Oatly has warned of a change in its forecasted revenue for the upcoming year because "oat milk is more expensive than dairy milk".
👉 Background: Let’s be honest.. Oat milk was not really a thing before Oatly bustled its way onto the scene with its cute packaging and frothy frothy ‘milk’. It also drew in some serious celeb investors like Oprah, Jay Z and former head of Starbucks Howard Schultz.
👉 What happened: But now, Oatly has warned of a change in its forecasted revenue for the upcoming year. It had forecasted revenue of over $800m US for the year, but that’s looking more like $700m US. Woops.
👉 What else: And it’s part of a downward trend for plant-based protein companies as consumers rein in spending.
💡As the cost of living rises, consumers are facing a real ethical dilemma.
💡Generally, oat milk tends to be 2.5 times the cost of dairy milk… and then chuck on the Oatly premium. According to Nielsen, plant-based meat is 2x as expensive as beef and 4x as expensive as chicken.
💡And Oatly isn't alone in this struggle. Recently, we’ve seen Beyond Burger report a 22 per cent decline in sales. So when the going gets tough, the tougher meat get going.
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