New Zealand-based startup EatKinda, known for its dairy-free ice cream made from cauliflower, is withdrawing from its domestic market to concentrate on expanding in the United States.
Despite strong initial success, including selling out at Hell Pizza locations within four weeks and securing placement in 120 Woolworths stores, the company has struggled to scale operations effectively in New Zealand.
Challenges in Domestic Production
EatKinda’s current manufacturing process relies on manual production and hand-filling each tub, which has led to inefficiencies and high wastage, according to co-founder and CEO Mrinali Kumar.
“New Zealand, with a population of just five million, has limited manufacturing options for a niche product like ours,” Kumar explained. “This makes it difficult to produce at the scale and cost required for growth.”
Recognizing these limitations, the company has set its sights on the U.S., where it has garnered significant interest through viral social media content. “Thousands of U.S. consumers have signed up for our email list, expressing strong demand for our products, particularly in the natural retail space,” Kumar noted.
She emphasized that EatKinda was always envisioned as a global brand, and stepping back from New Zealand’s retail and foodservice sector in the short term will help achieve long-term success.
U.S. Expansion Backed by Strong Demand
EatKinda was founded in 2020 after Kumar and co-founder Jenni Matheson met at a Startup Weekend event and developed their cauliflower-based ice cream concept. Following two years of research and development, the company finalized a recipe using cauliflower, glucose, sugar, coconut oil, and pea protein, with flavors including chocolate, strawberry, and mint chocolate.
While the startup has seen strong growth in New Zealand, Kumar reiterated that the country’s small market and limited manufacturing capabilities have hindered scalability. The U.S., by contrast, offers more sophisticated production facilities and a greater appetite for innovation.
EatKinda has already leveraged its social media presence, with 37,000 followers on Instagram and TikTok and viral videos attracting millions of views. The brand’s reception at Expo West, a leading natural products trade show, further validated the U.S. market potential.
“We originally thought we might need to reformulate for American tastes, but the feedback has been overwhelmingly positive. Our flavors and level of sweetness are already a hit,” Kumar said.
Overcoming Market Challenges in the U.S.
Despite enthusiasm for plant-based products, the dairy-free ice cream market in the U.S. has faced recent declines. According to data from SPINS analyzed by the Good Food Institute, sales of dairy-free ice cream fell to $351 million in 2023, a 14% drop from 2021, with volume declining by 22%.
However, Kumar remains confident in EatKinda’s potential, citing a growing market for allergen-friendly options. “A quarter of Americans have a food allergy, and that doesn’t even include those who follow a vegan or plant-based diet,” she said.
She acknowledged that taste remains a critical factor, as research suggests that a third of American consumers have reduced their plant-based purchases due to flavor concerns. “The plant-based category is evolving, and while we’re making strides, we need to continue refining the balance between flavor and price,” Kumar said. “But we’re not backing down from the challenge.”
Preparing for U.S. Market Entry
To support its expansion, EatKinda is launching a seed funding round and engaging with potential partners. Kumar pointed to the existing popularity of cauliflower-based foods in the U.S., such as cauliflower pizza crusts and snacks, as an advantage for market entry.
While New Zealand remains part of EatKinda’s long-term strategy, Kumar emphasized that this pivot is necessary for sustainable growth. “New Zealand is home for both Jenni and me. We’ve built an incredible community of loyal EatKinda lovers, and we hope to bring our ice cream back in the future,” she said. “This short-term move allows us to work toward that goal in a way that’s scalable.”
EatKinda’s departure from the New Zealand market has already prompted messages of support from local customers. “Seeing our ice cream disappear from shelves and hearing from customers means the world to us,” Kumar said. “It reinforces why we started this journey in the first place.”
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