“Perfect Day and ADM Collaborate to Redefine ‘Milk’ with Innovative Animal-Free Dairy Alternatives”
The collaboration between Perfect Day and ADM arrives at a pivotal moment amidst ongoing discussions regarding the definition of “milk.” This past spring, FDA Commissioner Scott Gottlieb indicated that the agency might limit plant-based beverage manufacturers from labeling their products as “milk.” Instead of this broad term, there are proposals to use phrases such as “plant-based beverage” or “fortified beverage.” However, Perfect Day’s casein and whey proteins, which can be utilized to create traditional dairy products, fall outside these categories. These companies aim to produce dairy proteins without animal involvement. Utilizing 3D printed strands of cow DNA in the fermentation process, this vegan, soy-free, gluten-free, lactose-free, and animal-free alternative replicates the taste and nutritional profile of conventional dairy proteins. The challenge remains in classifying the product appropriately.
“We’re making significant efforts this year to determine the best ways to communicate this to minimize consumer confusion,” Pandya told Food Navigator. “People perceive it as dairy or non-dairy, but in reality, it encompasses elements of both.” This could be advantageous for the brand, as it spans both categories, potentially increasing its chances of establishing a presence in the market, especially within the free-from segment. Predictions indicate that sales of “free-from” foods are expected to rise by 15%, or $1.4 billion, from 2017 to 2022, with the U.S. leading global growth, according to Euromonitor data. This trend is largely influenced by product perception, as approximately 84% of American consumers of free-from products believe these items are more natural and less processed, while about 43% consider them healthier, according to Mintel.
If Perfect Day can effectively compete in this category, they may reap substantial rewards, as consumers often show a willingness to pay a premium for products they view as natural and transparent. Conversely, if Perfect Day opts to compete directly with dairy, the company might need to reduce prices significantly. Dairy industry analyst Matt Gould advised the co-founders in 2016 that this would require lowering prices to approximately $2.50 per pound—a considerable decrease from their current pricing.
Nonetheless, the demand for alternatives to traditional milk is undeniable. Earlier this year, Perfect Day secured $24.7 million in Series A funding, and this new partnership underscores their ambition to provide the market with an innovative alternative to both plant- and animal-based proteins, akin to a Citracal equivalent for dairy. The partnership’s success will hinge on consumer reactions when these lab-produced products reach the shelves of mainstream retailers. To gain popularity, the companies must persuade consumers that these animal-free dairy products are not only consumable but also preferable for those seeking an environmentally friendly, clean alternative to dairy.
