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Starbucks to trial animal-free milk in Seattle

Coffee chain giant Starbucks is trialing animal-free milk from the startup Perfect Day at two locations in the Seattle area for a limited time, Bloomberg reported. This alternative milk option is available to customers at no additional charge.

This is the first time that the California startup is dabbling in a liquid milk product. Previously, the company has worked with ice cream and cake mix under its Brave Robot brand as well as an animal-free cream cheese product sold under the Modern Kitchen brand.

Dairy alternatives have become enormously popular in recent years. In 2020, the dairy alternative market was worth $20.5 billion but it is expected to grow at a compound annual growth rate of 12.5% through 2028 to reach $52.6 billion by 2028, according to Grand View Research. Milk is the largest category within that segment, commanding more than 67% of the dollars flowing into this market.

Although alternative milks are in demand, manufacturers have struggled to provide a suitable alternative that delivers on taste, texture, price and foaminess. Perfect Day aims to solve this issue by recreating animal milk — just without the animal.

To recreate cow milk, Perfect Day begins with fungi which it genetically engineers using bovine DNA to create whey proteins. These fungi are then fed sugars to produce whey proteins before being powdered. Its animal-free milk does not contain the other milk allergens lactose, cholesterol and casein. Manufacturers can then use this powder to create dairy foods.

While Perfect Day continues to message that its dairy products are animal-free there are many vegans who still content it is not a plant-based alternative since the fungi used in the creation of this product are genetically modified using bovine DNA — Perfect Day claims that the DNA is retrieved in a humane way using a swab.

Although some contention remains regarding the vegan nature of this product, the company has a valuation of $1.6 billion according to researcher PitchBook. With such large coffers and expansive potential for a milk product that recreates the experience of animal milk, Perfect Day is looking to tap into that market. This partnership with Starbucks is the first step.

Currently, this pilot of Perfect Day milk in Starbucks drinks is limited, but the feedback has largely been positive. In a review from tech publication The Spoon, the reporter noted that the milk foams like regular cow milk and that the taste is identical.

There is no confirmation that this pilot will continue; however, Starbucks is increasingly incorporating nondairy items onto its menu. In the U.S. the company offers Oatly oat milk in its locations, and in Chile a plant-based alternative by NotCo SpA is available to customers.