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Friday 20 May 2022

All Good backs $50m Southland oat factory

29th November 2021 By Bridget O'Connell | | @foodtickernz

All Good has thrown its weight behind the proposed $50m carbon neutral oat milk factory in Southland.

All Good says it is committed to being a customer of the proposed NZFF plant.

The company, which sells its Swedish-made and packaged oat milk under the All Good brand alongside its flagship Fair Trade bananas, said it would manufacture domestically at the proposed facility as well as retaining its overseas operation for select export markets.

“We are committed to producing both from Sweden and from [Southland operation] New Zealand Functional Foods,” All Good co-founder Matt Morrison told the Ticker.

“We see a future where there is oat milk close to the market, so we are continuing to produce in Sweden because we have an amazing partner there, and we have some very good international markets where we have been able to make quite strong in-roads.

“And we’re excited about the opportunity to produce oat milk in New Zealand – we see that as quite a strength.”

The Makarewa-based plant, brought forward by Venture Southland, would be New Zealand’s first purpose-built oat milk processing facility.

Chief executive Justin Riley was currently in the process of lining up both customers, such as All Good, as well as investors to fund the project, which has been seeded with $1m of capital from Warehouse founder Sir Stephen Tindall’s investment firm K1W1.

Morrison said that as well as helping All Good with market access and volume, it would also support innovation in the oat milk sector.

“There is a lot of room for growth in oat milk still, even with everyone talking about it like 2021 has been The Year of Oat Milk, we are really just getting started,” he said.

“There is a lot of room overseas, we are looking forward to New Zealand Functional Foods being up and running because it will not just be a bulk producer of plant milks, it will be a hotbed of innovation. That will be the basis that we can go beyond what we are currently doing.”

Another bonus of manufacturing domestically for the purpose-led company would be to help sidestep international supply chain challenges, plus simplify its transport emissions offsetting.

“Every transport movement with All Good through bananas and oat milk is fully offset, so producing close to market is crucial to the ethics of what we are trying to do.”

All Good made its first foray into oat milk in 2019 when it unapologetically went to the home of oat milk in Sweden to work with parties there who had been doing oat milk for twenty to thirty years.”

“We understood that to convert people away from dairy or to give them a reason to change you need to make it taste as good as possible.”

After many iterations, particularly of its barista oat milk SKU, All Good finally saw its product start to scale in the New Zealand foodservice market in 2019, and was also now in speciality and mainstream retail domestically.

Its export markets include Dubai, where Morrison said it is one of the leading oat milks, Singapore and Australia. It was about to enter Abu Dhabi and was currently undertaking testing in other Asian markets.



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