Arla has announced it will enter the plant-based drinks sector as growth in dairy alternatives continues.
The cooperative, which is owned by 2,400 UK farmers, is set to manufacture oat-based 'milk' drinks.
Its new plant-based brand JÖRD will be available in Denmark this spring and the UK later this year.
The brand will initially see three organic oat products hit the shelves: Oat, Oat & Barley and Oat & Hemp.
The move is a 'business opportunity' for farmers: "You wouldn’t expect a company owned by dairy farmers to move into plant-based," Arla Foods UK MD, Ash Amirahmadi said.
He underlined that the co-op does not consider plant-based drinks to be substitutes for milk, but the market has 'captured the imagination' of people looking for different tastes.
"Many people consuming plant-based drinks also include milk and other dairy products in their diets," Mr Amirahmadi added.
"As food choices become increasingly diverse and experimental, it’s a business opportunity for farmers but one that also aligns with our belief that foods made only from natural ingredients are always better."
The three new oat drinks contain up to 50% more oat compared to competing products and less than half the number of ingredients, according to Arla.
While 99.8% of UK households brought dairy last year, the interest in plant-based foods is bringing a new way for food companies to increase sales.
Increased interest in the dairy category, driven in part by the entrance of new plant based products, saw Arla UK end the last decade with a year of growth across its branded cheese, yogurts and milk products.
