Push To End The Non-Dairy Milk Surcharge Reaches Critical Mass In US – CoffeeTalk

The rise in plant-based diets and health issues like lactose intolerance has led to a surge in demand for non-dairy milk alternatives, with many coffee shops charging customers up to $1.50 extra for plant-based milk alternatives. This surcharge has been criticized as outdated, unfair, and exclusionary, particularly as the rise in plant-based diets and health issues like lactose intolerance become increasingly prominent. According to the State of the Surcharge Report released by advocacy group No Milk Tax, non-dairy milk surcharges impact more than 50 million lactose-intolerant Americans.

While dairy milk has long been the default choice, shifting consumer habits are driving demand for alternatives. Sales of plant-based milk, such as almond, oat, and soy milk, grew to $2.7 billion in 2022, a 19-percent increase since 2018, according to the Good Food Institute. This rising preference for non-dairy options is fueled by concerns over health, sustainability, and ethical treatment of animals, yet coffee chains continue to penalize consumers for making the switch.

The surcharge debate is not merely a matter of preference; for many, it is a health necessity. The report highlights that one in 20 Americans are allergic to dairy, with reactions ranging from skin rashes and vomiting to life-threatening anaphylaxis. Beyond allergies, lactose intolerance disproportionately affects people of color, with an estimated 80 percent of Black Americans, 90 percent of Asian Americans, and 50 percent of Latino Americans being lactose intolerant, compared to around 15 percent of white Americans. For these communities, the non-dairy surcharge raises questions of equity.

Environmental concerns are another factor propelling the call to eliminate the surcharge. Producing dairy milk generates significantly higher environmental costs compared to plant-based alternatives. The report cites that dairy production requires eight times more greenhouse gas emissions, ten times more land use, and 20 times more water use than non-dairy milk production. Dairy farms are also responsible for air, soil, and water pollution, contributing to environmental degradation and climate change.

Coffee chains that continue to impose surcharges are increasingly viewed as out of step with sustainability goals. A growing number of coffee chains have recognized the need to eliminate the non-dairy surcharge. According to the report, 55 percent of locations operated by 41 major US coffee brands no longer impose the fee. Starbucks, one of the largest coffee chains in the world, dropped its surcharge for plant-based milk earlier this year. Other leading chains following suit include Panera, Pret A Manger, and Philz Coffee.

While chains defend the surcharge by citing the higher cost of plant-based milk compared to dairy, critics argue that the additional cost is offset by the growing popularity of non-dairy options. Coffee shops that have eliminated the surcharge demonstrate that it is possible to absorb the cost without sacrificing profitability. As consumer demand for non-dairy options rises, pressure is mounting on coffee chains to eliminate surcharges altogether. For coffee drinkers, the end of the non-dairy surcharge would mean more equitable access to options that align with their values and health needs. As more brands drop the fee, those that maintain it risk losing customers to competitors who offer greater flexibility and fairness.

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