As you walk down the refrigerated section in the grocery store these days, you will notice the growth in plant-based milk brands. The category has gained widespread recognition with the IPO of Oatly and shows no signs of stopping. With increasing consumer demand for clean ingredients, low sugar, and better-for-you and better for the environment there is certainly room for new brands to successfully enter the market. We believe UFO, Udder Free Only, a Los Angeles based hemp milk company will do just that.
Longtime friends Drew Schwartz and Daniel Art started UFO to reduce consumers’ environmental footprint and support healthier lives.
Founded in July 2019 by Daniel Art and Drew Schwartz, UFO utilizes a unique blend of USDA organic hemp, oats, and chia seeds to create a clean label, eco-friendly, and plant-based dairy alternative. With a delicious product that replicates the taste, texture, and nutritional value of dairy milk, a growing plant-based milk market, and incredible founders we knew UFO was a fit for Branch Venture Group. As the website states, their plant-based dairy alternatives are out of this world. We couldn’t agree more!
Reason 1 – A Delicious Product and Strong Initial Sales Traction
UFO is currently sold in ~75 stores with plans to grow to 600+ by the end of 2021 and 1,500+ by mid-2022. The company has experienced strong consumer demand from e-grocers including Imperfect Foods and traditional retailers like Whole Foods. UFO’s Unsweetened, Vanilla, Chocolate, and Banana hemp milks are available in 16oz and 32oz sizes and the products are packed with all the nutrients and great taste consumers look for in a milk substitute. All products are organic and the nutritional profile includes omega 3’s and 6’s, all 9 fatty acids, and 12 grams of protein. The milks contain half the number of calories and half the sugar content of the leading oat milk brand, and, unlike other leading dairy alternatives, they are nut, dairy, soy, gum, preservative, and gluten free.
Reason 2 – Growth in Plant-Based Milk and Recent Deregulation of Hemp
Consumer demand for alternative dairy products and plant-based milk has grown tremendously in recent years alongside increasing health and environmental concerns associated with traditional dairy products. The current market for alternative dairy products is around $3.8 billion with around $2.5 billion in plant-based milk sales. In 2020, plant-based milk grew by 20% in the US and Global Market Insights suggests plant-based milk will continue to grow at an 11% CAGR globally through 2026.
Flavors include Unsweetened, Vanilla, Chocolate, and Banana -- all free of added oils, gums, and stabilizers. The Chocolate and Banana flavors are both sweetened with real organic Bananas.
Although the plant-based milk category has seen many new entrants over the last 5 years, UFO stands out as the only branded company producing fresh (versus shelf stable) alternative dairy milks with hemp as the lead ingredient. Additionally, data shows that soy and almond milk are losing market share to alternative plant-based milk product competitors. Due to recent deregulation, the hemp milk market is still nascent compared to other plant-based milk products. However, the global hemp milk market is forecasted to reach around $454MM by 2024, growing at a CAGR of 16%. As the category and hemp subcategory continues to grow, UFO is well positioned to capture this growth.
Reason 3 – A Small but Mighty Team and Plans for Team Expansion
Hand delivering hemp milk orders to customers in LA.
Currently a team of two, Daniel and Drew have impressively done it all from sales and marketing to product formulation and manufacturing. Embodying true entrepreneurial spirits, Daniel and Drew are resourceful, hardworking, and data-driven. Faced with the uncertainty of COVID the team even dressed in a full space suit to hand deliver orders not only bringing joy to the streets of LA but maintaining and growing the company’s customer base. With this recent round of funding the team plans to hire new operations and sales team members to support UFO’s rapid growth. We know that with Drew and Daniel at the lead, UFO will accomplish great things and face any challenge with a creative twist.
Want to Learn More About UFO?
We’re thrilled to support UFO’s next phase of growth and are eagerly awaiting their expansion to the East Coast. For those on the West Coast, make sure to take a look at the company's store locator to see if UFO is available where you shop. To learn more about UFO check out their website and follow their adventures on Instagram. If you’re interested in learning more about Branch Ventures Group and what we do please reference our Investor page or reach out to info@branchventuregroup.com.