Malk Organics Closes $9 Million Series B To Grow Premium Plant Milk With ‘A Significant Upward Trajectory’

Food & Drink

Malk Organics, a super premium plant-based milk producer, has raised more than $9 million in a series B round led by Benvolio Group and its previous investor Rotor Capital, bringing its total financing to-date to nearly $17 million.

The announcement follows the company’s rapid expansion for its line of unsweetened, flavored almond and oat milks, as well as its recent launch of chocolate oat variety currently rolling out nationwide in retailers, including Whole Foods and Sprouts.

Managing Partner of Benvolio Group, Sam Frankfort, who’s an early investor of BodyArmor (acquired by Coca-Cola
in 2021), said: “We are extremely bullish about Malk’s growth prospects, because not only is the product highly differentiated in a growing on-trend category, but the seasoned team in place has delivered exceptional results in 2022 and has a strong plan to accelerate future revenue and achieve profitability.”

Rich Keller, Managing Partner of Rotor Capital, added: “Over the past 12 months, the Malk team has built a strong foundation by pioneering the premium plant-based milk segment, cultivating existing and new retail customer relationships, and attracting a dedicated, passionate team. We are excited to continue to support their journey to helping MALK achieve its greatest potential.”

Jason Bronstad, who joined Malk as CEO in 2020, believes both lead investors are strategically equipped with expertise in scaling healthy foods and activating retail concepts, and will help elevate the company to a new level.

“The experiences they have really allow us to think differently than traditional CPG, and they can help make sure Malk is available to consumers,” Bronstad recently said during an exclusive interview. A key part of the plan is to increase marketing spend and hire additional executives as Malk prepares for its upcoming launch in Publix and a new almond chocolate milk.

“It all comes down to people, and I’ve had the opportunity to build a high-caliber team, bringing in extremely strong head of finance and head of marketing,” Bronstad said. He notes how Malk has proven to be a flexible products catering to both natural and conventional shoppers.

Bronstad added: “We’re already in multiple Kroger
divisions, and we’re going into all Publix stores around the first quarter [of 2023], so consumers in the Southeast can have a new opportunity to add Malk to their diets.”

‘Cleanest Premium’ Product Made Sustainably

The milk alternatives category has enjoyed steady growth over the years thanks to its halo around versatility and sustainability. IRI indicated how sales of dairy-free and lactose-free products have returned to the pre-pandemic period, and both sectors have grown 14.9% and 12.7% in annual revenue, respectively, as of October 2021.

Global conservation organization, World Wildlife (WWF), also revealed how traditional dairy production causes significant damage on the environment, and notably, 144 gallons of water is required to produce one gallon of milk. While water footprint of one California almond has averaged 3.2 gallons, one study showed, Malk’s farms use even less water by 20-25%, according to Bronstad.

“So 80% of the world’s almonds are grown in California,” he said, “we have some incredible partners in the state who invest in their own lands, ensuring their organic orchards to avoid pesticides or herbicides.”

The goal for Malk is to become the “cleanest premium organic” plant-based milk on the market, Bronstad mentioned, as the product is also free from gums, fillers, and glyphosate, while providing smooth texture that mimics regular milk.

“Traditional dairy is still significantly [larger] in size compared to plant-based, but we’re excited as consumers continued to explore and give trial to the segment,” Bronstad said. “we anticipate the entire category will continue to grow with a significant upward trajectory, and we believe Malk will be leading that trajectory as we move forward.”

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