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The Journey of Carl Hopwood and Oato: A Fresh Take on Oat Milk

A chemistry degree has been instrumental in Carl Hopwood’s journey towards building a successful oat milk brand, with over 25 million bottles sold. His venture, Oato, represents the culmination of extensive experimentation and learning from setbacks since its inception in late 2019.

Based in Lancashire, Hopwood began his enterprise with a small testing kit at home. Oato has since grown to become the only fresh oat milk available in UK supermarkets, delivering directly to customers through traditional milk rounds.

“I had a clear vision for a product but faced uncertainties in the execution,” Hopwood reflects. “It required numerous experiments and a willingness to learn from failures.”

Background and Education

Raised in Exeter, Hopwood attended a Steiner school and later a community college, before pursuing a chemistry degree at the University of Edinburgh. His time in Scotland marked a significant shift from his West Country roots.

“The experience was enlightening, teaching me to approach problems analytically and encouraging a strong work ethic,” he shares with Yahoo Finance UK, though he acknowledges that chemistry was not his ultimate career path.

Opting for a career in sales rather than the more common route of accounting for chemistry graduates, he also co-founded a bespoke garment company during his university years. Following this, he worked as a European business manager for a small US firm, Tech Soft 3D, where he sold 3D visualization software.

Inspiration to Innovate

Hopwood observed that employees at his previous workplace had transitioned from using cow’s milk to oat milk for their coffee machines over eight years. However, they faced challenges with the recycling of used Tetrapak cartons, which would accumulate outside the office. “I realized there had to be a better way to deliver this product than through non-recyclable packaging. This thought sparked my initial inspiration,” he recounts. The blending of oats with water and enzymes at home using a tabletop stove initiated his entrance into the oat milk market.

After experimenting with different recipes and receiving feedback from housemates, Hopwood scaled up his operations by collaborating with a local brewery capable of producing 5,000 bottles weekly. “I tested various batches at home while simultaneously establishing a brand, registering the company, and promoting it via social media with offers for free deliveries,” he details.

This grassroots approach quickly attracted a list of 1,500 potential customers eager to try oat milk. Partnerships with small, family-run dairies allowed Oato to utilize available production slots, introducing their product to local milk rounds.

Expansion and Aspirations

As Oato grew, the company expanded into a substantial production facility in Preston. Hopwood notes this transition significantly altered their operational costs and capacity. “While increased capacity offers opportunities, managing the larger overheads is a challenge,” he acknowledges.

Oato aims to feature in half of the UK’s fridges, recognizing the milk rounds as a viable distribution channel while also seeking retail partnerships. “Our goal is to reach a broader audience through retail, as mailing directly to households has its limits,” he explains.

Sustainability Focus

Hopwood emphasizes the brand’s commitment to sustainability, noting that their oat milk boasts a smaller carbon footprint—only one-tenth of traditional dairy milk. Notably, Oato exclusively utilizes British oats while ensuring that their packaging remains environmentally friendly. The success of their reusable glass bottles, which average 28 uses per unit with a 97% return rate, reflects their strategy to stand out in the market.

“There has been some resistance regarding our use of plastics, but we maintain that the product itself is sustainable,” he adds, highlighting the brand’s integrity in its approach to both product development and environmental impact.

Looking Ahead

With aspirations to sell 100 million bottles in the coming years, Hopwood believes in setting realistic, short-term goals. “Operating as a sole founder and keeping a modest investment approach allows us to focus on attainable objectives without the pressure from venture capitalists to overextend,” he asserts.

By emphasizing a genuine connection with sustainability and customer needs, Hopwood has crafted a brand that resonates authenticity rather than opportunism. His journey with Oato serves as a testament to the potential for small enterprises to innovate within crowded markets while prioritizing environmental responsibility.

Source
uk.finance.yahoo.com