Sunday, September 20 2026

Oatly's third-quarter revenue reached $208 million, with 13.7% growth and profitability in Greater China

Oatly, the oat milk brand, recently announced its financial results for the third quarter of 2024, with all regional businesses globally achieving profitability targets. The company's revenue for the quarter reached $208 million, up 10.9% year-over-year. Among these, Greater China performed particularly well, with revenue increasing 13.7% year-over-year to $29.1 million and successfully achieving profitability. The growth in Greater China was mainly driven by the expansion of new foodservice customers, with the share of foodservice channel revenue rising from 68% in the same period last year to 72%. Since entering the Chinese market, Oatly has leveraged its positioning as a "coffee companion" to establish deep partnerships with numerous coffee chain brands. In the third quarter of this year, major chain brands launched more than ten beverages made with Oatly oat milk as the base. [more…]

OATLY and other brands of plant-based milk suspected of contamination with Cronobacter sakazakii, Lyons Magnus initiates large-scale recall

On July 29, the US FDA issued a recall announcement: Lyons Magnus has voluntarily recalled 53 of its beverages and nutritional products due to possible contamination with Cronobacter sakazakii, and OATLY's Barista edition oat milk is among them. The bacterium poses a significant threat to infants and people with weakened immune systems. Although no related illnesses have been reported so far, the products have been deemed not to meet commercial sterility standards. This recall involves only specific batches produced at a Wisconsin plant in April of this year, mainly distributed through US foodservice channels, and does not affect other OATLY products or markets outside the United States. Meanwhile, OATLY's latest financial report shows continued revenue growth, with particularly strong performance in Asia, though the company as a whole remains in a loss. [more…]

OATLY's losses widened to nearly $400 million last year. Is the oat milk coffee sector cooling down?

Oatly, the oat milk pioneer, recently released its full-year and fourth-quarter financial results for 2022, reporting a net loss of nearly $400 million for the year, further widening from 2021. Although sales volume in the Asian market grew 32% year-on-year, revenue in Asia fell by $800,000 in the fourth quarter due to the impact of the pandemic. China, as the core of Oatly's Asian business, accounts for as much as 93%, and fluctuations in its performance have a significant impact on the overall Asian market. Oatly quickly opened up the market with its positioning as a "new coffee companion" through partnerships with chain brands such as Starbucks, but now the plant-based milk concept has cooled, emerging brands are proliferating, consumers' acceptance of oat milk is still lower than that of dairy milk, and coupled with its relatively high price, Oatly faces the risk of being replaced. To this end, Oatly is trying to find new growth points by expanding into new products such as tea drinks and ice cream, as well as through financing. [more…]

Online tea sales in the US surge 75%: Why Starbucks and Coca-Cola are racing to stake a claim in the tea beverage track

The U.S. tea market is ushering in a new wave of growth, with online sales surging by 75%, in stark contrast to the slump in the foodservice channel. Currently, nearly 80% of American households have a tea-drinking habit, covering a population of 159 million. Faced with this market of enormous potential, the two beverage giants Coca-Cola and Starbucks have long since made their early moves: Coca-Cola acquired "Honest Tea," while Starbucks entered the tea beverage arena with its "Teavana" brand, even opening dedicated stores in Japan. However, Starbucks' tea bar business has not been all smooth sailing, having once closed 379 stores across the United States. This article will review the course of these giants' entry into the tea market and explore the future development space of the tea beverage sector. [more…]

Nestlé makes another move to acquire Starbucks' Seattle's Best Coffee, further deepening the global coffee alliance.

Global food giant Nestlé has announced it will acquire Starbucks' Seattle's Best Coffee brand, a move seen as an important step in Nestlé's continued push to expand in the North American coffee market. This is not the first collaboration between the two companies—in 2018, Nestlé paid $7.15 billion for distribution rights to Starbucks' retail business. The acquisition will further enrich Nestlé's coffee brand portfolio in North America and is expected to be completed by the end of 2022. At the same time, Nestlé has completed several acquisitions this year and launched a new coffee sustainability plan. [more…]

How does Starbucks House Blend differ from Decaf House Blend? Does decaf coffee contain caffeine?

