Minnesota-based chain Caribou Coffee has become the latest company to drop the plant-based milk surcharge, as dairy alternatives become free across its over 800 locations.
After years of advocacy efforts, Caribou Coffee has officially scrapped the “latte levy”.
The US-headquartered coffee chain has announced that people will no longer have to pay extra to swap cow’s milk for a non-dairy option at any of its 800 stores globally.
The move comes more than two years after Caribou had removed the surcharge as an in-app perk for members of its loyalty programme. Now, all customers can choose to have oat, almond or coconut milk in their drink at no extra cost.
Animal rights groups including Peta and Mercy for Animals had worked behind the scenes to persuade the chain to make plant-based milk free in its coffee shops. ”By eliminating the ‘plant-based milk tax,’ Caribou is helping set a new industry standard for kindness and inclusivity,” said Jennifer Behr, director of plant-based initiatives at Mercy for Animals.
Climate and cost wins could bring back customers
The change came into effect on January 2, before which customers had to pay around $1 extra to have their drinks made with non-dairy milk.
In a press release, the chain confirmed that these options are now available “at no extra charge in store, at coffeehouses, the drive-thru or through the Caribou Coffee app”, the company said in a press release.
Coffee prices are already through the roof, as the climate crisis threatens harvest and puts a majority of coffee species at risk of extinction this century. Plus, the dairy industry is a major dietary driver of climate change, emitting twice as many greenhouse gases as the aviation sector on a global scale.
Plant-based alternatives like oat and almond milk are associated with a fraction of the emissions of cow’s milk and use up far less land and water to produce the same volume of liquid. For instance, dairy represents 3.15kg of CO2e per litre, much higher than oat (0.9kg) or almond milk (0.7kg), according to a landmark study by Oxford University in 2018.
On average, it takes 628 litres of water to produce a litre of cow’s milk. The same amount of almond milk needs 371.5 litres, while oat milk calls for just 48.2 litres. In terms of land use, a litre of dairy milk needs 8.95 sq m of land, far greater than oat (0.76 sq m) and almond milk (0.5 sq m).
So asking consumers to pay extra for a more sustainable option doesn’t bode well. And with Caribou experiencing a slowdown in foot traffic in 2025, the decision is a smart move to win them back, especially since nearly a fifth of all drink orders are customised with oat or almond milk.
Activists hail Caribou, call on holdout chains to follow through
Besides the climate benefits, there is a health aspect at play too. Cow’s milk is one of the most common food allergens in the US, affecting over 5% (15 million) of Americans.
Meanwhile, at least 12% are lactose intolerant, with rates especially high among people of colour: 65% of Hispanic and 75% of Black Americans suffer from the condition, rising to 90% of Asian Americans and 95% of Native Americans.
According to Mercy for Animals, Caribou is the seventh major coffee chain to drop the plant-based milk levy, a list that includes giants like Starbucks, Tim Hortons, Dunkin’, and Peet’s Coffee.
The group said this move highlighted a “growing standard for corporate responsibility and accessibility”, as coffee chains move to align their pricing with their sustainability goals.
“Mercy For Animals is proud to have worked with Caribou to reach this milestone, which leaves remaining holdouts increasingly out of step with consumer expectations. Caribou Coffee is doing right by its guests, the animals, and the planet,” said Behr.
Peta also celebrated the company’s decision to make plant-based milk more accessible, and its president, Tracy Reiman, urged “holdout coffee chains like The Coffee Bean and Tea Leaf to stop charging customers extra for ethical choices”.
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