September 2, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Neutral Foods, the first carbon neutral food company in the U.S., announced it closed on a $12 million Series A led by Breakthrough Energy Ventures, a fund co-founded by Bill Gates, which also led one of the company’s early-stage Seed funding rounds in October 2021. 

Additional participants in this Series A included Japanese firm Global Brain, its CVC partners Kirin Holdings Company, Limited and Norinchukin Bank, and Craig Shapiro with Collaborative Fund.

Other high-profile investors that have committed capital to Neutral Foods are Mark Cuban Companies, NBA star LeBron James, and musicians John Legend and Questlove.

Founded in 2019 in Portland, Oregon, with a mission to drastically reduce the nearly 37 percent of global emissions produced by the agriculture industry, Neutral Foods is a nationwide carbon neutral dairy company that works directly with farmers to reduce their carbon footprint.

The company, which offers organic whole and 2 percent milk that is Carbon Neutral Certified by SCS Global Services, calculates the carbon load of dairy production at each farm – from the feed rations for cows to the power and fuel usage for cold storage and trucking. The company then works with farmers to help them adopt low, or no-emitting solutions by changing their feed rations, or manure management solutions, for example.

What can’t be reduced is then offset through the purchase of carbon credits from farmers who turn cow emissions into renewable energy.

“Milk is consumed daily and found in more than 90 percent of U.S. households, so by lowering the carbon footprint in a glass of milk, they have the potential for a massive and beneficial impact on climate change,” said Jake Poliskin of Darco Capital, investor and advisor to the brand.

“Many of my friends who are professional or recreational athletes are often looking for a clean protein choice,” continued Poliskin. “Neutral is the obvious choice for not only those who care about preserving the environment, but for those who care about keeping in the best shape and meeting their daily dairy nutritional requirements — professionally or personally.”

It would seem that the wider population of consumers is ready for climate-conscious food choices too, according to a study conducted earlier in 2022 by Kearney that found a growing movement of “climavores”. 

“Daily food choice is a call to action for consumers keen to make a positive impact on climate outcomes, with nearly one-third of consumers in our survey considering environmental impact at the grocery store,” said Corey Chafin, associate partner, consumer practice, Kearney, and principal author of the study. 

With organic carbon-neutral milk products already available in more than 2,000  grocery stores across the U.S., Neutral stated that this funding follows its continued expansion into Whole Foods Markets, nationwide Sprouts stores, and Target locations on the West Coast.

The company also recently announced its expansion into food service, starting in Portland, Oregon, where it rolled out Neutral Pasture Raised Butter across the metro area.

“We are confident in this investment because of the team’s deep expertise in reducing GHG emissions in food production and supply chain and building a large retail business,” said Anjani Bansal, investment group partner, Global Brain. “Neutral has strong traction with major national retail chains and has demonstrated exceptional execution capability.”

With this new capital, Neutral plans to add more U.S. grocers to its distribution lists, doubling the number of stores selling its whole and 2 percent milk.

“We continue executing our growth strategy to make more Neutral products accessible to those who want simple, daily solutions to protect our planet,” said Marcus Lovell Smith, CEO, Neutral Foods. “This round of funding further supports our approach to being a carbon neutral food company that’s revolutionizing the food industry.”

Carmichael Roberts, Breakthrough Energy Ventures, added, “Neutral continues to validate that consumers are hungry for sustainable, climate-forward options. This round of funding will enable Neutral to reach more people and accelerate carbon neutral foods and technologies.”

~ Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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