Animal-free dairy startup Perfect Day to IPO

Perfect day, an alternative dairy company, is preparing to go public with a bang. It has several renowned investors in its ranks, including Leonardo DiCaprio and Bob Iger, the executive chairman of Disney. The food technology start-up has received significant investments from the Canada Pension Plan Investment Board. He also received them from Temasek, a holding company owned by the government of Singapore.

In late September 2021, the company raised a $ 350 million Series D funding round ahead of its scheduled IPO. Perfect Day currently has a valuation of around $ 1.5 billion.

The manufacturer of dairy-like proteins aspires to pave the way for an animal-free dairy industry. When the Berkeley, California-based company was founded in 2014, co-founders Perumal Gandhi and Ryan Pandya envisioned a line of identical dairy products that were made using environmentally friendly methods.

“When we started this almost eight years ago, our simple goal was to create a way to make dairy products without animals,” Pandya said. “We quickly realized that we could maximize our positive impact on the planet and the global food system by applying our technology and expertise throughout the supply chain. “

Benefits of conventional milk production

Compared to conventional milk production techniques, Perfect Day’s production methods reduce water consumption by up to 99% and non-renewable energy consumption by up to 60%. The company’s flora-based process contributes to a significant reduction in greenhouse gas emissions. This allows customers to purchase animal-free products from a company committed to sustainability.

In 2019, Perfect Day launched its first product, an ice cream made from non-animal whey protein. Sold under the Brave Robot brand, the company’s flora-based protein ice cream is available at more than 5,000 retailers nationwide.

Paul Kollesoff, a dairy developer who has partnered with Perfect Day, believes the company has unique advantages. “By applying science and technology, we are able to create better versions of the same dairy products that consumers love. And of course, it’s more durable than other options on the market because that’s exactly what we do.

In January 2021, Perfect Day entered into a partnership with NICK’s ice cream. The Swedish-style ice cream maker is launching seven new vegan ice cream flavors with Perfect Day, including Swedish Mint Chip, Karamell Swirl and Choklad Choklad.

Perfect Day as a supplier of dairy ingredients

In addition to selling food products for consumers, Perfect Day has positioned itself as an ingredient supplier for other companies. Many of these companies will be using Perfect Day’s animal-free protein for their own product development.

“We first entered the ingredients business because food companies large and small were eager to work with the ingredients that we had managed to scale up,” Gandhi said of dairy ingredients. . “Today, something similar is happening on the technology side. There are innovators all over the world with ideas and ambitions similar to our Animal Free Milk Protein, but who need help to make it happen. We champion business models so that we can share our demonstrated capabilities in a way that maximizes benefits for all, while ensuring Perfect Day remains at the forefront of our new industry.

The boom in animal-free products

Other companies with a mission to generalize animal-free products have recently gone public. Oats, a manufacturer of oat milk-based food products, went public in early 2021. Beyond meat, known for its plant-based meat substitutes, went public in 2019. Beyond Meat’s share price has skyrocketed since its IPO.

Perfect Day hopes to go public within 12 months. The IPO market is currently strong and driven by environmentally conscious companies. However, it’s possible that the IPO market will cool down in the coming months, which could derail Perfect Day’s IPO plans.

How the technology works

Perfect Day’s technology produces milk proteins by microbial fermentation. Microflora, the tiny living organisms also found in probiotics, play a vital role in the process. Cultivated in fermentation tanks, the microflora converts a source of carbohydrates such as corn sugar into dairy proteins made from flora.

The DNA sequence of a cow is used as a template. This DNA sequence is inserted into the yeast-based microflora. The bioengineered microflora then undergoes a fermentation process that results in the production of whey protein and casein, the same proteins found in cow’s milk. In other words, the microbial fermentation process is capable of producing proteins indistinguishable from those in dairy products.

New products in pipeline

The company recently launched its Modern Kitchen brand, which offers consumers a selection of vegan, animal-free whey protein-based cream cheeses from Perfect Day. The initial flavor range includes strawberry, chive and chive cream cheeses and harissa pepper.

“I’ve dreamed of animal-free cream cheese for years, and we’ve finally unlocked the flavor and texture that makes traditional cream cheese so good,” commented Pandya.

On the dessert side, Perfect Day recently announced a partnership with Villa Dolce, an ice cream and sorbet supplier. Villa Dolce is a supplier to many great restaurants, casinos, hotels and college campuses.

About Thomas B. Countryman

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