The history of Oatly began in the early 1960s, when the beginnings of lactose intolerance were discovered. Over a period of twenty years, research was conducted into how lactose intolerance affects humans. It was clear to Rickard Öste and his employees in the 80s that there was a big market for ‘milk without the lactose’.

The researchers wanted to develop a food with all the properties that characterise milk.  It is not only a beverage, it is a liquid food. The beverage also had to be usable as the raw material for ice cream, yoghurt and cheese and it had to contain protein, fat and carbohydrates.  The researchers also wanted it to have a mild taste and to be suitable for drinking, with breakfast cereal and for cooking and baking. They wanted it to be good for you as well as being completely free of cows' milk and potential allergens.

The researchers studied the various types of cereal: barley, wheat, rye and oats. Oats turned out to have a wealth of good properties, a mild taste and a nutritional composition that matches human requirements. The result is the range of Oatly oat beverages you can buy today: Enriched, Organic, Chocolate, Vanilla and Organic Dairy-Free Alternative to Cream.

Oatly's first oat beverage was launched in the UK in 1995. Oatly as a brand was launched in 2001 and is now sold in 24 countries around the world.

In 2006, Oatly built their first factory outside Landskrona in Sweden. The company is now called Oatly, like the products. The entrepreneurial spirit, curiosity and belief in the goodness of oats remain. 

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