Oatly, Nestlé Join Forces to Create Nespresso Coffee Pods ‘For Use With Oat Milk Only’


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Nestlé has partnered with Oatly to unveil a limited-edition Nespresso blend tailored specifically for the latter’s barista oat milk.

In an effort to boost its barista oat milk, Swedish giant Oatly has teamed up with Nestlé to create Nespresso pods to be used “with oat milk only”.

The new coffee capsules, made exclusively for Nespresso Vertuo machines (they use a different capsule design from the standard Nespresso machines), are only available for a limited period. Their “biscuity” tasting notes are designed to be a “perfect pairing” for Oatly’s barista edition and would appeal to the growing number of consumers using plant-based milk.

“We’re delighted to have worked with the experts at Nespresso to finally bring to market a coffee capsule that was tried and tested, especially for the millions of oat drink lovers out there,” said Toby Weedon, barista development director at Oatly.

Cashing in on the alt-milk boom

nespresso oatly pods
Courtesy: Nespresso

The two brands note that people are increasingly turning to plant-based milk for reasons spanning environment, health, animal welfare, and taste. In the US, nearly half (44%) of households bought milk alternatives in 2023, while more than 35% did so in Germany, Spain, and the UK. Asia-Pacific, meanwhile, is the largest market for these products, recording $13.4B in revenue that year.

This growth is ascribed to several factors. Nearly two-thirds (65%) of the world’s population suffers from lactose malabsorption. At the same time, awareness around the environmental impact of dairy is on the rise – Oatly’s barista version, for example, generates up to 76% fewer emissions than cow’s milk.

Consumers are turning to milk alternatives for their flavor, as evidenced by the 19% of American plant milk purchasers who buy conventional milk aswell. Oat milk, meanwhile, has surged in popularity, thanks to its relatively neutral flavour and superior functionality in coffee, compared to other plant-based counterparts.

The Nespresso Oatly Barista Edition Coffee is described in press materials as “creamy, biscuity and indulgent”. Nespresso blended, roasted, and ground coffee beans in a way that could harmonise with the natural sweetness of oats. When paired with Oatly’s oat milk, the new espresso gives off a sweet, cereal-like aroma, complementing its smooth texture, low bitterness, and light body.

“At Nespresso, we’re all about taste and we’re on a mission to make sure that every coffee lover out there can create their own perfect cup, just the way they like it,” said Karsten Ranitzsch, global head of coffee at Nespresso. “We know more and more people are reaching for plant-based drinks when preparing their favourite coffee recipe, which is why we are thrilled about our partnership with Oatly.”

Oatly’s barista expansion continues

oatly barista oat milk
Courtesy: Nespresso

The Oatly-Nespresso coffee pods are available in more than 15 countries, including the US, the UK, China, and Australia. They can be bought on Nespresso’s website or at its boutiques in these locations. In Canada, Nespresso is hosting immersive takeovers at several of its boutiques, running until the end of this month.

The Nestlé-owned brand already dominates the coffee pod market, but collaborating with Oatly will broaden its appeal to a wider set of consumers. The division recorded $6.4B in sales in 2023, but weaker demand in Europe led to a 1% decline in the first half of 2024.

It’s a nod to its sustainability efforts, an ever-lasting issue in the world of coffee capsules, which produce 576,000 tonnes of waste every year. The company spends over $35M annually on a pod recycling system, but only 32% actually gets recycled globally. While the composition of this new capsule isn’t anything new, offering it as an oat-milk-exclusive product could at least lower emissions at the household level, if people stick to the recommendation to use oat milk instead of dairy.

For Oatly, the partnership is a way for the brand to reach more households with its barista oat milk, which has already become the default oat milk at numerous specialty coffee shops across the world. Nearly 10 million US households owned a Nespresso machine in 2023, and data suggests that 400 Nespresso drinks are consumed every second worldwide.

“Thanks to its neutral taste, Oatly Barista Edition brings out the best flavour in coffee. It’s why it is used by professional baristas and embraced by coffee enthusiasts all over the world,” said Weedon.

Oatly has been actively innovating with its barista milk to bolster sales. Over the last year, it has launched several new formats of the product, including an organic version, 1.5-litre and 500ml cartons, a refrigerated pack, a 20ml jigger for travel, and a Lighter Taste edition for light-roasted coffee.

The Oatly barista jigger has also landed on the menus of travel operators like LNER, Avanti West Coast, British Airways, and Swiss International Air Lines.

“Oatly has been focussed on expanding the Barista family over the last few years, bringing a number of new innovations and formats into market that offer convenience to both buyer and supplier,” an Oatly spokesperson told Green Queen last month.

Author

  • Anay Mridul

    Anay is Green Queen's resident news reporter. Originally from India, he worked as a vegan food writer and editor in London, and is now travelling and reporting from across Asia. He's passionate about coffee, plant-based milk, cooking, eating, veganism, food tech, writing about all that, profiling people, and the Oxford comma.

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