Once Upon a Farm Ventures into Dairy With Launch of A2/A2 Whole Milk Shakes

With this week’s launch of A2/A2 Whole Milk Shakes, children’s fresh food brand Once Upon a Farm is seeking to fill a gap for no-added-sugar dairy-based pouches targeted at young consumers. The release marks the brand’s first foray into the dairy category.

Available nationwide in the dairy set at Whole Foods Market, Once Upon a Farm’s Triple Berry, Strawberry Crème and Banana Crème 4 oz. shakes – crafted in partnership with Alexandre Family Farm – bring a “unique assortment” to the brand’s snacking portfolio, co-founder and CEO John Foraker told Nosh. The products are also available via OUAF’s website for $65.44 per 16-pack.

The fast-growing kids snacking business claims that most of its current non-dairy best sellers turn in the top third of the total yogurt category. According to Foraker, the new dairy-based shakes bring notable innovation into OUAF’s assortment that will keep the brand fresh and growing.

“It’s important to bring innovation to the natural channel and to differentiate that assortment somewhat from what can be found in broader channels and other retailers,” he said in an email to Nosh. “We are always looking to use innovation, pack size, or other levelers to keep each of our core channels and leading retailers in them competitive, growing and leading.”

Foraker said the partnership with Alexandre Family Farm, America’s first certified organic regenerative dairy farm, “felt natural for both of us.” Like OUAF, Alexandre has established a strong presence in Whole Foods and in the natural channel.

Alexandre Family Farm launched its own branded regenerative A2/A2 dairy line back in 2017, though it wasn’t created simply to sell milk. Rather, it was designed to bring “financial health, sustainability and profitability back to the farm,” owner Blake Alexandre previously told Nosh.

Over the past few years, A2 milk has garnered popularity among consumers, especially parents, for its protein that is more easily digestible than regular milk’s A1 dairy protein. The A2 milk market is projected to surpass $5.1 billion by 2033, growing at a CAGR of 9.5%, according to market researcher Future Market Insights. However, the current assortment of A2 products specifically marketed toward kids primarily consists of powdered formulas from brands like A2 Nutrition, Serenity Kids and Enlightened Baby.

Since debuting in 2015 with its high-pressure-processed baby food pouches merchandised in the chiller, OUAF has demonstrated an ongoing eagerness to disrupt the baby food and kids nutrition spaces. In late 2023, the brand introduced a line of refrigerated oat bars intended to retain consumers after children age out of baby food.

In 2022, OUAF added an additional $52 million in funding to its war chest – bringing its total capital raised to date to roughly $100 million – to carry the company through to profitability and allow the brand to “aggressively pursue innovation.” In an exclusive interview with Nosh following the raise, Foraker said the round would offer the brand a three- to five-year runway and may be its final raise.

Looking ahead, OUAF is slated to release the second product line in its new dairy portfolio – Whole Milk Smoothies – at retailers nationwide in February in their produce or yogurt sections. The line, made with fruits, veggies, and organic grass-fed whole milk, will be offered in three flavors: Banana Berry Blast, Mango Pear-adise and Orange Squeeze.

“This is our first step into dairy, but by no means the last. We see lots of potential in this space, especially with Once Upon a Farm’s standards,” said Foraker.