Fake Milk, Real Money (Morning Brew)

BEVERAGE Fake Milk, Real Money

Califia Farms

Almond and oat milk producer Califia Farms has raised $225 million to expand its plant-based milk offerings and stop people from saying “melk.” Califia’s Series D punctuates a string of recent and upcoming fundraises for non-milk milk makers including Mooala and Eclipse Foods. Investors are going all-in on dairy alternatives because, excuse us for saying, cow’s milk has about the investment opportunity of a $47 billion coworking company. Annual cow’s milk sales fell to about $12 billion in 2019 from $15 billion four years earlier. Two of the largest U.S. dairy producers, Dean Foods and Borden Dairy Co., filed for bankruptcy protection in the last two months. Almond milk sales, on the other hand, climbed almost 6% to $1.4 billion in 2019, while oat milk sales surged 662% to $59.8 million, per Nielsen.  Zoom out: Investors are trying to recreate the magic of Beyond Meat, the first real commercial success among plant-based food alternatives. Shares are up almost 370% since Beyond’s May IPO.