The Oatly Chronicles Part 3: Can Green Capitalism Save Us All?
Nov 8, 2023
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Can oat milk really save the planet? In this podcast, the hosts investigate the controversial investments and growth of Oatly, discussing issues like the company's pursuit of profit over sustainability, rising carbon footprint, lack of transparency, and pricing controversies. They also explore the role of oat milk companies in ethical shopping and the importance of holding politicians accountable for subsidizing the dairy industry. Ultimately, the podcast raises thought-provoking questions about our food choices and their impact on the planet.
Oatly's growth and controversial investments have led to challenges, including slower factory construction and financial losses.
Criticism regarding Oatly's handling of oat residue raises questions about its commitment to sustainability and values.
Deep dives
Oatly's Growth and Changes Since Investment
Since taking on controversial investments, Oatly has experienced significant growth and changes. The company opened new factories, expanded its product presence in supermarkets worldwide, and grew its staff from 100 to 2,000 employees. However, during this period, many employees who joined Oatly when it was a startup and presented itself as a radically different company left, leading to a sense of loss among some. Despite its initial success, Oatly faced challenges, including slower factory construction, slower sales growth than anticipated, and consistent financial losses. These difficulties led to job cuts, the replacement of the CEO, and an increased focus on profitability as the company's main priority.
Oatly's IPO and Financial Struggles
Oatly's IPO in 2021 initially went well, with a significant increase in share price. The company raised $1.43 billion, which was intended for expanding capacity to meet the surging demand for its oat milk and plant-based products. However, problems soon arose, with factories being built slower than planned, sales not meeting expectations, and the company consistently reporting financial losses amounting to tens of millions of euros. These struggles prompted job cuts, a change in leadership, and a shift in focus towards profitability as the company's main priority.
Transparency and Controversy Surrounding Oat Residue
Oatly has positioned itself as a champion of transparency, emphasizing its commitment to sharing its journey, progress, and challenges. However, it has faced criticism regarding the handling of its oat residue, a byproduct of oat milk production. Oatly initially sold the oat residue to pig farms, leading to questions about the company's commitment to its values and sustainability. While Oatly argues that selling the residue for animal feed is more sustainable than sending it to landfill, critics question whether more beneficial uses for the nutrient-rich oat residue, such as creating food products for humans, could be explored. Some observers speculate that profit-driven decisions and the pressure of expansion may have influenced Oatly's approach to managing the oat residue controversy.
Critiques, Lawsuits, and Challenges Ahead
Oatly has faced criticism and controversy on various fronts. The company has been accused of prioritizing profit over its plant-based revolution. A lawsuit against a smaller oat milk brand over name similarities has raised concerns about Oatly's behavior and market dominance. Furthermore, Oatly's financial struggles, declining staff satisfaction, and decreasing transparency have raised questions about its current trajectory and ability to overcome challenges. As the plant-based industry continues to grow and compete, Oatly's future prospects remain uncertain.
The Swedish oat milk brand Oatly has taken on some eyebrow-raising investments over the past few years. It insists those investments haven’t changed its proud identity as a climate-saving company – but is that really true? In the third and final episode of ‘The Oatly Chronicles’, we investigate a piggy controversy, why oat milk is so damn expensive, and whether Oatly is acting like a big, bad oat milk monopoly. And we ask: what *should* we be eating, to save the planet?
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Credits: This episode was produced by Katz Laszlo, and reported by Katz Laszlo and Katy Lee. Editing came from Katy Lee, as well as Justine Paradis, visiting from NPR’s excellent podcast, Outside/In. Editorial support came from Margot Gibbs, Dominic Kraemer and Wojciech Oleksiak, and mastering, scoring and sound design also came from Wojciech.
Thank you for talking to us: George Monbiot, Fredrik Gertten, Laura Young, Ashley Allen, Lisa van der Velden, Thin Lei Win, Sonalie Figueiras, Sara Berger, and Boris de Lorn.
Special thanks to lovely neighbours Joris Klingen and Thomas van Dijk, for letting us use their very nice studio. You can find their music under Bovenburen.