Revolutionizing Dairy: Israeli Startup Remilk Launches New Milk

Israeli startup Remilk has teamed up with family-owned dairy firm Gad Dairies to unveil New Milk, an innovative low-sugar, lactose-free milk made with recombinant dairy proteins produced in fermentation tanks, eliminating the need for cows.

Positioning and Benefits of New Milk

Unlike other players in the market who focus on the “animal-free” narrative, New Milk is marketed as conventional milk, emphasizing key benefits, according to Remilk founder and CEO Aviv Wolff. The product, which will be available in cafés and restaurants across Israel this week and in major retailers next month, highlights three major advantages for consumers: exceptional taste, lactose-free formulation, and a reduction of 75% in sugar content, with the cow-free aspect disclosed on the packaging’s back.

“It doesn’t look like another ‘alternative’ product,” stated Wolff, adding, “It gives you the same experience as traditional dairy without the downsides and performs better than plant-based options nutritionally and functionally.”

Enhancing Unit Economics in Dairy

Although existing lactose-free dairy options containing lactase are on the rise, Wolff believes Remilk can offer competitive unit economics for fundamental dairy products such as milk and yogurt. The company has secured $150 million in funding and initially planned to construct a large-scale precision fermentation facility in Denmark. However, they now collaborate with co-packers in North America and Asia to scale operations.

Wolff emphasizes the massive potential of fermentation to disrupt the traditional dairy market by delivering on taste and cost efficiency. He points to the engineered microorganism they utilize—specifically, a strain of yeast Komagataella phaffi—as a significant cost advantage due to its unprecedented efficiency.

Consumer Response and Market Potential

Ultimately, the success of New Milk hinges on consumer adoption. Remilk is already in advanced discussions with major consumer packaged goods (CPG) companies in the U.S. that are monitoring developments in Israel.

New Milk: Key Features

👉 Crafted using Remilk’s recombinant beta-lactoglobulin, coconut and shea fat, minimal cane sugar, added calcium, vitamins D and E, natural flavors, and dietary fiber, New Milk is kosher-pareve. This attribute allows 66% of Israelis who observe meat-dairy separation to enjoy it in coffee after meat meals.

👉 Produced in conjunction with Gad Dairies, New Milk is priced to compete directly with alternative dairy products and premium dairy brands like Fairlife.

👉 Plans for additional product launches are underway.

Exploring the Market for Animal-Free Dairy

Advocates for fermentation-derived dairy argue that it offers sustainable and ethical alternatives while retaining the nutrition and functionality of traditional dairy products. The market is still in its nascent stages, with stakeholders navigating consumer education, regulatory hurdles, and positioning opportunities.

Companies like French precision fermentation startup Verley and Dutch firm Vivici are exploring various applications for their functionalized proteins, aiming for market launches in 2026. Meanwhile, ImaginDairy collaborates with Israel’s food giant Strauss Group to create “cow-free” drinks and cream cheese lines.

Challenges and Opportunities in Scaling

On the manufacturing side, many of these companies depend on co-manufacturers due to VC hesitance to finance large-scale capital expenditures for unproven technology. Industry pioneer Perfect Day is working on a fermentation facility in India slated to begin operation in 2026.

Vivici has partnered with Liberation Labs to produce its beta-lactoglobulin and is exploring establishing a facility for alternative protein production in the UAE through collaboration with Abu Dhabi Investment Office (ADIO).