‘Carbon neutral’ dairy co raises $12m

By Elaine Watson

- Last updated on GMT

Image credit: Neutral Foods
Image credit: Neutral Foods

Related tags carbon neutral Neutral Foods

Organic pasture-raised dairy co Neutral Foods – which is billing itself as a ‘carbon neutral’ brand through a combination of carbon reduction initiatives and offsets - has raised $12m in a series A round led by Breakthrough Energy Ventures.

Additional investors in the round include Japanese firm Global Brain, its CVC partners Kirin Holdings Company, Limited and Norinchukin Bank, and Craig Shapiro of New York-based Collaborative Fund.

The SCS certified​​​ carbon neutral brand - which is distributed nationally by UNFI and KeHE and is now available at 2,000+ grocery stores including Whole Foods Market, Sprouts and Target - works directly with dairy farmers to reduce emissions, then purchases carbon credits from US dairy farmers "who turn cow emissions into renewable energy​​" [turning manure into energy via anaerobic digestion] to offset the balance, says founder and CEO Marcus Lovell Smith, whose family has a dairy farm in New Hampshire​​​.

While some commentators have been skeptical about any attempt to position dairy milk as an environmentally-friendly choice, most Americans still drink cow’s milk, so trying to give consumers better options within a category they are reluctant to give up seemed like a pragmatic way to make a difference, Smith told FoodNavigator-USA in a recent interview​​​.  

Carbon Neutral Butter
Image: Neutral Foods