With innovation, OSM Piątnica increases the sustainability of its production processes. As a major producer of cottage cheese, curd, cream cheese or yoghurt, the cooperative has plenty of their by-product – whey. Traditionally, whey would be dried into powder and sold on the mass market generating very little income. Looking for alternative ways to monetise its whey, Piątnica isolated its most valuable ingredient – whey protein – and used it to create a fresh whey protein consumer cocktail. The profitability of the cocktail considerably exceeds the profitability of the powdered whey, which has a positive positively Piątnica’s ability to pay a premium price for milk to its members.
Piątnica’s innovative cocktail contains fresh and unprocessed whey protein. It is the first and only such product on the Polish and perhaps even on the European market. Whey protein has a beneficial effect on human health due to its nutritional and regenerative value as well as its antioxidant and antibacterial properties. A single portion contains only 227 kcal, a small amount of fat and carbohydrates derived from natural fruit, purée or juice. It is available in three tasty flavours. One bottle of the whey protein cocktail contains 28 grammes of protein and 307 mg of calcium, which covers 56% and 38% of the nutrient reference values (NRV) for the average adult, respectively. Contrary to the powdered whey protein available on the market, Piątnica’s cocktail comes in an easy-to-eat form and does not require any preparation.
Until now, whey protein was available on the market in the following three forms: whey protein isolate (WPI), whey protein concentrate (WPC), whey protein hydrolysate (WPH). They are all in powder form, highly processed and exposed to high-temperature treatment in evaporators and drying towers. In contrast, the whey protein in Piątnica’s cocktail is fresh and unprocessed thanks to the use of membrane processes.
By launching its cocktail, OSM Piątnica has further improved its competitive edge. It has shaken up the whey protein category, which is dominated by powdered products. The powdered whey proteins have limited distribution outlets, mainly being sold in specialised shops. Furthermore, due to their powdered form, the products have negative consumer perception. For these reasons, whey protein was mainly used by bodybuilders and athletes. By introducing a ready-to-eat wholesome liquid snack that is available in the local grocery store, Piątnica makes whey protein accessible to the average consumer.
The most common whey management model is to dry and sell it in the form of whey powder with very little margins. The revenue obtained from selling one gramme of whey protein in whey cocktails is considerably higher than that obtained from the sale of this protein in powdered whey. The profitability of the cocktail is also much higher. Assuming opportunity cost to be the cost of goods, the profitability of the cocktail takes on double-digit values. Another economic advantage is greater stability and predictability of profitability due to reduced dependence on shifts in commodity prices driven by global supply and demand.
This product was introduced onto the market in April 2020 and its great potential has been already observed. The whey protein cocktail was sold over the last nine months for 2 million PLN, despite challenges in distribution due to COVID-19 lockdowns. From early 2021, Piątnica launched its cocktails at Poland’s largest retailer. This will significantly increase the distribution of the product and consumer accessibility. Piątnica expects that sales will increase at least fivefold, exceeding 2020 sales in the first quarter of 2021.
