Disclaimer: The information provided in this article is for general informational purposes only and is not intended as medical advice. The digestive effects of A1 and A2 milk can vary from person to person, and any claims about their impact on health are based on emerging studies. Please consult with a healthcare professional or nutritionist for advice tailored to your specific dietary needs and conditions.
The Spill
If you find yourself wandering through the ready-to-drink (RTD) aisle of Vicente Foods—a neighbourhood grocery store in West LA—among the bougie cans of cold brew and kombucha, you’ll spot something new: Laurel’s.
Since launching production on August 1, this shiny-new entrant in the RTD coffee market has sold over 5,000 cans in just over a month. To put that into perspective, Laurel’s is outpacing established brands like Groundwork and Blue Bottle, quickly becoming the top-selling RTD coffee at Vicente Foods.
The RTD coffee market is steaming ahead, with projections suggesting it’ll brew up an additional $14.91 billion between 2023 and 2028. Riding an impressive CAGR of 8.89%, this is no flash-in-the-pan trend—it’s a reflection of consumers, especially the 18-39 crowd, demanding caffeine hits that align with their health-conscious, convenience-obsessed lifestyles.
By 2028, this market is set to hit a frothy $44.2 billion, as urbanisation, product innovation, and the ongoing romance with sustainability continue to stir the pot. For brands like Laurel’s, tapping into this wave isn’t just a growth opportunity—it’s a front-row seat to the premiumisation of coffee, where convenience and wellness are becoming as vital as flavour itself.
Combining A2 dairy—said to be easier on digestion than regular milk—with high-quality coffee, Laurel’s offers a crave-worthy, soon-to-be favourite that’s disrupting the traditional RTD category. Set to expand, the brand is making its Erewhon debut, with placements already secured in three bakeries and cafes, plus plans to roll out in a high-end hotel mini-bar.
As Laurel's prepares to disrupt the market in 2024, it's partnership with Erewhon will be across all ten Southern California locations and engage with leading retailers like Sprouts and Bristol Farms.
But, beyond retail success, Laurel’s is also gaining significant online buzz, on WeFunder and LinkedIn alike, signalling the surge in demand for premium, easy-to-drink coffee for health-forward consumers. But while Laurel’s is finding early success, the broader A2 dairy market hasn’t had it so easy.
From the UK’s failed A2 milk rollout to Hershey’s declining sales of A2 chocolate milk, the question remains: Are these brands chasing the wrong consumers? In this article, we explore A2’s bumpy history, why it’s struggled in certain markets, and whether Laurel’s approach could signal a new direction for A2 products.
The Back Story
Isabel’s coffee obsession runs deep—kicked off by canned brews back in her high school days and sharpened at the specialty coffee spots around USC. The hustle only got more intense at McKinsey, where mornings were her playground for scouting the hottest coffee joints in every city she touched down in. But in the consulting grind, quick caffeine fixes were the name of the game, and the coffee aisle? A graveyard of functional hype—lion’s mane this, ashwagandha that—while the actual flavor was MIA.
She kept coming up against the same problem: these so-called 'lattes' weren’t cutting it. They were watery, weak, and frankly, kind of sad. Isabel knew she could do better, and that’s how Laurel’s was born—a true coffee lover’s answer to a world that forgot how indulgent a proper latte should be.
Enter Laurel's.
Laurel's launches with two distinct SKUs: the Classic and the Dirty Chai. The Classic is an august latte that incorporates bourbon vanilla extract for a demure reinterpretation, while the Dirty Chai fuses the hotness of spiced chai with propertied coffee, reminiscent of her favourite coffee shop creations. Each can featuring 100% A2 dairy sourced from Alexandre Family Farms, premium Guatemalan coffee, and real vanilla extract.
A2 Milk vs. A1 Milk: The Dairy Battle Millennials Didn’t See Coming
Picture A1 milk as that friend who invites you on a “chill, easy hike,” which somehow turns into a gruelling 5-hour uphill trek. It starts off fine, but halfway through, you’re hit with bloating, discomfort, and the sinking realisation that maybe this wasn’t the smooth journey you were promised. Some people attribute this to A1 beta-casein, a protein in regular milk that breaks down into BCM-7, which may cause discomfort in certain individuals.
Now, A2 milk? It’s the friend who actually sticks to the plan—a low-key hike with great views and no surprises. Without A1 beta-casein, it doesn’t produce BCM-7, and many people report easier digestion. While plant-based milks have their moment, A2 milk is the old-school classic making a comeback, offering an option for those who find regular milk a bit harder to stomach.
Of course, everyone’s body is different, and not all consumers experience these effects, but A2 milk is gaining popularity as a potentially gentler alternative. So how has Laurel’s found success where A2 milk flopped in the UK and Hershey’s A2 chocolate milk is facing a decline in the confectionery market?
A2 Milk: The Dairy Drama and Laurel’s Sweet Redemption
After struggling to gain traction as a day-to-day milk replacement in the UK, where A2 Milk Company tried (and ultimately failed) to make it a staple, it might have seemed like A2 was destined for the back of the fridge. Fast forward a few years, and even its partnership with Hershey’s in the U.S. is seeing a downturn in sales. But the story doesn’t end there—because Laurel’s has tapped into something that the mainstream missed.
Where A2 milk in the UK targeted traditional grocery staples, and Hershey's focused on the children's confectionary segment, Laurel's strategic approach has been to reposition A2 as a premium, value-added component within the fast-growing, high-margin RTD coffee sector, aligning with consumer demand for luxury and health-conscious convenience. And let’s be honest: premium coffee is where the millennial heart lies.
But why has this approach resonated so strongly with consumers? What’s driving the shift from A2 milk as a niche health alternative to a must-have luxury ingredient in the booming RTD coffee market?
The A2 Difference (Why Your Gut Might Thank You)
While A2 milk hasn’t been a household name everywhere, it’s quietly building a reputation as a gut-friendly dairy option. Regular milk contains both A1 and A2 beta-casein proteins, but it’s the A1 version that might cause problems for some. When A1 breaks down during digestion, it releases BCM-7, a peptide that has been linked to digestive issues for some people. A2 milk, however, doesn’t release BCM-7, which is why it’s thought to be easier on the digestive system.
Is A2 Milk the New Oat Milk?
Baristas, take note—this isn't just another dairy alternative. A2 milk, with its richer protein profile and cows fed on premium diets (free from silage season), is primed to deliver consistently perfect steamed milk for your flat whites and lattes. The result? Silky microfoam that coffee lovers crave, and a texture that elevates espresso-based milk drinks to the next level.
Oatly had its breakout moment in 2016, but could 2025 be the year A2 flat whites dominate the coffee scene?
While some people find A2 milk easier on digestion than regular milk, it's important to note that individual experiences vary, and no conclusive health benefits have been proven. Still, it’s about giving consumers a feel-good, premium option that aligns with their desire for wellness and quality. Will we see A2 milk flat whites pop up in Lisbon's coolest coffee spots anytime soon? I wonder what James Hoffmann thinks?
And could this have a full-circle effect, turning A2 milk into a weekly shop staple by making its inroads through consumers’ daily coffee? Only time, or an AI algorithm, will tell.
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