Nutpods expands plant-based creamer business with latest acquisition by MPearlRock
17 Jan 2024 --- US-based investment platform MPearlRock has acquired Nutpods — a dairy-free, plant-based creamer formulator targeting better-for-you applications. The move is expected to bolster the dairy-free innovator’s distribution, in-store testing, manufacturing and bulk procurement, as well as its general supply chain.
Nutpods' product portfolio includes various flavors, from traditional favorites to novelty and seasonal options which the company claims have received positive consumer response based on taste and creaminess, diverse flavor offerings and “wholesome” ingredients.
MPearlRock was formed last week when MidOcean and PearlRock joined forces to focus on identifying and backing high-growth, emerging consumer packaged goods brands.
Headquartered in Bellevue, US, Nutpods is marketed as the top plant-based creamer brand within the natural retail channel and claims the second spot in the non-dairy creamer category in the country.
Brian Kelley, CEO of MPearlRock, acknowledged Nutpods’ product development and marketing efforts and aims to “accelerate growth and provide the resources to best position the brand to deliver unique, healthy products to loyal and new customers.”
Meanwhile, Madeline Haydon, founder of Nutpods, states that MPearlRock’s “capabilities and resources” will help the brand reach more consumers in new channels and new product verticals who allow us to become part of their daily coffee ritual.”
Consumers are increasingly switching to dairy-free options, driving plant-based innovations.Financial details of the transaction were not disclosed at the time of publication.
In 2019, Nutpods received a cash injection from investment firm VMG Partners and went on to triple its net sales over four years, says the company.
F&B propels dairy-free creamers
Once restricted to soy milk, plant-based dairy alternatives have expanded to almond, cashew, coconut, rice and oat-based innovations, with creamers carving a niche as a healthier accompaniment to coffee. This aligns with Innova Market Insights’ recently unveiled fourth Top Food & Drink Trend for 2024, “Plant-based: The rise of applied offerings.”
Moreover, according to joint research by the Plant-Based Foods Association, The Good Food Institute and SPINS, plant-based retail sales are booming with a “record year” of growth. This has bolstered the total plant-based market value to an “all-time high” of US$7.4 billion, with ready-to-drink beverages and plant-based creamers accounting for 9% of all creamers sold.
In September last year, Balchem unveiled its vegan palm-oil-based pea protein creamer that does not turn rancid during storage and Richmix 4808, an allergen-free, plant-based powder that can substitute dairy-based spray-dried lipid powders in beverage formulations. It also resists curdling in acidic environments.
Cross-category acquisitions are further contributing to plant-based cream innovations. Chobani recently snapped up La Colombe coffee firm in a US$900 million deal, which could lead to synergistic applications such as Chobani creamers being used in coffees manufactured at La Colombe.
Notably, in 2020, the rising popularity of plant-based creamers prompted Starbucks to expand its existing creamer portfolio to include non-dairy options in caramel and hazelnut flavors.
While the plant-based coffee creamer category has seen significant growth, formulators still face challenges while aiming for the right texture, stability and whitening of the coffee when working with plant-based options, Matt Yurgec, business scientist and manager of the dairy and plant-protein applications team at Ingredion, told Food Ingredients First last year.
By Insha Naureen
