Last year, it appeared Oatly held the keys to alt milk’s future.
The oat milk pioneer went public in May 2021, valued at $10B. Since then, its stock has tumbled ~80%.
What’s happened?
Simply put, Oatly started a craze, then things got out of hand. Some challenges include:
- Competition, like Planet Oat, which passed Oatly as the highest-selling oat milk brand in the US.
- Supply shortages, leading Starbucks to enlist SunOpta to supplement its oat milk needs.
- Scrutiny surrounding the purported health and environmental benefits of oat milk.
A recent product recall isn’t helping either.
What’s next?
The company recently cut its sales outlook for the year by $90m, listing supply chain issues, the war in Ukraine, and inflationary pressures.
But there’s good news: at least the oats don’t have it as bad as the almonds.
Topics:
Food
