Miyoko Schinner has mobilised over $100,000 from crowd investors to help mount a winning bid for the vegan cheese firm she founded, Miyoko’s Creamery, though she calls it “highly unlikely”.
Three years after being forced out of the company she created, plant-based cheese pioneer Miyoko Schinner has spent the last week working to buy it back.
As reported by AgFunderNews, Miyoko’s Creamery entered the assignment for the benefit of creditors process last month. This allows financially distressed companies to sell their assets to third parties, serving as an alternative to formal bankruptcy.
It opened up a bidding process for interested parties, and Schinner entered the fray to reinstate her ownership of the business she founded 11 years ago. To help her cause, she kickstarted a crowdfunding campaign on GoFundMe with Rick LeBeau, co-founder of vegan energy bar maker Rickaroons.
In a sign of Schinner’s enduring popularity, the public came through. In around 48 hours, she raised more than $100,000 of her $140,000 goal from over 1,600 crowd investors.
It has all the bones of a feel-good story: a female founder taking back the reins of a company she was forced out of after raising complaints about new male executives who “mansplained” the business to her and “openly denigrated women”.
However, the effort may not be enough. “It is highly unlikely I will be the winning bidder, as the liquidator has a fiduciary responsibility to accept the highest bid. I don’t believe mine was. There simply wasn’t enough time,” Schinner said.
Miyoko Schinner promises to ‘clean up’ product line
Bidding to win back her company wasn’t part of Schinner’s plan this year. She had just released her seventh cookbook, and had been preparing to celebrate the 10-year anniversary of her animal sanctuary, Rancho Compasión, in Nicasio, California.
But news about the company’s liquidation presented an opportunity she could not miss. “My hope is to make an impact not just for animals, but the food system – to take it back from the venture capitalists, private equity, and the multi-national corporations that are now running the food system and determining what we eat,” she wrote on the GoFundMe page.
As part of her plans, she formed a group of people who would manufacture the products and run the company, including a co-packer and executives with more than 30 years of industry experience. Schinner promised a lean, grassroots-style approach if the bid was successful.
“The idea is to form an organisation that is more lateral and collaborative than top-down,” she said. “In all transparency, we don’t have time to research and decide because all of this is coming together so quickly, but it could be a co-op, a federation, or other more lateral organisation that is more equitable.”
Outlining her strategy for Miyoko’s Creamery, Schinner wanted to marry the brand’s mission with its products. “I would re-infuse the brand with the bold activism that made it famous and hope to inspire the world to make better food choices, not just for health but for the betterment of humanity and animals,” she stated.
“In terms of product selection, I would try to clean up what’s out there right now, and add to the line by launching clean, nutrient-dense products, such as the cottage cheese that has been discussed, as well as some improved formulas for favourites such as the mozzarella. This will take time because getting product to shelf isn’t done overnight, but that is the direction we’d take.”
Why Schinner exited Miyoko’s Creamery
But how did we get here? Miyoko’s Creamery’s products (which include cheeses and butters made from cashew or oat milk) are available in over 20,000 retail doors in the US. But in June 2022, when the company was worth $260M, Schinner was ousted from her role as CEO by the board.
The news wasn’t made public until months later, when Miyoko’s Creamery sued its founder for an alleged breach of contract, a violation of trade secrets, and stealing company IP. Schinner, in turn, countersued, saying she was “blindsided” and alleging that sexism led to her dismissal.
She claimed that recently hired male executives discriminated against women in the company, and that multiple HR complaints about the same are what led to her being forced out. She accused then-COO René Weber of having “openly denigrated women, their expertise and their contributions at Miyoko’s”.
Schinner added that after raising an HR complaint about an operational consultant hired at an investor’s request, the company “swiftly retaliated against [Schinner] by demoting her and then terminating her”.
Publicly, the board claimed Schinner’s exit came as she lacked the necessary skills to take Miyoko’s Creamery to the next level as its CEO. However, two months later, there was a resolution between the company and its founder, with both withdrawing legal claims and settling their disputes.
The company hired former Coca-Cola and Beyond Meat executive Stuart Kronauger as its new CEO, whom Schinner later threw her weight behind. As part of her revitalisation plan, the company closed its Petaluma factory in Sonoma County, with 30-40 jobs being affected as it moved to a co-manufacturing setup.
According to Bloomberg, the company was already aiming to raise funds and prepare for a potential sale in late 2023, after sales fell by 24% on the back of sustained deficits for years.
Schinner doubtful of bid success, but ‘might start something new’
Despite the outpouring of public support, Schinner’s effort to win back her namesake company may be unsuccessful.
“48 hours wasn’t enough to solidify deals, figure out the structure of a new entity, and make sure that the funds would not be a simple spin on a roulette wheel,” she wrote in a social media post, adding that she would find out on Monday (November 10) if she had won, and begin refunding the donations if her bid wasn’t accepted.
“Had the company approached me at the outset and offered to sell it back to me, this might have been a different story. Instead, I found out about the auction through word of mouth, through the public sphere. It was shock, and honestly, PTSD for me,” noted Schinner.
“But at the same time, the last few days have been the most exhilarating experience as well, one that showed me how much love there is out there. It has encouraged me to become bolder in speaking my thoughts about food, the food system, animals, and what we as humans need to do to be truthful to ourselves and others.”
In an interview with Green Queen last month, Schinner had said she did not miss running Miyoko’s Creamery. “My thinking about food systems has evolved much in the years since, and in many ways, I am grateful for this,” she said. “We have a big problem to tackle for the animals, humanity, and the planet, and I feel better situated now to do so than if I were running a company.”
True to this, the entrepreneur told AgFunderNews she didn’t plan on being CEO or running operations if she won Miyoko’s Creamery back. But in her latest social media post, she reflected on her evolving views about how best to serve the food system.
“And although I thought I wouldn’t consider it, I might yet start something anew – a different sort of food company. The kind I envision wouldn’t exist in the current consolidated food system, so I have to think deeply about how I can live my ethics within the one we currently have. Finding the right partners – to work with and to invest in me – is also key,” she said.
“You can take the product out of the person, but you can’t take the person out of the product.”
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