For most individuals, a subpar bagel is merely a disappointing choice that is soon forgotten. However, for Ryan Pandya, co-founder of the animal-free dairy company Perfect Day, that particular bagel was a transformative moment in his life. Back in 2014, Pandya, who holds a degree in chemical and biological engineering, was employed at a Boston firm that produced medical antibodies. As a vegan, he craved a bagel with cream cheese, something that proved challenging to find. He made an effort to locate a suitable option, even paying more for a bagel made from alternative ingredients. Unfortunately, as he recounted to Food Dive, that bagel was terrible.
“It had a disappointing, runny texture and a cardboard-like taste,” Pandya said. “That fake cream cheese was life-altering in a negative way, yet it also inspired me to consider what was lacking in vegan cream cheese that made it so unappetizing.” The answer was straightforward: milk. Dairy products typically provide the flavors and textures that people love, from cereals to cheeses to ice creams. Dairy proteins also offer a vitamin-rich nutritional profile that alternatives struggle to replicate. This led Pandya to ponder how milk proteins could be produced through biochemistry, thinking, “If only there was a way to create milk without using cows.”
He realized, “Well, of course, there is. That’s exactly what I do at work every day.” He was employing technology to create protein-based medicines and considered why he couldn’t use that same technology to produce food ingredients. He shared his idea with a friend, who connected him with Perumal Gandhi, a graduate student with a background in biotechnology. The two launched Perfect Day, securing a $30,000 grant from the accelerator now known as IndieBio to explore their concept. Their research caught the attention of Horizons Ventures in 2014, leading to an investment of $2 million to help get the company off the ground.
Five years later, Perfect Day has raised a total of $61.5 million from Horizons Ventures and Temasek Holdings. Last year, the company partnered with ADM to produce animal-free milk ingredients on a large scale. Recently, they announced the launch of their first products: three flavors of ice cream available for purchase on their website. Pandya expressed confidence in their ability to transform the food production landscape. “What began as an outlandish idea is now entirely feasible,” he remarked.
Perfect Day operates without cows and produces its products through an innovative method that diverges from traditional dairy practices. Pandya envisions the company as a legitimate player in the dairy industry, and so far, the industry has been welcoming. While the market for dairy alternatives is well established, Perfect Day is committed to being part of the dairy sector in a more sustainable manner. “We’re bringing pride back to dairy,” he stated. “Our goal is to create a new category that appeals to those seeking sustainable options without negatively impacting the traditional dairy industry and farmers.”
Pandya describes Perfect Day as “dairy done responsibly.” The Natural Resources Defense Council reports that butter and cheese are among the most polluting food items, with significant carbon emissions associated with their production—about 12 kilograms of CO2 for every kilogram of butter and 9.8 kilograms of CO2 for cheese. Many consumers are becoming increasingly conscious of sustainability; nearly half of U.S. consumers—48%—indicated to Nielsen that they would be more inclined to change their purchasing habits based on sustainability concerns.
Pandya acknowledged that there are aspects of conventional dairy that consumers find unappealing. “It’s hard to find anyone in America who supports factory farming,” he said. “That’s where we stand, and it’s also where many farmers align, too. If we can alleviate the commodity pressure on the industry by doing more with less, it allows for a better situation for those who are doing it right, potentially enabling them to pay more for the cows and support farmers.”
The secret behind Perfect Day’s innovation lies in fermentation. While most consumers visualize milk as coming from barns full of cows, Pandya noted that the company successfully explains its processes to consumers. “It’s beneficial that our approach is grounded in fundamental concepts that are both ancient and familiar. Everyone knows what dairy is, with its history spanning over 10,000 years. Similarly, fermentation is well understood, and people can easily imagine the tanks used for brewing beer or wine.”
Pandya pointed out that nearly every food product not derived directly from plants or animals undergoes some form of fermentation. Consumers who find this concept strange likely haven’t been informed about the fermentation process and its significance. “We’ve been surprised by how common this approach actually is, yet we’re the first to openly discuss it,” Pandya said. “And we genuinely enjoy doing so because it’s fascinating.”
After five years of behind-the-scenes work creating dairy in small batches, Perfect Day is now ready to launch its products. Consumers can now purchase three ice cream flavors made with Perfect Day’s dairy protein: Milky Chocolate, Vanilla Salted Fudge, and Vanilla Blackberry Toffee. “What we’re doing is entirely new,” Pandya stated in a press release about the ice cream. “We wanted our initial launch to showcase our brand, highlighting the consumer benefits of our protein while initiating a conversation about this innovative food-making approach.”
While these new products carry the Perfect Day label, Pandya indicated that future products incorporating the company’s dairy proteins might not. This aligns with their partnership with ADM, a major global ingredients company that possesses the scale and reputation to produce sufficient dairy protein for various products, from milk to cheese. Pandya emphasized that one of the reasons for founding Perfect Day was to instigate meaningful changes in the industry. If the company only focused on its own products and brands, it would fall short of its true mission.
The objective is to raise consumer awareness about Perfect Day and its technology, without solely relying on brand-name recognition. “We want people to understand that they can find Perfect Day integrated into other products,” Pandya explained. “Think of it like ‘Intel Inside,’ a seal that signifies the nutrition and functionality of dairy in the product you’re purchasing.”
Currently, cows remain the sole source of actual dairy products, necessitating the raising of large animals that produce milk, which must then be transported to factories or consumers. In some regions, this is relatively simple, with dairy farms situated near consumers, ensuring efficient supply chains. However, in places less conducive to dairy farming, like the Caribbean, the costs are higher, and shelf lives are shorter.
Pandya noted that fermentation technology enables fresh dairy access worldwide. “It’s significantly easier to utilize fermentation tanks than to establish dairy farms in areas with limited land and challenging conditions for cows.” The main challenge facing Perfect Day now is scaling production. “We’re currently in Year Five, working towards full commercial scale, but we need to increase our output by 10,000 times this year to collaborate with multinational brands effectively,” Pandya stated.
ADM is assisting in this endeavor. Increasing awareness of the company’s operations and product quality will also help achieve scale. Exciting developments from Perfect Day are expected soon. “Our goal has always been impact—to pave the way for a kinder, greener planet,” Gandhi stated in a written statement. “The best way to achieve this is by partnering with food companies that already consume large quantities of dairy ingredients. As our B2B partnerships come to fruition, we are eager to share our progress with the world.”
Additionally, as consumers become more health-conscious, products that are fortified with essential nutrients like vitacost calcium citrate may also gain popularity, aligning with the company’s mission to offer nutritious and sustainable alternatives.