Perfect Day and the Milk of Human Invention

Perfect Day was a rising cellular agriculture company specializing in lab-based milk. Its founders had created and patented a formula for an ingredient that could produce authentic-tasting non-dairy products. At the beginning of 2020, the US-based firm received US$140 million in funding, and the founders had to navigate a complex operating and stakeholder environment to map out a growth strategy. The complex situation required them to answer related questions that were easy to understand but difficult to answer. First, the founders would have to chart the expected evolution of the lab-based milk industry as it moved to the full roll-out of products. The founders would next have to decide on Perfect Day’s positioning in its changing industry. Finally, they would have to assess the myriad players, both as stakeholders and as potential alliance partners, in order to support the strategic positioning decision.

This case is intended for use in an upper-level undergraduate- or graduate-level course in strategy or entrepreneurship. This case reviews a complex emerging industry, offering students the chance to examine the evolution of a deep tech industry and its effects on strategic positioning. Through this case, students will also learn the practical application of stakeholder theory concerning the interests and leverage of various parties. Upon completion of the analysis, students should be able to evaluate the macro and operating environment more effectively, including the role of intellectual property (IP) rights, to decide upon strategic positioning, and to assess stakeholders and strategic partnerships to support the chosen direction for growth. After working through the case and assignment questions, students will be able to <ul><li>dissect the evolution of the lab-based milk industry and the potential value of the opportunity being pursued by Perfect Day;</li><li>draw comparisons with similar firms in an adjacent transforming industry that have secured IP rights, received significant outside funding, and grown;</li><li>assess Perfect Day’s progress, its IP protection, and its prospects for strategic positioning;</li><li>determine the role of the company within its emerging industry and its appeal to consumers, partners, and investors; and</li><li>extract insights from stakeholder theory to map out supporting alliances.</li></ul>

• lab-based milk
• cellular agriculture
• stakeholder analysis
• venture capital
• corporate venture capital