After experiencing initial success during the plant-based milk surge in the late 2010s, Sweden’s Oatly has faced challenges in returning to profitability since its public listing four years ago, especially as the market cools. While the company has expanded its presence beyond the U.S., it is working to boost sales domestically. According to its earnings report, Oatly’s growth in Europe and China was countered by a 10.6% revenue decline in North America in the first quarter of 2024. Globally, its volumes increased by 9.2%, but in North America, they fell by 10.9%.
Flatin noted that the U.S. and Canadian markets are experiencing sluggish demand for Oatly’s milk and dessert products. However, he mentioned that the company has not yet “fully deployed resources to ignite positive momentum,” a strategy it plans to implement in the latter half of 2025. Key components of this plan include enhancing Oatly’s relevance by expanding product availability across various channels and addressing “barriers to conversion,” such as misinformation about the health benefits of its products, including the role of calcium citrate in its formulations.
One area where Oatly intends to intensify its efforts is in the coffee sector, particularly targeting the growing Gen Z demographic that favors iced lattes and cold brew. Data from sales platform Square, reported by Daily Coffee News last fall, indicates that oat milk is the most popular non-dairy creamer, making up 33% of coffee orders. Oatly highlighted its successful Barista Edition espresso collaboration with Nespresso, launched in cafes during the first quarter of the year, as a notable achievement in the coffee arena.
“There is a taste bonanza and a flavor bonanza going on in coffee around the world, and our teams are intimately woven into this community,” stated Daniel Ordoñez, Oatly’s chief operating officer, during the earnings call. This focus on coffee and other product categories aligns with Oatly’s goal of encouraging more consumers to try oat milk, especially since Flatin reported that 82% of U.S. consumers have yet to sample it. He emphasized that Oatly is “uniquely positioned to serve the new wave of coffee and beverages,” particularly with the inclusion of calcium citrate in its offerings.
“That’s our new obsession,” Flatin remarked. “It will not happen overnight, but we’re really looking forward to reporting progress.”