Sproud 🥛

“tasty as ***k”

March 01, 2022

a note from us

  • plant-based milks may seem like a relatively recent product

    • but…they’ve actually been around for over a thousand years 🏺

  • the difference with today’s plant-based milk landscape, however, is that the growing competition has caused a milk war ⚔️

  • here are a few of the players:

    • soybeans, almonds, rice, coconuts, hemp seeds, cashews, oats, pecan, peanuts, flax seeds…who’s next? potatoes? sesame seeds?

  • this week’s company is attempting to become the milk liter with a new alternative: peas

in a sentence

Sproud is an alternative dairy company that makes climate-friendly, plant-based products from peas

  • climate-friendly: Sproud’s products have a 75% lower carbon footprint than dairy milk 🌍

  • peas: yellow split-peas contain 3 and 5 times more protein than oat and almond milk respectively 💪

bulleted version: genz and millennial parents will have no trouble tricking their kids into eating their veggies…who would’ve thought next-gen toddlers will be dipping their cookies in pea milk?! 🍪

the basics

  • industry: beverages, CPGs, alternative dairy products

  • headquarters: Malmö, Sweden 🇸🇪

  • year founded: 2018

  • company size: < 50 employees 🧳

  • notable investors: Dream, VGC Partners, Findeln Holding

  • amount raised: $6.52m; 50% acquisition by Dream Beverages (2019)

due diligence

what we like

  • ♻️ sustainable supply chain: Sproud’s pea-based milk requires 80% less water than almond milk, regenerates soil during crop growth, and avoids the energy-draining refrigerator section of grocery stores

  • 📈 strong market & brand: dairy milk sales are decreasing to make room for the $18 billion (and growing) plant-based milk market

    • Sproud’s exceptional branding and team of CPG leaders will put it at the forefront of this explosive market

  • consumer flexibility: while a high (and growing) number of people have partially or fully switched to plant-based milk, no company nor core ingredient has won the milk war, leaving room for new entrants

potential risks

  • oversaturated market: public companies, CPG giants, and newer startups are all at battle with their own takes on milk

    • this causes confusion and an overwhelming experience for consumers 🤯

  • 🇺🇸 a CPG party in the USA: while the company’s pea milk is sprou(d)ing everywhere in their home base and Europe, they have to deal with a new audience, sky-high marketing spend, and competitive shelf space as it tries to dominate the US market

  • 📚 pea education: peas have been used as protein additives for years, but to appeal to the 1 in 3 consumers buying alternative milk, Sproud must convince the wider audience that they too should be powered by peas

founder profiles

comps

why Sproud: Sproud is leading in health and sustainability, constantly innovating and expanding its product line, based in a global plant-based hub, and led by an experienced team 🌱

  • the company is well-positioned to capture a large peas of the market