MOELK | CASE STUDY
GROWTH CAPITAL RAISE FOR MOELK FROM REPUTABLE ANGEL INVESTORS
A deep dive into the fundraising process for Moelk. Avalon Advisory (formerly Lange Family Office) assisted the founders from its inception including the strategy conception and forming partnerships as well as building the equity story and steering the investor dialogue. In August 2023, two prominent football players and Ingo Schütte, an experienced business angel, joined the existing group of shareholder.
Founded in late-2020, driven by the lack of oat milk supplies during the pandemic and the general need for a new milk alternative, Moelk was founded by a group of ambitious entrepreneurs. German professional football player Kevin Trapp has been joined by Luel Mulugeta and Guy Llame, founders and masterminds behind a successful gastronomy group. The team has been complemented by industry expert Alexander Schiffl and creative Maximilian Helldörfer.
Headquartered in Frankfurt, Germany, Moelk combines a direct-to-consumer strategy with a strong presence across all key retail channels. The brand has loyal following amongst Millennials and Generation Z, creating an ecosystem of plant-based products within a fast-growing and future-proof market.
Moelk set out to build a new type of food company with core values of health and sustainability, supported by an unconventional approach to brand positioning and commercial strategy. By blending exclusive high-end aesthetics with accessible pricing, Moelk positions itself uniquely within the oat milk market and appeals to a broad consumer base.
MARKET
By 2030, the dairy market will shrink by over 50%, while plant-based alternatives are expected to grow tenfold, with 64% of consumers preferring to purchase food products packaged sustainably.
The global milk category has been estimated at USD 179 billion in 2020 and projected to reach USD 247 billion by 2025, growing at a CAGR of 6.6%. Within this, plant-based milk alternatives will continue to grow between 20% and 25% over the next three years, driven by new consumers entering the category and increasing per-litre consumption by existing customers.
While plant-based milk alternatives represented approximately 9% of the global milk category in 2020, alternatives in other dairy categories still have a penetration of less than 1%, highlighting significant opportunities across the broader plant-based dairy alternatives sector and granting enough space for expansion.
The global plant-based dairy alternatives industry retail sales were estimated at USD 18 billion in 2020, representing approximately 3% of the global dairy industry. With sustainability concerns and consumer awareness on the rise, this market is poised for substantial growth.
SUSTAINABILITY AND IMPACT
Recognizing that the global food industry contributes approximately 25% of human-created climate impact, oat-based milk reduces greenhouse gas emissions by 80%.
Furthermore, oat milk reduces the need for land by 79%, and energy consumption by 60% in comparison to cow’s milk.
Also, oats require significantly less water than traditional dairy and alternative plant-based milks, such as almond or rice drinks, while maintaining a low carbon footprint due to their European origins.
GROWTH POTENTIAL
Moelk is a part of the movement reinventing vegan products by turning a conscious mindset into a lifestyle statement. The brand cultivates desire and legitimacy in the plant-based food culture by transforming the oat milk industry into more than just a category but a platform for sustainability initiatives.
Strategic collaborations with well-known influencers, food experts and the best cafes around Germany, are a key aspect of Moelk growth strategy. These initiatives increase brand awareness and customer retention, further underlining Moelk’s position in the market.
In addition, Moelk aims to expand its product offerings by introducing new product lines and diversifying its range, including innovative items such as its market-unique ready-to-eat porridge.
KEY TO SUCCESS
Avalon’s market insights and industry expertise has been essential to position Moelk within a competitive environment, clearly defining its USPs and distinguishing the company from its peers.
Through its global investor network and personal relationships, Avalon has been able to connect Moelk and its management team with an array of diverse investors to identify the best partner for its upcoming growth phase.
Throughout the process, Avalon worked at arm’s length with the founders, drafting the necessary investment documents and financial models, as well as supporting and leading the investor communication and due diligence process.
As of August 2023, Moelk welcomed ter Stegen, Lenz and Schütte as their newest team members, looking to propel the growth story of the firm.
CONTACT INFORMATION
Nicki Lange
Managing Partner
nicki@avalonadvisory.cc
+49 (0) 2054 87 357 94