Oatly has partnered with Tim Hortons to launch a line of RTD oat-milk coffee in China, as it seeks to capture the growing number of Chinese consumers who are health-conscious and seeks dairy-free coffee.
The first co-branded products to be launched include cold-brew latte and an osmanthus latte. They are now on sale via both companies’ e-commerce stores as well as through 3rd party online and physical retailers.
Loss-making Oatly is trying to recover from its poor performance by capitalising on the rapidly growing China market in which it recorded sales revenue of US$134 million in 2022, a 20% growth from a year earlier. Oatly opened a local factory in Ma’anshan in eastern China in 2021 with a second one slated for opening in 2026.
Meanwhile, Tim Hortons had opened its 600th coffee shop in China in early-2023 and is planning for further expansion.
The partnership with Oatly is timely for both partners who have the same expansion path in China.