Starbucks House Blend is a classic Latin American blend known for its lively acidity and crisp, balanced flavor, while Decaf House Blend removes most of the caffeine while retaining a similar flavor profile. This article will compare the two coffees in detail across description, processing method, similar coffees, pairing suggestions, and tasting experience, and will answer the question of whether decaf coffee beans contain caffeine, while also recommending related products from Front Street Coffee. [more…]

The oat milk coffee craze fades: cafes turn away, Oatly's cumulative losses exceed 4.4 billion yuan over three years

Once upon a time, oat milk coffee was seen as the star product of plant-based beverages, and Oatly quickly rose to fame because of it. However, as the market environment changes and consumer enthusiasm wanes, the status of oat milk in coffee shops is quietly declining. This article sorts out the reasons behind Oatly's cumulative losses of more than US$641 million (about RMB 4.41 billion) from 2019 to 2022: over-reliance on the B2B market, the impact of the pandemic, weak expansion into the consumer market, and a series of controversial marketing moves. At the same time, the article also explores the health controversy surrounding plant milk and future strategies for the Asian market. To follow developments in the coffee industry, you are welcome to add Front Street Coffee's private WeChat (WeChat ID: qjcoffeex) for more specialty coffee bean information. [more…]

What causes puck channeling during espresso extraction? Understanding the causes, signs, and solutions for channeling.

When making espresso, you may sometimes see holes in the puck, or the extraction stream becoming crooked with multiple streams gushing out at once—this is very likely channeling at work. Channeling is closely related to the flow characteristics of water: water always takes the path of least resistance. Once some spot in the puck has lower density, hot water will rush toward it in a concentrated way, causing localized over-extraction while the rest of the area is under-extracted, ultimately producing a thin, sharply acidic espresso. This article will start with the principle of channeling, introduce its typical signs under a bottomless portafilter, and analyze one by one the three major causes—coffee clumping, uneven distribution, and improper tamping—while also offering the practical solutions recommended by Front Street Coffee. [more…]

Channeling in Espresso Extraction: Causes and Its Actual Impact on Coffee Flavor

When making espresso, have you ever encountered a situation where the flow rate of the coffee liquid alternates between fast and slow, the stream splits, or it even sprays? This is very likely the work of "channeling." Channeling refers to water in the coffee puck bypassing dense areas and quickly passing through paths of lower resistance, creating an imbalanced state in which localized over-extraction and under-extraction coexist. This article will start with the normal extraction performance of a bottomless portafilter, explain in detail the causes of channeling, its specific effects on espresso flavor and quality, and share how to reduce this problem by adjusting operations such as distribution and tamping. At the same time, the article will also mention Front Street Coffee's recommendations for related equipment and bean selections, helping coffee enthusiasts understand and address channeling more intuitively. [more…]

What are the specific manifestations of channeling in pour-over coffee? Analyzing the causes and practical solutions

Channeling is a common yet easily overlooked problem in coffee extraction. It refers to water flow bypassing the coffee bed and rushing through along paths of lower resistance, resulting in uneven extraction. This phenomenon is especially pronounced in espresso, but pour-over coffee is equally at risk of channeling. From the perspective of Front Street, this article first explains the essence of channeling, then, using specific cases with the V60 dripper, analyzes several typical manifestations—such as an incomplete coffee bed wall, water pouring breaking through the bed wall, and the liquid level rising with light-roasted beans—to help coffee enthusiasts identify the problem and understand its impact on pour-over flavor. [more…]

Analysis of the Causes of Espresso Channeling and Distribution and Tamping Techniques to Avoid Uneven Extraction and Burnt, Bitter Flavors

