PKN: As Americans Sour on Plant-Based Milk, This Brand is Turning to the Country’s Only Native Nut

Dairy is making a comeback in the US, with sales of whole milk outpacing plant-based alternatives. Can pecans turn things around?

The almond may be America’s favourite nut – especially when it comes to milking it – but its popularity seems to be waning a little. In the 12 months to August 2024, almond milk lost more sales than any of the other major alt-milks.

It’s reflective of a larger dietary shift in the US, where whole milk consumption was up by 3% last year, while intake of plant-based alternatives fell by 6%, a third consecutive annual decline, according to Circana.

Despite nearly half (49%) of households buying plant-based milk, a third of Americans still haven’t found a non-dairy product that meets all their needs. The established order of almond, oat, soy and coconut milk isn’t doing it for them – they want something more.

It’s why we’re seeing a new crop of brands using new crops to make non-dairy milk, from pistachios and peanuts to sunflower and watermelon seeds.

Some startups, however, are taking things back to the country’s roots with pecans. This is the only major tree nut that grows in North America and has been called the US’s “third-favourite nut”, with two-thirds of households purchasing it on the regular.

The US produces 80% of the world’s pecan crops, growing over 1,000 varieties. In the last decade or so, new product launches featuring pecans have risen by 54%, while extensions of existing lineups to include the nut have increased by 141%. And at a time when Made in America is all the range under President Donald Trump, these products are bound to find success.

So if there’s one nut that can reinvigorate America’s thirst for non-dairy milk, it’s the pecan. And PKN, a Texas-based startup, is banking on it.

Upcycling pecans saves waste and benefits farmers

PKN’s pitch is big on sustainability. It works with pecan farmers who use regenerative agriculture practices, utilises water in an efficient manner, and upcycles what the industry deems ‘imperfect’ pecan pieces, thus saving food waste and generating a new revenue stream for growers.

“Our mission is to build food brands that cut a path toward sustainable agriculture for the decades ahead,” says PKN founder Laura Shenkar. “For us, sustainability means delicious foods that provide healthier nutrition using natural resources more efficiently and supporting our local economy. We’re working in partnership with pecan farmers and shellers to upcycle pecans.”

She explains that pecans are sold based on their quality, size, colour and oil content. The larger the pecan, the higher the price. “Perfect half-shell pecans are the ones you see in the supermarket or on the top of a pecan pie,” she says. But pecans can get nicked or cracked during their shelling process, exposing more of their surface area to oxygen and making them go rancid faster.

“Larger pieces are sold as fresh nuts, or to confectioners for trail mix and other health foods. Smaller pecan pieces are often thrown away or sold for animal feed. Today’s pecan shelling means that we’re wasting valuable food. That’s where the upcycling of pecans comes in,” says Shenkar.

“By capturing smaller pecan pieces during the shelling process and hermetically sealing them, we can recover more pecan meats and preserve their fresh taste and nutrition. That means that we’re building a new revenue stream for pecan growers to fund their investment in water-smart irrigation and sensors that replace chemical pesticides,” she adds.

“We are also working with the Upcycling Association to learn from food recovery techniques for other grains and nuts to make our pecan recovery methods more efficient.”

Pecan milk shines on the nutrition front

Shenkar is speaking with Green Queen just as PKN has launched its newest product, Zero Pecan Milk. While its current range contains ingredients like inulin, gellan gum, and cane sugar in addition to pecans, this latest offering is stripped back.

The ‘Zero’ is meant to signal that the milk contains zero sugar, gums or other additives. It comprises just four ingredients: water, pecan butter, vanilla extract, and sea salt. These are enough to give the product a butterry flavour that rivals cow’s milk, according to the brand.

“We’ve developed proprietary roasting and grinding techniques to bring out the roast pecan taste reminiscent of pecan pie,” says Shenkar. While she wouldn’t be drawn on details of the process, she adds: “We spent months working with University of Georgia researchers on evolving the technique.”

The short ingredient list plays into consumer demand for clean-label products – more than a quarter of Americans who buy plant-based milk want simpler ingredients, or at least ones they can understand.

In addition, pecans come with nutritional gains – they have the highest flavonoid levels and antioxidant ratios of any tree nut, while also being rich in omega-3 fatty acids, polyphenols, manganese, mono- and poly-unsaturated fats, and fibre. That said, the protein content of 1g per cup leaves a little to be desired for Americans looking to amp up their macros.

PKN sales set to double amid fundraise

Despite the downturn in sales, Shenkar believes non-dairy milk will be just fine. “Most of the people choosing plant-based milks are not lactose-intolerant, so we see a rise in consciousness towards dietary restrictions, natural sources of sweetness, a pull away from artificial sweeteners, and pull towards new flavours,” she says.

“Pecan milk brings in flavours that have natural synergies with the coffee and tea flavours,” says Shenkar. “Pecan is a particularly popular flavour for coffees and teas, so we are seeing that coffee and tea are one of the primary applications for PKN products.”

PKN’s milks are available for $44.99 for a six-pack on its website – that comes out to about $7.49 per 32oz. It’s a steep markup, much higher than the $1.88 you pay at Central Market (one of PKN’s stockists) for twice as much dairy milk. It’s also more expensive than Oatly ($4.24) and Almond Breeze ($2.91), but on par with smaller and more premium offerings like Three Trees ($7.59 per 28oz) or Elmhurst almond milk ($6.48), and cheaper than brands like Taché’s pistachio milk ($9).

The self-funded company maintained stable revenues while introducing its second generation of products last year, when it rebranded from THIS PKN. It is set to launch its suite of non-dairy milks and creamers in hundreds of new stores nationwide, and is planning on raising funds in the second half of the year.

“Overall, the market is expected to grow and we’re seeing a lot of interest in pecan creamers and milks, so we are expecting a doubling of our sales this year,” says Shenkar. “As the first pecan milk creamer on the market, we expect to grow rapidly over the next three years to rival coconut plant-based milk creamers in the US.”