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The post-milk generation is taking customers’ loyalty and expanding business at the same time.
Oatly did it in the first place because it was so differ-
shape. Oatly will keep fighting ent from anything else on the market. Ten years ago, oat
fearlessly for a better and greener milk was new, and activist brands were rare.
But now in the booming plant-based milk market, it’s
future, together with a growing getting more difficult for Oatly to stand out. New brands
and types of dairy alternatives are emerging at a rapid speed.
post-milk generation. They get noticed not only through quirky packaging but
also their basic ingredients. For young people who are by
nature more adventurous, dairy alternatives made from
macadamia nuts, pistachios, peas, and even potatoes sound
much more interesting.
Even within the oat milk section, the competition is
fierce. Taking the China market as an example, following
Oatly’s success, over 20 new brands of oat milk are in the
market for customers to choose and most of them are with
Thanks to Oatly, the long established public belief of Though Oatly established a solid reputation as the oat a much friendlier price tag. For a market that is more price
cow’s milk being beneficial was challenged. At the same time, milk pioneer, as well as a trendy lifestyle brand, through sensitive, it is foreseeable that Oatly will have a tough bat-
the awareness of plant-based milk started to rise. People in the coffee collaboration strategy in China, its ambition was tle over the next generation in China.
Hong Kong began to understand oat milk is not cow’s milk far from fulfilled. The vast number of young people meant Another challenge is Oatly’s brand position.
mixed with some oats, but a nutritious drink purely extract- a beyond imagination potential in both business and the Oatly has been recognised as an ethical brand, but
ed from oats. change movement. Therefore, Oatly was in need to find not some of its shareholders. In order to grow its business,
Let the Young Be the Lead Last January, Oatly re- more channels to reach the Chinese youth. Oatly has a list of investors including Blackstone. Accept-
leased a new campaign called Help Dad in the UK. It was a The Chinese Collaborations The two most popular ing investment from Blackstone caused quite a stir at the
series of 4 short TV commercials featuring teenagers trying fresh beverages for the young generation in China are spe- time, Oatly had to respond to angry customers that the
to get their middle aged fathers to change the habit of drink- cialty coffee and new-style tea. After successfully conquer- aim was to make other private equity firms put their $4
ing cow’s milk. ing the coffee part, Oatly turned to new-style tea, which is trillion to the green investment if they saw Blackstone
The campaign is based on two facts. One is that older a mixed beverage with freshly brewed tea and a wide range could be convinced.
men are the least likely to adopt plant-based diets, and the of other ingredients, such as milk, fresh fruits, or even taro. Besides, Oatly’s also known for fearlessly challenging
other is that young people are much more passionate about In 2019, Oatly collaborated with a leading player of a the status quo, which is a big reason for many young people
issues like climate change and they are a main force in the new-style tea brand and developed a limited edition drink to support the brand. However, after years of efforts, both
green revolution. called Oatly BOBO which was launched nationwide. The oat milk and Oatly are increasingly mainstream. That is to
In the commercials, teenagers took the traditional par- result was positive as in further fueling the social buzz of toy brand NONO for a set of mystery toy boxes, and with say, Oatly is becoming the status quo itself.
ents’ role. They talked and acted like adults and the way they Oatly among young people. hotel giant Hilton for an urban camping pop up market. As an activist brand, Oatly has taken the role to lead
criticized their middle-aged fathers was just like how parents The success of this model led to collaborations with the movement in the first stage. With the change already
get headaches from their teenage children. other giant new-style tea brands targeting tier 2-3 cities or A Future With the Post-Milk Generation taking place, now it’s time for Oatly to revise and repo-
The “parent your parents” idea in these ads captivated even small towns, which are where the majority of the sition the brand as the movement is evolving into the
not only a large number of young people who can totally young people live. Starting in 2021, Oatly began to focus The majority of the current population have grown up next stage.
relate to the situations, but also parents who started to be more on the tea beverage market, what’s more, Oatly even under the education of the benefits and necessity of drink- Last May, the rejection of Amendment 171, which
educated by their children on environmental issues. developed a new product called Tea Master in the beginning ing cow’s milk. Thanks to the rising awareness of the wors- was aiming to put heavy restrictions on plant-based milk,
These adverts were soon criticized for being ageist and of 2022, the equivalent of Barista Edition in tea, specifical- ening condition of the environment, and all the research was one example to show the achievement of this move-
mocking alcoholism. This is nothing new to Oatly. They are ly for the Chinese Market. pointing out the connection between this issue and people’s ment so far. An initially favored amendment by the EU
more aware than anyone else in the industry that provocative “We estimate that the market size of new-style tea is daily activities, more of us start to realize the urgency of was in the end rejected after hundreds of organizations
content will always get someone offended, but that is never twice that of speciality coffee,” OATLY’s CEO Toni Peters- making a change, which can be as small as starting to drink and over 450,000 European citizens clearly stated their
the reason to stop doing something they believe it’s right. son said earlier this year. plant-based milk. opposition. Oatly was of course part of it.
And Many More Oatly has been much more active in According to Toni Petersson, the post-milk generation From fighting alone against the dairy industry in 2014
When in Rome, Do as the Romans Do offline activities in China than anywhere else. This is due is taking shape. to fighting side by side with so many others in 2021, Oatly
to the behavior of the Chinese young generation. Pop ups While Oatly is leading the new generation to fight for has gone a long way. Though what Oatly will evolve into
Entering a new market of a completely different cul- and cross over collaborations in real life can generate a a more sustainable future, it also needs to focus on a sus- stays unclear to us, what we can be sure is that whatever
ture has always been a challenge for businesses. When huge amount of discussion on social media platforms, which tainable development of its own business. circumstance it’s under, Oatly will keep fighting fearlessly
Oatly went out of Europe, it chose to land in the US and then reach a larger audience. Oatly has collaborated with One challenge Oatly faces is to keep winning the young for a better and greener future, together with a growing
China at similar times. outdoor club Gravity for ultimate frisbee games, with trendy generation’s hearts, which is key to maintaining existing post-milk generation.

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