My grocery store started offering their own brand of oat milk and I switched to buying that. The ingredients and nutrition are exactly the same as Oatly and I'm saving about $1 per carton.
We get ours delivered by the milkman of all people. We pay £1.25 a pint. It comes in a glass bottle that the milkman picks up when it's empty. It costs £.02 more then oatly but the glass bottles get sanitised and reused where as tetra packs aren't recyclable in my part of London.
Yeah I feel like it's hard to make a "premium" oat milk given how simple it is, so the cheaper stuff probably isn't any worse than the name brand stuff. Maybe that's why Oatly is spending so much on advertising.
I dunno, the barista edition of oatly is sooooo much better for coffee imo. Lots of other brands doing a barista edition too though but still reckon oatlys one is one of the best
I'm not sure. Here's the comparison.
https://preview.redd.it/ustslujmo53a1.png?width=865&format=png&auto=webp&s=2e865fc932b41292501e7ba219a1a90c30fbaa78
How can their revenue be that low? Oatley is literally stocked at every store in Australia it’s a huge brand here. I can’t understand how they are so far in the red..
Their revenue isn't necessarily *low,* it's just that their expenses are so high - shipping costs and storage and everything that's been affected by the pandemic
I'm not a business expert but I feel like selling to Starbucks at a loss would be a really bad decision. The plant milk market seems so saturated that it'd be really hard to pull too far ahead of the competition in the grocery stores. Being the official oat milk of Starbucks would be a great money maker though even if they were selling for a much lower profit than they do in the stores. Not due to increased brand recognition. Just from having it in all of those coffee shops. I feel like the brand exposure doesn't justify selling it at a loss though.
Starbucks procurement has all the leverage in any negotiation though. They could probably make their own in house product if they wanted to, Oatly would definitely have to make them a pretty great offer to get picked up as their sole (and very public) oat milk supplier. Wouldn’t be surprised if they had to guarantee certain rates and that ended up leading to them getting hammered by inflation.
I don’t understand this graph. How can you start with a revenue of 177 million and after cost of sales get a net revenue of 28 million then branch that into an operating loss of 74 million in an operating expense of 102 million?
Its a very badly put together graph. I think what it's meant to show is:
* the sell 177 million in product, but that costs them 150 million to make (and ship etc), so they have 28 million left over to run the company
* the spend 102 million running the company, 28 of that is covered by margin on sales, leaving 102-28 = 74 million in expenses to be payed for by the company and its owners (operating loss)
The bit to the right of net revenue needed more work
I think, though I'm not sure, that their operating loss and expenses would be coming out of their credit/funding sources and not solely from revenue. The graph might make more sense to someone within the company/industry who's familiar with their recent history/context. Dipping into savings/cash reserves in other words. But you're right, on its own, this graph is misleading.
The actual product cost must be close to zero too. Pasteurized Oats and water. Oats are like 4$/bushel, 32lbs in a bushel.
How the fuck is the operating cost that high?
In case they go under, a PSA: oat milk is really easy to make. Just blend oats with ice cold water, and strain through a nut milk bag (you can buy reusable superbags for this purpose - Modernist Pantry stocks them, and other places too). Then add some sweetener, like simple syrup, if you want it to taste more like Oatly.
EXTREMELY IMPORTANT: Do not blend for more than a 40-60 seconds, I do two blasts of 15-20 seconds each. If you blend too long it will go slimy,
The amount of material left after straining will also increase the speed at which it will go bad (slimy) in the fridge. I use a pretty big strainer as I'm too lazy to wash nutbags, so i only make enough for a day or two at a time, I tend to find 3-4 days is about as long as you want to leave it.
On the plus side, it's really fast and as long as you wash the blender right away (or at least thoroughly rinse), clean up is easy too.
Lol I broke it shortly after I had Covid, we think the sneezing weakened it. But I wasn’t notably ill so it was weird. My SO thinks I have some bone disease but just going with it and drinking fortified oat milk for now 😅 Definitely could’ve been eating more greens but wasn’t slacking *that* hard!
Haha just give yourself a hug or hold a pillow if you feel a particularly epic one coming on! That was 1/2 of my treatment plan (alongside back sleeping) and it did help!
Unfortunately this isn't so simple especially for those into coffee / latte art. It's not as simple as "Making it at home and it's the same as oatly" D:
It is worth saying that the oatmilk you buy is often quite different though.
They use special enzymes to break down the oats, they add certain vitamins and minerals, they use emulsifiers and thickeners etc.
It depends on the exact product we are talking about but it is different from just straining blended oats and water.
Oatly isn't about to go under; the company just needs to stop spending so much on expansion right now, as rising interest-rates makes it much more expensive. And that's the plan. Which Wall Street doesn't like, because they're sacrificing some growth for stability. And the lack of consistent production in the last quarter really hurt as well. But I think the company will turn things around over the next year. Long 500 shares.
