‘It’s my baby’: Why cricketer Steve Smith’s new start-up is oat milk

“It’s really exciting to start something like this.”

The trio has already had a bumpy start: launching the product in late 2022, some four years after the idea’s initial conception, Smith and his co-founders are facing stiff competition in the crowded barista-preferred alternative milk scene, primarily from Sanitarium’s Alternative Dairy Co and Milklab.

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“It’s become quite a saturated market,” said Smith, adding that the process was “much more difficult” than they thought.

“We wanted to perfect our recipe and get everything right, and it just took a lot longer than we thought … We’re really proud of the product we’ve got now.”

Nonetheless, the market opportunity is there: Australian revenue from milk substitutes rose by nearly $30 million in 2021 to $327 million, a figure that is expected to hit $550 million by 2026.

On top of their use of Australian-grown oats, the trio are eager to differentiate Oat Milk Goodness through their deliberate choice of olive oil in the production process instead of industrial seed oils like sunflower or canola oil.

“Baristas, when they’re making coffees, want to make sure it stretches well, that it doesn’t separate,” said Adams. “Oat milk’s a bit different. It does seem to have a lot more similarities in the way it reacts to coffee compared to cow’s milk … [and] in terms of creaminess and mouthfeel.”

The underdog

The same drive that made Smith a world-class sportsman is propelling him as a fledgling entrepreneur. In a busy alternative milks market, Oat Milk Goodness is the underdog: the business is still in negotiations with the major supermarkets for coveted shelf space to get directly in front of consumers and gain brand recognition, but the team already have global ambitions to eventually expand into America and India (they already have a small presence in Singapore).

By the end of the year, they want to be stocked in at least one of the supermarket giants (“maybe two,” says Adams) and more than double the number of stores and cafés using their product from 300 to 750. The start-up is averaging quarterly revenue growth of 57 per cent over the last four quarters.

“It’s quite a lot to achieve here, but we feel we’ve got the right infrastructure in place,” said Adams.

To help kick things off, Oat Milk Goodness completed a $1.6 million capital raising, led by Rootes, among friends and family to spend on marketing. The start-up currently boasts a team of six, including the three co-founders.

“The funding we’ve got will keep us running for at least two years, probably longer, and we’ll see how we go down the track,” said Rootes.

On Smith’s part, he seems to be milking his new gig as entrepreneur and says it’s “quite satisfying” to see what started as just an idea blossom into a physical product in a café.

“I’m able to see the business from day one and watch it grow and be involved in all of the decisions. It’s something I’m excited about.”

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