Oatly, Swedish oat milk brand, raised $200mm at a $2bn valuation last month. So how did a milk-alternative brand break through the ocean of mylk noise? Let’s take a look at Oatly’s brand, packaging, content and a few other things that make them pretty oatsome.
But first, some context
At a quick glance, the Oatly brand looks like your best DIY project from middle school. But it wasn’t always like this. Before the known and loved brand, their packaging reflected who they were: a group of academics and scientists trying to find a better alternative to milk.
That is, until CEO Toni Petersson brought in Creative Director, John Schoolcraft. Early on, they made a few decisions that set them up for long-term success: scrap the marketing department and the role of product manager, instead, created an in-house creative team that allows them to move fast and make tough calls.
Now, let’s remember, Oatly has been around for over 20 years, that’s the same age as Google. They’re also based out of Sweden where cow’s milk is not only the norm but is also expected. This means Oatly is trying to both increase their brand awareness and the awareness of plant-based milk. What do they decide? Pivot from a traditional beverage brand to a lifestyle brand.
Where to start? Packaging
They used their largest piece of real estate as their main driver: their packaging. Unlike most milk-alternatives where the liquid is always shown pouring across the carton, Oatly’s DIY-inspired packaging peaks curiosity mixing unexpected illustrations with unconventionally bold statements.
Write things people want to read
While their packaging is nothing short of aesthetic, my personal favorite brand component is their copy. It’s important to note that John Schoolcraft is by trait a copywriter and wanted to, similarly to the packaging, write copy that was unexpected. Aside from their staple statements like “wow no cow” and “It’s like milk but for humans” they didn’t shy away from political topics and having an opinion.
Oftentimes brands fear taking a stance on a subject as it might polarize the audience. While that is a risk, lacking an opinion makes brands less relatable and memorable. Oatly does the opposite. The openly talk about politically charged topics like their impact on the environment. Previously, they even published a lawsuit they’ve received from the Dairy industry in major publications to fight back against “big-dairy”. Separately, they’re also comfortable sharing where they play, on their website they state “we only do oats” — while could potentially limit their field for expansion (think Pacifica that does all types of plant-based milks) this statement positions Oatly as the leaders in Oat-based food products.
Bring it all together on Social
All of these individual brand choices were then brilliantly executed on social. Both their creative and copy is contagious and fun — and people want more of it. Their instagram feels like that of your art school friend than that of a milk-alternative. The images are artsy and relevant, the models relatable, the copy long, casual and personal. All of this moves them away from being a corporation and instead a group of people.
Do the unexpected, not once but always
Their unconventional marketing practices spanned past just their packaging and copy, they also focused their marketing efforts across unexpected channels. They printed out full page magazine ads and even had presence at music festivals.
But one of their most influential strategies came when they entered the US market in 2016. They focused their distribution to baristas and sold only to niche cafes with strong followings like Intelligentsia, Birch Coffee and Boba Guys. While this strategy led to wide adoption from the cafes, it more importantly resulted in user adoption. As people ordered from their usual cafe, they were now encouraged to change their milk preference by their trusted barista. I clearly remember the day when the barista in the Hayes Valley Blue Bottle first encouraged me to switch from almond milk to oat milk.
So what are my takeaways from Oatly’s brand success? Mainly these three:
- What you say matters: In a time where everyone is scared to have an opinion, standing out goes a long way. Be real and vulnerable in your messaging, people want to hear from people, not another corporate brand.
- Theres always room for innovation: Every industry has marketing tactics that are tried and true, but it doesn’t meant that those are the only options for success. Unconventional approaches can oftentimes delight your audience.
- Make things you’d want to see: Relevant, high-quality product images go a long way. Spend the time and money curating and capturing your visual appearance.
References:
https://forsman.co/work/oatly/rebranding
https://thechallengerproject.com/blog/2016/oatly
https://www.tastecooking.com/inside-great-oat-milk-shortage/
