Neutral

What Neutral does

Neutral Foods Inc (DBA Neutral Milk) is a Portland, Oregon-based, venture-backed consumer packaged goods company that produces and distributes carbon-neutral dairy products, including whole milk, 2% milk, half & half, heavy whipping cream, and a barista-formulated milk variant, through both retail grocery and foodservice channels in the United States. Founded in 2021 and capitalized by a $4 million seed round (October 2021) and a $12 million Series A (September 2022) led by Breakthrough Energy Ventures, the company also merged with grass-fed dairy brand Zeal Creamery in June 2024 to broaden its portfolio.

The company's core technology is an ISO-compliant, process-based Life Cycle Assessment (LCA) methodology co-developed with Dr. Greg Thoma at Colorado State University that measures product carbon footprints from field to fridge. Neutral supports this measurement framework with on-farm carbon reduction projects including the Agolin essential-oil feed supplement program (8.4% enteric methane reduction), SeaGraze asparagopsis taxiformis trials (over 75% enteric methane reduction in grass-fed systems), solid-liquid manure separation (around 5,100 MT CO2e/year per project), and tannin-optimized forage research with Oregon State, Penn State, and Utah State. The combined approach has reduced 47.6% of its 2023 product footprint (5,764.3 MT CO2e) through verified insets, with the remainder covered by carbon offsets registered through Verra and the Climate Action Reserve.

Revenue is generated through standard unit-priced retail sales at major and specialty grocers (Whole Foods Market, Sprouts, Target, The Fresh Market, Giant Eagle, Erewhon, Pete's Fresh Market, Misfits Market, New Seasons Market) and through foodservice sales to restaurant and coffee-shop chains including Shake Shack, Gregorys Coffee, Joe Coffee, Birch Coffee, Hungry Ghost, Chip City Cookies, Grand Central Bakery, Fifty Licks, and Kachka. Go-to-market is a hybrid sales-led motion combining retail distribution for environmentally conscious and mainstream grocery shoppers with direct enterprise sales to foodservice operators seeking to reduce Scope 3 emissions. The company is SCS 108 Carbon Neutral certified by SCS Global Services and is led by CEO Marcus Lovell Smith with a small operating team (1–10 employees).

Name

Neutral

Legal name

Neutral Foods Inc

Website

https://eatneutral.com

Company type

Private

Founded year

2021

Operating status

Operating

Headcount range

1–10 employees

Short description

Neutral Foods (Neutral Milk) is a Portland-based CPG company producing certified carbon-neutral dairy products — milk, half & half, heavy cream, and barista milk — sold through 2,000+ U.S. retailers and 1,000+ foodservice accounts including Shake Shack.

Ownership category

akta.pro rank

Product category

Carbon-Neutral Dairy Products

NAICS

Fluid Milk Manufacturing (311511), Dairy Product (except Frozen) Manufacturing (31151), Dairy Product Manufacturing (3115)

SIC

Dairy Products (2020)

akta.pro primary industry

Milk (Fluid & Shelf-Stable) (CRADACAA)

akta.pro secondary industry

Organic & Specialty-Claim Fluid Milk Processing (Organic, A2, Grass-Fed) (AFAHAAAH)

Keywords

• Carbon-neutral dairy
• Dairy food products
• Foodservice milk supply
• Organic dairy retail
• Grass-fed dairy milk

Headquarters

HQ city

Portland

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Personnel, Marketing or Sales, Operations, Technology or R&D, Infrastructure

Revenue model

1. Retail Dairy Products: Revenue from selling carbon-neutral dairy products (whole milk, 2%, half & half, heavy whipping cream) through major grocery retailers including Whole Foods Market, Sprouts, Target, The Fresh Market, Giant Eagle, and independent stores. Both organic and conventional options available.
2. Foodservice Products: Revenue from selling foodservice dairy products (barista milk, dairy milk, half & half, heavy whipping cream) to restaurants, coffee shops, and institutional food service operators. Products available in bulk and various package sizes for commercial use.
3. Specialty/Organic Products: Revenue from premium organic carbon-neutral dairy products sold at specialty retailers like Misfits Market and organic-focused stores.

Pricing tiers

Go-to-market motion2 records

Distribution channels13 records

Marketing channels8 records

Core offering

Neutral produces and sells certified carbon-neutral dairy products—whole milk, 2% milk, half & half, heavy whipping cream, and barista milk—in both retail (grocery) and foodservice (restaurant and coffee shop) formats. The company directly partners with dairy farmers to implement on-farm carbon reduction projects (feed supplements, manure management, optimized forage) and uses a proprietary life cycle assessment methodology verified annually by SCS Global Services to certify carbon neutrality from field to fridge.

Differentiator

Problem solved

Functional benefit

Products and services

• Dairy Milk (Foodservice)

Quantifiable outcome

• 47.6% of 2023 product footprint (5764.3 metric tons CO2e) reduced through verified on-farm insets
• +4 more outcomes

Named customers9 records

Segments3 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration21 records

Feature4 records

Partnerships

14 partnerships are on record, tiered core and secondary.

