Tims China strengthens retail range with Oatly RTD partnership

The co-branded oatmilk latte products are available via both brands’ e-commerce platforms | Photo credit: Tims China

Tims China has launched a new ready-to-drink (RTD) coffee range in partnership with Oatly. 
 

The co-branded oatmilk latte products are available via both brands’ e-commerce platforms, alongside select third-party retailers.  

The new product launch forms part of Tims China's omni-channel approach in the Chinese market. 

In July 2022 Tims China announced an agreement with China’s largest convenience store chain Easy Joy to develop co-branded RTD coffee products in more than 27,800 outlets. 

Additionally, Chinese grocery chain Freshippo introduced co-branded Tims China coffee products online and via its bricks-and-mortar stores in December 2022 as part of a two-year RTD retail distribution partnership. 

“We’re particularly excited to partner with Oatly to launch this new RTD product line. We invite all of our guests, including our over 14 million loyalty members, to try our new oat milk lattes either to drink on-the-go or from the comfort of their homes,” said Yongchen Lu, CEO of Tims China. 

Tims China currently operates 648 stores and reported 50% revenue growth to RMB 336.5m ($47.5m) during the three months ended 31 March 2023.   

The partnership also demonstrates Oatly’s ambition to gain a greater share of China’s retail market. 

Oatly began rolling-out its Barista Edition oatmilk in Chinese coffee shops in 2018 and announced plans to expand its retail presence across the East Asian nation in June 2021. The Malmö-based business opened its first production facility in China in Ma’anshan in November of the same year. 

“We’re delighted to team up with Tims China to offer this new range of drinks for both health- and taste-conscious consumers,” added David Zhang, Asia President of Oatly. 

Reporting its results for the first quarter ended 31 March 2023, Oatly reported 16.4% revenue growth across Asia to $33.4m but said product demand and production capacity in China had been adversely impacted early in the quarter by now lifted Covid restrictions. 

Oatly’s total revenues increased 17.7% to $195.6m compared to $166.2m for the same period in 2022.