What's going on?

Nestl� announced on Wednesday that it�s entering the plant-based milk market, as it vies to give the world�s heavy-hitters some healthy � very healthy � competition.

What does this mean?

While the world�s biggest food company has been expanding into meat substitutes for a while, it�s been slow to tap into the huge and growing demand for plant-based milk that�s been fueled by environmental and nutritional concerns. But unlike a rival-base that mostly uses soy, almonds, or oats for their plant-based milks, Nestl�s opted to create �Wunda� using protein-rich peas. Only time will tell if that was a smart decision: pea milks have got some flack for their weird �legumey� taste in the past�

Why should I care?

The bigger picture: It�s getting cozy in the plant-based sector.
Clearly Nestl�s looking to quaff a share of the plant-based dairy market, which was worth $16 billion in 2019 and is anticipated to hit $41 billion by 2025 (tweet this). But the company�s not short of rivals: it�ll be going head to head with French dairy giant Danone�s Alpro and Silk, as well as young upstarts Chobani, Planet Oat, and Califia Farms. At least Nestl� has something the new kids on the block don�t: an extensive distribution network that�ll enable it to effortlessly roll out new products across the world�s retail outlets.

For markets: Oatly schmoatly.
Nestl�s Wunda range will include a barista-approved milk designed for steaming and frothing. That�s a pretty direct clapback at Oatly, whose own barista-style oat milk is used in every Starbucks store across the US. And if that wasn�t enough of a declaration of war, Nestl�s announcement came just as Oatly prepares for a stock market debut that could value it at as much as $10 billion. Still, the company�s recent filings showed that it doubled its sales to $421 million in 2020, so if Nestl�s coming at the plant-based king, it�d best not miss.