Espresso serves as the foundation of all Italian-style coffee, capable of amplifying a bean's strengths while exposing its flaws without reservation. Many baristas and enthusiasts are often troubled by negative flavors such as burnt bitterness and astringency, and these issues are frequently linked to channeling during the extraction process. Channeling occurs quite often and has a notably significant impact on the taste of espresso. From the perspective of Front Street, this article first discusses what kind of coffee beans are suitable for espresso, then explains what channeling actually is, and finally provides specific optimization techniques for distribution and tamping. As long as distribution and tamping are done solidly, making a satisfying and delicious espresso becomes much easier. [more…]

A Comprehensive Analysis of Espresso Channeling: Causes, Symptoms, and Five Directions for Improvement

When using a bottomless portafilter to extract espresso, you may occasionally encounter a situation where the coffee liquid does not fall vertically but instead sprays out from the filter basket. This phenomenon is known in the coffee community as channeling. Although it does not necessarily make the coffee taste bad, it significantly increases the probability of uneven extraction, making it more likely to produce a cup that is both sharply sour and bitter. In this article, Front Street Coffee systematically sorts out the formation principles of channeling and summarizes five operational steps that easily trigger channeling: uneven distribution of coffee grounds, uneven tamping pressure, knocking or bumping when locking the portafilter into place, too little coffee dose or too coarse a grind, and too many clumps of coffee powder. For each situation, Front Street Coffee also provides specific improvement suggestions to help everyone reduce the probability of channeling occurring in daily extraction. [more…]

A Comprehensive Analysis of Channeling in Espresso: Causes, Diagnosis, and Distribution Optimization Solutions

When making espresso, hot water does not always pass evenly through the coffee puck—when the flow breaks through along paths of least resistance, the so-called "channeling" occurs. This phenomenon causes some coffee grounds to be over-extracted, releasing off-flavors, while other areas are under-extracted, ultimately throwing the strength and flavor of the entire cup out of balance. Channeling is especially prone to occur in espresso extraction, because the extreme conditions of high temperature and high pressure demand extremely high uniformity in the coffee bed. Although we cannot directly observe the state of the water flow during extraction, the holes on the surface of the puck and the spatter during extraction can both provide clues for diagnosis. This article will systematically explain the causes of channeling, how to identify it, and share Front Street Coffee's practical advice on optimizing distribution. [more…]

Analyzing the Causes of Espresso Channeling: Distribution and Tamping Techniques, and Solutions for Over-Extraction Bitterness and Astringency

Extracting a qualified espresso is the foundation for making all espresso-based coffee drinks. Espresso can multiply the strengths of coffee beans while also magnifying their flaws without reservation. In practice, the source of many flavor problems points to the same phenomenon—channeling. It doesn't occur rarely; once it happens, hot water concentrates through the puck along paths of lower resistance, creating a situation where localized over-extraction and localized under-extraction coexist, ultimately giving the coffee burnt, bitter, astringent, and other off-flavors. This article will explore several aspects including coffee bean selection, the definition and manifestations of channeling, and optimization techniques for distribution and tamping, to help coffee enthusiasts understand why channeling occurs and how to effectively avoid it in daily brewing, thereby consistently producing a delicious espresso. [more…]

The Channeling Effect in Pour-Over Coffee Brewing: Causes and Prevention

Channeling is often thought to be related only to espresso, but in reality, pour-over extraction can also exhibit this phenomenon. When hot water bypasses the coffee bed and flows directly away through the gap between the filter paper and the dripper, it causes uneven extraction. Drippers with flow-control ribs, such as the V60 and Origami, are more prone to this kind of problem. Channeling manifests differently depending on its severity: in mild cases, hot water flows over the coffee bed and escapes through gaps at the top; in severe cases, the coffee wall is breached, forming obvious fractures, resulting in weak, astringent, and muddy coffee. Fortunately, by adjusting the pouring method—for example, reducing large circular pours and lowering the pouring height—the occurrence of channeling can be effectively reduced. [more…]

