China Food

From cereal to vegetable milk, what are the “tricks” behind ozak’s entry into the 100 billion track?

Oatmeal Milk is replicating the way of cereal, moving from the minority to the public, and becoming a new growth engine of the vegetable milk track. Today, when the old vegetable milk has not slowed down, how can it be a breakthrough path to open the new world of vegetable milk 2.0 with Oatmeal Milk?

Text: Hailey Zhang   

Source: foodaily daily food (ID: foodaily)

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The vegetable milk track in 2021 ushered in a “blowout”, and players poured in.


According to the enterprise survey data, at present, there are more than 7700 vegetable milk related enterprises in China, and the participating brands mainly include three categories: one is the regional old brands that mainly focus on the large items of subdivided categories, such as six walnuts, Chengde Lulu and coconut trees; one is the traditional food and beverage tycoons, such as Dali’s douben beans and the strategic layout of dairy giants in the plant-based track; the other is ozak As the representative of cutting-edge brand forces, they have made their own unique moves under the blessing of capital, and become the new favorite of front-line young consumer groups.


It is observed that Ozark, a well-known domestic brand of ready to eat oatmeal products, appeared on the market with newly upgraded vegetable milk. Recently, marketing actions have been quite frequent, and Ozark has sprung up in the vegetable milk track. However, at the beginning, Ozark found that Ozark has entered the 100 billion track strongly, which has been brewing for a long time.

From oatmeal to Oatmeal Milk,
Ozak makes another move!
Before entering the vegetable milk track, ozak was already a leader in the field of cereal.

Founded in Beijing in 2013, Ozark initially took the opportunity of the nut track to open the market with the category of “daily nuts”. In 2015, Ozark launched “50% fruit and nut mixed with a variety of cereals” to seize the ready to eat oat track. In 2018, the sales of cereals exceeded 200 million yuan. In 2019, Ozark has ranked first in tmall cereal sales list, repurchase rate list and other lists.


In April 2021, ozak completed the 100 million yuan a-round financing exclusively invested by Jiayu fund. In the same month, ozak’s monthly sales exceeded 100 million, becoming the first brand in the domestic ready to eat cereal market.

Ozak’s best-selling cereal, picture source: ozak


After years of deep cultivation in the field of oat products, ozak has formed a solid core competitiveness in many dimensions such as supply chain, technology, innovation, marketing and brand.

At the level of R & D & technology, Ozark has quietly built its own core technical barriers. Taking oatmeal grain as the main axis, Ozark took the lead in owning a factory integrating independent R & D and production. In addition, Ozark has also established a joint laboratory of healthy grain food with Jiangnan University to scientifically enable products to present healthier, more yuan and better taste grain products to consumers 。

At the same time, ozak is also very confident and confident at the level of brand and flow. In April this year, ozak announced that Xiao Zhan was signed as the brand spokesman to create a new incremental field with the force of flow, actively explore a new path of brand growth and further release the potential energy of the brand.


Based on rich product lines, solid supply chain barriers and active traffic exploration, ozak has rapidly grown into a leading brand of ready to eat cereals, but it is clear that ozak’s ambition is more than that.

After playing in the field of cereal, ozak has now raised his tentacles to a new vegetable milk track.  

In fact, as early as 2019, before the air outlet of vegetable milk was blown, ozak had taken the lead to launch the oat milk product line and quietly planted seeds on this track. While accumulating users and cultivating consumer intelligence, ozak continued to polish products.


Now, with the new upgraded oat milk products that have been polished for two years, ozak has made a strong return. According to foodaily, this new oat milk product not only maintains the simple and nutritious formula in the past, but also gives full play to the innovation of taste.

First, in terms of taste, ozak adopts wall breaking grinding technology and exclusive biological enzyme “double enzymatic hydrolysis” The technology makes the oatmeal pulp taste smooth without grain feeling. At the same time, the glucan component in oatmeal is deeply extracted to retain the simple flavor of oatmeal, and even 0 sucrose can taste the sweet taste. In addition, to meet the orientation of young consumers for new tastes, ozak innovatively created two new and strange flavors of jasmine and taro to meet the new taste needs of young consumers.

