- NadaMoo, the maker of dairy-free frozen desserts, has received $4 million in investment financing from Canadian-based InvestEco Capital, the company said in a statement.
- The Austin, Texas-based firm plans to use the funding to expand its retail distribution, develop its product line outside of frozen desserts and hire more staff at its headquarters.
- NadaMoo chief executive Daniel Nicholson says the company's revenue increased six-fold in 2017, compared with 2015, according to Food Navigator.
With a $4 million infusion, NadaMoo will increase retail distribution of its plant-based treats next year to meet consumer demand for low calorie, dairy-free options in the frozen dessert aisle.
Featuring flavors including Lotta Mint Chip, Chocolate Almond Chip and Java Crunch made with organic coconut milk and free of eggs and sugar, NadaMoo launched in 2005 at Whole Foods Market. Now, its frozen deserts featuring nut milks can also be found on the shelves at conventional grocery stores, including H-E-B and Sprouts.
“We have real confidence now because we had success in a difficult category dominated by some very big names," NadaMoo chief executive Daniel Nicholson told Food Navigator.
NadaMoo is benefiting as consumers eat more plant-based products. According to HealthFocus data, 17% of U.S. consumers eat a predominately plant-based diet, and 60% claim to be reducing their consumption of meat-based products. Of those consumers who are cutting down on their intake of animal proteins, 55% say the change is permanent.
The funding from Canadian-based InvestEco, which says it invests in food companies that focus on health and sustainability, will help the 12-year-old NadaMoo compete with start-up frozen dessert makers. A growing number of companies are offering pints of non-dairy, low calorie and high protein options, not to mention the traditional milk-based ice cream makers who have been adding products to keep existing customers.
Halo Top, which took the title of #1 selling pint of ice cream in the U.S., beating out iconic brands like Ben & Jerry’s and Breyers, is now going after consumers who don't want dairy or eggs. The upstart has introduced a new line of low-calorie ice cream flavors that are both non-dairy and vegan-friendly.
"The number one request that we get from our fans is to make a non-dairy and vegan-friendly version of Halo Top,” said Justin Woolverton, founder of Halo Top, told Food Bev. “It took a long time to get it right, but we’re absolutely thrilled with the outcome and can’t wait for our fans to try these flavors."
Halo Top and NadaMoo are not alone is branching out with a non-dairy ice cream alternative. Both Unilever’s Ben & Jerry’s and General Mills’ Haagen-Dazs have launched vegan-friendly versions of their popular lines of ice cream.
According to Nielsen, sales of non-dairy ice cream in 2017 reached $110 million, a 49% increase from 2016.
More consumers are turning to plant-based foods, and Big Food is responding. Tyson Foods recently increased its stake in Beyond Meat, and Danone purchased WhiteWave earlier this year for $12.5 billion, expanding its product line to include Silk and the So Delicious non-dairy line. In addition, Campbell Soup, which recently joined the Plant Based Foods Association, has launched a line of plant-based refrigerated milks, Bolthouse Farms Plant Protein Milk, made from pea protein.
As more consumers look to plant-based products, expect more companies like NadaMoo to appear and battle for market share in an increasingly competitive environment.