Packaging Strategies logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Packaging Strategies logo
  • FEATURED
    • Brand Packaging
    • Extended Producer Responsibility
    • New Products & Materials
      • Featured Products
    • Packaging News
    • Packaging Perspectives Podcasts
    • Steve Fairfield Innovation Award
    • Supply Side
    • Top 100 Food & Beverage Packaging Companies
      • Submit Your Company
  • FLEXIBLE PACKAGING
  • VERTICAL MARKETS
    • Beer / Wine / Spirits Packaging
    • Beverage Packaging
    • Candy / Confectionery
    • Dairy Food Packaging
    • FoodService Packaging
    • Household Packaging
    • Meat / Seafood Packaging
    • Personal Care Packaging
    • Pet Food Packaging
    • Pharma / Medical Packaging
    • Produce Packaging
    • Snack Food Packaging
  • MATERIALS
    • Adhesives / Sealants
    • Beverage Multipacks
    • Blister Packaging
    • Cans & Bottles
    • Closures/Lids
    • Films & Coatings
    • Labels
    • Material Converting
    • Paperboard / Corrugated / Cartons
    • Rigid Containers
    • Sustainable Packaging
  • MACHINERY
    • Automation / Controls
    • Case Forming / Packing / Sealing
    • Cartoning
    • Coding / Marking / Printing
    • Conveyors
    • Form-Fill-Seal / Filling & Closing
    • Inspection / Detection / Vision
    • Labeling
    • Unitizing / Palletizing
    • Robotics
    • Track & Trace / Serialization
  • DIRECTORIES
    • Packaging Strategies Resource Guide
    • Flexible Packaging Buyer's Guide
  • EVENTS
    • Converters Expo
    • Converters Expo South
    • Global Pouch Forum
    • Industry Events
    • Webinars
  • MORE
    • Videos
    • Book Store
    • Classifieds
    • Custom Content & Marketing Services
    • eXTRA Newsletter
    • Market Research
    • PACKSTRAT Wordplay
    • PS Resource Guide
    • Sponsor Insights
  • EMAG
    • eMagazines
    • Archived Issues
    • Contact Us
    • Advertise
  • SIGN UP!
Brand Packaging

Quaker Bets Oat Milk is More Than Just a Passing Fad

By Julie Creswell
oatmilk
October 29, 2018

Now, Quaker Oats is muscling its way into the aisle with a version based on the grain that made it famous.

In January, the company plans to bring Quaker Oat Beverage — not “milk,” perhaps because of the debate over whether the word is appropriate for nondairy drinks — to the mass market. It will use the distribution might of its parent company, PepsiCo, in hopes of claiming a big piece of a fast-growing sector.

The beverage is part of PepsiCo’s push to expand its portfolio beyond sugary sodas and salty snacks to healthier options.

Milk alternatives were originally geared toward people unable to stomach cow’s milk because they were lactose intolerant. But as vegans and other buyers embraced the plant-based choices, sales in the United States rose to more than $2 billion last year, up 61 percent from five years earlier, according to the research firm Mintel.

Oat milk, while gaining popularity in parts of Europe, has been mostly a trendy, fringe product in the United States. Quaker is betting it can be more than that.

The company’s main competitor in the category is Oatly, a 25-year-old company based in Sweden, and its namesake drink. Oatly tiptoed into the United States market about two years ago, persuading small coffee chains like Intelligentsia and some stand-alone shops to use its dairy milk alternative.

Oatly quickly developed a cultlike following among the coffee elite as baristas took of advantage of its consistency — thicker than other plant-based options — to whip up lattes and other foamy drinks. (How does it taste? Well, like Quaker’s version, a little like oats.)

After spreading from a small number of coffee shops in New York to more than 2,000 nationwide in a little over a year, Oatly began to sell its milk at Wegman’s, Whole Foods, ShopRite and other grocery stores this year.

