Communication theory: «Oatly»

1. Introduction
2. Communication Channels
3. Theoretical Framework
4. Analysis
5. Conclusion & Recommendations
6. List of Literature

Oatly is a Swedish food and beverage company that specializes in oat-based dairy alternatives. Founded in the 1990s and built on research conducted at Lund University, the company has become one of the most recognizable brands in the plant-based food industry. Oatly produces a wide range of products, including oat milk, yogurt alternatives, ice cream, cooking creams, and spreads. However, the brand is not positioned merely as a producer of food products. Instead, it presents itself as a company that seeks to transform the food system by promoting more sustainable consumption habits and reducing the environmental impact associated with traditional dairy production.

From a communication theory perspective, Oatly’s positioning can be understood as value-based and purpose-driven branding. The company consistently communicates a central message: choosing oat-based products is a more environmentally responsible alternative to consuming conventional dairy products. Sustainability is therefore not a secondary attribute but the foundation of the brand identity. Oatly defines itself as a «climate solutions company, ” emphasizing its contribution to addressing climate change through innovation in food production. This approach allows the brand to differentiate itself from competitors not only through product features but also through a broader social and environmental mission. The brand’s communication strategy relies heavily on creating a distinct identity through transparency, humor, and unconventional messaging. Oatly often uses informal language, self-aware comments, and direct conversations with consumers. Such communication helps reduce the distance between the company and its audience, creating a sense of authenticity. According to communication theory, this can be interpreted as a strategy of relationship building, where the brand attempts to establish dialogue rather than simply deliver advertising messages. Oatly’s packaging, advertising campaigns, and public statements frequently include explanations of environmental issues, production methods, and company values, encouraging consumers to engage with the brand on an ideological level.

Another important element of Oatly’s positioning is its role as a challenger brand. Instead of competing solely on taste or price, Oatly challenges established norms in the food industry, particularly the dominance of dairy products. The company frequently compares the environmental footprint of oat-based products with that of dairy alternatives and encourages consumers to reconsider traditional consumption patterns. This strategy creates a strong brand narrative in which Oatly is presented as an agent of change rather than just a commercial organization.

The target audience of Oatly is broad but can be divided into several key segments. The primary audience consists of environmentally conscious consumers who are interested in sustainability and climate issues. These individuals are often willing to modify their consumption habits in order to reduce their ecological impact. Oatly’s communication appeals to this group by providing information about carbon emissions, resource efficiency, and sustainable food systems. A second important audience includes younger consumers, particularly Millennials and Generation Z. These groups are generally more receptive to brands that express clear social values and engage with global issues. Oatly’s playful tone, creative visual style, and strong presence on digital platforms align well with the communication preferences of younger audiences. The brand’s informal and often humorous messaging helps it stand out in a crowded media environment and increases its shareability on social networks. A third segment includes health-conscious consumers who may be interested in plant-based products for nutritional or lifestyle reasons. While environmental sustainability remains the dominant message, Oatly also communicates product benefits such as convenience, versatility, and suitability for people who avoid dairy products.

Geographically, Oatly targets urban populations in international markets, including Europe, North America, and Asia. Urban consumers are often more exposed to sustainability discussions, plant-based trends, and alternative food cultures, making them a receptive audience for the brand’s message.

The official Oatly website is one of the main communication channels. It provides information about products, company values, sustainability goals, and climate-related initiatives. The website works as an owned media platform where the brand controls its message and builds transparency. By sharing information about its environmental impact and production methods, Oatly strengthens trust and credibility among consumers.

Social media is a key part of Oatly’s public communication. The brand actively uses Instagram to share creative campaigns, product content, sustainability messages, and humorous posts. The platform helps Oatly connect with younger audiences through visual storytelling and informal communication. Facebook is also used for broader audience engagement, including campaign updates and brand news.

LinkedIn serves a different purpose by targeting professional audiences such as employees, investors, and business partners. Through this platform, Oatly communicates its corporate achievements, sustainability strategies, and role in the future of the food industry. YouTube is another important channel where the company publishes advertisements, videos, and educational materials. Video content allows Oatly to explain complex topics like climate impact in an accessible way.

Packaging is also an important communication tool for Oatly. The brand uses its cartons as a medium to communicate with consumers through humor, creative text, and sustainability messages. This makes the product itself part of the brand’s communication strategy.

This analysis applies two communication theories to evaluate Oatly’s brand communication: — The Elaboration Likelihood Model (ELM) by Petty and Cacioppo — Dialogic Theory by Kent, Taylor and Pearson

These theories were selected because Oatly uniquely combines fact-based persuasion (sustainability data) with open, sometimes provocative dialogue with its audience, which is a rare combination in the plant-based food industry.

Elaboration Likelihood Model (ELM) — Petty & Cacioppo

The Elaboration Likelihood Model explains that people process persuasive messages in two different ways.

1. When the audience cares a lot about a topic and has the time, knowledge, and ability to think critically, they follow what is called the central route. In this case, they carefully analyze facts, data, and strong arguments. This leads to a strong and long‑lasting change in their attitudes.

