Australian Dairy Nutritionals to make milk formula powders for Sprout Organic

Vertically-integrated dairy business Australian Dairy Nutritionals has announced a new, one-year contract manufacturing agreement with Sprout Organic, which will see it produce milk powders for its client.

According to a statement to the ASX on Tuesday, the agreement is non-exclusive, and comes with an option to extend for “a further [two-year] term”. Under the deal, Australian Dairy will produce “intermediate and fortified milk formula base powder” for Sprout, which specialises in organic, plant-based infant formula, as well as “healthy plant-based snacks” for children.

The agreement was described as not “immediately financially material” – with no volume or value forecasts mentioned – though as “forecast[ing] an exciting opportunity for growth for both businesses” given Sprout’s position as “the leading Plant Based infant formula globally”.

CEO of Australian Dairy, Mahi Sundaranathan, said on Tuesday that, “We are excited to have Sprout Organic on board  sourcing their plant based powder from us to manufacture their quality infant formula products. The CEO added that the company has “small batch drying capability which is well suited for the needs of Sprout Organic.”   

In 2021, Sprout launched what it said was the world’s first organic, plant-based infant formula product.

Founder and CEO, Selasi Berdie, added in the release that Australian Dairy’s “agility and innovative nature whilst maintaining stringent organic standards made them an optional contract manufacturing partner for Sprout Organic.” 

Australian Dairy operates organic-certified pastures near the Great Ocean Road, Victoria, and processes milk into nutritional dairy powders at a purpose-built manufacturing facility at Camperdown. Besides contract work, it also produces a certified organic A2 protein infant formula under the Ocean Road Dairies brand.

Picture: credit ADN/Facebook

Further reading

Sprout Organic gains product ranging in supplement retailer

Sprout to launch plant-based infant formula