F&D Heroes Issue 1

Swedish brand Oatly, which produces the nations goto
oat alternative to milk products, has experienced
a 90% growth in turnover in the UK in only one year.
Ishen Paran, Oatly’s UK general manager, speaks to
Bread & Jam 2.0 Virtual about all things oats.
The popular vegan milk brand was born from science
by a team working on lactose intolerance at Lund
University. The product challenged the food system
25 years ago, creating a loyal following in Scandinavia
and a steady revenue. “We used to act like a big
food company and results in creating products and
branding that followed the rules. We looked like a
product that people expected us to look like,” says
Ishen Paran, Oatly’s UK general manager.
However, in 2012, Toni Petersson joined the company
as CEO. It was a risky decision as he had no FMCG
experience, but he had a clear and compelling vision.
“He restructured the company and got rid of marketing
department, creatives became the centre of all parts of
the business. We work in ongoing discussions, there
are no hierarchical decisions which makes procedures
more fluid, project based and agile.”
Driving forward
In 2015, Oatly underwent a redesign to become
the brand we see on the shelves today. It was a
precarious decision, as it would likely disrupt its
loyal customer base. But the company were willing
to take the chance if it meant being propelled into
supermarkets across the globe. It was a worthy
gamble as Oatly is now one of the most prominent
plant-based brands in the market.
With a new confidence engrained within the brand,
a year later it went up against the dairy companies
despite the board’s advice not to. Using the slogan
‘it’s like milk, but made for humans.’ Oatly was sued,
and lost.
The case was publicised on the company website and
in local newspapers. “People heard about the case
and felt that a huge brand suing a small company
was ridiculous, so they showed their support for us.
And, support grew,” says Ishen. Oatly seized this
opportunity of growing awareness of the brand, whilst
they were in the public eye, to launch their products in
shops around the world.
Serious about climate impact
If you go into a coffee shop and ask for a milk
alternative, you are now usually offered a splash of
Oatly. The brand switched its focus in 2017, despite
grocery being 90% of its business, to coffee specialty.
They felt like they needed to find their own people,
whose purpose lined up with the brand rather than
it being dictated by the consumer, consultants and
third parties.
Sustainability is a huge factor in Oatly’s brand
message. Its packaging displays the climate impact
of their product. On the website, they make the
following statement, “Wouldn’t it be great if it was
easy for people to see and compare the climate
impact of different products right in the grocery aisle
before even deciding what to put in the cart?’ But we
didn’t just think it in a ‘it might be fun for us, as one
small oat company, to stick climate impact numbers
on our products’ kind of way, but more like a, ‘we
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