ButtaNutt secures 54% equity investment from PSG Group to expand its dairy alternative

SOUTH AFRICA – ButtaNutt, a manufacturer of plant based milk, has secured a 54% equity investment from PSG Group.

The transaction, effective May 2025, reflects strong confidence in local entrepreneurship and homegrown innovation with the remaining 46% shareholding being retained by the founding management team, who will ensure continuity in leadership and vision

With PSG’s backing, ButtaNutt aims to expand distribution across South Africa, launch new product categories and solidify its position as the plant-based market leader.

PSG Group, known for backing entrepreneurial businesses with long-term potential, sees ButtaNutt as a fast-growing brand in a globally expanding industry.

Dries Mellet, Director at PSG Group, said, “ButtaNutt is a proudly South African business with a brand that resonates. The founders are passionate, and the industry is growing globally. We’re excited to support their next chapter.”

Founded by Antoine van Heerden the company specializes in nut butters and dairy alternatives, crafted with natural, minimally processed ingredients.

ButtaNutt opens new facility

Recently, the company opened its new processing and packaging facility in Paarl, Western Cape, which has doubled the company’s plant-based milk production, allowing it to meet the growing demand for dairy alternatives in South Africa.

The new facility is equipped with advanced processing technology, ensuring high-quality production while maintaining the brand’s commitment to natural, minimally processed ingredients.

With the new facility in place, ButtaNutt is set to expand distribution, introduce new product categories, and solidify its role in shaping the future of plant-based nutrition.

The facility was made possible through a strategic investment from PepsiCo in 2022, which provided the necessary capital to scale operations.

As a result, ButtaNutt has seen a notable increase in employment, with its workforce growing from 102 to 135 employees.

The company stated that the expansion aligns with its broader vision of sustainable food innovation, offering consumers healthier alternatives to traditional dairy products.

Dairy alternative

The dairy alternative market size is expected to reach US$ 70.60 billion by 2031, growing at a CAGR of 10.8%, according to the report by The Insight Partners.

This surge is largely attributed to the increasing prevalence of lactose intolerance, which affects approximately 65% of the global population.

Consumers are actively seeking dairy-free alternatives that provide essential nutrients without digestive discomfort. Additionally, the rise of veganism and flexitarian diets has fueled demand for plant-based milk, yogurt, cheese, and frozen desserts.

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