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Hybrid milk and cheese: The perfect blend of familiarity and low footprints?

Hybrid blends of dairy and plant-based milk and cheese may be emerging as a credible growth space, according to experts.

Mintel data shows strong interest in dairy-plant blends, with decent numbers of French (42%) and UK (27%) consumers saying they are appealing, as well as 56% of Irish consumers who eat cheese.

However, the number of launches remains low and have been hit-and-miss with shoppers so far. In the UK, the Smug range of hybrid dairy products has gradually been delisted from major supermarkets after just 18 months. The Kerry Dairy-owned brand will be back this year, the website suggests, but the focus will be on dairy.

“We’ve been slowly stepping out of stores as we say goodbye to the hybrid dairy category,” a statement on the website in December read. “It’s been a wild ride but it’s time for a fresh start, and we’re making way for something new, that is still outrageously tasty, packed with benefits, full-on dairy, yet so unmistakably Smug.”

Albert Heijn embraces ‘high-volume climate impact’of hybrids

There are nevertheless reasons to be optimistic about the potential of hybrid dairy-plant-based blends.

In the Netherlands, the supermarket, Albert Heijn, is going big on blends in a bid to reduce its greenhouse gas emissions. Dairy generates considerable amounts of methane, a powerful greenhouse gas, so making hybrids mainstream is a fast way to help reduce these.

“Albert Heijn immediately understood the potential for high-volume climate impact, and milk is seen as the ‘DNA of dairy’,” Jakob Skovgaard, co-founder and CEO of PlanetDairy, told Ingredients Network. “Actually we went to Albert Heijn to sell our cheese first and discussed the full transition of the dairy shelf. They wanted to start with milk,” he added.

PlanetDairy, from Denmark, and Dutch firm Farm Dairy have introduced a three-strong lineup of ‘hybrid milks’ into supermarkets; these combine cow’s milk with plant proteins to deliver a reported 20-30% reduction in greenhouse gas emissions.

Priced at €1.29, it is equal to Albert Heijn’s regular private-label dairy milk, cheaper than organic milk, and “well below” most oat or almond milk, according to Skovgaard.

“Keeping the product mainstream and affordable was a core requirement from day one,” he said. “Some plant-based milks have been positioned at a premium price, but a lot of promotional activity is starting to happen and private label versions have come out. Generally they are probably cheaper than hybrid or real milk,” he added.

Taste familiarity is the trump card for these hybrids as they compete with cow’s milk and their non-dairy cousins. “Consumers want the creaminess and mouthfeel they associate with dairy, and a blend gives them that reassurance while introducing the perceived health and ethical benefits of plant ingredients,” Bayard told Ingredients Network.

Achieving this is not easy, though. PlanetDairy went through a number of prototypes for example to perfect their cheeses and ‘milks’. “With cheese, the challenge is functionality [so things like] meltability and stretch,” Skovgaard explained. “With milk, the challenge is taste, colour, nutrition, and price – simultaneously. The product needed to look, taste, and behave exactly like milk consumers know.”

Chasing more cheese sales

In November, the company strengthened its innovation capabilities after acquiring selected production equipment and technical know-how from Stockholm-based Stockeld Dreamery (which ceased operations).

Founded in Stockholm as Noquo Foods, Stockeld Dreamery raised $20m and launched a range of plant-based cream cheeses and sliced cheeses, available in around 500 outlets across the US. There was success initially but declining demand in recent years proved too much.

“We find that flexitarians are no longer focused on replacing dairy or meat – they’re happy with traditional dairy, which they find tasty, affordable, and healthy,” said Stockeld co-founder and CEO Sorosh Tavakoli.

Skovgaard said sustainability might be the reason food retailers buy into blended dairy products but consumers “expect the same dairy experience with lower emissions”.

“This acquisition allows us to combine Stockeld’s expertise with our own R&D to deliver just that,” he said.

In Denmark, the company’s Audu brand recently had a facelift following confusion from consumers over whether it was a vegan cheese. The cheese is also now simply called ‘PlanetDairy’.

“We have also taken the opportunity to improve our recipe which results in even more carbon reduction – now over 40% lower than traditional cheese, and with lower saturated fat,” explained Paul Cornillon, co-founder and chief research and development officer.