Starbucks is adding oat milk to its menus across the United States beginning Tuesday as demand for non-dairy alternatives surges.
Oat milk has become especially trendy in recent years among coffee drinkers avoiding dairy. Starbucks is serving Oatly, the Oprah Winfrey-backed brand that recently announced plans to go public.
Starbucks (SBUX) said that the arrival of oat milk comes at a “time when customers are seeking more plant-based choices to incorporate into their daily routines.” Citing Nielsen data, the chain said US oat milk sales soared 170% over the past year.
Demand for oat milk has been a boon for Oatly, too. Last summer, the Swedish company scored a $200 million investment from a Blackstone-led investment group that included Oprah, Natalie Portman, Jay-Z’s entertainment agency and former Starbucks CEO Howard Schultz. Oatly is seeking to be valued at $10 billion, according to Bloomberg.
Last year, Starbucks tested new oat milk-based lattes on menus at 1,300 locations across the Midwest. The chain announced the plans for a national expansion in December.
Starbucks is also betting big on iced drinks, including a new Iced Brown Sugar Oatmilk Shaken Espresso and a Iced Chocolate Almondmilk Shaken Espresso.
The company is expanding its non-dairy and plant-based food options as well. Starting Tuesday, the menu will include a Chickpea Bites and Avocado Protein Box.
Oat milk joins soy milk, coconut milk and almond milk as non-dairy options for Starbucks customers. Dunkin’, the company’s largest rival, added oat milk to menus nationwide in August.