The dairy industry is among the most environmentally unsustainable sectors due to its contribution to greenhouse emissions, notably the releases of methane and degradation of biodiversity and water resources. However, the latest biotechnological advances are looking to improve the sector's green credentials with the introduction of cell-based milk. Turtle Tree Labs is one startup creating cell-based milk, which promises milk products from cells grown in the lab. The startup produces milk from mammary cells grown in the lab and produces milk in bioreactors. Cell-based milk is a niche sector that could eat into the $871 billion global dairy sector. Meanwhile, the global plant-based milk market is continuing to gain steam, hitting nearly $39 billion in 2022. The market is projected to rise at a CAGR of 15.5% to reach $123.2 billion by 2029, creating an opportunity for companies like The Planting Hope Company Inc., The Hain Celestial Group, Inc., Oatly Group AB, SunOpta Inc and Danone.
The Planting Hope Company Inc is a company that develops cutting edge plant-based food and beverages that are distributed in retailers across the United States and Canada, including Whole Foods Market, Sprouts Farmers Market and Amazon. Planting Hope has cracked the code on developing a plant-based milk from sesame seeds that it claims is nutritionally comparable to dairy milk with 8g of complete protein per serving and uses 95% less water than almond milk. The company spent more than five years investing in R&D formulation and processing, including two years on its Barista product, that is getting placement in cafes, and is the only company globally producing a commercialized sesame milk of this kind.
On November 8, The Planting Hope Company announced that its Hope and Sesame® Sesamemilk products will be launching in 382 Loblaw stores across Canada in November 2022.
After making a commitment in Q2 2022 to launch the top items in its Hope and Sesame®, Mozaics™, and RightRice® brands in Canadian-compliant dual-language packaging, Planting Hope produced the first production runs of these products in Canadian-compliant packaging in the third quarter. Now, the company will be launching three shelf-stable Hope and Sesame® SKUs (Barista Blend Sesamemilk, Original Sesamemilk, and Unsweetened Original Sesamemilk) in Canadian-compliant packaging across 382 stores, which represents 1,146 new Total Distribution Points in Loblaw locations.
"As a plant-based food and beverage company headquartered in Canada and listed on the TSX Venture Exchange, entering with our flagship Hope and Sesame® brand is an important milestone for Planting Hope. Loblaw has always taken an innovative approach to the grocery experience and expects the same from its brand partners," said Julia Stamberger, CEO and Co-founder of Planting Hope. "Hope and Sesame® has brought important breakthrough innovation to plant-based milk, opening a whole new category, sesame milk, that unlocks the dense nutrition of the extremely sustainable and planet-friendly sesame seed. We're very excited to bring our innovative Sesamemilk line, in our eye-grabbing, colorful new dual-language packaging, to Canadian consumers with Loblaw."
In September, The Planting Hope Company announced that its Hope and Sesame® Sesamemilk is now available at Kroger stores nationwide across multiple retailer banners. The company also added top New York City area foodservice distributor Baldor Specialty Foods, as well as increased visibility to the trade and consumers through events, new distribution, and in-store placements.
Since the beginning of 2022, the company has continued to effectively execute on its business plan, including expanding core products in key channels, and setting up new products and distribution that will achieve scale in 2023. Since January, The Planting Hope Company has added more than 3,700 new grocery retail doors and more than 9,600 new total distribution points (TDP) in key retailers, including Loblaws, Whole Foods, Sprouts Farmers Market, Safeway, Fresh Thyme Market and many others. Aggregate grocery retail TDP is now over 50,000 placements across product lines and brands.
The Hain Celestial Group, Inc. reported in fiscal 2022 net sales of $457.0 million, a 1.4% increase from the prior year. Net income was $3.0 million, down from $40.5 million the previous year. Adjusted earnings per share amounted to $0.08, compared to $0.39 in the last year. For fiscal 2023, Hain Celestial anticipates a -1% to +4% increase in adjusted net sales and adjusted EBITDA on a constant currency basis over the prior year, driven by building momentum in North America, price hikes in 2023, a strong productivity pipeline, as well as an uncertain but improving retail situation in the U.K.
Oatly Group AB announced the global premiere of its original YouTube cookery show, "Will It Swap?" The four-episode series, produced and conceived by Oatly, brings together a cast of unusual and delightful personalities and challenges them to substitute Oatly for dairy in their time-honored and beloved recipes. The series examines the culinary potential of Oatly's oat beverages, oatgurts, and other oat-based goods, taking them to the cooktop and oven as consumers become more interested in and embrace the plant-based movement. According to a recent omnibus study performed for Oatly, 71% of Americans would consider substituting plant-based products for dairy when cooking or baking. However, in the same survey, 53% of respondents mentioned taste as a reason for their hesitation to give it a try. "Will It Swap?" is filled with skepticism and fun before revealing that most dishes, when swapped, turn out equally as wonderful.
SunOpta Inc. investments in expanding plant-based capacity continue to yield rewards. According to CEO Joe Ennen, the company's improved capacity to meet increased demand for dairy-free choices contributed to one of its best quarters in history.
Milk substitute sales increased by 30%, accounting for two-thirds of the company's plant-based business. The company's branded business increased by nearly 40% year over year, with sales of Dream and Sown beverages nearly doubling as distribution expanded. Plant-based food and beverage sales increased 31% to $146 million from $111 million, marking the segment's 15th consecutive quarter of sales growth. Volume accounted for more than half of revenue growth, with volume/mix increasing by 17 percentage points and pricing increasing by 14 percentage points. SunOpta has increased capacity at its oat processing facility in Minnesota and its beverage production facility in Pennsylvania through a series of major expansion projects. As part of its new corporate headquarters, the business launched a new pilot plant and innovation center in April.
Danone has chosen to begin the process of transferring effective ownership of its Essential Dairy and Plant-based (EDP) business in Russia. Danone believes this is the best alternative for ensuring long-term local business continuity for its employees, customers, and partners. During the first nine months of 2022, the EDP Russia business represented approximately 5% of Danone net sales and diluted Danone's like-for-like sales growth and recurring operating margin. The purchase could result in a write-off of up to €1 billion. The acquisition, subject to regulatory approval, will result in the deconsolidation of Danone's EDP Russia business. Throughout the process, Danone's objective remains to operate ethically and professionally toward its local employees, customers, and partners.