Upright Oats — A Sustainable Dairy Alternative
Upright Oats has created a brand of oat milk that delivers similar nutritional value as traditional dairy products
Problem
According to the World Wildlife Foundation, millions of farmers worldwide tend approximately 270 million dairy cows to produce milk. Milk production impacts the environment in various ways, and the scale of these impacts depends on the practices of the dairy farmers and feed growers. Despite the nutritional benefits dairy products offer, they are still among the top sources of artery-clogging saturated fat in the American diet. Adding to the problem, 65 percent of the human population has a reduced ability to digest lactose after infancy. By creating alternatives to traditional dairy products, companies can address pressing health and environmental issues that the world currently faces. The trick is finding an alternative that offers the same nutritional value that traditional dairy products offer.
What the Company Does
Upright Oats offers oat milk as nutritious as traditional dairy. Unlike existing brands, every glass of the company’s oat milk offers eight grams of protein as well as key vitamins and minerals. Available in four flavors — original, vanilla, chocolate, and barista — in shelf-stable family-size and lunchbox-friendly single-serving portions, their delicious and affordable organic oat milk is fortified with oat protein and key vitamins and minerals to match dairy’s nutrients. The company enables access to health and sustainability by offering a direct replacement for existing dairy and alternatives that tastes great, avoids common allergens, satisfies nutritional needs, and encourages regenerative agriculture.
Business Model
Upright Oats plans to make money by selling their products through conventional and specialty food retailers for sale to consumers.
Market
Although current U.S. demand for oat milk is small, estimated at $75 million, the team believes this market has the potential to grow to $1 billion in the next decade alongside the fast-growing U.S. plant-based alternative dairy market, which is currently valued at $2.5B and growing at a 9.5 percent CAGR. Oat milk demand grew 5x in the past year as consumer preferences shift toward plant-based diets and sustainable practices. The almond milk market is a close comparable, which grew from a similarly small size in 2000 to $1B by 2016 and is currently growing at 11 percent and at 23 percent for organic varieties. The U.S. oat milk market is fragmented with low barriers to entry. Existing brands are all recent entrants, which include Oatly, Quaker Oats, Planet Oat, Pacific, Silk, Elmhurst, Califia Farms, Rise, Happy Planet, Minor Figures, and Thrive Market. However, none of these companies offer an oat milk that has 8 grams of protein per serving and is both organic and gluten-free. Only Rise is both organic and gluten-free, but is $6.99/L and contains less than 1 gram of protein per serving. Oatly is the market leader with the widest distribution and brand recognition, but is not organic and only 3 grams of protein per serving. Given the lack of an affordable organic, gluten-free, high-protein oat milk, the team believes there is tremendous opportunity to simultaneously grow the market while capturing share.
Traction
Upright Oats is currently early-stage and pre-launch but has built momentum with plans to launch in early 2020 in New Haven. Within a week of forming the company, they pitched at and won the Inaugural Yale Entrepreneurial Society and Yale’s Science and Engineering Alumni Association’s Idea Pitch Night. They also have been accepted to and participated offerings across Yale including the Tsai CITY’s Food Intensive, School of Management Startup Founder’s Practicum, and the Center for Business and the Environment’s Greenlight ideation workshop. Other awards they have won or placed at include Yale’s Yadav Entrepreneurial Award and Climate Change Innovation Grant, Connecticut Entrepreneurship Foundation’s Business Plan Competition, Next Gen Summit’s PITCH! Competition, and CTNext’s Entrepreneur Innovation Awards.
Founding Team Background
Upright Oats was founded by Betty Tang and Tu Rha during their time as MBA students at Yale. Betty holds a BComm degree in Accounting and Sustainability from the University of British Columbia and holds a certificate in plant-based nutrition from Cornell University’s Center for Nutrition Studies. Her work experience spans four years in management consulting at A.T. Kearney and McKinsey & Company, where she served large multinationals across continents in a range of industries including manufacturing, consumer goods, packaging, and agriculture. Thu Ra holds a BA in Business & Economics and Psychology from Cornell as well as a Masters in Operations Research and Supply Chain from Case Western Reserve University. He has four years of work experience in supply chain and logistics at major consumer goods organizations including PepsiCo and Quaker Oats, and was formerly the Director of Supply Chain and Logistics for Pubco.
What They Need Help With
Upright Oats is currently in growth mode and needs help getting their business to the next level. You can connect with the Upright Oats team here.
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