Source: ozak

Secondly, in terms of health, ozak Oatmeal Milk accurately grasps consumers’ needs and concerns for cleaning labels and minimalist ingredients. The product formula is extremely simple. There is only a short ingredient list of five ingredients, which makes it a new light drink choice for health conscious consumers. In addition, the labels of 0 lactose, 0 sucrose and 0 cholesterol make the product accurately cover more subdivided health needs Some consumers, such as lactose intolerance, hyperglycemia and hyperlipidemia.


Furthermore, oat itself is rich in plant protein and dietary fiber, which is the finishing touch of plant-based drinks to meet the refined needs of consumers for diversified plant-based protein nutrition and intestinal health.

Consumers’ health demand for vegetable protein drinks has been gradually refined, and the concept of “dietary fiber”, “low calorie” and “protein” has grown rapidly. Source: tmall new product innovation center
Starting with oat milk,
Ozak has bigger ambitions
There is a gap in consumers’ demand for plant nutrition, and healthy, environmental friendly and fashionable oat milk has become a new engine leading growth

Long before the words “vegetable milk” and “vegetable protein beverage” became a trend, Chinese consumers had established a quite familiar understanding of vegetable milk. In the traditional sub categories such as soybean milk, walnut milk, coconut milk and almond milk, there have long been established enterprises. However, these old vegetable milk enterprises are facing the transformation crisis of product cognitive solidification, insufficient innovation and brand transformation, and are deeply in a growth dilemma.


In short, the brand is not new enough, the product is not good enough, and the concept is not fashionable enough.

In this context, the heavy blow brought by the epidemic has exacerbated the struggle of traditional aging vegetable milk enterprises, but at the same time, it is also the fault of consumer plant nutrition demands brought by this event, which has brought new opportunities for the rise and change of vegetable milk. A large number of new vegetable milk brands aimed at young people are pouring out to be healthier, more nutritious, more environmentally friendly, newer Better look at the concept of upgrading to card the plant nutrition vacancy of consumers and perfectly snipe the value orientation of current young consumer groups.


Among them, oat milk has become the main engine leading the growth of vegetable milk. According to Nielsen, during the 31 week period ending October 3, 2020, oat milk was the category with the largest sales growth in the food and beverage category, an increase of 212%.


As a category that has never appeared in the cognition of traditional Chinese consumers, oat milk has entered the public view for only two years, and the market competition pattern has not been fully formed. In addition to the b-end market, the competition for oat milk in the sinking market and offline channels has not been fully launched. Ozak is interested in this “business opportunity” and takes oat milk as the entry point to pry a larger vegetable milk market.


Euromonitor International data show that in 2019, China’s vegetable milk market reached 53.69 billion yuan, which has become the world’s largest vegetable protein beverage market. According to the data of prospective industry research institute, the average growth rate of vegetable milk industry is expected to remain above 20% in the next few years, and the market scale of vegetable milk will exceed 300 billion yuan in 2025.


The huge market growth space confirms ozak’s correct prediction of the vegetable milk track, but there are more “tricks” behind ozak’s layout of the vegetable milk track.

Mingmian is the category expansion with oats as the main line, and the bottom layer is the in-depth layout around the breakfast scene

Indeed, he has accumulated in the field of oatmeal products for many years. It is not difficult for ozak to expand categories with oats as the main line, from oatmeal to Oatmeal Milk, and it seems logical.


However, back to the consumer centered perspective, we found that ozak’s idea of expanding its product line has always been very clear. It makes an in-depth layout around the breakfast scene, which is actually in line with ozak’s brand concept. The word ozak originates from the Turkish language and has the meaning of “spring and hope”. The brand is committed to providing consumers with healthy, interesting and diversified breakfast food.


From the daily nuts, to the cereal series later, to the introduction of vegetable milk, ozak’s every step can be closely bound with the core breakfast scene. Daily nuts provide rich vitamins and high-quality fat for breakfast, cereals and cereals provide good satiety and dietary fiber, and vegetable milk provides important plant nutrition. From this perspective, this cross-border breakthrough is not only ozak’s category expansion with oats as the main line, but also a stepping stone to open more yuan categories of vegetable milk world, and it is also an important place for breakfast combination boxing.

