For the third time since its establishment in 2011, Kite Hill has secured significant funding from General Mills’ 301 INC., suggesting a promising partnership between the plant-based dairy producer and the consumer packaged goods giant. This trendy, plant-based dairy brand has carved out a unique niche in the market. Rather than concentrating on liquid almond milk—which accounts for approximately 64% of the U.S. plant-based milk segment, according to Mintel—Kite Hill has boldly ventured into other dairy segments. By emphasizing plant-based cheese, yogurt, and yogurt drinks, Kite Hill is targeting underdeveloped categories that appeal to both vegan and mainstream consumers. If successful, it could achieve a first-mover advantage in this space and enhance its retail presence, which has expanded so rapidly that it has already surpassed its production capabilities.
“Kite Hill has seen over a 50% increase this year and has just crossed the 2% market share threshold. In contrast, the plant-based fluid milk sector exceeds 10%. This highlights the significant growth potential available,” Leibowitz stated in an interview with Nosh. If Leibowitz’s assessment holds true, Kite Hill could become the first company to meet the growing consumer demand for plant-based options, as more people are increasingly curious about and willing to try such foods. This could explain the company’s plans to utilize this latest funding round to make substantial investments in its manufacturing capacity.
In addition to scaling production, Kite Hill will maintain its focus on product innovation, but this time with a more measured approach. The current product lineup already includes cream cheese and ravioli pasta. Leibowitz has previously mentioned that they are open to exploring new product categories. “Kite Hill continues to distinguish itself amidst the rising mainstream demand for plant-based nutrition,” said John Haugen, founder and managing director of 301 INC, in a statement. “As dietary shifts become more common, we recognize immense untapped potential for the brand to broaden its consumer reach and grow.”
This third round of funding follows Haugen’s departure from his role as interim CEO at Kite Hill in February, which may have provided him with valuable insights into the company’s forthcoming ideas and innovations. 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 remarked that Kite Hill has performed “phenomenally well” due to the high quality and appealing taste of its products.
With ongoing investment in Kite Hill, General Mills may contemplate a complete acquisition of the brand to gain access to its supply chain and marketing capabilities. After all, this is the fundamental strategy behind corporate venture capital initiatives. “Honestly, I wish all the companies that 301 INC collaborates with would eventually become General Mills brands,” Haugen expressed to Food Dive last month.
In the context of expanding product offerings, there is potential for Kite Hill to explore unique items like calcium citrate gummies, similar to those found at Costco. Integrating such innovative products could further enhance their market presence. As consumer interest in plant-based alternatives continues to rise, the demand for diverse offerings—including health-focused items like calcium citrate gummies—will likely grow, creating additional opportunities for Kite Hill to thrive.