Veganz Group is spinning off its Mililk plant-based milk drinks business as the
vegan food producer and retailer seeks to raise external funds.
Berlin-headquartered Veganz Group said it has created Mililk FoodTech to “leverage hidden reserves within the company”.
The spin-off has been initiated in “preparation for entry of strategic investors” in the third quarter of this year, Veganz Group said in a statement, adding “advanced discussions” suggest a “pre-money valuation” for Mililk of €80m ($94.3m).
Following the proposed investments, which could each range from €10m to €20m, Veganz Group will remain a majority shareholder in Mililk, the owner of the Veganz brand of confectionery, biscuits, cakes and cheeses said.
Anja Brachmüller, the chief operating officer of the Veganz Group, has been appointed managing director of Mililk.
Mililk is focused on plant-based milk alternatives but is in the R&D stage of developing juices, smoothies and functional beverages, the group said.
Veganz Group has patented the Mililk technology based on 2D printing of food and drinks, which it said improves the “efficiency of conventional production processes”.
The benefits of the technology include extending the products shelf life, reducing packaging by up to 85% and cutting CO2 emissions by as much as 90%, Veganz Group claims.
Brachmüller said the company is on the cusp of taking the Mililk brand into North America, including setting up a production site in the US.
“The initial order forecast from North America makes the entry of long-term investors imperative to build production capacity as quickly as possible to meet the high demand,” Brachmüller said.
“In the US, we have already identified a production site that has all the necessary permits and offers enough space to produce more than 60 million liters of our plant-based milk alternatives per year.”
Veganz Group also said it plans to establish six more production plants in Europe, according to the statement, which listed “strategic partners” as Develey, Jindilli Beverages and Lassonde Industries.
The company announced in May that it had struck a deal with Jindilli Beverages to produce Mililk products and market them in North America, Australia and New Zealand.
In 2016, Germany’s Katjes Group invested in the business through its investment arm Katjesgreenfood.
Just Drinks has asked Veganz Group to confirm if Katjes is still a shareholder and to clarify the other holdings of the strategic partners, along with the current production facility set up and locations.
Also in May, Veganz Group said it was looking to restructure the business into five business units under the brands Veganz, Mililk, Happy Cheeze, Peas on Earth and Orbifarm.
