Oatly - Scaling a movement (B)

By 2026, Oatly had emerged from its most turbulent years, but it was a different company than the one described in the A case. After the severe operational and financial strain of 2021–2022, the organization restructured its manufacturing network, simplified its product range, reduced capital spending, and adopted a hybrid model that combined owned oat-base lines with long-term co-manufacturing partners. These changes created a more stable cost structure, even if the share price collapsed to levels far below the IPO. Revenue was growing again and adjusted EBITDA was close to breakeven, showing clearer financial discipline than in 2022.

The market around Oatly had also matured. Growth in plant-based milk slowed, private label strengthened in the United States and Europe, and dairy companies improved both their lactose-free and plant-based offerings. Oatly still held a premium position - especially in urban European markets - but the category no longer revolved around a single narrative or a single brand. Foodservice accounts were more price-sensitive, retail buyers were more demanding, and consumers faced tighter household budgets than during the pandemic years.

Internally, the company felt more controlled but also more constrained. Operations were predictable, but the portfolio was narrower. Commercial teams faced tougher negotiations. Product development became more selective. The sense of cultural momentum that animated the A case had been replaced by a careful, measured approach to growth.

With stability restored, the central question shifted. The A case asked whether Oatly should protect growth or margins during a crisis. The B case asks a different but equally strategic question: in a mature market, how big should Oatly try to be?