The “international first” of $5 a litre “uncooked” milk has not been the innovation goldmine the founders of diary tech startup Made by Cow had hoped, with the enterprise positioned in voluntary administration final week and shutting its doorways.
The Sydney startup developed a patented technique to deal with milk so it was secure to drink with out utilizing warmth pasteurisation, calling it “chilly pressed uncooked milk” – a riff on the approach utilized by the additional virgin olive oil business. Whereas milk is often heated to 72°C to kill micro organism and make it secure for human consumption, Made By Cow developed expertise to deal with it within the bottle utilizing excessive strain to get rid of pathogens and retain extra vitamins. It additionally gave the milk a six week shelf life.
Unpasteurised milk – it’s unlawful to promote for human consumption – turned a fad in Australia round a decade in the past, utilizing a loophole as a beauty product or “tub” milk. Authorities clamped down after a little one in Victoria died in 2014 after consuming uncooked milk.
Made By Cow pioneered a authorized different in round 2016, and inside just a few years the product, made utilizing milk from a Jersey herd on the NSW South Coast, was obtainable in main grocery store chains together with Harris Farm, IGA and Coles. It was based by meals entrepreneur Saxon Joye, cofounder of Care Meals Co and Jucci.
However final week the dream soured and CEO Wade Porter handed the enterprise over to Kate Conneely and Scott Kershaw at KordmaMentha below voluntary administration, in addition to shutting down manufacturing at Homebush in Sydney’s west.
Porter stated in a put up to Instagram that it was “a really powerful determination has been made to stop manufacturing” however the “enterprise has confronted financial uncertainty and provide chain challenges” amid rising rates of interest and inflation.
“We’re pleased with our unbelievable journey and to have created a very revolutionary product that was loved by 1000’s of loyal prospects,” he stated.
“Lately we have now been on a robust trajectory with our enterprise rising upwards of fifty% year-on-year.”
Porter thanked his devoted buyer base.
“We began as an unknown dairy model making an attempt to do one thing completely different and have grown right into a model so a lot of you like,” he wrote.
“Thanks for believing in us, the rising demand and love for our milk has made daily of arduous work worthwhile.”
When Made By Cow held a media launch in mid 2019, Porter stated on the time that he’d been contacted by several nations within the patent expertise they’d developed.
That IP and the corporate’s gear may have enchantment to potential consumers, however the recent milk market stays a extremely aggressive and low margin sector, regardless of the excessive ranges of consumption of dairy by Australians.
KordaMentha has been contacted for remark. A primary assembly of creditor is scheduled for June 6.