2. On the other hand, when the audience does not care much about the topic or cannot think deeply because they are busy, distracted, or lack knowledge, they follow the peripheral route. Here, people do not analyze facts. Instead, they rely on simple mental shortcuts or cues such as humor, attractive design, a likable spokesperson, or social proof — the feeling that «everyone is doing it». The attitude change that results from the peripheral route is weaker and more temporary, but it can reach a much larger audience.

Oatly uses both routes very effectively. For environmentally engaged consumers, they provide clear data on CO₂ emissions and water savings. For broader, less involved audiences, they rely on dark humor, a hand‑drawn visual style, and a distinctive, sometimes sarcastic tone of voice.

Dialogic Theory — Kent, Taylor & Pearson

Dialogic theory explains how organizations should ethically build quality relationships with publics through dialogue — not one-way communication.

Five key features of dialogue:

1. Mutuality: Acknowledgment that organization and publics are tied together; collaboration.
2. Propinquity: Communication happens before decisions are made; publics help shape outcomes.
3. Empathy: Support, trust, and communal orientation; publics are encouraged to participate.
4. Risk: Vulnerability, unanticipated consequences, acceptance of «strange otherness».
5. Commitment: Genuineness, honesty, commitment to conversation and mutual understanding.

Oatly’s communication practices strongly reflect three core principles of dialogic theory: mutuality, risk, and commitment. The brand regularly publishes critical emails from retailers, openly acknowledging that its relationship with business partners and consumers is mutuality. By exposing itself to public criticism, Oatly demonstrates a willingness to be vulnerable, which is a risk. Finally, its consistent tone of voice over many years, its refusal to delete negative comments, and its direct engagement with critics show a genuine commitment to ongoing conversation, not just one‑way promotion.

The principles of propinquity and empathy are less clearly present. Oatly rarely invites its audience to co‑shape decisions before they are made, and its sometimes sarcastic tone can be seen as lacking traditional empathy. However, the brand’s overall approach remains one of the best examples of dialogic communication in the food and beverage industry.

This section applies the two theoretical frameworks — ELM and Dialogic Theory — to real examples of Oatly’s brand communication. Each example is illustrated and analyzed from a scientific perspective.

ELM Analysis — Central Route

The screenshot shows an Oatly website section that presents factual data comparing the environmental impact of oat milk with cow’s milk. The post includes specific numbers — for example, how much less CO₂ is emitted, how much less water is used, and how much less land is occupied.

For a consumer who already cares about climate change and has the time and knowledge to read and compare, this information triggers the central route of processing. The consumer does not just glance at the post. She carefully examines the facts, checks whether the numbers seem credible, and compares oat milk with other plant‑based or dairy alternatives.

As a result, she forms a strong, rational, and long‑lasting positive attitude toward Oatly. She trusts the brand not just because it is funny or stylish, but because the numbers make sense. This is exactly how the central route works: high personal relevance leads to deep thinking, and deep thinking leads to durable persuasion.

ELM Analysis — Peripheral Route

The screenshot shows an example of Oatly’s communication that relies on humor, distinctive hand‑drawn illustration, and a provocative slogan rather than factual data.

There was a campaign than the brand compared real milk, which cow initially made for their posterity, not for people with their vegetable milk, which is not inferior to cow’s milk in terms of vitamins.

For a consumer who is scrolling through a social media feed or standing in a supermarket aisle, this content works through the peripheral route. This person does not have the motivation or time to study environmental reports. She simply feels that the brand is modern, funny, and different from boring traditional food companies.

It creates initial interest, brand awareness, and top‑of‑mind recall. Some of these consumers may later decide to learn more about Oatly’s environmental benefits, moving from peripheral to central processing.

Dialogic Theory Analysis

After a controversial advertisement, Oatly received negative reactions from some viewers. Instead of ignoring the criticism, issuing a formal apology, or deleting comments, Oatly launched a limited‑edition T‑shirt with the text: «I totally hated that Oatly commercial» alongside an image of the brand’s CEO. The campaign openly stated: «We cannot give you back the 30 seconds you lost, but we can give you a T‑shirt that tells the world how you feel about our brand and our attempt to make Tony sing.» Only 500 T‑shirts were produced, and they sold out within minutes.

This response is a powerful demonstration of dialogic principles:

1. Risk is evident because Oatly took a phrase of pure hatred and printed it on official merchandise. The brand made itself vulnerable to further ridicule and escalation. Instead of hiding from negativity, it walked toward it.
2. Mutuality is shown because Oatly acknowledged that even haters are part of its public. The brand did not dismiss their anger. It validated their right to be annoyed and gave them a voice — literally on a T‑shirt.
3. Commitment is demonstrated by Oatly’s consistent tone. Even under attack, the brand did not switch to defensive, formal, or overly apologetic language. It stayed true to its irreverent, self‑aware, and humorous personality.

As discussed earlier in the ELM central route analysis, Oatly consistently publishes its own environmental data — CO₂ emissions, water usage, and land occupation. However, the brand went one step further. In a dedicated campaign, Oatly publicly challenged the entire food and dairy industry with a simple but provocative statement: «Show us your numbers.» The campaign called on competitors to publish their own sustainability data with the same level of transparency.

