British plant milk company Mighty Drinks has appointed administrators from Interpath this week, amid trading headwinds and funding challenges within the plant-based food and beverage category.

The group, based in Leeds, UK, developed a range of vegan milk alternatives. It was established in 2018 by brothers Tom and Nick Watkins, initially with a focus on pea milk and known as Mighty Pea. The company has since diversified its portfolio with several oat-based offerings, including a barista-style oat drink and an alternative to traditional whole dairy milk made with oats and other plant-based ingredients.

Citing the current challenging funding environment for start-ups within the plant-based food sector, the company appointed Interpath’s James Clark and Howard Smith as administrators on 17 June 2025.

In a statement shared on LinkedIn, co-founder Tom Watkins described how the company began “blending pea milk in a small Yorkshire basement,” before later achieving successful listings at major UK retailers and selling millions of cartons.

He wrote: “But the reality is the plant-based category has shifted dramatically over the last few years. Despite our best efforts to adapt, streamline and secure new investment, we couldn’t raise what was needed to take the next step.”

According to Interpath, rising costs and the impact of ‘fragile’ consumer confidence has impacted Mighty’s ability to scale and achieve profitability despite building a successful brand. The administrators noted that while the directors of Mighty sought out available investment options, the decision to appoint administrators was taken when it ‘became clear that a solvent outcome was not possible’.

Tom Swiers, food and drink sector lead at Interpath, said: “There has been an increasing focus on profitability within all aspects of the ‘alt’ category, following the investment boom of a few years ago. It is no longer simply a case of ‘growth as number one priority’.”

He emphasised that the Mighty team created a strong product offering, including a pea-based range for children, emphasising the allergen-free benefits of pea protein.

However, despite establishing a path to profitability from improved margins and increased volumes, he said the company required further investment which “was not forthcoming from typical investors in this space, nor was it attractive to typical ‘special situations’ investors given the relatively early stage of the company’s development”.

Interpath’s managing director and joint administrator, James Clark, said the administrators will now work closely with Mighty’s stakeholders to explore available options, including seeking offers for the business and its assets – including the Mighty brand and its related intellectual property (IP).

“We would invite any parties who may be interested in acquiring the business to make contact with us as soon as possible,” he commented.

Co-founder Nick wrote in his LinkedIn statement: “We’re deeply grateful to every teammate, customer, investor and supporter who believed in our mission. We set out to change the world for the better – and we gave it everything: blood, sweat and tears.”

Category challenges

The company is one of several recent plant-based companies to enter administration as the category faces a challenging economic environment, with many suggesting the market has simply reached a natural plateau following an unprecedented, and ultimately unsustainable, rate of growth during its peak leading up to the pandemic.

While the challenges are undeniable, there is clearly a sense of optimism and determination among plant-based businesses, driven by strong values centering around a more sustainable and ethical future food system. The plant-based category is likely to see further consolidation, with more acquisitions on the horizon in order to keep smaller brands in business.

Notable recent acquisitions include Smart Organic's acquisition of plant-based chocolate brand LoveRaw, which entered administration in April, and vegan ready meal company Allplants' acquisition by Ella Mills' Plants business, which purchased the brand name and customer data from administrators. The company's recipe IP was snapped up by D2C recipe kit brand Grubby.

In the alt-dairy space specifically, Finnish milk alternatives specialist Oddlygood made headlines when it acquired British plant-based drinks, cereals and snacks brand Rude Health in October last year. Oddlygood was established by dairy group Valio in 2018, becoming a spin-off in 2021.

Tim Smith, CCO at Rude Health and Oddlygood, commented on the news: “Rude Health and Oddlygood both know first-hand the passion, dedication and resilience it takes to build a plant-based drinks brand, so our thoughts are with everyone affected by Mighty’s situation”.

“Mighty going into administration is a reminder that our category still faces real challenges, but we also see huge potential for growth. Now more than ever, it’s important for brands, retailers and consumers to come together to champion innovation, transparency and choice. By joining forces, we can help the plant-based drinks sector thrive and reach even more people.”