3 pivots that took Oatly to $10 billion

Oatly, the Swedish alternative drink company, was struggling against dairy giants for 20 years.

Then in 2012, Toni Peterson became the new CEO of Oatly.

They revamped the entire game plan for Oatly, but it wasn’t the product that needed changing.

It was the marketing.

This is how they flipped the marketing of the entire plant-based milk industry in a few short years with a three part plan.

Differentiation

To stand out from the rest of the milk substitutes that are in the supermarket shelves, they made everything about the new packaging “bold” so it can have some pop and be more eye-catching.

To give a makeover to their old bland packaging, they used block & bubble letters and spelled out "OAT - LY!" in the center.

The copy on the packaging was changed from Swedish to English - to make it more accessible to the global audience.

And they sold their vision and story right on it.

Selling more than just milk

Instead of competing against other plant-based options through ingredients and price, they focused on a group of passionate customers.

Vegans 🌱.

Because vegans were people who chose oat milk for its health benefits AND sustainability.

They positioned the brand towards sustainability and environmentally friendly.

Their core target was people for whom a plant-based diet is a lifestyle rather than a habit for health benefits

Instead of selling milk, they sold a sustainable lifestyle.

Turning L’s into PR

They began launching campaigns going directly at their dairy competitors with slogans like “"WOW NO COW."

This visualization of the "Oatly way vs the Cow’s way" was to demonstrate that the nutritional profile of oat milk was better suited for humans than cow’s milk whose nutrients are naturally designed to grow a calf.

They wanted to become an activist brand.

Then the Swedish dairy lobby sued Oatly for it. They had an issue with the visual which they felt showed that dairy milk comes out of a "cow’s bottom, not the udder".'

Oatly lost the case, but won the hearts of the public.

The CEO published the lawsuit online, just like a true activist brand, and used the attack to its advantage.

Oatly ran a £700,000 billboard campaign across the UK displaying the "Milk, but for humans" slogan (banned in Sweden).

They showed they were being bullied by the evil dairy corporations and generated a ton of press.

But they didn’t stop there…

Toni himself became the face of Oatly in their campaigns and even appeared in a Superbowl ad singing a jingle...

It got them support from their fanbase and their sales went up by 45% in Sweden.

So don’t be boring, stand out with unconventional designs and go against the giants in your industry.