Neutral

About Neutral

Neutral Foods operates as a food company with a core mission to reduce the carbon footprint of the agriculture industry. Founded in 2019 in Portland, Oregon, by Matt Plitch, the company partners with farmers to create carbon-neutral food products, starting with dairy. The current CEO is Marcus Lovell Smith, an entrepreneur with a background in dairy farming and technology, who took over after Plitch stepped down for personal reasons. Lovell Smith's experience includes running his family's dairy farm, serving as an entrepreneur in residence at Harvard, and holding the CTO position at Google Fiber.

The company's business model centers on calculating the entire carbon footprint of its products, from farm to consumer. Neutral Foods then directly invests in and collaborates with farmers on projects to lower emissions at the source. These on-farm initiatives include modifying cow feed with ingredients that reduce methane, improving manure management, and implementing regenerative farming practices like planting cover crops. For any emissions that cannot be eliminated through these direct reduction strategies, the company purchases verified carbon offsets from U.S. dairy farmers who convert cow emissions into renewable energy. The entire process and the final products are third-party certified as carbon neutral by organizations like SCS Global Services.

Neutral primarily serves environmentally conscious consumers through both retail and foodservice channels. Its products, which include organic whole milk, 2% milk, half-and-half, butter, and beef, are sold in thousands of stores across the United States, including major retailers like Whole Foods Market, Sprouts Farmers Market, and Target. The company has also expanded into foodservice, supplying establishments like Shake Shack. In June 2024, Neutral Foods merged with Zeal Creamery, a fast-growing grass-fed dairy brand, to create a combined company that offers both carbon-neutral and grass-fed products to a wider market. This move positions the merged entity to address consumer demand for sustainability, animal welfare, and health benefits.

Neutral has attracted significant investment from notable sources. Its funding rounds have been led by Breakthrough Energy Ventures, a climate fund founded by Bill Gates, and have included participation from Mark Cuban Companies. The company has also secured investments from celebrities such as LeBron James, John Legend, and Questlove, who help amplify the brand's mission to a broader audience.