Photo source: ozak’s # oats also produce milk # advertising short film. The five videos not only focus on “breakfast”, but the ending of each short video is printed on “breakfast”, such as “when breakfast is full, there is ozak vegetable milk in addition to milk”, “breakfast should be healthy, there is ozak vegetable milk in addition to cow milk”, etc.

Sitting on a trillion level track, Chinese people have a lot of demand space and segmentation scenes for breakfast. Among them, oats with convenience and health as the core characteristics are more and more loved by white-collar workers in first and second tier cities. Cereal is a relatively mature category that has been educated in the breakfast scene, Why can’t vegetable milk with the same audience label as cereal be the next?

Grab business with 7000 vegetable milk companies,
How do new brands come out of the circle?

Tmall data show that in 2020, the growth rate of China’s online vegetable protein beverage market was as high as 800%. The fast-growing track attracted many powerful giants to stir up the situation, and a steady stream of new brands emerged to share the market cake with new concepts. However, while the track is hot, the disadvantages are also emerging. Problems such as product homogenization, single taste and even the convergence of marketing model have become prominent. How to find a suitable “broken circle” path for the new vegetable milk brand is an urgent problem to be solved.

Impact the 100 billion track and dare to compete with 7000 vegetable milk companies. Where is ozak’s confidence? It is true that the brand potential and user base of oats and Breakfast scenes accumulated by ozak are one of the advantages, but these are not all. If the new vegetable milk brand wants to really find a foothold in the Chinese market, there are too many things to consider and many pain points to solve.

Scene: from minority to mass  

The first is the scene. Compared with soybean milk, coconut milk and other categories that have been deeply rooted in the hearts of consumers, oat milk, a new species, is easier to be built into a healthy and fashionable lifestyle carrier. However, the traditional oat milk scene is very focused. Most of them take the route of Tob cafe, and the circle is very small. How can oat milk break the circle and move from the small to the public?


As mentioned earlier, ozak’s answer is to return oat milk to the health attribute of plant milk as a nutritional supplement to milk and deeply bind it with the public breakfast scene. This is also well explained by the core slogan of “in addition to milk, there is ozak plant milk”.

In addition to breakfast, ozak vegetable milk also focuses on more diversified drinking scenes to meet the drinking needs of different consumer groups, such as vegetable milk + coffee suitable for workplace people, 0 lactose vegetable milk suitable for lactose intolerant people, ready to eat nutrition for young people, etc. In addition to the core breakfast scenario, oat milk can also penetrate into more daily and diversified consumption scenarios, such as light food, simple meal, outdoor fitness and so on.

Source: ozak
Channel: from online to offline  

Terminal sales is a problem that any new brand, new category and even new industry need to face. In particular, if enterprises want long-term development, how to better open up offline market channels is the top priority. Looking at the current development status of the offline market of plant-based drinks, the offline development of oatmeal drinks of most brands is mostly “accessories”, relying on the coffee and tea industry, which limits their development and scale to a certain extent.


However, ozak has unique advantages in the layout of the offline market. By 2021, ozak has almost achieved full coverage of the offline market, and the occupancy rate of commercial supermarkets in China has exceeded 90%. Once ozak lays out the offline market of vegetable milk, its competitive advantage can be highlighted soon.

In one of the commercial hotspots of 2021 released by foodaily, “breaking the circle of grains and subverting the imagination of multi habitat development”, it is proposed that the improvement of consumers’ health awareness is driving the vigorous development of the grain market, especially oats, which has broken through raw materials and become a symbol of a healthy diet, breaking the circle to various food categories such as beverages and snacks.
With the advent of the great health trend, how to grasp the opportunity of oats breaking the circle and let oats lead plant power to a new height is a problem that every brand should think about. Taking this as the motivation, ozak plans to join hands with vegetable milk products to appear in the 2021 autumn sugar and wine fair, strengthen the b-end coverage and penetration, and intend to achieve brand breakthrough among many players. Taking advantage of the track tuyere and having strong product expression, brand influence and channel development, we will wait and see what achievements ozak can make.
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