Business

Nestlé Challenges Autory with Pea Milk Brand

Nestlé is undertaking Oatly in Europe with the launch of the pea milk brand Wunda in a lagging play by the world’s largest food company over its $ 17 billion plant-based dairy market share.

The rare creation of a new brand by Nestlé will be made possible by China Resources-backed oat milk maker Oats, which will demand a valuation of $ 10 billion in the future. Initial public offering At the Nasdaq Exchange in New York.

Nestlé is expanding its meat alternatives, but is relatively behind the plant-based dairy market driven by consumer desire for environmentally friendly products and their perceived health benefits. ..

“I think plant-based foods and drinks are really growing and very structural,” said Cedric Bame, head of dairy products in Europe, the Middle East and North Africa at Nestlé. ..

Developed by Nestlé researchers and made from yellow peas, Wunda will first be launched in France, the Netherlands and Portugal, primarily through retailers, with the aim of expanding into more European markets.

While this product line is Nestlé’s first global plant-based dairy brand, Brazil offers Nestlé-branded vegetable milk and plant-based beverages such as Milo and Nesquik.

According to the group, in addition to the original recipe containing sunflower oil to help mix sugar and ingredients for flavors, the Wunda series includes a sugar-free version and a chocolate version in addition to the “barista” version for coffee. I will.

Nestlé has chosen to use yellow peas instead of the more popular almonds, oats and soybeans. This product claims to have a high protein content and versatility for use in drinks and cereals.

Existing pea milk, including products made by California-based Ripple and UK-based Mighty Pee, has received a variety of reviews, including dissatisfaction with the taste of legumes.

Nestlé will catch up with other plant-based milk brands on the market.

French rival Danone, which owns the Alpro and Silk brands, sold € 2.2 billion in plant-based alternative dairy products in 2020, up from € 1.9 billion in the previous year. This year, we acquired the US-based Earth Island, the manufacturer of Follow Your Heartvegan. Mayonnaise and spreads.

Autory, Global revenues based in Malmö, Sweden were $ 421 million last year, with Europe, the Middle East and Africa accounting for $ 302 million.

Carton of oat milk drinks poured into Glad

Oatly’s global revenue last year was $ 421 million, seeking an IPO valuation of $ 10 billion © Charlie Bibby / FT

Nestlé itself said it sold CHF 100 million ($ 109 million) plant-based meat substitutes in 2020 and CHF 200 million meat substitutes under brands such as Garden Gourmet and Sweet Earth. The company’s total sales were CHF84.3 billion.

“The prices are very high. Many M & As have a kind of boom,” Böhm said, while Nestlé was considering buying a plant-based dairy brand.

He said the Swiss group is looking forward to further growth in the plant-based dairy market. “We do not go [into this market] If we didn’t believe we were in a position to win, “he said, adding that Wunda could extend beyond pea-based products.

In Western Europe, North America and Australasia, soymilk consumption has stagnated, but sales of other vegetable milks such as almonds and oats have skyrocketed in double digits, except for the last decade. According to Euromonitor data, sales in 2020 increased by about 20% to $ 4.4 billion.

Nestlé puts sustainability at the forefront of the Wunda brand, and its carbon footprint is certified by the Advisory Group’s Carbon Trust.

According to the Agricultural and Horticultural Development Commission, Wunda Original is equivalent to 0.58 kg of carbon dioxide per liter, while Oatly Barista is 0.44 kg per liter and milk produced in the UK is about 1.25 kg per liter.

Nestlé said Wanda will be carbon neutral. The Cambodian Forest Conservation Project will offset emissions equivalent to more than 2,500 tonnage of carbon dioxide in 2021 and offset emissions that cannot be eliminated.

Nestlé Challenges Autory with Pea Milk Brand

Source link Nestlé Challenges Autory with Pea Milk Brand

Back to top button