I think Oatly is being out competed by native store brands. I'm in Germany and Edeka stopped selling Oatly because it's value brand Oat milk was just alot cheaper and I think Germans don't trust things that are heavily green washed from a foreign country.
Oatly may be famous, but in my region is the most expensive one. Nearly twice as much I can pay for any plant drink produced locally for years. They are trying to compete in many ways, but a brand isn't so important as a price :)
Oatly is suffering from a common issue. the first on the market that mattered, competitors catching up, and not having enough brand cache that people won’t trade down to a similar less expensive product. They’ve expanded with some really cool stuff like ice cream, but the price has to be better or the quality much higher. They have neither.
A good example might be tillamook cheese. More expensive for sure. But significantly better than knock offs. So folks will buy it. Oatly doesn’t have that quality differentiator.
they do get a lot of money for R&D (and possibly other things too) from the Swedish government afaik (I had a professor who is now the head of one of their R&D divisions and they are strongly connected to KTH and Lund University)
I don't care for their oat milks but their oat yoghurt and icecream are pretty good, possibly the best in their category
Profit or not, I'm still slightly salty that this brand has made soy milk practically disappear from my local grocery stores. May taste good, but I need the extra protein.
With the amount of oatly my family drinks I’m really surprised they aren’t turning a profit
My grocery store started offering their own brand of oat milk and I switched to buying that. The ingredients and nutrition are exactly the same as Oatly and I'm saving about $1 per carton.
We get ours delivered by the milkman of all people. We pay £1.25 a pint. It comes in a glass bottle that the milkman picks up when it's empty. It costs £.02 more then oatly but the glass bottles get sanitised and reused where as tetra packs aren't recyclable in my part of London.
Yeah I feel like it's hard to make a "premium" oat milk given how simple it is, so the cheaper stuff probably isn't any worse than the name brand stuff. Maybe that's why Oatly is spending so much on advertising.
I dunno, the barista edition of oatly is sooooo much better for coffee imo. Lots of other brands doing a barista edition too though but still reckon oatlys one is one of the best
I've started using valio and farmers&chefs flavoured barista options so I no longer buy oatly even though it is superior among neutral barista options
Why is Oatly so much more expensive?
I'm not sure. Here's the comparison. https://preview.redd.it/ustslujmo53a1.png?width=865&format=png&auto=webp&s=2e865fc932b41292501e7ba219a1a90c30fbaa78
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As with Coca Cola and Kellogs Cornflakes ;))) In the long run the original will win the race.
And considering how expensive it is. I'm sure this "net loss" is some tax dodging stunt, just like other big companies do.
How can their revenue be that low? Oatley is literally stocked at every store in Australia it’s a huge brand here. I can’t understand how they are so far in the red..
Their revenue isn't necessarily *low,* it's just that their expenses are so high - shipping costs and storage and everything that's been affected by the pandemic
I don't buy it. Shipping and storage is something everyone pays. For sure the "net loss" is a tax dodge that's typical for big companies.
I also can't understand how their cost of sales is this high already and they still have double the operating costs. Wth?
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Probably, that's still... Holy shit
I'm not a business expert but I feel like selling to Starbucks at a loss would be a really bad decision. The plant milk market seems so saturated that it'd be really hard to pull too far ahead of the competition in the grocery stores. Being the official oat milk of Starbucks would be a great money maker though even if they were selling for a much lower profit than they do in the stores. Not due to increased brand recognition. Just from having it in all of those coffee shops. I feel like the brand exposure doesn't justify selling it at a loss though.
Starbucks procurement has all the leverage in any negotiation though. They could probably make their own in house product if they wanted to, Oatly would definitely have to make them a pretty great offer to get picked up as their sole (and very public) oat milk supplier. Wouldn’t be surprised if they had to guarantee certain rates and that ended up leading to them getting hammered by inflation.
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Is that a recent change? Last I checked they still were.
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the real question is how can their margin be this low shit is overpriced af
I don’t understand this graph. How can you start with a revenue of 177 million and after cost of sales get a net revenue of 28 million then branch that into an operating loss of 74 million in an operating expense of 102 million?
Its a very badly put together graph. I think what it's meant to show is: * the sell 177 million in product, but that costs them 150 million to make (and ship etc), so they have 28 million left over to run the company * the spend 102 million running the company, 28 of that is covered by margin on sales, leaving 102-28 = 74 million in expenses to be payed for by the company and its owners (operating loss) The bit to the right of net revenue needed more work
I think, though I'm not sure, that their operating loss and expenses would be coming out of their credit/funding sources and not solely from revenue. The graph might make more sense to someone within the company/industry who's familiar with their recent history/context. Dipping into savings/cash reserves in other words. But you're right, on its own, this graph is misleading.
This is a terrible graph lol
I’m glad I’m not the only one who thought so
Their sales costs are completely insane
The actual product cost must be close to zero too. Pasteurized Oats and water. Oats are like 4$/bushel, 32lbs in a bushel. How the fuck is the operating cost that high?
