---
title: Oatly’s great stagnation
description: The brand that started the oat milk craze is struggling.
---

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# [Oatly’s great stagnation](https://hs-sbup.thehustle.co/news/08042022-o)

 Written by [Rob Litterst](https://hs-sbup.thehustle.co/news/author/rob-litterst) | Aug 8, 2022 5:12:47 AM

Last year, it appeared Oatly held the keys to alt milk’s future.

The oat milk pioneer went public in May 2021, valued at $10B. Since then, its stock has tumbled ~80%.

#### **What’s happened?**

Simply put, Oatly started a craze, then things got out of hand. Some [challenges](https://www.wsj.com/articles/oatlys-growing-pains-trip-up-pioneer-of-oat-milk-11647277149) include:

- **Competition,** like Planet Oat, which passed Oatly as the highest-selling oat milk brand in the US.
- **Supply shortages,** leading Starbucks to enlist SunOpta to supplement its oat milk needs. 
- **Scrutiny **surrounding the purported [health](https://every.to/almanack/oatly-the-new-coke-821556) and environmental benefits of oat milk.

A recent [product recall](https://www.washingtonpost.com/business/2022/08/02/oatly-almond-milk-among-53-products-recalled-over-bacterial-infection/?utm_source=thingtesting&utm_campaign=7217883fa6-ISSUE_122&utm_medium=email) isn’t helping either.  

#### **What’s next?**

The company recently [cut](https://www.just-food.com/news/oatly-sales-outlook-sours-as-headwinds-stack-up/#:~:text=Oatly%20posted%20a%20second%2Dquarter,m%20loss%20a%20year%20earlier.) its sales outlook for the year by $90m, listing supply chain issues, the war in Ukraine, and inflationary pressures.

But there’s good news: at least the oats don’t have it as bad as the [almonds](https://thehustle.co/07072021-almond-demand/).

[View full post](https://hs-sbup.thehustle.co/news/08042022-o)

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