Why Alpro UK Is Spending Millions to Switch to 100% British Oats for Plant-Based Milk

Danone-owned plant-based dairy giant Alpro has announced that it is moving to a 100% local supply for its oat milk lineup in the UK, powered by a multimillion-pound investment to expand its capacity.

The UK’s leading plant-based milk company, Alpro, is switching to 100% British oats for its oat milk range, as part of a drive to support local farmers, lower emissions, and boost its plant-based offering.

The company is working with Navara oat mill in Kettering, less than 10 miles away from its own factory, and sourcing from farmers within an 80-mile radius of the mill.

“We know that people like to buy from brands that support local businesses. Moving to 100% British Oats at Alpro in the UK means we can invest more in local businesses – like our farmers and our local oat mills – bringing a new quality recipe to our customers that tastes great,” Tom Kerr, head of plant-based at Danone UK & Ireland, told Green Queen.

Danone has made a “multimillion-pound investment” to support the shift and expand its existing footprint at the Kettering facility to make way for new tech to enable its British oat production, explained Kerr.

“This includes upgrades to utilities and new production equipment. Some 58 million litres of the British Oat Drink are planned to be produced annually in Kettering, equating to a quarter of the site’s production of plant-based drinks,” he said.

Alpro’s new 100% British Oats line is now available in the original and no-sugars versions, which feature a new recipe high in fibre and enriched with calcium, iodine, and vitamins D2 and B2. Other oat milk products will be updated by the end of the year.

Local sourcing will cut food miles, won’t affect prices

Unlike other countries where almond and soy milk captures consumer interest more, oat milk is the most popular non-dairy alternative in the UK. Sales have jumped by 77% in the last five years, reaching £275M as of January, according to Circana data cited by Alpro.

Today, oat milk makes up 39% of all plant-based milk sold in the UK (up from a quarter in 2020). It means Brits purchase half a million litres of oat milk every day. And yet, only 1% of this is guaranteed to come from 100% British oats.

It’s part of the reason why Alpro is investing in the localised supply chain, which will “significantly increase the percentage of British oats” in the growing oat milk market, and give consumers a greater opportunity to buy local.

“Previously, we were sourcing our oats from Europe. Our move to local sourcing will significantly cut our food miles,” said Kerr. “We will be looking into the exact impact of this on our emissions in the coming months.”

While he did not disclose whether the move impacted its costs, and on-shelve prices are independently set by retailers, he confirmed that its recommended price “will not be more than our previous recipe”.

The new recipe was formulated after a 2024 Kantar survey cited by Alpro found that half of UK plant-based shoppers are driven by health considerations. “Health is at the heart of everything we do, and we work to offer healthier nutrition to consumers in the most sustainable way possible,” said Danone UK & Ireland president James Mayer.

“As a pioneer and global leader in plant-based nutrition, plant-based drinks are a key part of our strategy to boost growth by focusing on developing products that deliver on both health and taste,” he added.

Kerr said Alpro’s barista oat milk will be switched to the 100% British recipe later this year, but the move won’t affect its oat yoghurt. Oats also form the base of Alpro’s This Is Not Milk range, which more closely mimics conventional dairy, though he revealed this product “has been discontinued in the UK”.

British oat farmers stand to benefit from Alpro’s move

Danone’s latest investment followed a £41M injection by Alpro in the Kettering facility, which saw the installation of new equipment to reduce energy consumption, emissions, and water usage.

This factory has now rolled out a new production method for its oat milk, which sees the oat grains ground into flour before being blended with water and other ingredients, including fibre and vitamins.

“The investment will boost capacity and production at the Navara Mill, bringing substantial benefits to the local community both in Kettering, and further afield,” said James Skidmore, managing director of Navara Oat Milling.

Alpro argues that the switch to local sourcing will benefit farmers through a new revenue stream for their oats, which are traditionally used for porridge, cereals, flapjacks, and other foods.

“The rise in the use of plant-based food ingredients has certainly brought changes to the farming industry – however, this exciting new investment by Danone has opened up more opportunities for oat farmers to broaden the products they produce and markets that they grow for,” noted Skidmore.

“When businesses back British agriculture, farmers have more options for their crops, leading to increased resilience and potential for growth,” he added.

While plant-based milk sales have fluctuated in the UK, they grew by 1% in January, against declines in semi-skimmed and skimmed milk. Alpro, meanwhile, recorded a 2% hike in sales in 2024, with its £160.3M turnover making it the second-largest brand in the overall UK milk sector.