less water than almond milk, which attracts ethically-motivated Gen Z and millennial consumers.

As always in the alternative protein space, taste is king. A product can be sustainable as all get out, but if it doesn’t taste delicious in your coffee or poured over your cereal, it’s not going to make it. “Customers want to choose plant-based options without feeling like they’re compromising,” Messersmith said. With its creamy, latté art-friendly milk, Oatly seems to have nailed the taste and texture aspects.

Other companies are quickly trying to cash in on oat milk’s popularity. PepsiCo launched its own line of the beverage through Quaker Oats, and major brands like Califia Farms are also selling the oaty drink.

I haven’t taste tested every oat milk out there, but judging purely from what I’ve seen Oatly truly does seem to have at least the coffee shop market cornered (when it’s in stock). According to Oste, they have an advantage because unlike other companies, they have complete control of the entire production system. They even have founded a company which creates new non-GMO oat varieties that have higher protein and fat contents.

Oatly doesn’t seem to have any interest in making an “Almondly” or “Soyly,” either. Oste told me that over the years retailers had asked them to expand their repertoire and branch out into other milk alternatives, but he wasn’t tempted. “Pretty much anyone can make soy or almond milk,” he said. But when it comes to oat milk, “[we] own the space.”

For now, that might be true. Now Oatly has to ramp up production to maintain customer loyalty. With their first U.S. factory newly up and running and their second underway, it seems like they’ll be able to.

Next up, Oste hinted that the company might bring some of their other oat-filled products — like ice cream, savory spreads, and heavy cream — to the U.S. With the dairy-free ice cream market alone projected to hit $1 billion by 2024, I’d say that’s a pretty smart move.