Oatly’s great stagnation

The brand that started the oat milk craze is struggling.

Last year, it appeared Oatly held the keys to alt milk’s future.

Oatly’s great stagnation

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

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