Jamie Wilson, founder of Plant Projects. Photo / Supplied
For Jamie Wilson, founder of plant-based beverage company Plant Projects, growth is firmly in his sights after a year of “surviving”.
Wilson is hoping to take a sip of the $20 billion-plus and rising plant-based beverage sector being driven by health-conscious consumers.
The company recently landed a distribution deal for its newest product, No Ordinary Ice Tea, which is stocked in all New Worlds around the country, more than 150 Z Energy stations and in metro Countdowns.
And there’s no slowing down for Wilson and his agile team of seven.
“By Q2 next year, we will look like a very different business with an even wider range of products,” he said.
“We are on the journey to becoming a market leader in the plant-based beverage sector in New Zealand and Australia.”
He calls ice tea a nostalgic beverage, driven by the “godfather” of ice tea, Lipton.
“We saw a gap for a low-sugar, plastic-free, New Zealand-made version and jumped on the opportunity,” he said.
No Ordinary Ice Tea uses local fruit, such as peaches from Hawke’s Bay and raspberries from the Bay of Plenty.
Like most businesses, Plant Projects, founded in 2019, has been enduring the impacts that came with the Covid-19 pandemic.
“Operating through and post-Covid has been about managing spiralling costs, where everything, and I mean everything, has been increasing,” he said.
“Ultimately it’s been a year of surviving.”
Plant Projects has been selling a range of plant milks – both its own brands and distribution brands it’s brought to New Zealand.
They launched their No Ordinary Oat Milk in January this year.
“Our No Ordinary Oat Milk is available widely in Australia and Singapore and has paved the way for our Ice Tea to enter these markets,” Wilson said.
“Both No Ordinary brands echo simplicity and quality, which has made conversations much easier as we have built trust in our brand.”
Australia was now exceeding Plant Projects’ New Zealand business in scale, he said.
Wilson said working for plant-based startup Vega, in Vancouver, opened his eyes to the exciting new category.
Vega would later go on to be bought in a US$550 million deal.
“At that stage, the US and Canada were advanced in the plant-based sector, which motivated me even more to return home to get ahead of the growth curve here and play a meaningful role in our country’s market development,” Wilson said.
The plant-based beverage market was valued at US$15.3 billion ($24.4b) in 2019 and is expected to grow to in excess of US$34.8b by 2026, according to a report from Fairfield Market Research.
The report found over 50 per cent of consumers in the United States alone admitted being exclusively fond of plant-based milk alternatives over conventional dairy.
Asia Pacific was also projected to be a high-growth potential market.
But this has led to increased competition, with the big players moving in to gain a share, Wilson says.
“Where plant-based meat has been a bit more fickle, plant-based milk is going nowhere,” he said.
The plant-based meat industry, while still forecast to grow, has lost some sizzle.
Food analyst John Baumgartner told the New York Times this week that just a few years ago investors expected the category to explode with growth year after year, but this was now being reconsidered.
“We’re positive on the future for plant-based meat, but this is a 20- to 25-year story,” he said.
But it seems milk alternatives are showing no sign of slowing down yet.
Sydney Olson, a food and drink analyst for international market research firm Mintel, said in a July report: “I don’t think there is an end in sight for dairy alternative innovation — or at least not anytime soon.”
On starting his own business, Wilson said he had always worked in fast-moving consumer goods companies focusing on food and beverage.
“There was only so long I could survive in a corporate environment, plus I’ve always had a strong drive to start my own business,” he said.
“Turning up to work is a lot more rewarding as you have fewer people telling you what to do.”
He said the focus over the next five years was to continue to consolidate and grow within the New Zealand and Australian markets, with plans to extend both their plant milk and beverage portfolio throughout 2023.
“Our success reflects an exciting category with unprecedented growth and will continue to grow for the next decade as more subcategories develop and beverage innovation continues,” Wilson said.