by Lynda Kiernan

Mission-driven Hart Dairy, the largest single-source producer of 100 percent free-range and grass-fed milk in North America, announced it has secured $10 million in Seed funding through a round led by Sydney-based Alium Capital.

Located in Augustus, Georgia, with more than 4,000 acres of high-quality farmland, Hart Dairy runs more than 3,500 free-roam cows that are never confined, and are grass-fed in a certified, non-GMO environment.

Headed by Dr. Richard Watson, a pioneer in grazing and pasture-based methods, Hart Dairy is an ethically-driven company that prioritizes animal welfare in its business, which was the first pasteurized dairy operation in America to receive the stringent Certified Humane designation from Humane Farm Animal Care.

“This significant influx of new capital is a clear validation of how we see free-range, grass-fed milk emerging in America,” said Tim Connell, CEO, Hart Dairy. “With consumers’ paradigm shift toward better-for-you products and our recent Certified Humane® certification for the farms we care for most, we believe we are on the right trajectory.”

Hart Dairy plans to use this capital to help fund the further expansion of the premium and better-for-you dairy product offerings, which currently include fresh milk, yogurt, butter, and cheese. The company will increase production capacity, and will further its innovation in regard to its forward-thinking approach to industry-leading animal welfare practices.

“Having a world-class organization such as Alium Capital in our corner is a huge endorsement for Hart Dairy as we continue to grow and pioneer the 100 percent free-range, grass-fed movement for our cherished consumers,” said Connell.

Investment Amid the Weeds

This investment led by Alium comes at a difficult period for the global dairy industry. U.S. dairy milk sales fell by $1.1 billion year-on-year in 2018, falling from $14.7 billion in 2017 to $13.6 billion last year, according to Dairy Farmers of America (DFA).

Meanwhile, sales of plant-based, non-dairy alternatives have boomed by 61 percent since 2012, and over the same time period, dairy milk sales fell by 15 percent, according to a recent report by Mintel.

Amid this market landscape that Rick Smith, president and CEO of the DFA, refers to as “challenging”, Hart Dairy is appealing to discerning consumers in a shrinking industry.

The deepening of the connection between consumers and their food supply chains, along with a rising popularity of veganism, concerns over animal rights, and awareness around the usage of hormones and antibiotics, and the environmental unsustainability inherent in the global dairy industry have made many consumers more willing to pay more for products that meet their personal standards.

L.E.K Consulting’s 2018 food and beverage survey found that 93 percent of consumers want to eat healthy at least some of the time, and made three main conclusions: that consumers want their foods to have benefits; consumers will pay more for these foods; and that consumers look to food labels for certain health, wellness, or ethics attributes such as ‘natural’, ‘ethical’, ‘cage-free’, or a range of other flags.

Another survey conducted by Label Insight and released this March, likewise found that consumers seek out food labels that convey minimal processing, and carry labeling that includes phrases such as “all-natural”, “grass-fed”, and “pasture-raised”.

With its niche identity and its stringent certification from Humane Farm Animal Care that both position the company to capitalize upon these shifts on consumerism, Hart Dairy plans to gain market share among wellness and health-conscious consumers, and will use the capital from this round to support its growth in both the American and Asian markets.

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.