The plant-based industry’s wild ride from explosive growth to market correction has separated the survivors from the casualties. While some companies retreated or folded, three OU Kosher certified leaders doubled down on dramatically different strategies—and all three are winning.
SunOpta bet big on infrastructure when others pulled back, investing nearly $200 million in new capacity over three years. Oatly went the opposite direction, closing facilities and pivoting to partnerships. Califia Farms chose rapid-fire innovation, launching new products almost monthly. Each approach seemed risky at the time, but as we head deeper into 2025, all three companies are proving there’s more than one path to sustainable growth in this maturing market.
Betting Against the Crowd: SunOpta’s $200 Million Infrastructure Play
When the plant-based market started showing cracks in 2022 and 2023, most companies tightened their belts. SunOpta did the opposite, pouring $125 million into a new beverage facility in Midlothian, Texas, and another $31 million into a massive warehouse in Alexandria, Minnesota.
“Retailers can’t be experts in every product category—that’s why they partner with manufacturers like us,” explains Lauren McNamara, who oversees much of SunOpta’s plant-based operations. The company’s co-manufacturing business has become a crucial differentiator, allowing them to fill capacity with both their own brands and private label work for major retailers.
The strategy is paying off. SunOpta is approaching their ambitious goal of doubling plant-based revenue by 2025 off their 2020 base—a target that seemed aggressive when announced but now looks prescient. Their newest facility is humming with production for everything from oat creamers to private label plant-based broths, each requiring different kosher supervision protocols.
“For our plant-based products, the certification process is fairly straightforward, but for some of our other product lines—like our private-label broth business, which includes chicken and beef-based broths—it requires closer coordination with kosher certifying agencies,” McNamara notes. This operational complexity actually becomes an advantage, demonstrating the quality control systems that make retailers comfortable outsourcing production.
The Great Pivot: How Oatly Chose Partnerships Over Plants
While SunOpta was building, Oatly was dismantling. The Swedish oat milk pioneer closed its Singapore facility, discontinued construction of a China plant, and fundamentally restructured around an asset-light model. The move looked like retreat to some observers, but the numbers tell a different story.
Oatly expects to achieve its first full year of profitable growth in 2025—a milestone that has eluded many plant-based companies. By shifting from owned facilities to co-manufacturing partnerships, they’ve reduced capital requirements while maintaining the product quality that built their brand.
The transition wasn’t without challenges. Maintaining consistent product quality across multiple manufacturing partners requires sophisticated oversight, especially when kosher certification must be maintained across every facility. But Oatly’s experience navigating these complexities has made them more operationally resilient, not less.
Innovation at Velocity: Califia’s Rapid-Fire Approach
Califia Farms chose a third path entirely: relentless innovation. The company just launched Birthday Cake Almond Creamer to mark their 15-year milestone, and within the past two weeks debuted two new Oat Barista flavors—Hazelnut and Pistachio. This isn’t seasonal product development; it’s a sustained assault on shelf space.
“Innovation isn’t just about new products—it’s about making sure they meet real consumer needs,” could easily be Califia’s motto. Their rapid development cycle requires exceptional supply chain flexibility and quality control systems that can accommodate frequent formulation changes while maintaining kosher certification across every SKU.
The approach reflects a sophisticated understanding of modern consumer behavior. In a crowded plant-based beverage market, standing still means falling behind. Califia’s constant product pipeline keeps retailers engaged and gives consumers reasons to return to the category.
The Kosher Thread That Binds
What’s remarkable is how all three companies maintain OU kosher certification throughout their strategic transformations. This isn’t just about accessing kosher consumers—it’s about operational discipline. Whether you’re building new facilities, managing co-manufacturing relationships, or launching products monthly, kosher compliance demands consistent protocols and supplier oversight.
McNamara emphasizes this point: “Quality, safety, and certifications are main considerations when choosing a manufacturing partner… And the ability to accommodate multiple dietary certifications—including kosher—is a big advantage for companies looking to reach the broadest possible audience.”
The certification becomes a proxy for operational excellence that translates across every aspect of food manufacturing, from ingredient sourcing to final packaging protocols.
Different Strategies, Same Market Reality
These three approaches represent different responses to the same fundamental challenge: how to scale profitably in a market that’s no longer growing by default. SunOpta’s infrastructure bet works because they can utilize capacity across multiple brands and product categories. Oatly’s partnership strategy succeeds because they can focus resources on product development and brand building. Califia’s innovation velocity pays off because they have the operational foundation to execute consistently.
None of these strategies would work for every company, but each offers a template for sustainable growth. The key insight isn’t which approach is “best”—it’s that successful companies pick a strategy that matches their capabilities and execute it with discipline, rather than chasing every trend or opportunity.
As McNamara puts it, “We’re not just manufacturing food and beverages; we’re working towards a more sustainable future.” Whether that future is built through massive infrastructure investments, strategic partnerships, or constant innovation, the companies that commit to their chosen path are the ones writing the next chapter of the plant-based industry.