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Alternative Dairy Producer Makes Headway in China’s Leading Supermarket Stores

Trendy alternative dairy brand Oatly partners with DKSH to establish a presence in leading supermarket chains and extend market reach in China.

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Business Units

Consumer Goods

Business Lines

Fast Moving Consumer Goods

Services

After-sales services, Distribution and logistics, Marketing and sales, Research and analysis, Sourcing

Markets

China

Oatly Group AB is a Swedish food company that produces alternatives to dairy products from oats. The company engineered its demand by entering the US market through high-end coffee shops before going to retail. Its Barista Edition Oatmilk quickly became the preferred alternate milk because of its ability to deliver the mouthfeel and foamability that talented coffee artisans associate with milk when making beverages such as cappuccinos and lattes. Oatly has physically wrapped its product in whimsical, eye-catching, type-driven packaging, which both educates and amuses customers about oat milk.

Alternative Dairy Producer Makes Headway in China’s Leading Supermarket Stores

Challenge

The client was facing challenges in increasing off-the-shelf sales momentum, especially in retail stores. The main reason for this was that its products were placed only under the beverage category. It needed to switch into other retail categories to achieve a better shelf presence at retail locations.

Approach

We identified the Metro and Carrefour retail chains as the key channels to help push the products to consumers. With our established relationship with these two chains, we facilitated the change of the products from beverage to dairy, which was more relevant being a dairy-alternative.

We also provided marketing and sales support along with the necessary distribution, logistics, and accounts services for the full range of Oatly products. Aside from its popular Barista flavor, we also helped the client expand into the ice cream segment.

Result

Since commencing the partnership with DKSH in mid-2021, the client has recorded increased monthly average net sales. It continues to be positive in achieving continued growth for its products through these stores.

For DKSH, Oatly is the type of visionary partner that we want to win together with. This collaboration is an example of how results can be successful when like-minded organizations work together. Watch out for more exciting new products that will be launched soon.

Hiufan Tsang, General Manager, Sales and Marketing, DKSH FMCG China

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