Inside Out set to milk investor interest; taps E&P

afr.com:

Here’s one for the oat milk converts; an emerging brand in Australia’s plant-based beverage industry is looking for its next stage of growth.

Plant-based beverage maker Inside Out has engaged E&P to bring on a growth capital partner. 

Street Talk can reveal Inside Out has tapped E&P Corporate Advisory to find a growth capital partner to supercharge the popular almond and oat milk brand and help it chase new opportunities.

The business, founded by farmers market stallholder Anthony Tuong almost 10 years ago, sits in the alternative milk category alongside brands like Vitasoy and Sanitarium, supplying long-life and fresh products to major retailers Coles and Woolworths. It also has a growing presence in independent retail, food services and export channels.

The company is understood to have seen significant momentum in top-line growth, market share gains and profitability, recording a historical compound annual growth rate around 30 per cent between 2021 and 2023. It’s projected to deliver revenue exceeding $20 million by FY25.

Inside Out also has been scaling its presence over the past two years, developing new brands such as almond and oat milk label Annie’s Orchard and cheaper alternative J*ST M*LK. It’s also looking to expand into the functional dairy segment – consumable goods with nutritional additives such as protein, calcium and probiotics – with a new brand and product range expected to hit the shelves later this year.

But its rise hasn’t been all smooth sailing. The brand has recently been in hot water after its unsweetened almond milk was linked to a case of botulism, forcing a recall.

E&P is understood to be seeking either a growth private equity fund, strategic player or family office to come on board, putting