Oatly cuts 'no added sugars' advertising after challenge from Campbell Soup Co.

Byline: Gabrielle Saulsbery

Oatly Inc., an oat milk company with U.S. operations in New Jersey, will stop including "no added sugars" claims on its advertising material after a challenge from Campbell Soup Co.

On behalf of its subsidiary Pacific Foods, Camden-based Campbell challenged Oatly's "no added sugars" claims to the National Advertising Division of the Better Business Bureau, an investigative unit of the advertising industry's system of self-regulation.

Oatly has 8 grams of naturally occurring sugars per serving. Pacific Foods oat milk, by contrast, contains 17 grams of naturally occurring sugars.

Campbell contended that the "no added sugars" claim is misleading because "the hydrolysis process, which turns oats into oatmilk, creates sugars 'in situ' as the oats are broken down into smaller components."

By NAD's recommendation, Oatly agreed to remove the language from its advertising.

NAD did not assess Oatly's use of "no added sugars" on its Nutrition Facts Panel as it concluded that Nutrition Facts are not advertising.

The company said...