Funding program powers sustainable scale-up at Oat & Mill


    Posted:

    Share this:

    Investment helps dairy-free ice cream maker drive production upgrades, reduce waste, and strengthen Canadian supply chains

    By Lilian Schaer

    When Oat & Mill first began, it was in a small test kitchen, driven by simple infrastructure to sell at a local farmers’ market. 

    “I was a vegan and an ice cream fanatic, and I couldn’t find anything that matched the texture and creaminess of traditional ice cream,” says founder and CEO Candace Tierney. “So I started experimenting.”

    That was about a decade ago, before oat milk launched on the beverage scene, but that didn’t stop Tierney from seeing its potential. Early batches were tested at farmers’ markets, with recipes changing week to week based on customer feedback.

    “That direct feedback helped us build something people truly loved,” Tierney says. “Eventually, customers started asking for it in stores, and that’s what pushed us into retail.”

    Oat & Mill went on to become the first brand to bring oat-based ice cream to grocery store shelves in Canada. Today, the company has grown coast to coast, offering a retail line that includes ice creams and gelato bars, while also manufacturing for other brands and serving the foodservice market.

    As demand increased, the company reached a turning point: their small-batch production model, while effective in the early days, was limiting their ability to scale.

    It was through the Sustainable Growth and Adoption Program (SGAP) delivered by Bioenterprise and funded by the Government of Canada through the Federal Economic Development Agency for Southern Ontario(FedDev Ontario), that the company accessed non-repayable funding to help upgrade its production capabilities while also improving environmental performance.

    Unlike most plant-based dairy alternatives, which extract and discard fibre during processing, Oat & Mill uses a proprietary method that retains the whole oat, which according to Tierney, has always been core to brand. 

    With support from SGAP, Oat & Mill installed a semi-automated line conversion system that integrates multiple stages of production — from mixing and pasteurizing to homogenizing, freezing, and packaging — into a streamlined, enclosed process.

    “The funding allowed us to bring in third-party experts to guide the process. That’s something companies our size don’t usually have access to, and it made a huge difference,” she adds. 

    The new system, completed in 2026, has already delivered significant results.

    Oat & Mill Ontario strawberry ice cream scoop Canadian grown oats and local strawberries

    Production capacity has increased three- to four-fold, enabling the company to meet growing demand and expand into new retail markets. At the same time, the improved efficiency has reduced bottlenecks and enhanced product consistency.

    Just as importantly, the new system has strengthened Oat & Mill’s sustainability performance.

    By retaining the full oat, the company has eliminated a major fibre waste stream, diverting approximately 4,000 pounds of waste in 2025, with projections of 6,000 pounds in 2026 and 12,000 pounds by 2027.

    “For us, sustainability is about getting more from every ingredient,” Tierney says. “We’re making more product from the same inputs, which is better for the environment and for our business.”

    The project has also enabled increased sourcing from Canadian farmers, including oats and Ontario-grown berries, further strengthening local supply chains.

    Beyond operational improvements, the SGAP-supported upgrade is opening new doors for Oat & Mill.

    The company is launching a new house brand, Wild Child, featuring a lineup of dairy-free ice creams and gelato bars – an expansion that wouldn’t have been possible without the increased capacity and efficiency of the new system.

    Looking ahead, Oat & Mill plans to further scale its operations, expand retail distribution, and explore additional production lines for new product formats. At the same time, Tierney believes in staying true to the original mission: creating high-quality, plant-based products that deliver on taste, texture, and experience.

    “We’re here to make really great ice cream and bring a bit of joy to people,” she says. “And we want to do that in a way that’s thoughtful, sustainable, and supports Canadian agriculture.”

    Follow Bioenterprise on social media or subscribe to our channels for the latest industry news, events, and business development opportunities.​