Miyoko Schinner’s Bid to Reclaim Her Plant-Based Dairy Brand

Miyoko Schinner is making moves to bid for her plant-based dairy brand,
Miyoko’s, a significant step three years after her removal from the board as CEO.
According to AgFunderNews, Schinner is assembling a team to put together a formal offer.

Besides Schinner, other interested parties, including animal welfare advocate and investor Satish Karandikar, are also
reported to be preparing bids, although Karandikar has yet to comment on the matter.

Recent documents reveal that Miyoko’s, based in California, has entered an
Assignment for the Benefit of Creditors (ABC) process on October 6, following a determination that the company was unable to settle its debts in full.
This process, overseen by Resolution Financial Advisors, provides an alternative to Chapter 7 bankruptcy, allowing the company to transfer its assets to an assignee tasked with handling their sale in the creditors’ best interests.

A Year of Turmoil for Miyoko’s

The recent financial struggles come after a tumultuous few years for the brand founded in 2014 by chef and animal rights activist Miyoko Schinner.
Originally launching with artisanal cheese made from cultured cashews, the brand expanded to include products like plant-based butter, mozzarella, cream cheese, and more.

Having raised over $70 million from investors including GroundForce Capital and Obvious Ventures, the company drew attention in early 2023 when Schinner was removed as CEO.
Disagreements over strategic direction led to her ousting, while co-founder James Joaquin sought a new CEO with proven P&L experience.

This rift culminated in a lawsuit and counter-suit between Schinner and the board concerning her exit and allegations of workplace issues.
The parties ultimately reached a resolution, allowing for the appointment of new CEO Stuart Kronauge in August 2023, who aimed to harness the brand’s untapped potential.

Recently, the firm announced plans to close its California production facility to streamline operations through co-manufacturers.

Schinner’s Vision for the Future

In a recent interview with AgFunderNews, Schinner expressed her determination to lead a resurgence of the brand.
“I’m putting together a team of people to make a bid as I believe I am the best person to be the face of the brand,” she noted, emphasizing her commitment to
product quality and nutritional values.

She plans to move away from operational leadership, favoring a new CEO who aligns with her vision.
“I want to do things differently,” she asserted.
Schinner envisions targeting early adopters with premium products that cater to niche market segments rather than attempting to appeal to the broad consumer base.

“The entire category is slipping, and so we have to speak to the early adopters,” she stated, stressing the importance of innovative and nutritious offerings.

The Market for Plant-Based Products

According to recent data from
SPINS, the market for refrigerated plant-based cheese has been declining:

• Total refrigerated plant-based cheese: -8.5% to $220.3 million
• Shredded and grated cheese: -4.1% to $107.8 million
• Sliced and snacks: -13% to $78.9 million
• Spreads: -1.7% to $9.7 million
• Other (blocks, etc.): -14.5% to $24 million

In parallel, retail sales of products marketed as plant-based butter witnessed a drop of 14.9%, totaling $157 million in the past 52 weeks up to October 5.

A Brand with Purpose

Schinner believes in creating a brand that stands for truth, equity, and sustainability.
“People are not interested in whitewashed, middle-of-the-road, me-too brands,” she asserted.

Her focus will be on appealing to those who genuinely care about the brand’s values rather than attempting to be all things to all consumers.
“That’s the way to win the industry,” she concluded.