• Zeal CreamerycoreStrategic or Co-development Partner · 11 June 2024Merger with grass-fed dairy milk brand Zeal Creamery to create combined entity offering both retail and foodservice dairy products. Emphasizes sustainable farming practices, animal welfare, and environmental benefits.
• FarmRaisecoreStrategic or Co-development Partner · 2 November 2022Platform connecting farmers to conservation funding. Partnership enables Neutral to reach motivated producers seeking funding for climate-smart practices. Dairy farmers in Pacific Northwest can access Neutral funding alongside state and federal programs.
• Dr. Greg Thoma (Colorado State University)coreStrategic or Co-development PartnerDirector of Agricultural Modeling and Lifecycle Assessment for the AgNext program at Colorado State University. Leading expert in measuring footprint of U.S. animal agriculture. Developed comprehensive LCA methodology for Neutral products.
• Dr. Logan Thompson (Kansas State University)coreStrategic or Co-development PartnerAnimal scientist measuring greenhouse gas emissions in grazing systems. Partnered to evaluate methane emissions from feed supplements like SeaGraze and sainfoin hay using GreenFeed machine.
• Dr. Serkan Ates (Oregon State University)coreStrategic or Co-development PartnerAnimal scientist focused on pasture management for sustainable animal production. Collaborating on projects to refurbish pastures with high-tannin species that reduce enteric methane emissions.
• SCS Global ServicescoreStrategic or Co-development PartnerThird-party certification, validation, and verification for environmental and sustainability claims. Provides annual carbon neutral certification to the SCS 108 Standard for Neutral products.
• Climate Action ReservecoreStrategic or Co-development PartnerCarbon credit registry for global carbon markets. Neutral sources offsets developed in accordance with CAR's Livestock Protocol, verified by third-party and registered through CAR.
• HowGoodsecondaryStrategic or Co-development PartnerProvides sustainability intelligence leveraging world's largest database on product sustainability. Helps maintain product carbon footprints and GHG Protocol-compliant inventory for scopes 1, 2, and 3 emissions.
• SymbrosiasecondaryStrategic or Co-development PartnerDeveloper of SeaGraze, a feed supplement made from asparagopsis taxiformis (red seaweed) that reduces enteric methane. Neutral partnered with Symbiosia and Carman Ranch to trial SeaGraze in grass-fed systems.
• Carman RanchcoreStrategic or Co-development PartnerInnovative regenerative ranching group based in Pacific Northwest producing grass-fed, grass-finished beef. Partner for SeaGraze trial and sainfoin hay research. Women-led livestock producer leader in regenerative agriculture.
• 3DegreessecondaryOthersOffset credits purchased through 3Degrees for Alliance Dairy and Sunny Knoll projects, registered with Climate Action Reserve.
• NativeEnergysecondaryOthersOffset credits purchased from NativeEnergy for Rainier Biogas project, registered with Climate Action Reserve.
• Aster Global Environmental ServicessecondaryStrategic or Co-development PartnerAccredited third-party verifier for carbon projects. Verifies 2023 insets developed in accordance with Verra's Feed Supplements to Reduce Enteric Methane Emissions protocol (VM0041).
• Shake ShackcoreChannel Partner/ Reseller/ DistributorRestaurant chain partnership for carbon-neutral milkshakes. Partnership launched in Pacific Northwest and is expanding. Took less than two months from initial conversation to product deployment in first Shake Shack locations.

Scale indicators7 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Straus Family Creamery: California-based organic dairy that was the first US dairy to be certified carbon neutral under a credible third-party standard. Directly comparable to Neutral in product category (organic fluid milk, cream, half & half), customer base (natural foods retail and foodservice), and carbon-neutral certification positioning.
• Maple Hill Creamery: 100% grass-fed, regenerative organic dairy brand selling fluid milk, cream, yogurt, kefir, and cheese into natural and mainstream grocery. Closely comparable to Neutral on regenerative/sustainability positioning, fluid-milk-led product set, and nationwide retail distribution.
• Vital Farms: Public pasture-raised egg and butter company with a strong ethical-sourcing and sustainability narrative. Comparable to Neutral on pasture-raised/sustainability-led brand positioning, premium CPG pricing, and scaling from natural foods into mainstream grocery.
• Alexandre Family Farm: Regenerative organic dairy and pasture-raised egg producer in Northern California. Directly comparable to Neutral on regenerative/sustainability story, organic certification, and Pacific Northwest / West Coast retail and foodservice accounts.

Broad incumbents

• Stonyfield Organic: Largest US organic yogurt brand (Danone-owned) with deep sustainability and climate commitments. Overlaps with Neutral on organic certification, sustainability-led brand narrative, and national retail footprint, but operates at much larger scale and across a broader dairy portfolio.
• Organic Valley: US cooperative of nearly 2,000 organic family farms selling fluid milk, butter, cheese, eggs, and produce under a sustainability-led positioning. Comparable to Neutral on farmer-direct cooperative model, organic certification, and national distribution, but at significantly larger scale.
• Horizon Organic: Largest US organic fluid milk brand (now operated by Plains Dairy after Danone divestiture). Overlaps with Neutral on organic fluid milk as core product, mainstream grocery distribution, and sustainability messaging, but competes on price and scale rather than carbon-neutral certification.
• Danone North America: US subsidiary of global dairy major with publicly stated carbon-reduction roadmap across fluid milk, yogurt, and plant-based. Comparable to Neutral on Scope 3 dairy emissions agenda, but with vastly larger R&D, marketing, and foodservice account leverage.

Regional players

• Carman Ranch: Women-led, regenerative grass-fed beef and dairy ranch in Eastern Oregon, and an active on-farm research partner of Neutral. Comparable on regenerative grazing, Pacific Northwest footprint, and direct-to-foodservice relationships.

Others

• Symbrosia: Hawaii-based climate-tech startup commercializing SeaGraze, an Asparagopsis taxiformis feed supplement that Neutral trials with for enteric methane reduction. Functionally an enabling technology partner and adjacent climate-for-agriculture venture rather than a direct dairy competitor.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/eatneutral
• Instagraminstagram.com/eatneutral/?hl=en
• Xx.com/eatneutral
• LinkedInlinkedin.com/company/eatneutral

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Subsidiaries1 record

Funding overview

Funding rounds3 records

Investors7 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Neutral