Malk Organics Closes a $9 Million Series B

Malk Organics, the Texas-based organic dairy alternative brand, announced a $9 million Series B funding round led by Benvolio Group and Rotor Capital.

Malk was launched in 2015 by August Vega after she discovered her one-year-old son had a dairy allergy. But with her son in mind, Vega launched with a commitment to organic ingredients and a shorter list of ingredients overall compared to its competitors. It’s a move investors say gives the brand a competitive edge.

“We are extremely bullish about Malk’s growth prospects, because not only is the product highly differentiated in a growing on-trend category, but the seasoned team in place has delivered exceptional results in 2022 and has a strong plan to accelerate future revenue and achieve profitability,” said Managing Partner of Benvolio Group, Sam Frankfort.

‘A strong foundation’

Malk may have been ahead of the curve, with the industry leaders now touting cleaner products and shifting to unsweetened and organic as consumers seek out healthier dairy-free options.

“Over the past 12 months, the Malk team has built a strong foundation by pioneering the premium plant-based milk segment, cultivating existing and new retail customer relationships, and attracting a dedicated, passionate team,” said Managing Partner of Rotor Capital, Rich Keller. “We are excited to continue to support their journey to helping Malk achieve its greatest potential.”

The funding comes after Malk increased its distribution and expanded its offerings to include a chocolate oat milk that’s rolling out to stores now.

Malk says the new funding will support its retail growth and marketing efforts as well as add key hires.

“We are very pleased to announce this round of funding from our valued partners at Benvolio, Rotor, and more, which will help us continue to emerge as a leading organic plant-based milk brand,” said Malk’s CEO Jason Bronstad. “We have bold plans for Malk and are eager to build on the momentum we have garnered thus far as we continue to bring the cleanest milk alternative on the market to households throughout the country.”

Demand for dairy-free milk

The funding comes as demand for dairy-free products continues to rise even amid declining sales for other plant-based sectors. Dairy-free milk has long been the plant-based category driver as consumers opt for alternatives for health reasons such as lactose intolerance, as well as for climate and ethical reasons.

A recent survey found nearly half of young consumers were ashamed to order dairy products in public. Retailers are also supporting the trend with Blue Bottle coffee announcing it would make non-dairy oat milk the default at all of its stores following a two-store trial.