Oatly & Nestlé Cash In On Alt-Milk Boom With Coffee Pods Designed Specifically For Use With Oat Milk – CoffeeTalk
Nestlé has partnered with Swedish company Oatly to introduce a limited-edition Nespresso blend specifically for its barista oat milk. The new coffee capsules, made exclusively for Nespresso Vertuo machines, are designed to be a “perfect pairing” for Oatly’s barista edition and appeal to the growing number of consumers using plant-based milk. The two brands note that people are increasingly turning to plant-based milk for reasons spanning environment, health, animal welfare, and taste. In the US, nearly half (44%) of households bought milk alternatives in 2023, while more than 35% did so in Germany, Spain, and the UK. Asia-Pacific is the largest market for these products, recording $13.4B in revenue that year.
Nearly two-thirds of the world’s population suffers from lactose malabsorption, and awareness around the environmental impact of dairy is on the rise. Oatly’s barista version generates up to 76% fewer emissions than cow’s milk. Consumers are turning to milk alternatives for their flavor, as evidenced by the 19% of American plant milk purchasers who buy conventional milk as well. Oat milk, meanwhile, has surged in popularity due to its relatively neutral flavor and superior functionality in coffee compared to other plant-based counterparts.
The Nespresso Oatly Barista Edition Coffee is described in press materials as “creamy, biscuity and indulgent”. Nespresso blended, roasted, and ground coffee beans in a way that could harmonize with the natural sweetness of oats. When paired with Oatly’s oat milk, the new espresso gives off a sweet, cereal-like aroma, complementing its smooth texture, low bitterness, and light body.
The Oatly-Nespresso coffee pods are available in more than 15 countries, including the US, the UK, China, and Australia. They can be bought on Nespresso’s website or at its boutiques in these locations. In Canada, Nespresso is hosting immersive takeovers at several of its boutiques until the end of this month.
The Nestlé-owned brand already dominates the coffee pod market, but collaborating with Oatly will broaden its appeal to a wider set of consumers. The division recorded $6.4B in sales in 2023, but weaker demand in Europe led to a 1% decline in the first half of 2024. Offering it as an oat-milk-exclusive product could at least lower emissions at the household level, if people stick to the recommendation to use oat milk instead of dairy.
Oatly’s partnership is a way for the brand to reach more households with its barista oat milk, which has already become the default oat milk at numerous specialty coffee shops across the world. Over the last year, Oatly has launched several new formats of the product, including an organic version, 1.5-litre and 500ml cartons, a refrigerated pack, a 20ml jigger for travel, and a Lighter Taste edition for light-roasted coffee.
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Source: Coffee Talk