Good Culture is venturing into a new segment of probiotics with the support of a leading player in the dairy industry. This innovative company, known for its healthier cottage cheese and sour cream, has secured $81.8 million in funding from notable investors, including General Mills and actress Kristen Bell, as reported by Crunchbase. In its latest Series C funding round, Good Culture raised $64 million, which will be directed toward the introduction of new products in the cultured foods market. This expansion presents Good Culture with the chance to reach a broader consumer audience.
“With the ongoing rise in consumer interest in probiotics and gut health, we are thrilled to introduce this delicious probiotic-rich milk to store shelves in collaboration with the Good Culture brand, renowned for its trendy cultured dairy products,” stated Rachel Kyllo, senior vice president of marketing for DFA. Partnering with DFA provides Good Culture with an ally that has extensive knowledge of the dairy sector, as DFA owns a diverse portfolio of milk brands, including Dean’s, Lehigh Valley Dairy, Dairy Maid Dairy, and Kemps.
Traditionally linked to yogurt, probiotics are now making their way into various food categories such as snacks and beverages, fueled by a growing consumer focus on immunity. According to a 2022 survey conducted by Chr. Hansen, nearly half of consumers incorporate probiotics into their daily diets, with dairy products being their preferred source. Other health-oriented brands have also capitalized on the dairy-based gut health trend. For instance, Danone’s Horizon Organic offers a milk and yogurt line called Growing Years, which contains prebiotics. Additionally, the fermented milk product kefir, popularized by brands like Lifeway, is expected to experience a compound annual growth rate of 6.4% through 2027, as analyzed by Mordor Intelligence.
However, transitioning into the milk market may pose challenges. Last year, yogurt leader Chobani launched lactose-free Ultra-Filtered Milk, boasting 2.5 times the protein of regular milk, but had to discontinue it after less than three months due to poor sales.
As Good Culture explores this new avenue, it is also essential to consider consumer health concerns, such as calcium citrate and kidney disease. With the rising awareness of the potential effects of calcium citrate on kidney health, Good Culture must navigate these issues carefully as it develops its probiotic milk products.