Starbucks oat milk shortage comes as sales of plant-based foods skyrocket

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Starbucks Corp. SBUX, -0.10% is experiencing a shortage of oat milk at some of its locations, a testament to the growing popularity of plant-based foods of all kinds. “Customer response to the nationwide launch of oat milk at Starbucks has been positive,” the company said in a statement after media reported some Starbucks locations running out of non-dairy products.

“As more customers return to our stores, some customers may experience a temporary shortage of oat milk in their store. We apologize for any inconvenience to the customer experience and recommend trying soy milk, almond milk, or coconut milk. Customers will soon have oat milk available in their store. “Starbucks launched a crop of oat milk drinks, including those made with Oatly, across the country on March 2. Customers also had the option to add Oatly to their drinks along with soy milk, coconut milk, and almond milk. A regional rollout of oat milk began in the Midwest in January 2020. See: Chipotle takes one more step toward margin targets with an increase in price Steak: Truist Starbucks began offering non-dairy milk alternatives with soy milk in 1997. Kevin Johnson, Starbucks CEO, noted the growing demand for plant-based products in his comments during the January earnings announcement. The company provides not only plant-based milk, but plant-based foods as well, including the Impossible Sausage Breakfast Sandwich. In Seattle, there’s a place where the food menu is plant-based . “So if I think about both beverages and food, the number one trend that I would highlight is just the consumer shift in consumer preferences around plants,” he said during the earnings call, according to FactSet. Starbucks shares have rallied 64.5% over the past year, while the S&P 500 SPX Index, + 0.15%, has risen 53.3% over the period. Johnson isn’t the only one who has noticed the growing taste for oat milk and other plant-based products. Oatly filed confidentially to be made public at the end of February. The company has a reputable backing, including Oprah Winfrey. According to data provided by the Plant Based Foods Association (PBFA) and The Good Food Institute (GFI), retail sales of plant-based foods in the US increased 27% to $ 7 billion. Plus: Smoothies and Salads – Kroger says these 4 items account for 28% of its product sales Plant-based milk is the largest plant-based category with $ 2.5 billion in sales and 35% of the food market in vegetable origin. About two-thirds of plant-based milk dollar sales are almond milk. The groups say the growth of plant-based milk has opened the door to other non-dairy plant-based products, such as yogurt and cheese. Plant-based meat is the second-largest plant-based category with sales growing 45% in 2020 to reach $ 1.4 billion. Brands in the plant-based meat category include Beyond Meat Inc. BYND, -2.46%, which just opened its first manufacturing plant in China; Impossible foods; and Incogmeato, a Morningstar Farms brand, part of the Kellogg Co. K line, -0.79%. Beyond Meat launched its first product for the Chinese market, Beyond Pork, in November 2020. Market research company Forrester outlined a number of issues facing the food industry in a January report, including the need to feed a population. growing world that is experiencing upward economic change; threats to food production due to environmental degradation and climate change; and health problems as allergies, diabetes and obesity increase. Plant-based food companies say they address these issues. Don’t Miss: Olive Garden’s Father Is Raising Hourly Wages As Customers Begin Dining Again “As we remain true to our guiding principle of providing consumers with great tasting plant-based meats, processed Without the use of GMOs, bioengineered ingredients, hormones, antibiotics, or cholesterol, we believe we are on our way to building an enduring global protein company that promotes a more sustainable meat supply chain, consumer health and the health of our planet, ”Beyond Meat CEO Ethan Brown said in a statement. accompanying the release of the company’s February earnings. Piper Sandler’s latest “Taking Stock with Teens” survey of 9,800 American teens found the environment to be one of the top three political / social issues of concern to Gen Z. The other two were racial equality / Black Lives Matter and the 2020 elections.