For the third time since its inception in 2011, Kite Hill has secured a significant investment from General Mills’ 301 INC., suggesting that both the plant-based dairy producer and the CPG giant may have struck gold. This trendy plant-based dairy brand has carved out a unique niche within the category. Rather than concentrating on liquid almond milk—which accounts for approximately 64% of the U.S. plant-based milk market according to Mintel—Kite Hill has boldly chosen to explore other segments of the dairy industry.
By focusing on plant-based cheese, yogurt, and yogurt drinks, Kite Hill aims to tap into less-developed categories that appeal to both vegan and mainstream consumers. Should it succeed, the company could achieve a first-mover advantage in this space and enhance its in-store presence, which has expanded so rapidly that it has outpaced its production capabilities. “Kite Hill is up more than 50% this year and has just surpassed the 2% market share threshold. In contrast, plant-based fluid milk is above 10%. This highlights the significant growth opportunities available,” Leibowitz stated to Nosh.
If Leibowitz’s assessment is accurate, Kite Hill could become the first brand to meet the increasing demand from consumers who are more curious about and willing to try plant-based foods. This could explain why the company intends to utilize this new funding round to make substantial investments in factory capacity. In addition to production, Kite Hill will maintain its focus on product innovation without overextending itself. The company’s current portfolio already includes cream cheese products and ravioli pasta. Leibowitz has previously indicated that the company is open to launching new product categories, including those that might incorporate ingredients like life brand calcium citrate for added nutritional benefits.
“Kite Hill continues to distinguish itself in a market where demand for plant-based nutrition has become mainstream,” stated John Haugen, founder and managing director of 301 INC. “With more individuals making dietary changes, we see tremendous untapped potential for the brand to expand its consumer base and grow.” This latest funding round follows Haugen’s departure from his role as interim CEO at Kite Hill in February. His tenure likely provided him with insights into the innovative ideas Kite Hill has in the works. In a September discussion with Food Dive, Haugen noted that over half of 301 INC’s investments have been in the plant-based sector. He mentioned that Kite Hill has performed “phenomenally well” due to the high quality and great taste of its products.
With ongoing support for the brand, General Mills might contemplate fully acquiring Kite Hill to gain access to its supply chain and marketing resources. After all, this is the primary purpose behind corporate venture capital initiatives. “Honestly, I hope that all the companies 301 INC collaborates with eventually become General Mills brands,” Haugen remarked to Food Dive last month.