The Sustainable Grain Company has evolved, but the mission is the same. We are now Farmalogical, Inc. and our product is Smootch - Check out our website! https://drinksmootch.com

Problem

Food for every person on Earth should be absolutely sustainable, resilient, and accessible.

By 2050, feeding almost 10 billion people will require a radical transformation in the way food is produced, processed, traded and consumed.

As it stands, today’s food system is wasteful, causes undue harm to the environment, and is not as healthy as it should be. In fact, the food system is actively eroding the planetary systems on which we depend.

Within the larger problem, small farms and small dairies have been struggling. Economics of consolidation are applying pressure on one side, while dietary trends are shifting consumer demand. Large CPG companies struggle to make significant changes in their system, but small dairies with excess capacity present an opportunity for food system optimization.

Food is essential, and a food system that is absolutely sustainable, resilient, and accessible for all should be a priority. We shouldn’t compromise with less-than-healthy or delicious foods to make this possible.

Solution

Our company takes a whole-systems approach towards sustainability in the food system. This starts at the roots (and the soil) by empowering small farmers and dairies. We source from smaller farms while promoting the spread of regenerative agriculture. We want to create a resilient network of food producers and manufacturing facilities through partnerships, and, to distribute locally. For every product, we plan to up-cycle all food waste.

Our first product line will come from oats - a wholesome food sourced domestically from a regenerative farm in Maine. Taking the current environment into consideration, we can get started by selling oatmeal-ready oats direct-to-consumer through our website. Our objective is to find a production partner in a Pennsylvania dairy with the excess production to create our delicious oat-based beverage, and to distribute in the Greater Philadelphia Area. We are experimenting with the leftover oat pulp from the process, to turn it into another revenue stream.

The goal is to establish a strong brand and a reputation that is proven by what we do and our relationships to partners and customers. With strong partnerships in place, we will be able to expand by making small, quick bets with agility - all while promoting local farms, sustainable diets, and zero-waste.

Market

Our target market is the greater dairy/non-dairy market in the US, measured at $40B in 2017. Within this, the sales of non-dairy milk are about $2.1B, and growing. Our first targeted region, the Greater Philadelphia Area, houses 4 million people representing 1.2% of the US population. If we assume that 1.2% of non-dairy milk sales come from this region, it is a $25M a year market. Capturing 4% of this market would mean $1,000,000 in sales.

While it may seem like the non-dairy milk industry is crowded, there are only about 20 alternatives in the space, while there are about 800 competitors in the dairy industry. In 2018 data for non-dairy milks, almond milk held 64% market share, while oat milk held less than 10%. We see a major shift on the horizon, and we strive to be one of the innovators making it happen, while helping dairies to diversify into the field.