Stockeld Dreamery Ceases Operations: A Reflection on the Plant-Based Cheese Market

Plant-based cheesemaker Stockeld Dreamery has announced the cessation of its operations, citing a lack of momentum that made it untenable to raise further capital.

Founding and Initial Success

Founded in 2019 by Anja Leissner and Sorosh Tavakoli, Stockeld attracted over $20 million in investments from notable backers including Astanor Ventures and Northzone. The startup’s unique proposition was to carve a niche in the market with its cultured legume products and eye-catching packaging designs.

Market Presence and New Accounts

The brand established a foothold in more than 500 locations across New York, including bagel shops, burger joints, and retailers. Recently, Stockeld secured new partnerships, including a placement in 17 Whole Foods stores in NYC, set to launch next March, as well as a deal with Fresh Direct.

Challenges on the Road to Profitability

Tavakoli discussed the myriad challenges faced in pursuing profitability, sharing insights with AgFunderNews. Despite ongoing demand from vegan consumers and those with dairy allergies, the anticipated influx of interest from flexitarians has not materialized, putting into question the future of plant-based cheeses.

The Elephant in the Room

“The elephant in the room,” as Tavakoli puts it, is the apparent lack of underlying consumer demand for products that shift away from animal-based options. While plant-based milks have gained significant market share, it doesn’t guarantee similar success for cheese, which presents greater technical challenges and emotional attachments for consumers.

A Lack of Compelling Arguments

Tavakoli argues that the current consumer proposition for vegan cheese is not particularly appealing. Many alternatives can’t make strong health claims, and often the most compelling argument for flexitarians is that these products are simply more expensive, yet only marginally comparable in taste to traditional dairy cheese.

Market Trends and Declining Sales

According to SPINS data shared with AgFunderNews, the U.S. retail sector is witnessing a decline in refrigerated plant-based cheese:

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

Source: SPINS, U.S. retail, 52 weeks to Sept 7, 2025

Retail Landscape Adjustments

Tavakoli acknowledges that the shrinking plant-based cheese market has led retailers to reduce space for these products. “Retailers are merely responding to consumer demands,” he explains, illustrating with the closure of Neat Burger in NYC, which was replaced by a non-vegetarian burger chain.

Evaluating Profitability

Regarding the company’s financial outlook, Tavakoli articulated a need for $6 million in revenue for profitability, but annual projections revealed a smaller scale than initially anticipated. Exploring external partnerships failed to yield fruitful opportunities, leading to the decision for a responsible wind-down.

Looking Ahead: The Future of Alt-Dairy

Despite the challenges ahead, Tavakoli remains optimistic about the potential evolution of the alt-protein landscape. He recognizes the necessity for alt meat and dairy brands to offer a more compelling consumer proposition moving forward, especially as innovations in technology arise and the full environmental costs of animal agriculture become clearer.

Conclusion

Reflecting on the journey, Tavakoli notes that though the team was close to achieving success, the increasingly difficult market conditions ultimately led to their decision. “We knew success would demand something extraordinary,” he concludes, advocating for a future where higher-value products and compelling narratives will shape the alt-dairy space.

Further Reading

For more insights and industry updates, check out:

• Climax Foods rebrands as Bettani Farms, hires new CEO, focuses on markets it can ‘serve at scale profitably’
• From record Series A to market reset: Where TiNDLE Foods—and plant-based meat—go next
• Plant-based meat by numbers: Grim reading for the US retail market, brighter spots in foodservice and globally