The brisk growth of milk alternatives is bad news for the dairy industry, which has experienced a decades-long decline in milk consumption. And as more plant-based beverages come to market, grocers have increased the fees they charge dairy milk brands to maintain their spots in the refrigerated aisles. That has cut into what were already slim profit margins for dairy milk producers, who have been loath to raise prices for fear of accelerating the decline in demand, according to analysts at the research firm CoBank Knowledge Exchange.

Some milk producers have responded by jumping onto the plant-based bandwagon. Dean Foods, a leading supplier of dairy milk, is a majority investor in Good Karma Foods, which makes flax milk. And after Elmhurst Dairy, the last remaining milk company in New York City, stopped producing milk in 2016, it turned to making Elmhurst Milked, a line of drinks made from hazelnuts, almonds and oats.

Quaker hopes to distinguish its offering by promoting what it says are its health benefits, primarily that it contains beta-glucan, a soluble fiber from oat bran, that might reduce the risk of heart disease.

“Oats are good for you,” Robbert Rietbroek, Quaker Foods North America’s general manager, said. “They’re good for your heart. They reduce cholesterol. They’re good for your gut, and they give you long-lasting energy.”

Health professionals are more reserved about such claims.

“How much do you have to drink to get the recommended daily amount of soluble fiber?” asked Marion Nestle, a retired professor who specialized in nutrition, food studies and public health at New York University. The answer: four eight-once glasses. “Or you could just eat a bowl of oatmeal,” Ms. Nestle said, laughing.

“For the population of people who are buying these products, the health benefits from this incremental change are going to be small,” she added. “These people are already eating healthily.”

 

Source: New York Times

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Golden award trophy in the shape of a star. Text: 2026 Top 100 Food and Beverage Companies

    Top 100 Food and Beverage Packaging Companies of 2026

    Celebrating 30 years as a B2B journalist, I’ve revisited...
    Top 100 Food and Beverage Packaging Companies
    By: Brad Addington
  • Women In Packaging 2025 homepage hero

    Women in Packaging: Seizing Opportunities, Pushing Boundaries

    Seven women share their personal journeys in the...
    Material Converting
    By: Brad Addington
  • Image of the Spyder Pick and Place Joint Robot sorting pre-rolls.

    Cannabis Packaging Goes High-Tech

    Packaging Strategies doesn't often cover cannabis...
    Unitizing/ Palletizing
    By: Brad Addington
Subscription Center
  • eMagazine Subscription
  • Manage My Preferences
  • Newsletters
  • Subscription Customer Service
  • Online Registration

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Packaging Strategies audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Packaging Strategies or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Hand Holding Various Semaglutide and Insulin Injection Pens for different stages of the treatment.
    Sponsored byInline Plastics

    How GLP-1 Is Reshaping Food Packaging, and Why It Matters More Than You Think

  • A stack of clear plastic containers, the bottom full of mixed fruit
    Sponsored byInline Plastics

    Packaging Trends Shaping 2026: Where Trust Is Won

Popular Stories

Podcast | Packaging EPR’s 2026 Reality Check” with guest Anna Kendall headshot and title. Also pictured Cardboard boxes on conveyor belt.

PODCAST | Packaging EPR’s 2026 Reality Check

Logo for New Earth Ventures

Atlantic Packaging Launches New Earth Ventures to Accelerate Packaging Technology

Image of persimmons fruit in plastic packaging

IFPA Issues Position on EPR as Compliance Deadlines Hit Fresh Produce Industry

See the Top 100 Food and Beverage Packaging Companies of 2026

Products

Advances in Sustainable Food Packaging Technology

Advances in Sustainable Food Packaging Technology

See More Products

Packaging Perspectives Podcast

Play Packaging Strategies' captivating WordPlay game, PackStrat! There's a new word every Tuesday.
×

Keep the info flowing with our Newsletters!

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • Newsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

Design, CMS, Hosting & Web Development :: ePublishing