Free Flow Manufacturing, a co-manufacturer based in New Zealand, has announced its plans to open the country’s first-ever plant-based milk factory. The facility is expected to begin operations later this year and will be located in east Auckland. This move highlights the increasing demand for alternative dairy products in New Zealand and the wider global market.
One of the significant benefits of this plant-based milk factory is that it will reduce New Zealand’s reliance on imported plant-based milk. As the demand for alternative milk products continues to grow in New Zealand, this factory’s establishment is a significant milestone in the country’s bid for sustainability.
Scott Day, Co-founder of Free Flow Manufacturing said, “Grocery spending on plant-based milks in New Zealand increased by 44% from 2019 to the end of 2022, with sales jumping from NZD61m (US$37.8m) to NZD88m.” “Despite this, New Zealand has had to rely on mainly imported products or those manufactured overseas to meet this demand.”
Tim Ryan and Chris Wilkie, Co-founders of Otis said, “As we scaled up our production, we weren’t prepared to compromise on quality, and, because of this, we’ve had to ship our New Zealand oats to Sweden for manufacture due to the lack of a local partner that has the technology required to produce premium oat milks to the gold-standard we demand. We’re thrilled to have finally cracked this with Free Flow and truly believe that New Zealand will be a force to be reckoned with when it comes to producing both dairy and non-dairy milks.”
In a statement, Free Flow Manufacturing revealed that it has secured one contract so far, with Otis, a New Zealand-based oat milk brand. Otis, established in 2018, sources its oats locally and currently has its beverages produced in Sweden. By partnering with Free Flow Manufacturing, Otis can now produce its products locally, which will reduce the environmental impact of transporting them from Sweden.
Apart from producing plant-based milk, the facility will also be able to brew beer. Just Food, a leading food industry news website, has reached out to the company for clarification on whether it has secured contracts to manufacture beer brands. While it is unclear at this stage whether any beer brands have signed up for manufacturing, this new capability will certainly be a selling point for Free Flow Manufacturing.
In related news, Coca-Cola Co. recently announced that it is discontinuing the range of plant-based dairy drinks marketed under its Innocent brand in the UK since 2018. Similarly, Nestlé has also decided to stop selling its Wunda pea-based milk in the UK and Ireland since 2021. This decision may have been driven by the companies’ struggle to compete with established plant-based milk brands that have been in the market for longer. Nonetheless, this move highlights the challenges companies face when trying to establish themselves in a highly competitive and rapidly evolving industry.
