Former Fonterra execs just cracked 140% overrun with lentils—that’s dairy-grade performance threatening your premium cream margins.
EXECUTIVE SUMMARY: Here’s what caught my attention over morning coffee—and it should catch yours too. Former Fonterra executives are now commercializing a lentil-based whipping cream that consistently hits 140% overrun, matching the performance of UHT dairy cream in professional kitchens. We’re talking about Alex Devereux (former Fonterra) as CEO and Leon Clement (ex-Synlait CEO, former Fonterra MD) leading this charge through their company ANDFOODS. The technology comes from five years of serious R&D at New Zealand’s Riddet Institute, not some garage startup fantasy. What’s really interesting? This cream holds stable for four hours in commercial bain-maries and handles high heat, acid, and alcohol—that’s premium foodservice performance that directly threatens your highest-margin cream sales. The global plant-based heavy cream market is projected to hit $5.08 billion by 2033, growing at 11.2% annually while we’re dealing with volatile feed costs and labor shortages. If dairy industry veterans are confident enough to bet their careers on this technology, maybe it’s time we start paying serious attention to what’s happening in our own backyard.
KEY TAKEAWAYS
- Premium Margin Alert: Plant-based heavy cream segment growing at 11.2% annually toward $5.08 billion by 2033—start monitoring your cream pricing more closely and consider diversifying into specialty applications where performance matters more than price.
- Foodservice Vulnerability: Professional kitchens are switching to allergen-free alternatives that simplify operations (one cream handles multiple dietary restrictions vs. stocking three different products)—evaluate your own allergen-free dairy development to beat them at their own game.
- Technology Platform Risk: The real threat isn’t this specific cream but the fermentation platform that could unlock other plant sources—consider R&D partnerships with universities to develop your own enhanced-performance dairy ingredients before competitors do.
- Supply Chain Lesson: Product’s profitability depends more on volatile coconut oil prices (up 100% year-over-year to $2,766/ton) than lentil costs—shows how global commodity markets can impact local dairy competition in unexpected ways, worth factoring into your own risk management.

You know what got me thinking at the last dairy conference? I was chatting with this processor from Wisconsin—good guy, been in the business longer than I have—and he said something that stuck with me: “Andrew, when the guys who built our industry start betting against us… that’s when I start losing sleep.”
He was talking about Alex Devereux. Former Fonterra executive, now running something called ANDFOODS, making whipping cream from lentils. And before you roll your eyes (trust me, I get it), this isn’t another oat milk fairy tale. This is serious business that’s got implications for every cream check you’re writing.
What’s Actually Going Down in New Zealand
Look, I’ve been tracking plant-based alternatives for years now, and most of it has been… well, let’s just say I wouldn’t serve it to my neighbors. But when seasoned dairy veterans start commercializing university research that’s been five years in the making? That’s when you pay attention.
The thing about this Flora Plant Cream—and I’ve been following the research coming out of Massey University’s Riddet Institute since the early reports—is that it’s not your typical startup story. We’re talking about serious R&D led by Dr. Arup Nag’s team, with patents filed and everything. These aren’t garage entrepreneurs trying to disrupt dairy for the sake of it.
What caught my attention was the leadership composition. You’ve got Alex Devereux as CEO, straight from Fonterra operations. Chairman Leon Clement? Former Synlait CEO and ex-Fonterra Managing Director. This isn’t Silicon Valley venture capital chasing the next food trend—it’s dairy industry veterans who understand exactly what they’re competing against.
And here’s what makes this different: while most plant-based products fail miserably when you try to whip them (and who hasn’t had that frustrating experience in the test kitchen?), this lentil cream consistently hits 140% overrun. That’s matching UHT dairy cream performance. It handles high heat, acidic environments, even alcohol mixing. Most importantly for our foodservice customers, it holds stable for up to four hours in a bain-marie.
I’ve seen this firsthand at a few test kitchens now. Professional chefs are actually using it.
The Market Reality That Should Concern You
Let me be straight about where this industry is heading. Current plant-based dairy projections show growth to $97.14 billion by 2034—that’s 9.4% compound annual growth while we’re dealing with volatile feed costs and labor shortages.
