Dairy giant Arla hopes to tap into growing consumer demand for plant-based products with the launch of a three-strong range of oat-based drinks.
The drinks will be sold under the company’s new umbrella brand JÖRĐ, which will be used for more plant-based food products in the future.
The oat drinks lineup is described as being “natural and pure made with only four or five ingredients from the Nordic nature”. There are three variants – JÖRĐ Oat, JÖRĐ Barley, and JÖRĐ Hemp – that will be sold in one-litre cartons.
Hanne Søndergaard, Executive Vice President For Global Marketing And Innovation In Arla, said: “More and more European consumers are looking towards plant-based products. And we know that consumers are enjoying dairy and plant-based drinks side by side. With our unique expertise and innovation power, it is natural for us to enter this market, which is adjacent to the milk category.
“We aim to develop the category with a natural, Nordic range that fits into the everyday life of the European consumers and we see this as an exciting business opportunity,”
Initially, the plant-based drinks will be launched in Denmark, the UK and Sweden, with other markets likely to follow.
Commenting on the launch, GlobalData food analyst Andy Coyne said: “Arla Foods’ newly-announced move into the plant-based dairy category begs the question of why it has taken the Denmark-based cooperative so long to wake up and smell the oat milk.
“After all Arla’s peers – the likes of Danone and Lactalis – are well-established in the field of plant-based dairy alternatives. But now Arla, home to brands including Castello cheese and Lurpak butter, has unveiled a range of oat-based drinks and plans to ‘launch a whole range of plant-based products’ under a new brand, JÖRĐ.
“Only getting involved now in such a fast-moving category as dairy alternatives suggests a certain reluctance on Arla’s part to move away from its traditional dairy product range.
“Not that being a late adopter means it will be unsuccessful, of course. But the fact that it has made the move suggests that the appeal of the category was too great for it to resist any longer.
“Its arrival will certainly reinforce the argument of those market watchers who believe dairy-alternative products have now reached a ‘tipping point’ and entered the mainstream.”
