Spout Milk

Operating throughout Otago and the wider Christchurch area, Spout Milk is revitalising traditional methods of reducing plastic waste by delivering milk in reusable kegs. Inspired by the beer industry and mirroring the classic glass bottle days, these kegs offer a sustainable solution for rural, corporate and hospitality industries.

The journey began in 2019 when founders Nick Jackson, Jo Mohan, and Luka Licul observed the significant amount of plastic waste left outside cafés. Determined to find a better solution, they consulted with cafés and farmers to fully understand the problem.

Sparked by the beer industry’s use of kegs, they applied a similar approach to milk delivery. After trialling their concept with a café and farm in Dunedin, they faced some setbacks due to COVID-19. However, during that time, they pivoted to serving corporate clients, such as accounting and law firms, who generated substantial plastic waste from milk bottles.

Co-founder Nick said, “for every 10-litre keg that we supply to our customers, we save five plastic milk bottles from ending up in waste streams, some of which may get recycled, but much ends up in landfills or is shipped overseas. It’s about reducing that single-use plastic. We also work with local farms, like Canterbury’s Choice Limited in Springston, just 30 minutes from Christchurch. This means our Christchurch customers get milk directly from here, cutting down on food miles and transport emissions.”

“We recently hit the 100,000 plastic bottle savings milestone, which was pretty exciting as it’s been a long time coming. Seeing the impact of hitting that milestone shows we’re making a difference, and we know there’s a large market we can go after and continue to improve on that. We’re just keen to make as much of an impact as possible.”

Spout Milk’s primary goal is to reduce single-use plastic waste through expanding to new regions across the country. Their 10-litre kegs have proven effective for their current customers, and they also aim to introduce alternative milk, such as oat milk. “We offer full-fat and low-fat milk, the full fat is kind of like that old-fashioned milk that you used to get – that’s what we hear a lot of, and people love that. The baristas love it as it steams and stretches a lot better.”

“There are a lot of benefits; the main thing people sign up for is reducing plastic waste. But for the likes of our café customers, the first thing they say when we install our system was how much time they were saving during a coffee rush just by being able to pull straight from the tap and not having to fiddle around with bottles. Customers love being able to support local and seeing where the milk comes from as well.”

Spout Milk partners with two local farms: Windy Ridge in Balclutha for Otago customers and Canterbury’s Choice in Springston for Christchurch customers. Both farms manage pasteurisation on-site. As Nick noted, “The milk is shipped directly from the farm, either that day or the next, ensuring it’s super fresh – reaching our customers within 24 hours of milking.”

We had the pleasure of meeting Alex Irvine, farm manager at Canterbury’s Choice, on a sunny day in Springston. Alex manages customer communications, processing, and delivery for Spout, including keg sterilisation and full support from order receipt to dispatch.

Alex emphasised that offering milk in kegs is their point of difference, especially appealing to corporate offices and cafés, which reaches a broader audience in Christchurch. “We maintain high-quality milk standards, from the grass and soil to the cleanliness of the shed and the factory’s strict hygiene protocols. Our robust sterilisation process, ensures we provide a great product to our customers,” Alex said.

“We’ve got multiple sustainable practices here, including extensive riparian native planting and a bioreactor in our waterways to reduce nitrates in the water. We’ve done a few trials with the Department of Conservation and managed to decrease nitrates by just over 50%, so it’s a pretty special thing. The water quality leaving the farm ends up being cleaner than when it entered, so we’re pretty proud to say that.”

Elinor Bain, manager at The Hokitika Sandwich Company in Christchurch, which opened in December 2021, has been using Spout Milk from the start and would never consider switching. The primary reason for choosing Spout Milk was their limited storage space as a small café; the keg system significantly reduced plastic waste and provided an ideal solution.

“We’ve had tutors from across the road bring their students in to talk about sustainability and use Spout as an example of it. They also say that they can taste the difference in the freshness of the milk that we use as well,” she said.

Elinor noted that Spout Milk stands out for its smooth, creamy texture and easy pouring, making it much thicker and more nourishing. Spout Milk not only embodies the qualities Elinor discussed but she also benefits from excellent communication with the team. She commends her relationship with Nick, who is always readily available and willing to help.

“The benefits are the sustainability of it all; we’re proud to represent it, and we all want to be part of a more sustainable future. We have reusable shopping bags. Why not reusable milk bottles? We all used to have the glass bottles that were collected from the doorsteps back in the day. Why are we not doing that? And then there’s the ease of ordering as well. We have a standing order: three kegs on Tuesday, two on Friday, and any changes, I just text Nick.”

“The product itself is great for storage. I’ve worked in hospitality for 15 years. I’ve been making coffees for 15 years, and it’s the best milk that I’ve ever had, hands down,” Elinor concluded.