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Nestlé is taking Oatly in Europe by offering the Wunda pea brand, part of the growing $ 17 billion dairy plant market in the late play of the world’s largest food company.
The creation of a new brand by Nestlé is rare when China-sponsored oatmeal manufacturer Oatly pushes for a $ 10 billion valuation. initial public offering In exchange for the Nasdaq in New York.
While Nestlé is expanding into meat substitutes, it is relatively late for consumers to go to the dairy market for plants that are environmentally friendly and perceive the health benefits they perceive.
“The plant base in food and beverages is growing and I think it’s very structural. I’ve been in business for many years and I’ve never seen a category that is so fast or so strong, ”said Cédric Boehm, Nestlé’s head of dairy farming in Europe, the Middle East and North Africa.
Wunda, developed by Nestlé researchers and made with these peas, will be launched first in France, the Netherlands and Portugal, mainly thanks to retailers, with the aim of boosting more European markets.
The product line is Nestlé’s premier vegetable dairy brand, although it offers vegetable milks under the Brazilian brand Nesfit and vegetable versions of beverages such as Milo and Nesqui.
The group said the Wunda range has a “barista” version for coffee, which includes flavor and sunflower oil with sugar and sunflower oil.
Nestlé opted for the use of yellow peas, more popular than almonds, oats or soybeans, believing that the product offers a higher protein content and greater versatility in use in beverages and cereals.
Pea milk, which includes products made by Ripple in California and Mighty Pea in the UK, has attracted mixed reviews, including complaints of legume flavor.
Nestlé will be in contact with other dairy brands based on the plants on the market.
French rival Danone, owner of the Alpro and Silk brands, sold plant-based dairy alternatives for € 2.2 million in 2020, up from € 1.9 million a year earlier, and this year bought US-based Earth Island, a vegan manufacturer of Follow Your Heart. mayonnaise and intervals.
Oatly, headquartered in Malmon, Sweden, had revenues of $ 421 million last year, compared to $ 302 million in Europe, the Middle East and Africa.
Oatly had revenues of $ 421 million last year and is pushing a $ 10 billion valuation in his appearance. © Charlie Bibby / FT
Nestlé itself sold plant-based dairy alternatives ($ 100 million) in 2020, along with SFr200m meat substitutes under brands like Garden Gourmet and Sweet Earth. The company’s total sales were 84 billion euros.
Boehm said Nestlé has thought about buying brands of dairy products from plants but “the prices are very high. There is a fashion craze around many M&As”.
He said the Swiss group expects more growth in the plant-based milk market. “We wouldn’t go [into this market] if we didn’t believe we were in a position to win, ”he said, adding that Wunda could expand beyond pea-based products.
In western Europe, North America, and Australasia, soybean milk consumption has stopped, but sales of other vegetable milk, including almonds and oats, have doubled, except for the last 10 years. By 2020, sales were up nearly 20 percent, at $ 4.4bn, according to Euromonitor data.
Nestlé has placed sustainability at the forefront of the Wunda brand, with a carbon footprint certified by the Carbon Trust advisory team.
Wunda Original produces 0.58 kg of carbon dioxide equivalent per liter, 0.44 kg per liter of Oatly Barista and about 1.25 kg per liter of cow’s milk produced in the UK, according to the Committee on Agriculture and Horticulture.
Nestlé has said the Wunda will be carbon neutral. It will offset irreversible emissions, which in 2021 will offset more than 2,500 tonnes of carbon dioxide equivalent through a project to protect Cambodia’s forest.
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