But here’s what really keeps me up at night: the dairy-free heavy cream segment alone is projected to hit $5.08 billion by 2033. According to industry analysis, that’s 11.2% annual growth, and we’re talking about some of our highest-margin products here.
I was visiting a 1,200-cow operation in Vermont last month—family’s been dairying for three generations—and the owner made a point that really resonated: “We can handle losing volume on commodity milk, Andrew. But when they start taking our premium cream business… that’s where it hurts.”
The pricing gap is still there, though. Recent USDA analysis shows plant-based alternatives running nearly double the price of conventional dairy. But here’s the thing—with current corn prices at $4.20 a bushel and soybean meal hitting $350 per ton, our own input costs are squeezing margins from both sides.
What’s interesting is how this fits into the broader trends I’m seeing. In Wisconsin, where I spend a lot of time, processors are telling me their biggest concern isn’t commodity competition—it’s losing those high-value specialty applications where performance matters more than price.
The Science Behind This Breakthrough
The technology story here is actually fascinating, and it solves a problem that’s been plaguing plant-based alternatives for years. According to Journal of Dairy Science research, the biggest barrier to plant-based adoption isn’t ideology—it’s functionality.
What ANDFOODS figured out is how to take what they call a “mystery lentil variety”—high in protein, around 25%, but completely unpalatable in its natural state—and transform it through a proprietary fermentation process. The result? A neutral-tasting, highly functional base that eliminates those “beany” off-flavors that kill most legume-based products.
The formulation strategy is actually pretty clever from a cost perspective. They’re using just 1% lentil protein as the functional core, then blending it with coconut and canola oils to achieve that 31% fat content we need for proper mouthfeel and whipping performance. It’s like they’re leveraging the unique properties of that fermented protein without needing massive quantities of the expensive stuff.
And the allergen profile… this is where it gets interesting for foodservice. Free from dairy, soy, and gluten, plus no palm oil. For a restaurant dealing with multiple dietary restrictions, this could be a game-changer. One cream that handles everything instead of stocking three different alternatives.
I talked to a chef from a high-end restaurant group in Chicago last week, and he said something that stuck: “Give me one allergen-free cream that performs like dairy, and I’ll simplify my entire dessert operation.” That’s the kind of sticky, high-volume customer that commands premium pricing.
The Economic Reality Check
Here’s where my years of watching input costs comes in handy, and it’s not all sunshine for this innovation. The cost structure is… well, it’s complicated in ways that might surprise you.
While dairy cream benefits from a century of optimization and—let’s be honest—significant government subsidies, this lentil cream faces multiple input price exposures. The biggest vulnerability? Coconut oil prices, which hit $2,766 per metric ton by July 2025—that’s nearly 100% year-over-year increase.
So this “lentil” cream’s profitability is actually more tied to Southeast Asian climate patterns than to legume markets. That’s a supply chain risk I wouldn’t want to manage during typhoon season.
What strikes me about this is how it exposes the product to climate and geopolitical risks in regions most dairy producers never think about. We’re used to managing weather risks in our own backyards, but this technology is vulnerable to disruptions halfway around the world.
Agricultural economists are noting that scaling specialized crop varieties requires massive supply chain investment. Building dedicated contract farming programs for this mystery lentil variety? That’s capital-intensive work that could limit rapid expansion.
The Regulatory Roadblock Nobody Talks About
What’s really going to slow this down—and most people don’t realize this—is the regulatory pathway. The proprietary fermentation process triggers “novel food” requirements across major international markets.
We’re talking 9-12 months through Food Standards Australia New Zealand just to get started, and that’s after you’ve compiled all the scientific documentation. For a startup with $2.7 million in seed funding, managing multiple jurisdiction-specific scientific dossiers is a massive resource drain.
The regulatory timeline, not market demand, is going to dictate how fast this thing scales globally. And having been through regulatory processes myself (though nothing this complex), I can tell you that 9-12 months is optimistic if everything goes perfectly.
The Professional Kitchen Advantage
Here’s something that’s flying under the radar but shouldn’t be: the foodservice angle. Food industry analysts are noting that professional kitchens demand consistent performance under stress conditions. This lentil cream’s four-hour stability in commercial equipment is no joke.
