Oatly, a plant-based dairy company founded over 25 years ago by professors at Lund University in Sweden, has experienced a significant shift from niche to mainstream in the UK in recent years. According to Bryan Carroll, Oatly UK general manager, the brand has become commonplace in retail and foodservice, even sitting alongside conventional dairy products in some supermarkets. Despite this market disruption, Oatly believes it’s only the beginning and aims to disrupt 50% of the dairy market with its plant-based alternatives. Carroll highlights that while plant-based dairy alternatives account for around 6.5% of all dairy sales, only just over a third of UK households have tried a plant-based alternative drink, indicating ample room for growth. Oatly plans to diversify its product range to expand its market share, offering various oat milk drink products, as well as alternatives to yogurt, crème fraiche, and soft serve ice cream.
Oatly takes a different approach when it comes to deciding which plant-based dairy category to pursue. Instead of relying solely on extensive research and data, the company uses intuition, expert input, and a willingness to take risks. While this approach doesn’t guarantee success, Oatly has had more successes than failures in new product development. The brand recently removed a less successful ice cream tub from shelves and replaced it with a more disruptive and iconic soft serve product.
In addition to product diversification, Oatly focuses on accessibility to level the playing field and make choosing plant-based options as easy as possible. The brand aims to make its dairy alternatives readily available in diverse environments, including supermarkets, coffee shops, trains, schools, and hospitals. Oatly has formed partnerships with various foodservice establishments, such as McDonald’s and 7-Eleven, and sees potential to expand further into sectors like hotels and airlines. The brand has recently secured partnerships with London North Eastern Railway, Eden Hotels, and football stadiums in the UK.
Oatly’s leadership is undergoing some changes, with Toni Petersson transitioning to the role of co-chairman of the board of directors and Jean-Christophe Flatin assuming the CEO role. While Flatin brings supply chain expertise to the table, Carroll emphasizes that the brand’s values and strategy will remain intact under the partnership of Flatin and Petersson. Additionally, John Schoolcraft, global chief creative officer at Oatly, will continue to play a key role in the brand’s marketing efforts.
Overall, Oatly is poised for continued growth and disruption in the plant-based dairy market, with a focus on diversification, accessibility, and maintaining its unique brand identity.