Gad Dairy Launches Extensive Almond and Oat Milk Alternatives to Compete with Tnuva and Strauss
Gad Dairy, Israel's fourth-largest dairy producer, has aggressively entered the plant-based milk alternatives market with 11 new products under the Feel Gad brand. These include almond-based drinks mimicking cream cheese and labneh, oat beverages with higher oat content (12%-20%) than competitors, yogurts, desserts like malabi and sticky rice, and cashew oat blends. The launch positions Gad against established brands such as Tnuva's Alternative line, which dominates the category, and Strauss's Alpro and Danone, which recently introduced soy yogurts. Smaller producers like Plant For You also compete in almond spreads.
Gad's CEO Amir Aharon described the move as entering "new ground," with a broad product range to test consumer preferences. The products are manufactured by subcontractors including Weiler Farm in Netivot, Eden in the south, and a producer in Afula. Gad aims for modest profitability around 5%, focusing on quality rather than price wars. The company hopes the new line will generate 10-20 million shekels in category revenue within a year.
This is not Gad's first foray into alternatives; it has long marketed oat and rice desserts and earlier this year launched "The New Milk," a fermented milk protein alternative developed with Rimilk, which has become a top-selling product in the category. Gad also recently acquired a controlling stake in Weiler Dairy, a leading tofu brand with 40% market share.
The plant-based alternatives market in Israel is growing rapidly, expected to reach 166 million shekels this year with a 13% annual growth rate over the past decade. Growth drivers include lactose intolerance, veganism, and increasing consumer demand for variety. Beverages account for 70% of the category, with the rest split among tofu, yogurts, desserts, and cheeses.
Feel Gad products are priced similarly to competitors, with oat drinks ranging from 11.60 to 15.90 shekels per liter, comparable to Tnuva and Alpro prices. The almond-based yogurts and spreads contain various percentages of almond milk, starches, plant oils, and stabilizers. Nutritional content varies, with some products containing up to 9 grams of fat per 100 grams and moderate sugar levels. The new line is available in major supermarket chains including Carrefour City.
