Eclipse Foods Aims to Replace Dairy with Indistinguishable Plant-Based Alternatives

Eclipse Foods: Revolutionizing Dairy with Plant-Based Innovation

Grocery store shelves are increasingly stocked with plant-based products designed to mimic dairy. However, Oakland-based Eclipse Foods aims to do more than just substitute dairy; they strive to create plant-based dairy products that are indistinguishable from conventional dairy in taste, texture, and functionality.

The Genesis of Eclipse Foods

Founded in 2019, Eclipse Foods has made significant strides. CEO Aylon Steinhart, an expert in alternative proteins and formerly with the Good Food Institute, has incubated numerous startups in the space. CTO Thomas Bowman, a James Beard-nominated chef with a food science background, previously led R&D at Eat Just (formerly Hampton Creek).

Tackling the Dairy Market

Steinhart notes that while plant-based meat alternatives like Impossible and Beyond Meat have gained mainstream appeal, the dairy industry has yet to achieve similar traction. He highlights that 70% of the world's population is lactose intolerant, presenting a massive opportunity for a true dairy replacement. Eclipse Foods aims to capture a significant share of the $500 billion dairy market by offering products that everyone can enjoy.

Proprietary Micelle Technology

The company's innovation lies in its proprietary technology that utilizes micelles, the microscopic structures responsible for milk's unique properties. By processing plants like cassava, corn, and potato, Eclipse Foods mimics these micelles to create plant-based dairy products without compromising on taste, texture, or functionality. This technology allows for the creation of a range of products, including ice cream, cream cheese, and butter.

Product Portfolio and Retail Expansion

Eclipse Foods began with ice cream, offering soft serve, ice cream mix, food service tubs, and various pint flavors such as Cookie Butter, Caramel Butter Pecan, Dark Side of the Spoon, Mango Passion Fruit, Vintage Vanilla, and Mint Chip. In the past year, the company has seen a remarkable 2,100% growth in its retail presence, securing partnerships with major retailers like Whole Foods Market, Albertsons, and Vons. They also offer direct-to-consumer sales through platforms like Gopuff, Good Eggs, and Gorillas. Their products are also available in food service locations, including Afters Ice Cream, the LA Dodger Stadium, Original Mels, and Silver Diner.

Smashburger Partnership: A Mainstream Breakthrough

A significant milestone for Eclipse Foods is their recent partnership with Smashburger. This collaboration makes Eclipse's ice cream mix the base for Smashburger's new non-dairy milkshakes, marking the first time nationally available non-dairy milkshakes are offered at a fast-casual restaurant chain. This partnership also represents Smashburger's first plant-based menu item. Steinhart emphasizes that this move targets mainstream consumers, demonstrating that plant-based options can appeal to a broader audience when taste and quality are paramount.

"Why do we need dairy if this tastes just as good and it appeals to way more people?"

Competitive Landscape and Funding

The global dairy alternatives market is projected to reach $50 billion by 2028. Eclipse Foods faces competition from companies like Oatly, which offers a diverse range of plant-based products, and other ice cream brands such as Coolhaus, N!ck's, and Brown Foods, which have also secured significant funding.

Series B Funding and Future Growth

Eclipse Foods recently closed a $40 million Series B funding round, led by Sozo Ventures, with participation from Forerunner Ventures, Initialized Capital, and Gaingels. This funding propels the company's valuation into the hundreds of millions and brings its total funding to over $60 million. The capital will fuel further expansion in retail and food service, accelerate R&D for new product development, and support team growth.

Scaling and Brand Trust

The company's ability to scale rapidly is attributed to its "plug and play" approach, utilizing traditional dairy lines without requiring new equipment. Steinhart stresses the importance of brand trust, noting that taste is the primary barrier for consumers adopting plant-based dairy. Eclipse Foods' commitment to creating exceptional-tasting ice cream aims to build this trust, paving the way for future acceptance of their cheese and yogurt products.

Key Takeaways:

Mission: To replace dairy with indistinguishable plant-based alternatives.
Technology: Proprietary micelle technology using plant-based ingredients.
Market: Targeting the $500 billion global dairy market, with a focus on lactose-intolerant consumers.
Products: Ice cream, ice cream mix, soft serve, cream cheese, butter.
Partnerships: Significant retail expansion and a key collaboration with Smashburger.
Funding: $40 million Series B round, valuing the company in the hundreds of millions.
Strategy: Focus on taste and functionality to build consumer trust and drive mainstream adoption.

Topics Covered:

albertsons, Aylon Steinhart, Beyond Meat, Biotech & Health, dairy, Eclipse Foods, food and drink, food service, forerunner ventures, Gaingels, Hampton Creek, ice cream, initialized capital, Oakland, sozo ventures, Startups, Thomas Bowman, Urgent Company, Whole Foods Market, Yogurt