Alpro Invests Millions in UK Switch to 100% British Oats for Plant-Based Drinks

Consumer Staples

15 hours agoPWG Publications

Introduction to Alpro's Strategic Move

In a significant move towards sustainable and local sourcing, Alpro, a leading plant-based brand owned by Danone, has announced a major investment in the UK to switch its production of oat milk to 100% British oats. This strategic decision aims to support local farmers, reduce environmental impact, and meet the rising demand for domestically produced plant-based products.

Investment and Production Details

The investment supports Alpro's goal of producing around 58 million liters of British oat milk annually, which equates to a quarter of the plant-based drinks produced at its Kettering facility. Alpro is partnering with Navara oat mill, located in Kettering, to source oats primarily from farmers within an 80-mile radius, thereby significantly reducing food miles and benefiting local agriculture.

Benefits to Local Farming

The switch to using only British oats is expected to have a positive impact on the local farming industry:

New Revenue Streams: By expanding the use of oats beyond traditional products like porridge and cereals, Alpro's initiative offers farmers new and profitable opportunities.
Increased Resilience: Supporting British agriculture provides farmers with more market options, enhancing their resilience and growth potential.
Environmental Benefits: Reducing transportation distances lowers emissions and supports more sustainable agriculture practices.

Expanding the Kettering Facility

This investment follows a previous £41 million investment made by Alpro in 2021 to enhance its Kettering facility. The earlier upgrades included installing new manufacturing lines that are more environmentally friendly, reducing energy consumption and emissions. The current expansion further enhances the site's capabilities with new production equipment and utilities to facilitate the production of British oat milk.

Product Line and Market Impact

Alpro's new 100% British Oats line is now available in original and no-sugars versions, featuring a high-fiber recipe enriched with calcium, iodine, and vitamins D2 and B2. This strategic move aligns with consumer trends favoring healthy, locally sourced plant-based products. As the plant-based milk market continues to grow, with oat drinks comprising a significant portion, Alpro's commitment to using 100% British oats sets a precedent for sustainability and local support.

Impact on the Market

Growing Demand for Oat Drinks: Sales of oat drinks in the UK have reached over £275 million, driven by consumer preferences for plant-based beverages.
Leadership in Sustainability: By emphasizing local sourcing, Alpro positions itself as a leader in sustainable practices, which is increasingly important to consumers.
Competitive Advantage: The focus on domestic sourcing and environmental sustainability can differentiate Alpro's products in a competitive market.

Consumer Preferences and Future Prospects

The demand for healthy and sustainable products continues to drive growth in the plant-based sector. Half of plant-based shoppers are motivated by health considerations, indicating a strong market for Alpro's new offerings. The investment not only boosts local economic activity but also expands consumer choices, aligning with Danone's broader strategy to enhance its position in the plant-based market.

Conclusion

Alpro's decision to switch to 100% British oats for its UK plant-based drinks reflects a broader industry trend towards sustainability and local support. As consumers increasingly prioritize environmentally friendly and domestically produced products, companies like Alpro are poised to benefit from these shifts while contributing positively to local economies and agriculture.

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