Oatly, a Swedish alternative dairy producer, has partnered with hotpot chain Haidilao and fast-food chain KFC to introduce new vegan ice cream popsicles in China.

The partnerships involve Oatly launching guava and grape-flavored fruit popsicles at Haidilao and a citrus-flavored ice lolly at KFC. These launches align with Oatly's strategic reset in China, catering to growing demand for healthier and more nutritious plant-based food options among Chinese consumers.

Analyst QuickTake: Oatly recently revamped its approach in China to overcome operational hurdles and improve profitability. This included expanding its retail presence and adjusting pricing strategies to better meet local market demands. The company also doubled its commitment to foodservice, which now accounts for 70% of sales in the region, up from 65%. In Q1 2024 , despite a 27% decline in Greater China sales due to product adjustments and economic challenges, Oatly managed to reduce adjusted EBITDA losses by 80% YoY, indicating early signs of recovery and strategic alignment with local market dynamics.