There is an increasing need for dairy alternatives for environmental and sustainable reasons. This is where a Swedish startup Sproud comes to play with its dairy-free alternatives that are touted to have the closest taste to regular milk. The Malmö-based maker of plant-based milk announced that it has raised £4.8M (nearly €5.4M) funding from a London-based growth capital investor, VGC Partners.
Investment from VGC Partners
Well, the investment from VGC Partners will be used to grow the team at Sproud, accelerate its distribution and activities to build its brand in the core markets where it operates including the UK, US and Canada. Also, the Swedish company will be able to focus on the further development of its 100 per cent vegan, plant-based product range.
Talking about the investor, London-based VGC Partners is a growth capital investor specialising in innovative early-stage consumer, media and tech companies. The firm is known for investments in the next-generation food and beverages space in recent years. Its portfolio companies include JUST, a plant-based alternative to eggs, and Ugly Drinks, a producer of zero-sugar sparkling water and energy drinks. Parminder Basran is the founder and managing partner at VGC Partners.
Nicklas Jungberg, co-founder and Chairman of the Board at Sproud comments: “We have reached a stage where most people are now aware of the positive impacts that swapping dairy for vegan substitutes would have on our planet and health.”
“What’s left is for consumers to truly act on this, but we don’t think forcing people to change their food preferences is the way forward. By matching the tastes that they are used to, and the nutritional content typically provided through dairy products, we know that we can make a huge impact, and with the support of Parminder and his incredible team, we feel confident that positive change can now be achieved faster, and on a much greater scale,” Jungberg further adds.
Closely resembles dairy milk
Launched in 2018, Sproud’s products are available in supermarkets and online retailers including Waitrose, Ocado, and Amazon, shops, cafés, and restaurants across the UK. According to the company, it has grown significantly in 15 markets in just two years. It is available across the UK via supermarkets and online retailers such as Waitrose, Ocado, and Amazon, in addition to various independent shops, cafés, and restaurants.
The company claims that its innovation lies in its unique ability to create products with a taste, texture, and nutritional profile that closely resembles dairy milk
As per the company, it could achieve the same with a unique, proprietary blend of protein from yellow split peas, GMO-free oils and syrups, fortified with essential vitamins. Its products contain low essential amino acids and are free from lactose, gluten, and soy. The company claims that its Sproud variants contain double the amount of protein than oat milk and 5x the amount in almond milk with relatively lower sugar content.
“Combining sustainability with taste, and nutrition, Sproud is able to cater to consumers ranging from full-time vegans (which make for approximately 10% of its customer base) to a larger number of flexitarians, and those seeking to reduce their carbon footprint,” says the company in its press release.
About Sproud
Sproud is a Swedish innovation and 100 per cent Swedish owned brand. According to the company, the Sproud brand was born from a Swedish family investment group called Findeln holding in Malmö in 2018. Jungberg is a majority shareholder in Findeln Holding
In late 2019 another Swedish investment group called Dream beverage acquired 50 per cent in the company to fund international expansion. “Sproud was designed, developed and is manufactured in Sweden for Europe. For North America, the brand is packed in Canada using the same technology and formulations and maintains its Swedish roots,” says the company. To date, the company has raised £8.7M (nearly €9.8M).
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