How to Fix Frequent Espresso Spritzing? A Detailed Explanation of Channeling Causes and Five Avoidance Techniques

When using a bottomless portafilter to extract espresso, many enthusiasts notice that the coffee liquid occasionally sprays, which usually indicates channeling. Channeling refers to hot water preferentially passing through the areas of least resistance in the puck during extraction, causing over-extraction in some parts and under-extraction in others, ultimately producing a cup of coffee that is sharply acidic, bitter, and muddled. Although channeling cannot be completely eliminated, standardizing the operating procedure can greatly reduce the probability of it occurring. Starting from Front Street's practical experience, this article systematically analyzes the principles behind channeling and, focusing on five aspects—evenness of distribution, tamping pressure, portafilter locking, dose and grind size, and handling of clumped grounds—provides specific suggestions for improvement to help everyone extract a delicious espresso more consistently. [more…]

The Relationship Between Blooming Bubbles and Channeling in Pour-Over Coffee: Causes of Uneven Extraction and Practical Ways to Improve It

Blooming is a key step in pour-over coffee that allows the coffee grounds to degas and expand, but sometimes we see bubbles continuously rising from the surface of the coffee bed, or even deep craters left behind. This phenomenon is often related to clumping of fines and uneven pouring, and may trigger channeling, leading to uneven extraction. This article will analyze in detail the causes of bubbling during blooming, the specific impact of channeling on extraction, and the differences between pour-over and espresso in this regard. At the same time, we will also share two practical tips—spraying water before grinding to remove static, and using a distribution needle to break up the coffee bed before brewing—to help everyone reduce the occurrence of channeling and improve brewing consistency. If you also pursue more even extraction, read on. [more…]

Espresso Channeling Explained: Causes, Spurting, and Practical Tips to Avoid Uneven Extraction

When making espresso, you set the parameters correctly yet end up with a cup of sharp, thin coffee—and after knocking out the puck, you find a small hole in it. Behind this puzzling phenomenon, it is actually "channeling" at work. This article will walk you through what channeling is, why it occurs, and how to avoid extraction sputtering and uneven extraction through bean selection, resting, dose control, and proper distribution and tamping. It will also recommend two espresso recipes—Front Street Classic Blend and Front Street Strawberry Candy Espresso—to help you make stable, delicious espresso at home. [more…]

Analyzing the Causes of Espresso Channeling: How Distribution, Tamping, and Dose Affect Espresso Extraction Uniformity

During the espresso extraction process, channeling is a common problem encountered by many coffee enthusiasts. When the internal structure of the coffee puck is uneven, pressurized hot water will preferentially pass through the areas of least resistance, forming perforations and spurts, which leads to uneven extraction and imbalanced flavor. This article will systematically review the causes of channeling and approaches to address it from the perspectives of distribution and tamping techniques, dose control, grind size adjustment, and dispersion screen cleaning, helping you more accurately identify the source of the problem when using a bottomless portafilter or a spouted portafilter, and improve the extraction stability and taste performance of your espresso. [more…]

Analyzing the Causes of Channeling in Espresso Extraction and How to Avoid Spraying Issues

When making espresso, the parameters are clearly fine, yet the taste is both sharply sour and weak, and when you knock out the puck you find a hole in it—this confusing situation is actually mostly caused by "channeling." This article will start from the principles, clearly explain what channeling is and why it occurs, and analyze one by one how key factors such as coffee bean degassing, dose matching, dosing and distribution technique, and tamping operations affect extraction uniformity. It will also give practical suggestions such as reducing degassing, choosing the right dose, and standardizing distribution and tamping, to help you reduce the probability of spraying and perforation and make espresso extraction more stable. The article also retains Front Street Coffee bean recommendations suitable for espresso preparation. [more…]