Latest / Brand Storytelling with Fexingo: Narrative, Mission, and Stories That Sell / How Oatly Turned a Milk Substitute Into a Movement
Transcript
- Lucas: So there's this moment in 2021 when Oatly — a Swedish oat milk company that had been around since the nineties — runs a Super Bowl ad. And the ad is basically just the CEO, Toni Petersson, standing in a field, playing a song he wrote on a keyboard, singing 'Wow No Cow' over and over. Luna: I remember that. It was... painfully earnest. Almost amateurish. Lucas: Exactly. And that was the point. The ad got slaughtered by critics. Adweek called it 'the worst Super Bowl ad of 2021.' But here's the thing — Oatly's sales in the US that year grew by over 100 percent. And the brand awareness spike was enormous. Luna: So they leaned into the criticism. They didn't try to make a slick ad next time. They doubled down on awkward. Lucas: Right. And that's the core of Oatly's brand storytelling. They don't try to convince you they're cool. They lean into the fact that they're a Swedish company run by people who are a little bit weird, a little bit obsessive, and totally committed to their mission of replacing dairy. Luna: It's almost anti-marketing marketing. The transparency is part of the product. Lucas: Yes. And they've been doing this long before the Super Bowl. Oatly has this 'Frequently Asked Questions' page on their website where they answer things like 'Is oat milk ultra-processed?' and they just say yes, with a full explanation. Most brands would dodge that question. Luna: Because they know that if you try to hide something, people will dig. Better to own it. Lucas: Exactly. And that level of transparency builds trust. But it's not just transparency for its own sake — it's tied to their mission. Their whole narrative is: 'The dairy industry is destroying the planet. We have a better way. We're not perfect, but we're trying.' Luna: And that mission is what makes the tone work. If they were just selling oat milk with a quirky voice, it'd fall flat. But because they have a bigger story — sustainability, health, animal welfare — the voice feels authentic. Lucas: Let's talk about one of their most famous early campaigns. In 2014, they launched a campaign in Sweden called 'The Milk Manifesto.' They took out full-page newspaper ads and billboards that directly compared the environmental impact of oat milk to cow's milk. And they didn't soften the language. Luna: I think I saw one of those. It said something like 'The dairy industry is responsible for more emissions than all the world's planes, trains, and cars combined.' That's a bold claim. Lucas: It is, but they backed it with data from the UN's Food and Agriculture Organization. And the ads didn't just criticize dairy — they positioned Oatly as the solution. But the tone wasn't preachy. It was matter of fact, almost like a public service announcement. Luna: Which is why it worked. They weren't attacking consumers. They were attacking the system. Lucas: And that's a key distinction. Oatly's brand story is never 'you're bad for drinking milk.' It's 'the system is broken, and here's a better option.' That's a much more compelling narrative. Luna: It's also why they attract such a loyal following. People feel like they're part of a movement, not just buying a product. Lucas: And the packaging itself tells that story. Oatly's cartons have this distinctive typography — a custom font, lots of text, often in multiple languages. It looks like a manifesto printed on a carton. Every square inch is used to communicate something about the brand's values. Luna: I've seen cartons that have the entire ingredient list written out in a poetic way. Or a note from the CEO. It's product as communication. Lucas: Exactly. The container becomes the medium. And that's brilliant because every time someone picks up a carton at the store, they're getting a dose of the brand story. They're not just seeing a logo — they're reading a mini-essay. Luna: But let's talk about the risks. Oatly's story has also attracted criticism. Some people say they've become too big, too corporate, especially after their 2021 IPO. Lucas: That's a real tension. Oatly's narrative is built on being the scrappy, mission-driven underdog. But once you're a publicly traded company valued at over 10 billion dollars at the IPO, that story gets harder to tell. You're not the underdog anymore. Luna: And they faced a backlash from some in the vegan community who felt they sold out. Plus, there were questions about their ownership — Blackstone, the private equity firm, invested in Oatly, and Blackstone has ties to deforestation in the Amazon. Lucas: Yeah, that was a major contradiction. A company built on an environmental mission partnering with a firm that's been criticized for environmental harm. Oatly's response was interesting — they acknowledged the tension, but argued that they needed big capital to scale and actually make a difference. Luna: And some people bought it. Some didn't. But at least they addressed