After seven years in operation, plant-based milk brand Mighty Drinks has announced that it is going into administration.
“It’s with a heavy heart that we share the news that Mighty has entered administration,” said co-founder and CEO Nick Watkins, in a statement published on LinkedIn.
He went on to say that this is “not the outcome any founder hopes for” and that “building Mighty from the ground up has been one of the most challenging and rewarding experiences.”
Nick Watkins founded the brand with his brother Tom back in 2018.
“We’re incredibly proud of what we achieved: launching true first-to-market innovation, partnering with leading retailers, and helping millions of people with allergies or specific dietary needs across the world,” he said, adding that they gave it everything.
However, the brand confirmed that, “current market headwinds” and the “funding environment surrounding the plant-based and dairy alternatives sector” proved to be too much to overcome.
Mighty Drinks is now seeking a rescue deal in the hopes that the name will continue to exist under new ownership.
Industry reaction
The news has clearly left the industry shaken, with Mighty’s competitors quick to respond.
“Mighty going into administration is a reminder that our category still faces real challenges,” says Tim Smith, CCO of Rude Health – Oddlygood. “But we also see huge potential for growth. Now more than ever, it’s important for brands, retailers and consumers to come together to champion innovation, transparency and choice. By joining forces, we can help the plant-based drinks sector thrive and reach even more people.”
Mighty’s news follows Arla Foods’ announcement in January, that it was discontinuing its plant-based milk alternative brand Jörd in the UK. The UK is one of the biggest markets for plant-based milks, and is second only to Germany in terms of consumption. In fact, it’s the fifth biggest market in the world (Statista), so a decline in demand from such a major market could be cause for concern in the industry.
Is the plant-based milk sector in trouble?
Though this will certainly come as unwelcome news to the plant-based industry, the market is still strong, and growing.
It holds a global market value of $19.42bn and is projected to grow at a CAGR of 7.6% over the next five years, taking it to $32.35bn by 2030 (Grand View Research).
“Many consumers are becoming more health-conscious and are seeking alternatives to dairy milk that offer similar nutritional benefits without the potential drawbacks. For example, lactose intolerance and dairy allergies are common issues that plant-based milks can address effectively,” says a spokesperson for Grand View Research.
According to the National Institute of Diabetes and Digestive and Kidney Diseases, approximately 68% of the global population has lactose malabsorption, making lactose-free alternatives highly appealing.
Added to this, animal welfare and environmental issues are fuelling the global shift away from dairy milk.