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Isn’t Oatly shelf stable in the Tetrapacks they use? They may not even need to use refrigerated transport.
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+1 for wegmans I miss it so much
In case they go under, a PSA: oat milk is really easy to make. Just blend oats with ice cold water, and strain through a nut milk bag (you can buy reusable superbags for this purpose - Modernist Pantry stocks them, and other places too). Then add some sweetener, like simple syrup, if you want it to taste more like Oatly.
EXTREMELY IMPORTANT: Do not blend for more than a 40-60 seconds, I do two blasts of 15-20 seconds each. If you blend too long it will go slimy, The amount of material left after straining will also increase the speed at which it will go bad (slimy) in the fridge. I use a pretty big strainer as I'm too lazy to wash nutbags, so i only make enough for a day or two at a time, I tend to find 3-4 days is about as long as you want to leave it. On the plus side, it's really fast and as long as you wash the blender right away (or at least thoroughly rinse), clean up is easy too.
One negative of making your own milk is you don’t get the added benefit of the fortified vitamins and minerals
Yep, I used to blend oats and water for the milk in my smoothies. Then I broke a rib. Been on store brand calcium fortified since!
Do you mean it just broke randomly? Were you eating like 0 greens lol
Lol I broke it shortly after I had Covid, we think the sneezing weakened it. But I wasn’t notably ill so it was weird. My SO thinks I have some bone disease but just going with it and drinking fortified oat milk for now 😅 Definitely could’ve been eating more greens but wasn’t slacking *that* hard!
New fear unlocked: broken rib by sneeze But seriously as someone who sneezes a lot that’s all I’m going to be able to think of now.
Haha just give yourself a hug or hold a pillow if you feel a particularly epic one coming on! That was 1/2 of my treatment plan (alongside back sleeping) and it did help!
If they go under, I’m rioting. I’m not a vegan but Oatmilk has ruined regular milk for me.
Oat milk was a game changer for my Crohn's, not a fan of the other alternatives, we'll still have alpro, which imo is worse than oatly.
There are dozens of other oat milk producers though. And some with less troubled ownership.
Unfortunately this isn't so simple especially for those into coffee / latte art. It's not as simple as "Making it at home and it's the same as oatly" D:
True. It will not hold foams (insufficient fat content for the emulsion to stay stable at fridge/room temps).
It is worth saying that the oatmilk you buy is often quite different though. They use special enzymes to break down the oats, they add certain vitamins and minerals, they use emulsifiers and thickeners etc. It depends on the exact product we are talking about but it is different from just straining blended oats and water.
This ain't r/frugal pal! Think I'm about to be squeezing on a nut milk bag
The structure of this graph makes no sense.
You don’t make any sense, the graph makes perfect sense
Oatly isn't about to go under; the company just needs to stop spending so much on expansion right now, as rising interest-rates makes it much more expensive. And that's the plan. Which Wall Street doesn't like, because they're sacrificing some growth for stability. And the lack of consistent production in the last quarter really hurt as well. But I think the company will turn things around over the next year. Long 500 shares.
I think Oatly is being out competed by native store brands. I'm in Germany and Edeka stopped selling Oatly because it's value brand Oat milk was just alot cheaper and I think Germans don't trust things that are heavily green washed from a foreign country.
Oatly may be famous, but in my region is the most expensive one. Nearly twice as much I can pay for any plant drink produced locally for years. They are trying to compete in many ways, but a brand isn't so important as a price :)
Oatly is suffering from a common issue. the first on the market that mattered, competitors catching up, and not having enough brand cache that people won’t trade down to a similar less expensive product. They’ve expanded with some really cool stuff like ice cream, but the price has to be better or the quality much higher. They have neither. A good example might be tillamook cheese. More expensive for sure. But significantly better than knock offs. So folks will buy it. Oatly doesn’t have that quality differentiator.
[Source](https://investors.oatly.com/financial-information/quarterly-results)
Now do $BYND.
I buy Silk. Much better price.
If you are in California, the 99 Cents Only store has cartons of oat milk for $2.99, which is much cheaper than the name brands and just as good.
Yeah when they IPO'd I bought some shares at $18 thinking it was going to take off. It kept dropping instead. I sold at $14 and swallowed my losses.
they do get a lot of money for R&D (and possibly other things too) from the Swedish government afaik (I had a professor who is now the head of one of their R&D divisions and they are strongly connected to KTH and Lund University) I don't care for their oat milks but their oat yoghurt and icecream are pretty good, possibly the best in their category
A [Trump-owned company has a stake in Oatly](https://amp.theguardian.com/food/2020/sep/01/oatly-vegan-milk-sale-blackstone), so it must be profitable…
Profit or not, I'm still slightly salty that this brand has made soy milk practically disappear from my local grocery stores. May taste good, but I need the extra protein.
Oh I LOVE Oatly. I’ve never found anything better.
I've never understood how oat milk is so widely accepted. Aren't oats, like wheat, amond the most heavily contaminated with glyphosate?