it directly. They didn't hide. Lucas: Which goes back to their core brand principle: radical transparency. They even published a sustainability report that included the emissions from their IPO roadshow. Most companies don't do that. Luna: I think that's why their story still resonates, even after the IPO. They're not pretending to be perfect. They're saying, 'We're trying, here's our progress, here's where we fall short.' That's a much more durable narrative than 'we're saving the world.' Lucas: Exactly. And that's a lesson for any brand. The story that can survive scrutiny is the one that's honest about its flaws. Oatly's willingness to be self-critical actually strengthens their brand. Luna: It's almost like they're writing their own critical articles before anyone else can. They control the narrative by being the first to point out their own contradictions. Lucas: Right. And they do it with that signature tone — not defensive, not apologetic, but curious and open. Like, 'Yeah, that's a good question. Let's talk about it.' Luna: Which brings us back to the Super Bowl ad. It was panned, but Oatly didn't run away from the criticism. They posted the negative reviews on their website. They made it part of the story. Lucas: They literally created a page called 'Our Critics' where they quoted the harshest reviews and responded to them. That's the opposite of traditional brand management. Most brands try to suppress negative press. Oatly amplifies it. Luna: And that's incredibly risky. But when it works, it makes the brand feel more human, more real. Lucas: It works because it's consistent with their larger narrative. The mission — replacing dairy — is serious. But they don't take themselves too seriously. That balance is hard to pull off. Luna: I want to ask about their expansion into China. They did a big push there, opening a factory in 2023. How does the story translate to a market where the dairy narrative is completely different? Lucas: That's a great question. In China, lactose intolerance is much more common, so the health angle is stronger. Oatly positioned itself not as an alternative to dairy, but as a solution for people who can't digest milk. They also partnered with coffee chains like Luckin and Starbucks to get into the café scene. Luna: So the core story — 'we make a better milk' — still works, but the supporting arguments shift depending on the audience. Lucas: Exactly. The brand voice stays consistent — transparent, a bit quirky, mission-driven — but the specific narratives adapt. In China, they talk more about health and digestion. In Europe, it's more about sustainability. In the US, it's a mix of both plus animal welfare. Luna: That's smart. One story, many entry points. Lucas: And now, as of June 2026, Oatly faces even more competition. There are dozens of oat milk brands, plus almond, soy, and newer players like pea milk. The category is crowded. So the brand story matters more than ever. Luna: If the product is similar, the story is the differentiator. That's basically the thesis of this whole show. Lucas: It really is. And Oatly's story is still distinct. No other brand has that manifesto-on-a-carton aesthetic, that self-deprecating CEO, that willingness to put their own controversies front and center. Luna: Quick honest thing — this is the kind of conversation that takes time to research and produce. And what keeps us doing it is that a small group of listeners chips in a few bucks each month through Buy Me a Coffee. It's literally listener-supported, no ads, no sponsors. Lucas: Yeah, if you've ever found yourself digging a brand story you heard here, or using it in your own work, that's the kind of signal that keeps us going. It's at buymeacoffee dot com slash fexingo, and it's just a way to say 'keep going.' Luna: And we really mean it when we say we appreciate that. Okay, back to Oatly. So where do you see the brand story going from here? Lucas: I think the next chapter is about proving that their model is sustainable — both financially and environmentally. They've had some sales slowdowns recently as competition grows. The story needs to evolve from 'the revolutionary alternative' to 'the established leader that still innovates.' Luna: That's a harder story to tell. The underdog arc is always more exciting than the incumbent's arc. Lucas: It is. But if any brand can pull it off, it's Oatly. Because they've built so much narrative equity. They have a library of stories to draw from. And they've shown they're willing to be self-aware about their own position. Luna: So the same transparency that got them here might be what keeps them relevant. They just have to keep telling the truth, even when it's uncomfortable. Lucas: Exactly. And that's the takeaway for any brand: a story that's built on honesty can adapt. A story built on hype will eventually collapse. Oatly's not perfect, but they've built a narrative framework that can handle the truth. Luna: And that's probably the most durable competitive advantage there is.