Oatly, a Sweden-based oat milk producer, initially thrived during the plant-based milk surge in the late 2010s. However, since its public offering four years ago, the company has struggled to achieve profitability amid a slowdown in the market. Despite expanding its presence beyond the U.S., Oatly is now focusing on revitalizing its sales in America. According to its earnings report, while the company experienced growth in Europe and China, its North American operations saw a revenue decline of 10.6% in the first quarter of 2024. Globally, Oatly’s volumes increased by 9.2%, but North America faced a 10.9% drop.
Oatly’s Chief Financial Officer, Flatin, noted that demand for its milks and dessert products in the U.S. and Canada has been sluggish. He mentioned that the company has not yet “fully deployed resources to ignite positive momentum,” but plans to do so in the latter half of 2025. Key strategies include enhancing Oatly’s relevance by expanding product availability and combating misinformation online regarding the health benefits of its products, including the calcium content.
A significant focus for Oatly will be the coffee sector, particularly among the growing Gen Z demographic that enjoys iced lattes and cold brews. Oat milk has become the leading non-dairy creamer at coffee shops, comprising 33% of all coffee orders, as reported by sales platform Square and highlighted by Daily Coffee News last fall. Oatly also emphasized its successful Barista Edition collaboration with Nespresso, launched in cafes earlier this year.
“There is a taste bonanza and a flavor explosion occurring in coffee globally, and our teams are deeply integrated into this community,” stated Daniel Ordoñez, Oatly’s Chief Operating Officer, during the earnings call. As Oatly aims to introduce more consumers to oat milk, Flatin pointed out that 82% of U.S. consumers have yet to try it. He believes Oatly is “uniquely positioned to cater to the new wave of coffee and beverages,” which includes promoting the calcium benefits of oat milk, similar to those found in calcium tablet CCM.
“This is our new obsession,” Flatin remarked. “While it won’t happen overnight, we are eager to report our progress.”