The $40 Pint
themjeans@themjeans
+2.4%
since Sep 29
The idea
I believe commodity dairy is losing to the good stuff: grass-fed, A2, pasture-raised, whole animal fats replacing oat milk and seed oils, the same instinct that makes people pay luxury prices for a strawberry or a pint of ice cream. Since the best small creameries are private, I own the shift in public layers instead: big food companies buying up artisan dairies, the pure premium brands already selling this, the grocers and shelves where it's actually sold, and the animal health and farmland underneath it all.
What it owns
- Large food companies with track records of buying premium brands, positioned as likely acquirers of artisan dairies following the model of major spirits and food roll-ups. · Coca-ColaIts Fairlife acquisition shows how major food companies buy and scale premium milk brands into multi-billion dollar platforms., General MillsIt has a history of acquiring premium natural food brands and needs growth from areas outside commodity cereals., Hormel FoodsIt previously executed the premium acquisition playbook by buying Applegate and remains positioned to buy artisan dairy brands., Post HoldingsIt has built scale in eggs, cheese, and refrigerated dairy through repeated acquisitions, so its growth relies on finding and closing deals that move the portfolio toward higher-margin premium offerings., UnileverIt owns Ben & Jerry's and has spent decades acquiring premium ice cream and dairy brands globally, making it a natural buyer of artisan dairies.28%
- The closest public bets to artisan dairy itself: companies selling pasture-raised, cultured, and milk-protein products that consumers already choose at premium prices. · Vital FarmsIt proves that consumers pay substantially more for pasture-raised animal products, the core instinct behind premium dairy demand., Lifeway FoodsIt is a publicly traded cultured dairy maker benefiting from whole-fat and gut-health trends, and a plausible acquisition target for larger food companies., Cal-Maine FoodsIt is shifting its product mix toward cage-free, organic, and pasture-raised eggs, demonstrating the commodity-to-premium transition in one company., BellRing BrandsIt sells milk-protein shakes and powders positioned against plant-based alternatives, betting on dairy protein's continued demand growth.24%
- Retailers and distributors that control which premium foods reach shoppers and capture margin on every premium dairy sale through their stores or supply chains. · Sprouts Farmers MarketIt operates the retail model where specialty grass-fed and A2 dairy products are actually purchased by shoppers seeking cleaner food., The Chefs' WarehouseIt supplies high-end restaurants with premium butter and cream, serving the top tier of the quality ladder in dairy products., Costco WholesaleIt is the largest retailer of organic food in the country and the channel through which premium dairy scales to mainstream volume., Natural Grocers by Vitamin CottageIt only stocks pasture-based dairy using the strictest standard of any public grocer, making its sales a direct gauge of the premium shift., United Natural FoodsIt distributes small artisan dairy brands from production to the natural-food shelf, the critical logistics layer for scaling premium dairy.24%
- The infrastructure layer beneath premium milk: animal health products, dairy nutrition, and pastureland needed to support grass-fed and pasture-raised dairy production. · ZoetisIt keeps dairy herds healthy, and premium grass-fed operations require better animal health management than commodity milk., Phibro Animal HealthIt sells the daily nutrition and health products that dairy farms use to improve herd quality, the foundational supply layer., BalchemIt makes feed ingredients that raise milk quality and animal health, which matter more when milk commands a premium price., Farmland PartnersIt owns pastureland across American agriculture, and grass-fed dairy requires more acreage than commodity milk production.16%
- Cash8%