Dive Brief:
- Cottage cheese startup Good Culture has closed an additional round of strategic funding, according to an article in Food Business News.
- Existing investors CAVU Venture Partners and 301 Inc. led the $3 million round in addition to a new investment from the Eisner family via Anders Eisner, Good Culture's co-founder and chairman of the board.
- CAVU and 301 Inc. already invested $2.1 million strategic funding in March.
Dive Insight:
Investors recognize the brand's potential for growth thanks to its better-for-you ingredients and ability to disrupt the dairy category. Good Culture uses organic whole milk from pasture-raised, grass-fed cows, and its products contain no stabilizers or additives. Simple and indulgent dairy ingredients are becoming more in demand, so Good Culture's alignment with that trend is one positive investors can count on.
But the dairy category is also primed for innovation and disruption. Plant-based dairy has challenged conventional dairy producers as certain consumer groups began avoiding cows' milk for health-related reasons. Even within its own segment, micro-dairies are also eating away at major manufacturers' unit sales.
Premium dairy products are one solution manufacturers have pursued to turn around lagging sales, such as ice cream. But cottage cheese is another option that offers more health benefits while still being versatile enough for flavor innovations like Good Culture's strawberry chia, blueberry acai chia, sun-dried tomato and kalamata olive.