Finnish Food Factory, a contract manufacturer of plant-based dairy alternatives based in Kouvola, has raised €10 million (US$11.7 million).

The funding comes from Taaleri Bioindustry Fund I, which supports sustainable plant-based dairy production.

Founded in 2020, Finnish Food Factory produces a range of plant-based dairy substitutes for global and Nordic brands such as Fazer.

Turnover reached €13.5 million (US$15.8 million) in 2024, up from €1.2 million (US$1.4 million) in 2020.

Products include plant-based drinks, yogurts, cooking creams, protein drinks, sauces, spreads, coffee, cocoa and tea drinks, and meal replacement drinks.

Taaleri said oat milk has a significantly lower carbon footprint than conventionally produced cow’s milk.

🔗 Source: EU-Startups

🧠 Food for thought

1️⃣ Contract manufacturing shields companies from direct consumer market volatility

Finnish Food Factory’s tenfold revenue growth from €1.2 million to €13.5 million between 2020 and 2024 contrasts sharply with the struggles facing branded plant-based companies1.

While branded plant-based sales dropped 8.3% from 2022 to 2024, private label alternatives grew by 6.8% during the same period2.

This suggests that companies like Finnish Food Factory, which manufacture for established brands like Fazer rather than building their own consumer brands, benefit from more stable demand patterns.

The B2B model allows them to avoid the marketing costs and consumer perception challenges that have plagued direct-to-consumer plant-based brands like Beyond Meat, which reported a 9.1% decline in net revenues3.

Contract manufacturers can also spread risk across multiple clients and product lines, making them less vulnerable to shifts in consumer preferences for specific brands or products.

2️⃣ Oat-based products emerge as the standout category in plant-based dairy

Finnish Food Factory’s focus on Finnish oats aligns with one of the few bright spots in an otherwise declining plant-based market.