Oatly has made a significant commitment by switching eight products in its Barista range to utilize 100% British oats. This includes the popular Barista Edition—available in 1L ambient, 1L chilled, and 1.5L ambient sizes.
However, some products, including Barista Edition Organic, jiggers, Lidl Barista, and certain multi-packs, will still be produced with a combination of British and European oats. This strategic move reinforces Oatly’s dedication to supporting UK agriculture. The company anticipates tripling its investment in British-grown oats by 2026 and is set to double the volume of British oats used across its EMEA markets.
Oatly assures customers that both the taste and quality of the Barista products will remain consistent, and the recommended retail price (RRP) will not change following this transition.
“Oatly Barista Edition remains the UK’s most popular oat drink, both with consumers and baristas. With this shift, a significant proportion of all plant-based drinks will now be made with British-grown oats,” said Bryan Caroll, UK&I General Manager at Oatly.
Caroll further added, “This change reflects our ongoing commitment to taste, sustainability, and product performance, and reinforces Oatly’s long-standing support of British farmers.”
Climate-Friendly Practices
This announcement comes on the heels of Oatly becoming the world’s first food brand to earn the designation of a Climate Solutions Company, as recognized by the Exponential Roadmap Initiative (ERI). This title highlights Oatly’s role in promoting a shift away from dairy consumption, ultimately lowering climate impacts.
By transitioning many of its Barista Edition drinks to incorporate UK-grown oats, Oatly expects a reduction in the carbon footprint of these products by approximately 7 to 13% by 2026.
Looking forward, Oatly plans to continue investing in farmers who adopt regenerative practices, aligning with its goal to source 100% of its oats through regenerative agriculture by 2050.
Financial Performance: Q3 2025 Results
This strategic shift coincides with Oatly’s third quarter financial results for 2025. The company reported a revenue of $222.8 million—reflecting a 7.1% year-over-year increase. Adjusted for constant currency, revenue grew by 3.8% compared to the previous year.
The gross margin for this quarter stood at 29.8%, remaining stable compared to the same period last year. However, the net loss attributable to shareholders increased to $65.3 million, up from $34.6 million a year prior. Oatly attributed this increase primarily to fair value losses on Convertible Notes, although higher gross profit and lower research and administrative expenses partially mitigated these losses.
Oatly reports an adjusted EBITDA of $3.1 million for the third quarter, an impressive improvement of $8.2 million year-over-year.
“I am proud to report that we drove profitable growth in the quarter, with solid constant currency revenue growth and positive adjusted EBITDA,” stated Oatly’s CEO, Jean-Christophe Flatin.
Flatin emphasized further, “Achieving this milestone reflects the disciplined, strategic actions we have taken over the past three years to strengthen the foundation of our entire business. While we are proud of this achievement, we know that profitable growth is a milestone and not the finish line. We see significant potential ahead of us, and we are confident that we are taking the right steps to drive durable, scalable, and profitable growth as we execute on our mission.”
