Taste Radio

Ep. 163: Oatly Failed and Probably Will Again. But That’s Okay. Here’s Why.

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Synopsis

Just as the brand was shifting into high gear, the engine driving one of the hottest brands in food and beverage had basically stalled. Oatly, a Swedish-based brand of oat milk and oat milk-based products, has been available in Europe for over 25 years and entered the American market in 2016. The U.S. launch was timed to meet surging interest in plant-based dairy alternatives, but while Oatly anticipated a strong start, the overwhelming demand for product was more than the company could handle. Just months after its debut, Oatly was faced with severe out-of-stock issues and enraged customers as it sought short and long-term solutions to its supply chain challenges. Although Oatly has gotten back on track and is the leading brand in a thriving oat milk category, Mike Messersmith, the general manager of Oatly’s U.S. operations, was candid about the company’s early mistakes -- and the likelihood that more will follow. “We’ve already failed in the biggest ways possible; we’ll do it again,” he said in an interview