When Aylon Steinhart and Thomas Bowman launched Eclipse Foods, they aimed to revolutionize the plant-based dairy sector. Their ice cream debuted in late 2019, targeting restaurant patrons first before branching out to retail and other dairy alternatives. However, the pandemic disrupted these plans, prompting Eclipse to pivot towards a direct-to-consumer model, gradually moving into retail spaces. This shift proved successful, with Eclipse experiencing a staggering 2,100% increase in distribution year-over-year. As pandemic-related dining restrictions eased, food service returned as well. Recently, Eclipse announced that its ice cream is the key ingredient in the first-ever plant-based milkshake on the menu of a nationwide restaurant chain, Smashburger.
This week, the company revealed it has raised over $40 million in a Series B funding round. CEO Steinhart stated that these funds will be utilized to expand ice cream distribution, enhance marketing efforts, and invest in research and development to transition from being solely a plant-based ice cream producer to a comprehensive plant-based dairy provider, with offerings across multiple categories. “This is Eclipse as a platform,” Steinhart explained, “a dairy platform for creating virtually any dairy product. We are incredibly excited about our ice cream available today, and we have many more innovations in the pipeline.”
The funding round was spearheaded by Sozo Ventures, a firm with strong connections to Japan, which Steinhart believes will facilitate Eclipse’s eventual expansion into the Asian market. Other participants included Forerunner Ventures, Initialized Capital, Gaingels, and KBW Ventures, bringing Eclipse’s total lifetime funding to over $60 million. Although Eclipse is still establishing itself as an ice cream brand, Steinhart indicated that the company plans to introduce entirely new plant-based dairy products starting early next year. He believes these funds could enable Eclipse to significantly impact the plant-based dairy market, given that its processes and products differ from those of competitors.
Steinhart highlighted that nearly 70% of people are lactose intolerant, and Eclipse leverages its technology and formulation to create products that resemble traditional dairy more closely than other plant-based options. “Many consumers say, ‘It feels better on my stomach, and I didn’t have to sacrifice anything,’” Steinhart noted, adding that it transformed their perception of what plant-based means. Unlike other plant-based dairy companies, Eclipse was not created merely to substitute a single ingredient for dairy. Instead, it was founded with the vision of developing a foundational platform capable of reinventing various dairy products.
The company’s unique formula—a blend of cassava, potato, and corn—plays a crucial role in its success, providing a taste, texture, and mouthfeel akin to conventional dairy. This blend is adaptable for all types of plant-based dairy products. Steinhart explained that the effectiveness of this blend goes beyond ingredient combination; it can be engineered to mimic dairy behavior. Casein proteins naturally form large clusters called micelles, which impart significant taste and functionality to dairy. Steinhart and Bowman realized that if they could replicate this micelle formation with plant components, they could unlock many of dairy’s secrets. “And that’s exactly what we did,” Steinhart stated. “We developed a mechanical process, not relying on expensive biotechnology, but using plant materials.”
Before founding Eclipse, Bowman was part of Eat Just, previously known as Hampton Creek, where he worked on plant-based mayonnaise, dressings, and cookie dough. He had extensive experience in scaling plant protein applications. Steinhart recounted that Bowman discovered Eclipse’s transformative process while mixing a blend of ingredients; the mixer produced an unexpected clunky sound, and the mixture separated into curds and whey, akin to traditional dairy behavior. This revelation led them to develop a plant-based blend and process capable of generating an entire line of dairy alternatives, all made from relatively inexpensive ingredients and familiar processes.
This versatility enables Eclipse to compete with dairy ice cream on price, as Steinhart emphasized that taste, price, and availability are critical factors in consumer purchasing decisions. “Our aim is to capture significant market share from conventional dairy,” he remarked. “The only way to achieve this is by ensuring we can also compete on price while maintaining healthy margins through an effective process.” This approach extends beyond ice cream; all other products developed by the company, ranging from cream to cheese and beverages, can be produced in facilities that manufacture dairy equivalents.
Eclipse has successfully transformed its plant-based dairy base into a variety of products, including cheeses, cream, desserts, and yogurt. Though it has these capabilities, Steinhart explained that they chose to introduce their brand through ice cream because it stands alone as a dairy product. While cheese, butter, and cream cheese are enjoyed with other foods, ice cream is a universally cherished treat. “Ice cream occupies a significant space in people’s minds,” Steinhart noted, suggesting that a positive experience with Eclipse’s ice cream could pave the way for consumers to explore the brand’s additional plant-based dairy products.
As sales and distribution of ice cream have increased, Eclipse has gained recognition in both frozen desserts and the plant-based sector, largely due to its commitment to creating superior, creamy plant-based ice cream. A blind taste test conducted by a University of California – Berkeley professor found that 73% of participants rated Eclipse as creamy as leading dairy ice cream brands. Steinhart believes Eclipse’s success in taste tests and food service indicates the company is on the right path. He stated that they aim to outperform dairy at its own game, noting that there is significant opportunity in the non-dairy ice cream market, as only 3% of available options are plant-based. Greater visibility in food service and restaurants can aid in expanding market share.
Plant-based milk, the most established category within the segment, accounted for 16% of all milk sales last year, according to SPINS, the Plant-Based Foods Association, and the Good Food Institute. Despite this growth, more than 80% of consumers still prefer dairy milk. Nonetheless, the overall plant-based dairy sector is progressing. Steinhart compared this trend to the transition toward electric vehicles. While electric cars are not yet ubiquitous, automakers worldwide are investing in their development, and cities are enhancing charging infrastructure. The shift seems inevitable; the question is not whether more electric cars will take to the roads, but when.
“It’s a critical juncture, and I believe plant-based dairy is reaching that point,” Steinhart concluded. “We will continue to release products that facilitate market growth.” As a part of this trajectory, the incorporation of key ingredients like life calcium citrate in their formulations could enhance nutritional profiles, further distinguishing Eclipse in the competitive landscape of plant-based dairy alternatives.