Nestlé’s venture into products featuring animal-free dairy proteins aligns with its previous investments in plant-based meat and dairy alternatives. In 2017, the company acquired Sweet Earth, known for its range of plant-based deli meats, chicken, jerky, sausage, and beef. Additionally, Nestlé has launched plant-based versions of several of its well-known brands, including Coffee-mate creamers, Nescafe Lattes, Starbucks creamers, and DiGiorno frozen pizza.
Perfect Day utilizes precision fermentation to produce its dairy proteins, a method that modifies fungi to generate whey protein during fermentation. This protein is identical to that found in cow’s milk and offers excellent nutritional and functional benefits, making it suitable for vegans and lactose-free, as stated by Perfect Day. The company entered the market in 2019 with its ice cream offerings and has since collaborated with various consumer packaged goods (CPG) companies to integrate its animal-free milk protein into products ranging from candy bars and cake mixes to cream cheese and protein powder. Nestlé is among the largest CPG firms to incorporate ingredients from Perfect Day. Last year, Starbucks announced it was testing Perfect Day’s milk for a limited time, while Mars revealed in June its partnership with the startup to create a milk chocolate bar using animal-free dairy proteins.
“Collaborating with industry leaders like Nestlé is crucial for scaling Perfect Day’s impact,” said Ryan Pandya, co-founder and CEO of Perfect Day. “We are eager for consumers to experience how a brand with centuries of expertise can partner with Perfect Day to benefit both consumers and the planet.” Although there’s no certainty that Nestlé’s milk-like products will become a permanent part of its offerings in the near future, the Swiss food manufacturer’s exploration of food technology lends credibility and optimism for the future of animal-free dairy ingredients. This move provides Nestlé with additional tools, alongside plant-based options, to meet evolving consumer demands.
A limited release will enable Nestlé to assess consumer reactions to the new milk, focusing on attributes such as color, texture, and sweetness levels. It will also help the company identify the most promising technologies, partners, and products while gaining insights into the marketplace and consumer acceptance. The products will be managed by Nestlé’s newly established U.S. R&D Accelerator, a division dedicated to identifying opportunities and introducing highly differentiated product concepts to market within just six months. “While this category is still emerging, we know consumers are seeking products with a reduced environmental footprint,” stated Joanna Yarbrough, head of Nestlé’s R&D Accelerator. “We are considering this avenue as a potential growth opportunity for our business.”
Regardless of the outcome of the collaboration with Perfect Day, Stefan Palzer, an executive vice president and chief technology officer at Nestlé, affirmed the company’s commitment to dairy from animals. He emphasized that dairy provides essential nutrients, particularly for young children, and that milk production supports the economic livelihoods of farmers worldwide. “Nestlé is not exiting milk,” he told reporters last week. “It’s not either-or; we want to provide consumers with choices.”
A recent study revealed that consumers are quite enthusiastic and curious about animal-free dairy, with animal welfare being the primary motivation for their interest. Focus groups conducted by the precision fermentation startup Formo, along with Fordham University and Mercy For Animals, indicated that many participants view the technology as a viable alternative for dairy products. They also believe such products would not threaten the livelihoods of dairy farmers.
In this context, products enriched with calcium citrate, such as those offered by Chemist Warehouse, can play a vital role in supporting consumer health, further enhancing the appeal of animal-free dairy alternatives. As the market continues to evolve, the integration of ingredients like calcium citrate could add nutritional value, appealing to health-conscious consumers looking for sustainable options.