Cologne-based Food startup The Oater has achieved a remarkable milestone by successfully closing a seven-figure pre-seed financing round. Their innovative product, an oat drink machine for the food service sector, is set to revolutionize the way fresh barista oat drinks are produced on-site with minimal packaging.

The milk substitute category, predominantly led by oat drink, is experiencing tremendous growth in Europe, accounting for over 50% (Gfk, 2022) of the market. In 2022 alone, it generated sales of €2.6 billion, and this upward trend is projected to continue with an expected CAGR of 15% until 2027, according to Statista 2023.

Notably, oat drinks are approximately 90% water, adding to the environmental challenge of transporting them in single-use cartons across Europe. However, the forward-thinking German foodtech startup, The Oater, has risen to this challenge with its sustainable approach and closed a significant pre-seed funding round. Founded in 2021 by Sarah and Lisa Nesti, Henrik Burger, and Benjamin Auer, the company's vision is to provide plant-based dairy alternatives in a more eco-friendly, fresh, and experiential manner.

The Oater's pioneering work involves developing advanced appliances that allow for local production of milk alternatives, particularly oat drinks, within the food service industry. They aptly describe their business model as "Oat Drink as a Service," as they not only supply customers with the oat drink machine but also offer a subscription for the necessary ingredients to create Barista Oat Drink right inside the machine.

The successful fundraising efforts were backed by renowned business angels with strong connections to the food and tech sectors, with Rüdiger Koppelmann, General Manager of SodaStream, leading as the main investor in this round.

Excitingly, in August 2023, the pilot phase is scheduled to kick off in Cologne and Berlin, partnering with the first catering establishments. The Barista Oat Drink has already garnered excellent reviews in sensory panels and barista tests. The Oater is now gearing up for its first series production in Germany, and the passionate founding team eagerly anticipates the forthcoming commercial launch. With their sustainable and fresh approach, The Oater is set to make a significant impact in the milk substitute industry and bring a positive change to the way oat drinks are enjoyed.

As per Oater's official website, "We are a team of dreamers and oat drink enthusiasts from Cologne, who firmly believe that there is still room for improvement in oat drink. It all started when our CEO Sarah, who has been vegan for 7 years, was bothered by all the packaging waste and the lack of freshness of her oat drink. There has to be a better way, she thought to herself. And now over 1 year later, we can say with conviction: Yes, it can be better! Our oat drink is fresher, more regional, cheaper, more delicious AND more sustainable than other solutions in the market today. We are Sarah, Henrik, Lisa and Benjamin."