I’ve been in enough commercial kitchens to know that consistency trumps everything else. Chefs don’t care about your sustainability story if your product breaks during the dinner rush. The fact that this cream can withstand the abuse of a professional kitchen—high heat, acidic ingredients, extended hold times—that’s what separates it from most alternatives.
The partnership with Upfield for global distribution solves the go-to-market challenge that kills most food-tech startups. They’re not just competing on product—they’re leveraging established manufacturing networks and the Flora brand equity.
What’s particularly smart is their dual-channel strategy. They’re targeting both retail consumers and professional foodservice, which allows them to build volume through high-value applications while maintaining retail presence.
Supply Chain Concentration Risks
The supply chain story is where this gets really interesting from a risk perspective. Global lentil production is dominated by Canada (34%), India (19%), and Australia (15%), and India’s role as both major producer and net importer creates market complexity.
We’ve seen what happens when specialized ingredients face supply disruptions. Remember the quinoa price spikes a few years back? The “mystery lentil variety” is both a strength and a vulnerability. It provides IP protection, but scaling a niche crop variety from the ground up? That’s not just expensive—it’s risky.
One bad growing season in Saskatchewan, and you’re looking at significant cost pressures. That’s the kind of supply chain vulnerability that keeps procurement managers awake at night.
What This Means for Your Operation
From what I’m seeing across the industry, here’s what you need to be thinking about:
Keep an eye on your premium margins. If you’re seeing foodservice accounts asking about allergen-free options, that’s an early warning signal. The 500-cow operation in Iowa that started partnering with local restaurants for specialty dessert cream? They saw this coming and adapted.
Consider your own allergen-free development. The regulatory pathway for traditional dairy modifications is much simpler than novel food approvals. Beat them at their own game with lactose-free, enhanced-protein dairy creams that solve the same problems.
Think about value-added applications. The premium restaurant market, specialty food service, and regional artisan channels offer better margins and more defensible positions. The Vermont dairy I mentioned earlier? They’re now supplying three farm-to-table restaurants in Burlington with custom cream blends.
Don’t ignore the supply chain lessons. Whether it’s coconut oil volatility or lentil crop risks, this innovation shows how global commodity markets can impact local dairy competition in unexpected ways.
The Strategic Implications
Fonterra’s May 2024 decision to divest consumer brands and refocus on B2B ingredients is starting to look pretty smart. They’re retreating from the direct consumer battlefield and fortifying where they have real advantages—industrial-scale processing and long-term B2B relationships.
The way I see it, this isn’t about one lentil cream threatening our entire industry. It’s about the sophistication of competition increasing. The producers who adapt their value propositions to compete on performance, not just tradition, are the ones who’ll come out ahead.
The real lesson here? The most serious challengers aren’t coming from Silicon Valley startups—they’re coming from regions with deep agricultural expertise and institutional research capabilities. The fact that this is emerging from New Zealand, right in our industry’s backyard, tells us something about the competitive landscape ahead.
My take? This innovation represents a warning shot rather than an existential threat. It’s proof that the marketplace is becoming more sophisticated, and professional buyers are demanding products that deliver on functional promises. Those of us who’ve been in this industry long enough know that the smart money adapts to new rules rather than pretending they don’t exist.
Because whether we like it or not, the rules of competition are changing. And that’s the lesson from the lentil disruption—not that plant-based alternatives will replace dairy overnight, but that we better be ready to compete on performance, not just heritage.
Learn More:
- Protein Power Play: How Dairy Can Dominate The GLP-1 Revolution – Reveals tactical strategies for leveraging dairy’s superior protein quality to counter plant-based marketing claims and recapture market share through science-backed positioning that emphasizes natural advantages over processed alternatives.
- US Dairy Market in 2025: Butterfat Boom & Price Volatility – Demonstrates how record butterfat levels are reshaping cream economics and provides actionable risk management strategies to protect margins amid market volatility threatening premium dairy segments.
- 5 Technologies That Will Make or Break Your Dairy Farm in 2025 – Explores cutting-edge innovations transforming dairy operations, from AI analytics to precision feeding systems, revealing which technologies deliver measurable ROI and competitive advantages in the evolving agricultural landscape.
Complete references and supporting documentation are available upon request by contacting the editorial team at editor@thebullvine.com.
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