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A major dairy producer collapsed — now it's making nut milks and business is booming

Elmhurst Dairy, formerly one of New York City's largest milk producers, is now getting into the plant-based milk business.

Henry Schwartz, CEO of Elmhurst Milked.

When New York City's Elmhurst Dairy opened in 1925, founders Max and Arthur Schwartz hand-bottled milk from 200 cows. They then delivered the bottles, which sat in containers of ice, in a truck throughout the city.

Over the next few decades, Elmhurst became one of the biggest dairy companies in NYC.

But these days, making milk isn't as profitable as it used to be. Business declined in recent years to the point that Elmhurst wasn't making enough money to keep operating. CEO Henry Schwartz (son of Max) shut down the plant in the outer borough of Queens in late 2016.

The company isn't dead, however — it's now producing dairy-free milks (made from almonds, hazelnuts, walnuts, and cashews) and re-branding as Elmhurst Milked.

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"After 92 years in business, it was time to embrace a new model and look toward the future," Schwartz, age 82, tells Business Insider.

The company has only launched in a few Southeast US-based grocers so far, but according to Mike Brown, senior vice president

Before it closed, Elmhurst

The closure reflects larger hardships in the US dairy industry, which has suffered in recent years due to changing consumer preferences.

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Elmhurst's new 30,000-square- foot facility will be in Elma, a Central New York town that's 360 miles north of Manhattan.

At the plant, the company has developed its own process of making the nut milks, which it calls "milking." Cold milling machines extract all of the protein, fat, and micronutrients from the nuts, which means Elmhurst doesn't need to fortify the milks with additional vitamins. Its milks also are free of the stabilizers, whiteners, and gums that some plant-based milks contain.

"It's about transforming with the times," Schwartz says. "As awareness and demand for vegan products continues to grow, we’re seeing plant-based options become mainstream."

Though the company only sells its milk in Publix stores in the Southeast for now, it plans to distribute to other grocers in Miami, Tampa, and Atlanta this year. It will also ship online orders nationally in coming weeks. Quarts of almond and walnut milk cost $4.99, while hazelnut and cashew milk cost $5.99 — about twice the price as most nut milks (though some of these are fortified with preservatives or vitamins).

Now called Elmhurst Milked, the company's latest ad features a suited man that clinks a wine glass full of milk with a spoon.

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"Introducing the world's finest nut milk," it reads.

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