Starbucks will now serve Oatlys oat milk.
Starbucks
Oat milk has officially become mainstream.
Starbucks cafes across the country will stock Oatly’s dairy replacements starting Tuesday, the coffee chain said on Monday. The oat milk is added to Starbucks’ spring menu with the new Iced Brown Sugar Oatmilk Shaken Espresso.
For Oatly, coffee shops are a crucial way of presenting the characteristic product to consumers. Consumers can try oat milk – usually for a small additional fee that is common for milk alternatives – without committing to purchase an entire carton.
The approach has helped Oatly build and retain a large fan base even as new competitors such as Chobani or private label products hit the market. Last year, oat milk sales in the United States rose more than 170% in the 52 weeks ending February 13, compared to the same time a year ago, according to Nielsen data.
The coffee giant’s permanent menu addition is the latest big announcement for Oatly, which debuted in U.S. coffee shops just five years ago. The Swedish company aired its first US commercial in early February with a Super Bowl spot in which its CEO sang about oat milk. On Tuesday, Oatly announced that it had applied for an IPO in the United States in confidence
Starbucks added oat milk from Oatly competitor Elmhurst in 1925 at select upscale reserve locations. Last year a pilot project began in the Midwest to test a wider audience with Oatly’s version. The coffee chain has expanded its menu to include more plant-based alternatives in order to win new customers and to be more environmentally friendly.
Coffee shops have always played an important role in Oatly’s expansion strategy. From 2016, the coffee chain Intelligentsia of the third wave will be serving Oatly in their cafes. The company focused on convincing baristas and coffee drinkers of the creamy texture and foaming ability of oat milk before it hit grocery stores.
A shortage in 2018 led to eBay listings for Oatly boxes at sky-high prices and motivated the company to open its first U.S. facility in New Jersey the following year. Oatly has also expanded into new categories such as: B. Oat-based versions of yogurt and ice cream.
