Latest / Brand Storytelling with Fexingo: Narrative, Mission, and Stories That Sell / How Oatly Turned a Milk Substitute Into a Movement
Transcript
- Lucas: If these marketing conversations have sparked something you've actually used — maybe a framing shift in how you think about your own work — I want to be straightforward about something. Luna: Yeah, go ahead. Lucas: This show has no ads, no sponsor pressure, no algorithm chasing. A handful of listeners chip in monthly through buy me a coffee dot com slash fexingo, and that's literally what funds making this many of these. It keeps the conversation honest. Luna: And we're grateful for every single one of you who does. It's a small thing that makes a big difference. Lucas: Alright — today's episode is about a brand that turned a literal commodity into a cultural lightning rod. Oatly. Luna: Oat milk. In a carton. How do you make that interesting? Lucas: That's exactly the question. And the answer — the specific answer — is that Oatly didn't try to make oat milk interesting. They made the conversation around it interesting. They understood that the product itself was, for most people, a beige liquid. But the story behind it — the environmental argument, the fight against Big Dairy, the sheer audacity of their tone — that's what people wanted to engage with. Luna: Let's talk about the tone, because that's really what set them apart. Most plant-based brands at the time were earnest. Oatly was cheeky, even confrontational. Lucas: Right. Their early packaging literally had a product description that said, 'It's like milk, but made for humans.' That's a direct jab at the idea that cow's milk is somehow the default. And they doubled down with billboards that just said 'No cow.' No slogan, no logo — just two words on a white background. It was provocative enough to get people talking, but not so aggressive that it alienated the curious. Luna: I remember the 'Wow, No Cow' campaign. They even had a music video. It was weird and it worked. Lucas: Exactly. The 'Wow, No Cow' song was a deliberate piece of anti-advertising. It was a three-minute track with a chorus that literally repeated 'Wow, no cow.' They released it on Spotify, made a music video, and it got millions of streams. It wasn't trying to sell you on taste or nutrition. It was selling you on an idea — that you could be part of a movement by switching your milk. Luna: But let's be real — the product had to be good too. Oatly's barista edition oat milk became a staple in coffee shops. That was a deliberate B2B play. Lucas: Absolutely. They invested years in product development to make an oat milk that steamed well and didn't separate in hot coffee. That's a technical detail, but it's crucial. Because once baristas preferred it, customers asked for it by name. That created a pull effect — coffee shops had to stock it, and consumers associated the brand with their daily ritual. Luna: And then they built the marketing on top of that credibility. They didn't just claim to be sustainable — they published a supply chain transparency report that showed exactly where their oats came from and what their carbon footprint was. Lucas: That's the part I find most instructive. Oatly's sustainability isn't just a tagline. They put out a 'Sustainability Report' that's written in the same irreverent voice as their packaging. It includes things like 'We don't claim to save the planet, but we're trying.' That honesty resonates. In a world of greenwashing, being self-deprecating about your environmental impact actually builds trust. Luna: They also took on Big Dairy directly. There was a legal battle in Sweden where the dairy lobby tried to stop them from using the phrase 'milk' on their packaging. Oatly lost that case, but they turned it into a PR win. Lucas: They ran a full-page ad in a Swedish newspaper with the headline 'Dear Dairy, Thank You for the Free Publicity.' That is brilliant storytelling. They took a regulatory loss and reframed it as a David versus Goliath narrative. The listener rooting for the underdog? That's classic. Luna: And they kept that energy when they went public. Their IPO filing included a section titled 'We may never be profitable' — which sounds terrible, but it was actually honest about their growth-over-profit strategy. Lucas: It's a risky move, but it's consistent with their brand voice. They're saying, 'We're not here to maximise shareholder value next quarter. We're here to change the food system.' That attracts investors who believe in the mission, and it repels ones who don't. That's a feature, not a bug. Luna: Let's talk about their Super Bowl ad in 2025. They ran a 30-second spot that was just a guy walking through a field of oats, saying almost nothing. No jingle, no call to action. Just the sound of wind. Lucas: And it was widely discussed because it was so different from the typical Super Bowl ad — loud, flashy, celebrity-filled. Oatly's ad was almost meditative. It was a statement of confidence. They didn't need to explain themselves. The brand was already known enough that the silence spoke volumes. Luna: But that only works because they had built that awareness over years. You can't start with a quiet ad. You have to earn the right to be subtle. Lucas: Exactly. The arc is: first, be loud and provocative to get attention. Then, once you have a following, you can be quieter and let the community do the talking. Oatly's early campaigns were noisy. Their later ones are almost minimalist. Luna: What about the backlash? There was definitely a segment of people who found Oatly's tone annoying or pretentious. Lucas: Sure. But that's actually part of the strategy. If you're trying to please everyone, you end up pleasing no one. Oatly deliberately adopted a voice that would polarise. People who loved it became evangelists. People who hated it still talked about it. Either way, the brand was top of mind. And in a crowded dairy alternative market — which now includes almond, soy, coconut, pea, macadamia — being unforgettable is a massive advantage. Luna: There's a lesson there for any brand trying to break through. You have to be willing to alienate some people to deeply connect with others. Lucas: That's the core insight of this episode. Oatly didn't win because they made the best oat milk — they made a good product, sure — but they won because they told a story that was worth repeating. Every element of their marketing, from the packaging to the billboards to the IPO, reinforced a single narrative: we are the insurgent, we are transparent, we are on a mission. And that narrative gave consumers a reason to choose them beyond taste or price. Luna: So what's next for them? In 2026, the landscape has shifted. Big Dairy has its own plant-based lines now. Oatly faces more competition. Lucas: They've started expanding into new categories — oat-based ice cream, yogurt, even a cooking cream. And they're doubling down on the transparency angle. Their latest campaign is called 'Follow the Oat' — a series of short documentaries tracing their supply chain from farm to fridge. It's a natural evolution. They know their audience values provenance, so they're giving them more of it. Luna: It's also a defensive move. If you can prove your supply chain is ethical, you create a moat that competitors can't easily replicate. Lucas: Exactly. Anyone can make oat milk. Not everyone can tell the story of where their oats come from in a way that feels authentic and engaging. That's the real product Oatly sells: a story you want to be part of. Luna: It's a good reminder that in marketing, sometimes the most powerful thing you can do is pick a side. Lucas: And stick with it, consistently, for years. That's how you build a movement out of a milk substitute.