Dairyvative Technologies LLC, a company based out of Markesan, Wisconsin, acquired $2.5 million from investors for a new dairy technology that concentrates milk to give it a longer shelf life of at least six months and makes it lactose-free.
The $2.5 million came from the BrightStar Wisconsin Foundation, an investment company with a portfolio including many early-stage companies across Wisconsin, and three other undisclosed investors, according to a filing with federal securities regulators.
According to Dairyvative’s website, the company uses its patented “SevenX” approach to remove up to 95 percent of water from gently pasteurized fresh milk to make a super-concentrated milk that does not need to be refrigerated.
The concentrate, which has a consistency similar to honey, can be packaged and reconstituted, giving it a shelf-life of at least six to 12 months and a lactose-free formula. Once water is added to the concentrate, the product should taste like fresh milk, if not sweeter due to the low levels of lactose, according to the website.
John Lucey, director of the Center for Dairy Research at University of Wisconsin, said Dairyvative Technologies started some of their early work and testing at the Center for Dairy Research.
“Milk is over 90 percent water, so by concentrating the milk using heat processing steps, the milk becomes very thick,” Lucey said. “They can then package it [in an airtight package or container] so that it can last many months without contamination.”
Lucey said many companies, such as Starbucks, already use innovative, shelf-stable products like this in their stores. But he noted the difference between Dairyvative’s product and dry milk is that they are creating a liquid, not a powder, and because powders must be rehydrated, a liquid product benefits from a longer shelf life.
According to its website, Dairyvative Technologies was co-founded in 2012 by husband and wife Dr. Charles E. Sizer and Collette Sizer. Both are distinguished members of the food science and ingredients community as Charles Sizer, who serves as CEO of Dairyvative, has 14 patents in food science-related areas and Collette Sizer, president of the company, has more than 20 years in the food and ingredients industry.
Collette Sizer said Dairyvative Technologies partnered with Chicago-based dispensing equipment maker Cornelius Inc., a world leader in beverage dispense systems in restaurants, convenience stores and hospitality chains.
“Dairyvative licenses the technology and works with the processes,” Collette Sizer said. “Cornelius has all kinds of equipment and pop machines. Our product is a milk product that could go into a pop machine.”
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Collette Sizer said their target audience is restaurants and food services, and they are currently running their product through consumer trails.
But as the product grows and sustainable options become more available, a future long-term outlook could mean marketing to everyday customers.
Collette Sizer said she hopes that by the end of the year, they will have a developed commercial product.
