Oatly and Canada-based coffee-shop operator Tim Hortons have launched a line of oat-milk coffee RTDs in China.

The companies are rolling out a line of oat-milk latte on-the-go drinks.

In a statement, the partners said the first products released are a cold-brew latte and an osmanthus latte, which they described as having “an iconic sweet and delicate flavour embraced by Chinese consumers”.

The co-branded products are on sale through both companies’ e-commerce stores in China, as well as through unnamed third-party online and physical retailers.

David Zhang, the president of Oatly’s Asia business, said the company was eyeing “health- and taste-conscious consumers”.

Just Food has contacted Tim Hortons’ China business to ask where the products are manufactured.

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By GlobalData

Oatly has a factory in Ma’anshan in eastern China, which it opened in 2021. According to the company’s 2022 annual report, another facility in China is slated to open by 2026.

In 2022, Oatly generated “revenue from external customers” of $134m in China, compared to $111.8m a year earlier.

Last month, the company, which is seeking to tackle hefty losses, named president Jean-Christophe Flatin as its new CEO.

Flatin, who joined the Sweden-based business in June last year, replaced Toni Petersson, who became co-chairman of Oatly’s board, alongside Eric Milou, who had solely held the role. Petersson had been at the helm since 2012.

The appointment came two months after the loss-making Oatly announced newly-secured funding and set a path to “financial self-sufficiency”.

Before joining Oatly, Flatin spent 30 years with US food heavyweight Mars. He led its Royal Canin cat and dog food business as CEO and president and also managed a number of brands as president of the company’s chocolate division.

In January, Tim Hortons announced it had opened its 600th coffee shop in China.

At the time, Yongchen Lu, CEO of Tims China, said the company was looking to “advance our expansion and localisation deeper into China”.