Oat Milk Now the Default in US Cafes
Reducing our greenhouse gas emissions from dairy
The Test
In September 2021, we announced our commitment to achieve carbon neutrality by 2024 and outlined next steps to reduce our greenhouse gas (GHG) emissions intensity. One task was to assess the outcome of a three-cafe pilot earlier that year offering oat milk to guests at no extra charge as the default in beverages when cow's milk was previously served.
Blue Bottle’s life cycle assessment of GHG emissions in the 2018 baseline year for the company’s carbon neutrality goal indicated dairy was a leading source of GHG emissions in cafe operations. In an effort to lower these emissions, we sought the opportunity to elevate plant-based milk and reframe what it means for a choice to be 'alternative.'
Plus, oat milk steams into a beautiful, smooth microfoam, and many prefer it. We were ready to recommend more guests try oat milk in our espresso beverages for a delicate taste and texture, or in our classic New Orleans Cold Brew for a creamy drink.
The Results
After the three-month pilot at our Brentwood, Fairfax, and Jackson Square locations, 68 percent of milk-based beverage orders called for oat milk, a 21 percent increase over the previous six months.
With an overwhelmingly positive guest response to the pilot and encouragement from our teams, we scaled this effort to all Southern California Blue Bottle cafes to cover more than a third of our US locations.
Within two months of the Southern California launch, oat milk orders accounted for 64 percent of milk-based beverages in the market, a 28 percent increase relative to the previous six months.
We promptly launched pilots on the East Coast at the start of 2022 at our Dean Street, Park Slope, and Williamsburg cafes in New York, and at Union Market in DC. After four months, 59 percent of guests at these locations were ordering oat milk in their milk-based beverages. This represents a 40 percent increase relative to the trailing six months.
Oat Milk Nationwide
In May 2022, one year after the first pilots, we welcomed oat milk as the default in milk-based beverages across our US cafes. After three months in the US, oat milk accounted for 63 percent of milk-based beverage selections, replacing whole milk as the preferred option for guest orders.
Of course, we want to make the perfect drink for everyone, so classic dairy and almond milk are also available to select on the app or order in cafes.
We hope by providing more people with the experience of oat milk we might inspire guests to choose it more often both at our cafes and at home, so together we can reduce our greenhouse gas footprint from dairy.
carbon neutrality
Within three months of the nationwide transition to oat milk by default in milk-based beverages, US Blue Bottle cafes were purchasing 15 percent more plant-based milk by volume relative to pre-pilot averages, and in total, plant-based milks contributed to 62 percent of volumes with oat representing 54 percent of the demand.
For the first time, plant-based milks are the global majority milk purchased by volume for Blue Bottle cafes.
The oat milk default program is but a first step in reducing Blue Bottle's dairy emissions. Our goal is to continuously improve, presenting the best coffee has to offer in deliciousness and reduced climate impact.
Drawing upon learnings from the US, in July 2023, Blue Bottle Japan eliminated the surcharge for oat milk, which is standard across our Asia market, and released an oat milk-based overnight oats. As we work toward 2024 carbon neutrality, we will continue to monitor and integrate learnings in Asia.