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**Dairy’s Money Machine Is Back On**

4h ago · 6 sources · funding

Dairy is having a capital moment.

In Canada, Aux Labs just raised $4 million to commercialize its precision fermentation platform for dairy proteins. The twist. They are scaling animal-free casein using existing brewing facilities across North America instead of building their own plant. Asset-light meets alt dairy.

In the US, cottage cheese is no longer a punchline. Sales topped $2bn in 2025, up 19.2% in dollars and 13.9% in volume, according to Circana. British brand All Things sold 1 million pots in four months and became the best-selling cottage cheese SKU on Ocado. Good Culture pulled in backing from L Catterton at a valuation of more than $500m to fuel scale.

Big Dairy is not sitting still. FrieslandCampina is investing more than €90 million to expand whey protein capacity in the Netherlands, with full capacity expected by 2028. Walmart put over $350 million into a new milk processing facility serving more than 650 locations. DIA plans to invest €180 million in 2026 to buy around 200 million litres of Spanish milk, with own-brand accounting for nearly 65% of its milk sales.

Even in plant-based, dairy leads. Plant-based dairy holds 21% of the plant-based food market in Europe versus 4% for plant-based meat.

Why it matters. Capital is chasing protein, not ideology. From fermentation tanks to cottage cheese to whey, the winners are the players who can scale fast and own supply. The next dairy fight will not be cow versus no cow. It will be who controls capacity, and who turns protein into a brand consumers crave.

Key facts

  • Canadian startup Aux Labs raised $4 million in a funding round led by NYA Ventures and Nàdarra Ventures to commercialize its precision fermentation platform for dairy proteins.
  • Aux Labs is using existing brewing facilities in North America to scale production of animal-free casein rather than building its own plant.
  • Lactalis UK & Ireland launched Leerdammer Mini Cubes into Morrisons on 11 May, targeting the cheese snacking category.
  • Value sales in the cheese snacking category increased 13.3% year on year, with snacking and processed now the fourth-biggest segment in cheese.
  • Cottage cheese sales in the US topped $2bn in 2025, up 19.2% in dollar terms and 13.9% in volume, according to Circana.
  • British brand All Things sold one million pots of cottage cheese in four months and became the best-selling cottage cheese SKU on Ocado.
  • Good Culture secured backing from private equity firm L Catterton in a deal reportedly valuing the business at more than $500m to support scale-up.
  • FrieslandCampina is investing more than €90 million to expand whey protein capacity across its Bedum, Veghel and Workum sites in the Netherlands, with full operational capacity expected by 2028.
  • Walmart invested over $350 million to open its third milk processing facility in Robinson, Texas, serving more than 650 Walmart and Sam's Club locations.
  • DIA plans to invest €180 million in 2026 to purchase around 200 million litres of milk sourced from Spanish suppliers, with own-brand milk accounting for nearly 65% of its total milk sales.
  • Plant-based dairy holds a 21% share of the plant-based food market in Europe versus 4% for plant-based meat, according to Circana.
  • $4 million
  • 13.3%
  • $2bn
  • 19.2%
  • 13.9%
  • 1 million pots
  • more than $500m
  • €90 million

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