Melt Organic owner acquires Miyoko’s Creamery assets after insolvency process

Prosperity Organic Foods, Inc., the Boise, Idaho-based company that owns the dairy-free butter brand Melt Organic, has emerged as the winning bidder for the assets of the insolvent plant-based dairy company Miyoko’s Creamery. The transaction follows a formal insolvency process and marks a new chapter for one of the most recognized brands in the U.S. plant-based dairy sector, according to information reported by AgFunderNews.

The acquisition was confirmed in November 2025 and includes key assets such as the Miyoko’s trademark, product recipes and formulations, as well as a limited amount of production equipment. The sale comes after Miyoko’s Creamery entered an Assignment for the Benefit of Creditors (ABC) process on October 6, after determining that it could no longer meet its financial obligations in full.

Scott Fischer, chief executive officer of Prosperity Organic Foods, said the company was both “surprised and delighted” to have secured the winning bid. In comments to AgFunderNews, Fischer emphasized that the immediate priority is to restore supply and minimize disruptions for retailers and consumers.

“The priority right now is to make sure that retailers and consumers can get those products,” Fischer said. “We’re confident that production will be up and running again very quickly, but we’re still working with everyone involved to determine how and where that will happen,” he added, according to AgFunderNews.

Miyoko’s products are currently manufactured by third-party copackers, a structure that Fischer said should allow for a relatively fast restart. He also stressed that Prosperity Organic Foods sees distinct but complementary audiences for Melt Organic and Miyoko’s.

“We are the two premium plant-based butter brands in the category, without question, and there are many aspects of both brands that are compatible,” Fischer told AgFunderNews.

Addressing concerns about Miyoko’s past performance, Fischer rejected the idea that the company failed due to weak consumer demand. “The issue at Miyoko’s was not declining sales,” he said. “You need a business model that allows you to survive. When liabilities exceed assets, there has to be a problem in the income statement. The fact that they raised more than $100 million in funding and were still not financially sustainable is deeply disappointing,” he added.

Fischer said Prosperity Organic Foods conducted extensive due diligence before bidding for the assets. “We did our homework and we are 100% confident in the quality, sales performance and demand for these products, and we will do everything we can to be good stewards of the brand,” he said, as quoted by AgFunderNews.

The acquisition also takes place amid a broader slowdown in U.S. retail sales of plant-based dairy products, a trend that has weighed on several high-profile brands. When asked about declining category sales, Fischer pointed to changes in consumer behavior driven by inflation and cost pressures.

“I think there have been shifts in consumer confidence, driven primarily by financial and cost concerns,” he said. “I believe Miyoko’s can and will do a better job of recognizing and responding to those consumer needs while maintaining its quality and craftsmanship,” Fischer added.

By contrast, Fischer said Melt Organic continues to perform well despite a challenging market environment. “We are very pleased with how well we are growing in a tough environment,” he told AgFunderNews.

Miyoko’s Creamery was founded in 2014 by chef, author and animal rights activist Miyoko Schinner, initially focusing on artisanal cashew-based cheeses. Over time, the company expanded its portfolio to include plant-based butter, mozzarella, cream cheese, spreads, shreds and sliced products, becoming a category leader in premium plant-based dairy.

The company attracted significant investor interest, raising more than $70 million publicly and likely over $100 million in total funding from backers including GroundForce Capital and Obvious Ventures. However, the company experienced a series of internal and financial challenges in recent years.

In early 2023, Miyoko’s made headlines after Schinner was removed as CEO by the board. Schinner said the decision followed disagreements over company strategy, while the board stated publicly that it was seeking a chief executive with “proven profit-and-loss experience running a larger business,” according to contemporaneous media reports.

The conflict escalated into legal action, with the company accusing Schinner of attempting to misappropriate intellectual property, while Schinner countersued, alleging she was forced out after raising complaints to human resources about male executives who “openly denigrated women.” The dispute was ultimately resolved through a court-ordered mediation process.

In August 2023, former Coca-Cola executive Stuart Kronauge was appointed CEO, stating at the time that he saw “significant untapped potential” in the Miyoko’s brand. As part of an effort to improve efficiency, the company later announced plans to close its production facility in Petaluma, California, which had struggled to operate cost-effectively, and shift entirely to contract manufacturing.

In a letter to shareholders in November 2023, cited by Bloomberg, Kronauge said the company was implementing a financial stabilization plan and exploring strategic alternatives, including a potential sale. According to that letter, Miyoko’s recorded sales of approximately $40 million in 2021, which declined to $33 million in 2022.

The insolvency process ultimately led to the sale of the brand assets, although the identities of other bidders were not disclosed. The ABC process was overseen by Resolution Financial Advisors, which concluded that the company could no longer pay its debts in full.

Schinner, who launched an unsuccessful bid to repurchase the brand she founded, told AgFunderNews that she has no ongoing association with the business. “I am not affiliated in any way, and although they now own the ‘Miyoko’s’ trademark, they cannot allude to my involvement or endorsement or use my name or image in any way,” she said.

She also shared on social media a private message exchange with an unnamed executive from a vegan butter brand, in which Fischer described her as “cautious” and a “failed entrepreneur.” Fischer later issued a public apology on LinkedIn, acknowledging that the message was “unprofessional.”

Despite the challenges facing the category, Melt Organic remains widely distributed, with products sold in thousands of retail locations across the United States and Canada, as well as select markets in Asia and South America.

Industry data underscores the headwinds confronting plant-based dairy. According to SPINS data shared with AgFunderNews, U.S. retail sales of refrigerated plant-based cheese declined 8.5% to $220.3 million in the 52 weeks ending September 7, 2025. During the same period, sales of plant-based butter fell 14.9% to $157 million.

Even so, Prosperity Organic Foods is betting that Miyoko’s strong brand recognition, combined with tighter cost controls and operational discipline, can restore momentum. With production expected to resume quickly, the acquisition signals a cautious but deliberate effort to preserve one of the most influential names in plant-based dairy at a time of consolidation across the sector.