Oato, a fresh oat milk brand hailing from the UK, is excited to announce its arrival in the chilled aisle of more than 375 Sainsbury’s stores nationwide.
Product Details and Sustainability
Available in two practical sizes—1 liter and 1 pint—Oato’s barista oat milk stands out because it’s fresh and free from ultra-high temperature (UHT) processing, unlike many competitors. Made entirely with 100% British oats, Oato prides itself on producing all its products within the UK, contributing to a lower carbon footprint. Moreover, the company’s bottling facility in Lancashire operates completely on solar power, generating more energy than it consumes.
Collaboration and Market Strategy
Carl Hopwood, the founder of Oato, shares his enthusiasm for this partnership with Sainsbury’s. He views this milestone as pivotal for the brand as it strives to become a top choice for dairy alternatives in the UK marketplace. Emphasizing the significance of local sourcing, affordability, and convenience, Hopwood believes Oato offers a unique and fresh option in the dairy alternative sector.
Growth and Challenges
Initially, Oato focused on reaching customers through direct-to-consumer channels, collaborating with delivery services like Modern Milkman. However, last February marked a turning point as they expanded into physical retail after striking a distribution deal with Booths. Their packaging cleverly mimics the look of traditional cow’s milk, featuring glass bottles for home deliveries and recyclable plastic for store sales.
The brand’s growth continued in June when Oato successfully launched its products in 229 Waitrose locations, setting the stage for its national retail debut. Recent Circana data shows that Oato’s Fresh Barista Whole 1 Litre has topped the Chilled Dairy Alternatives market, surpassing all other new products in sales performance over the past year.
Hopwood notes that the rising demand for Oato, driven by consumer appreciation of its flavor and local delivery service, has presented some challenges as the company scales. In response, Oato has transitioned to a state-of-the-art production facility designed to meet both retail and delivery needs across the UK. This journey, though filled with hurdles, has been rewarding for the brand, underscoring its commitment to quality and sustainability.
Source: Vegconomist