Like Game of Thrones... but for the plant-based world. Some major alliances have recently formed in the alt-food market. Oatly, the oat milk brand that craft coffee shops brush their teeth with, just snagged one of the highest honors in "mainstreamification": a nationwide rollout at Starbucks.
- DTR: Starbs has been testing Oatly at its stores in the Midwest, and even brought it to 4.3K Chinese locations. With the nationwide rollout, the Swedish oat brand is getting a major validator ahead of its recently announced IPO(at).
On the patty side... Beyond Meat just signed big deals with McDonald’s and Yum Brands, the owner of KFC, Taco Bell, and Pizza Hut. Think: McPlant Burgers for MickeyD's, and plant-protein pizza toppings and alt-chicken for Yum Brands. Beyond has been beefing up its presence: in January, it teamed up with Pepsi for plant protein drinks and snacks. In 2019, it launched a Beyond Sausage breakfast sammie at 9K Dunkin' locations. During the pandemic...
- Restaurant plays didn't really pay off: Beyond's US restaurant sales plunged 43% last quarter from 2019, as you swapped Dunkin' sandwiches for Quaker Oats.
- Grocery plays did: Beyond's US grocery sales popped 76%, as it expanded to more locations (including 2.4K Walmarts). To capitalize on the home life, Beyond offered more affordable patty packs to compete with beef prices.
Beyond is a "double-dip" brand... and Oatly is now following its playbook. There aren't many food brands that you recognize both in the grocery aisle and on the restaurant menu (besides alcohol). With their strong brand recognition, Oatly and Beyond have the power to be both restaurant and grocery staples. They can rely on grocery stores when restaurant sales are down, and vice versa (aka: pandemic/recovery hedge). While Beyond has snagged more partnerships, Oatly is following its lead with this Starbs deal.