Boise, Idaho-based Prosperity Organic Foods, Inc., the private company behind the Melt Organic dairy-free butter brand, has emerged as the winning bidder for the assets of insolvent plant-based dairy co Miyoko’s Creamery.
CEO Scott Fischer told AgFunderNews that he was “surprised and delighted” to emerge as the winning bidder for the assets, which include the brand/trademark, recipes and formulations, and a small amount of equipment.
The immediate priority is minimizing disruption to the supply chain for the products, which are produced by copackers, said Fischer, who said he saw distinct audiences for the Melt Organic and Miyoko’s brands.
“We are the two premium plant butter brands in the category, without a doubt, and there are so many parts about the two brands that are compatible.”
‘We’re pretty confident we’re going to have production back up and running very quickly’
He added: “The priority right now is making sure that retailers and consumers have those products available. We’re pretty confident we’re going to have production back up and running very quickly, but specifics of how and where we’re doing that, we’re still working with everyone on it.”
Asked how Miyoko’s products were performing, he said: “The issue at Miyoko’s was not declining sales. You need a commercial model that enables you to survive. When liabilities exceed assets there has to be something wrong in the P&L. The fact that they had more than $100 million in investment but were not sustainable financially is very disappointing.”
He added: “We did our homework and we’re 100% confident in the quality and sales performance of the products and the demand, and we will do our best to be good stewards of the brand.”
Asked about declining sales in the plant-based dairy category at US retail (see below), he said: “There have been changes in consumer sentiment, I think, driven mostly by financial and cost concerns. I think Miyoko’s can and will do a better job at recognizing and responding to those consumers requirements, while still maintaining its quality and craftsmanship.”
As for Melt Organic sales, he said: “We’re very happy with how well we’re growing in a challenging environment.”
Miyoko’s founder Miyoko Schinner, who launched an unsuccessful bid to buy back the brand she created, told AgFunderNews: “I am not associated in any way, and while they now own the trademark ‘Miyoko’s,’ they cannot allude to my involvement nor endorsement not use my name or image in any way.”
Schinner also shared a text exchange between herself and the undisclosed “CEO of a vegan butter brand” on Instagram.
A turbulent few years
It is not clear who the other bidders were for the brand, which entered an Assignment for the Benefit of Creditors (ABC) process handled by Resolution Financial Advisors on October 6 having determined that it was “unable to pay its debts in full.”
The insolvency follows a turbulent few years at Miyoko’s, which was founded by chef, author, and animal rights activist Miyoko Schinner in 2014. It launched with artisanal cheese wheels made from cultured cashews and later expanded into plant-based butter, mozzarella, cream cheese, spreads, shreds and slices.
The firm, which raised more than $70 million (in public filings and likely more than $100 million) from backers including GroundForce Capital and Obvious Ventures, hit the headlines in early 2023 after it emerged Schinner had been removed as CEO by the board the previous year. Schinner claimed she’d had disagreements with the board over strategy, while Joaquin told reporters he was looking for a CEO with “proven P&L experience who has scaled a larger business.”
The company followed up with a lawsuit accusing Schinner of “hatching a plot” to steal its IP , while Schinner responded with a countersuit alleging she was forced out of her own company after complaining to HR about male executives who “openly denigrated women.”
The parties subsequently resolved their differences after going through a court-mandated mediation process. In August 2023, ex-Coca-Cola exec Stuart Kronauge was brought in as CEO, telling us she saw “significant untapped potential” in the brand.
As part of a plan to drive efficiency, the firm later announced plans to close its production facility in Petaluma, California, which had struggled to produce the products economically, and work exclusively with co-manufacturers.
In a letter sent to shareholders in November 2023, quoted by Bloomberg, Kronauge, said the firm was implementing a “financial stabilization plan” and exploring a “range of strategic alternatives, including selling the business”. According to the letter, sales hit $40m in 2021 but dropped to $33m in 2022.
Plant-based cheese and butter by numbers
According to SPINS data shared with AgFunderNews, US retail sales of refrigerated plant-based cheese are going backwards (52 weeks to Sept 7, 2025):
- Total refrigerated plant-based cheese: -8.5% to $220.3 million
- Shredded and grated cheese: -4.1% to $107.8 million
- Sliced and snacks: -13% to $78.9 million
- Spreads: -1.7% to $9.7 million
- Other (blocks, etc): -14.5% to $24 million
Meanwhile, US retail sales of [products marketed as] plant-based butter were down 14.9% to $157 million in the 52 weeks to October 5.
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