Cafes remain Milklab’s biggest advantage as an FMCG brand. Here’s why

Milklab’s genesis began in Melbourne in 2015, in the hands of baristas, bolstered by Australia’s demands for the texture, balance and consistency that define a good coffee. A decade on, it sits at the centre of a category carried by a new generation of consumers. Now part of Noumi’s stable of brands, Milklab has remained true to its cafe origins under CEO Michael Perich while expanding confidently into retail and global markets.In this interview with Inside FMCG, Perich reflects on how that balance is maintained, what has changed in the way Australians drink milk, and how Milklab pioneered coffee-shop DJ sets. Inside FMCG: Milklab began as a barista-first product designed for cafe performance. Looking back over the past decade, what were the key product or formulation decisions that helped the brand earn credibility with baristas early on?Michael Perich: The Milklab brand has strong foundations in collaboration, hence the name Milk-‘lab’. It’s always been about collaboration with professional roasters, baristas, and coffee experts to formulate the Milklab range for optimal stretch, texture, and, of course, taste, delivering consistent microfoam across different coffee styles. We worked with baristas and coffee professionals to prioritise flavour balance so that the milk complemented, rather than overpowered, the espresso.Over the past decade, that collaborative approach has been central to Milklab’s growth. Milklab has earned industry credibility and is now the #1 barista plant milk brand in Australian cafes and Noumi’s flagship plant-based milk brand. By continuing to partner closely with baristas and cafés across Australia, the brand has evolved alongside the needs of the industry and consumers.The growth of iced beverages is a strong trend, being driven largely by Gen Z who are seeking healthier options and new flavour combinations. The recent Milklab Gen Z Survey found that 58 per cent of Gen Z cafe-goers say the milk brand influences the café they go to.Milklab’s commitment to collaboration has helped Milklab Almond and Milklab Oat sit comfortably as the #1 and #2 preferred barista milks, respectively, in thousands of Australian cafes. This reflects not just product quality, but a deep, ongoing connection with the people behind the coffee and the consumers who enjoy it.Considering alternative milks have moved quickly from niche cafe products to mainstream grocery staples, what do you think has changed most in how consumers and retailers think about plant-based milk today?The biggest shift has been from ‘alternative’ to everyday. Consumers now expect plant-based milks to deliver on taste, texture and performance just like dairy, whether at home or in a cafe.Retailers have expanded their ranges and given the category more prominence, recognising it as a core part of the dairy aisle rather than a niche. The launch of Milklab in the retail plant-based milk segment has been among the most successful in the past 10 years. In the last 12 to 18 months, Milklab delivered 90 per cent of plant-based milk growth on Australian supermarket shelves. Off the back of this success, Milklab Coconut launched into Woolworths and Coles last year, and our new enhanced Milklab Soy will be on retail shelves in the coming months. Coconut-based products are experiencing strong growth in Australian supermarkets, driven by health-conscious consumer preferences. Milklab now sits across cafes, grocery and international markets. How do you maintain product consistency and brand identity as the business expands into new channels and geographies?Maintaining consistency starts with staying true to Milklab’s commitment to delivering a product that pairs perfectly with espresso coffee and amplifies the coffee experience. Every product within the Milklab range, regardless of channel or market, is developed to the same core standards for texture, stretch and flavour in coffee. We have rigorous quality control processes in place across our manufacturing partners to ensure every carton performs the same, whether it’s served in a café in Sydney, Melbourne or poured in a cafe partner overseas.Milklab recently refreshed its brand identity to leverage its heritage of quality and innovation, with new creative that champions its dedication to refining every aspect of its range to ensure excellence in taste, quality, and experience.This brand identity extends beyond borders to suit the region. Under the Cafelab name in Southeast Asian markets, Milklab is showing tremendous growth. While we tailor how we show up in different markets, the brand is always grounded in its Australian coffee heritage and ongoing collaboration with baristas, which remains at the heart of everything we do.Cafe culture has played a major role in shaping Australian beverage trends. How closely does the team work with baristas and cafes today when developing or refining products?Cafe culture remains at the heart of how we innovate, so we stay closely connected to baristas and cafe partners at every stage of product development. We regularly gather feedback from our cafe partners to ensure our products perform on the machine, in the cup and under the pressure of a busy service.Over the past few years, we have noticed an emerging generation of cafe consumers, attracted by curated cafe beverages and social media-driven experiences. New flavours and coffee moments are reshaping coffee culture in Australia. We’re seeing an emerging trend where young Aussies are swapping big nights out for early starts and curated hot and iced drinks with friends.It’s this shift in how and when we drink coffee that inspired Milklab to pioneer Coffee Shop Sets in Australia – the latest global trend of morning DJ sets paired with specialty hot and iced coffee drinks.Our partnership with baristas and the coffee trade is ongoing and helps us refine our range, respond to emerging trends, and ensure consistency over time.As the category becomes more crowded, what do you see as the biggest opportunity for innovation in plant-based milk over the next few years?Milklab still sees our biggest opportunity as focusing on and tapping into new occasions and consumer consumption habits (such as iced beverages).We know that taste remains the leading motivation to choose a new cafe beverage, so continuing to refine the flavour profiles of our range to ensure it meets the expectations of consumers is key.Milklab recently launched an enhanced Milklab Soy that has a smoother, more balanced and mild flavour with a creamier texture. It’s been developed with cafe partners so that it performs well with espresso coffee and tastes great too.We also see strong potential in ingredient innovation.On the dairy milk side, Noumi’s Australia’s Own brand has recently launched two new products – Australia’s Own Kids No Sugar Added Chocolate Milk and Australia’s Own High Protein Chocolate Milk – that fill a gap in the kids’ milk category. Every year, Australians spend $23.3 million on lunchbox dairy milk, and despite demand, the kids’ segment of the flavoured milk market has been slow to innovate.As Milklab marks 10 years in the market, how are you thinking about the next phase of growth for the brand, particularly across retail and global markets?Milklab is [currently] in a growth phase, and our focus is on leveraging the brand’s credentials of delivering barista-quality performance to move into new channels and markets.In retail, that means continuing to bring cafe-quality products into the home, meeting growing consumer demand for plant-based milks that deliver on taste, texture and consistency.Globally, we see strong opportunity to take Milklab’s Australian cafe heritage to international markets where coffee culture is evolving rapidly.We know that the specialty coffee market is enjoying strong growth. For Noumi’s barista-quality dairy and plant-based range, including Milklab, our products are now sold throughout Asia. We’ve also recently entered new markets including Thailand, South Korea and India.Ultimately, growth will come from staying close to baristas and consumers, while also expanding our range and footprint in line with how the category is evolving