Arla Versus Oatly: Milk Wars

Arla Versus Oatly: Milk Wars

  • Case
  • Teaching Notes
Abstract

The case discusses the competitive rivalry between two Swedish companies, Arla and Oatly. Oatly, a plant-based milk company, gained popularity after criticizing dairy milk, offered by Arla, which according to Oatly was not environment-friendly. Globally, consumers were also shifting to plant-based milk, due to health concerns associated with dairy milk such as lactose-intolerance. Arla retaliated by not only launching advertisements and legal wars against Oatly but also launching organic dairy milk and plant-based milk. Peter Tuborgh, CEO of Arla, needs to identify ways of remaining relevant with Arla’s different product offerings. Meanwhile, Toni Petersson, CEO of Oatly, was keen to change the milk consumption habits of consumers. Amidst this corporate war, it was to be seen how the future of dairy and plant-based milk was shaped. What strategies can Tuborgh take to keep Arla relevant? What strategies convinced Petersson to aggressively compete against Arla?

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