This campaign is not just about facts. It is a dialogic act. It demonstrates two core principles of Dialogic Theory.

Risk is evident because Oatly deliberately challenged powerful competitors. By doing so, the brand exposed itself to potential backlash, criticism, or simply being ignored. The dairy industry could have responded with aggression, mockery, or silence — any of which could have harmed Oatly’s reputation. Yet Oatly chose to take this risk rather than stay silent.

Mutuality is shown because Oatly publicly acknowledged that all players in the food industry — including its competitors — are interdependent when it comes to climate change. The brand did not position itself as the only solution. Instead, it invited others to join a shared conversation about transparency and responsibility. By asking others to «show their numbers», Oatly treated competitors as dialogue partners, not just as enemies.

Moreover, in 2021, Oatly launched the «Pee for Planet» campaign. The brand asked its audience to collect their own urine to be used as natural fertilizer for oat fields. The campaign included an instructional guide and even hired a «pee consultant».

Mutuality is shown because Oatly acknowledged that consumers are not just buyers — they are active partners in environmental change. The brand did not say «buy our product to save the planet». Instead, it said: «you can help the planet directly, here is how». This is a clear recognition that organization and publics are tied together and depend on each other.

Risk is evident because discussing urine in a public advertising campaign is taboo-breaking and potentially repulsive to some audiences. Oatly deliberately took this risk rather than playing it safe, showing vulnerability and a willingness to be unconventional.

This campaign, like the T‑shirt and the «Show us your numbers» challenge, proves that Oatly treats communication as genuine dialogue — not just one‑way promotion.

Conclusion

The analysis shows that Oatly effectively uses both routes of the Elaboration Likelihood Model. For highly engaged consumers, it provides factual data that triggers central route processing and builds strong, lasting trust. For less involved audiences, it uses humor, distinctive design, and a provocative tone to trigger peripheral route processing, reaching a much wider audience.

In terms of Dialogic Theory, Oatly strongly demonstrates three principles: mutuality, risk, and commitment. It engages with critics, publishes negative feedback, and maintains an open, consistent tone over many years. The principles of propinquity and empathy are less clearly present, but the brand remains one of the best examples of dialogic communication in the food industry.

Overall, Oatly’s communication strategy is not just creative. It is theoretically grounded and practically effective.

Recommendations Below are several recommendations for improving Oatly’s brand communication.

Recommendation 1: Strengthen Empathy Through a Separate Support Channel

Theoretical basis: Dialogic Theory’s principle of empathy requires support, trust, and appropriate response to the emotional state of publics (Kent & Taylor, 1998). Oatly’s sarcastic tone, while effective for social media, alienates consumers with genuine complaints (product defects, delivery issues, health concerns).

Problem: The same provocative tone is used in all contexts, ignoring situational variation.

Solution: Create a dedicated «Empathy Channel» — a separate email address or web form clearly labeled «Serious support — no jokes». In this channel, all responses must be warm, direct, and non-ironic.

Expected outcome: Increased trust among vulnerable consumers; reduced negative word‑of‑mouth; preservation of Oatly’s public provocative voice without alienating those who need genuine help.

Recommendation 2: Introduce Propinquity Through Simple Pre-Decision Polls

Theoretical basis: Dialogic Theory’s principle of propinquity means communication happens before decisions are finalized, allowing publics to influence outcomes (Pearson, 1989). Currently, Oatly announces finished products without prior consultation.

Problem: The audience has no opportunity to participate in decisions before they are made.

Solution: Launch simple, low-effort polls on Oatly’s social media or website before launching new products. Example: «Which limited flavor should we make next? A) Banana oat, B) Chocolate chili, C) Your idea (write below).» Publish results transparently.

Expected outcome: Stronger audience loyalty; free market research; fulfillment of the propinquity principle.

Recommendation 3: Add Factual Links to Humorous Posts (ELM Transition)

Theoretical basis: The Elaboration Likelihood Model states that peripheral route processing can lead to central route processing if motivation increases (Petty & Cacioppo, 1986). However, this transition requires an affordance — a clear path from humor to facts.

Problem: Consumers who laugh at Oatly’s jokes have no easy way to find sustainability data if they become interested.

Solution: Add a short, friendly line to every humorous post or ad: «Funny? Now see the numbers — [link].» The link leads to a simple page with three key facts (CO₂, water, land use).

Expected outcome: Some peripheral consumers become central processors; measurable transition rate; deeper persuasion.

Recommendation 4: Publish One Honest «We Made Mistakes» Post Per Year

Theoretical basis: Dialogic Theory’s principle of risk includes acceptance of «unanticipated consequences» (Kent & Taylor, 2002). True vulnerability means disclosing failures, not only successes. Oatly publishes only positive environmental data.

Problem: By hiding failures, Oatly’s risk-taking becomes performative rather than genuine.

Solution: Once per year, publish a short, honest post titled «This Year We Messed Up.» Include 1‑2 concrete failures (e.g., supply chain issue, unintended environmental harm, a joke that offended people). Briefly explain what was learned.

Expected outcome: Higher credibility with environmentally aware audiences; authentic demonstration of dialogic risk.