The move comes amid rising demand for plant-based milk alternatives as consumers seek better-for-you beverages with environmental credentials.
The company follows in the footsteps of other plant-based companies that have gone public such as alternative meat company Beyond Meat, which had its IPO in 2019, and Laird Superfood, which listed on the NYSE last year.
Meanwhile, Greek yogurt giant Chobani is reportedly considering going public this year, as is plant-based egg maker and cell-based meat developer Eat Just.
Oatly’s moves in the plant-based arena
Last summer, Oatly raised US$200 million in funding, which saw Oprah Winfrey, Jay Z and Natalie Portman invest in the alt-milk brand alongside other high profiles investors, including Roc Nation, former Starbucks Chairman and CEO Howard Schultz, Orkila Capital, and Rabo Corporate Investments, the investment arm of Rabobank.
Oatly’s patented original oat milk created the fast-growing oat milk category. It is considered a pioneer in the plant-based food space.
Oatly has transformed from a Nordic brand into a global movement by delivering unique, high-quality,
engaging products based on proprietary, patented oat-technology to the new emerging generation of
conscious consumers.
Plant-based portfolio
Oatly has a range of products, including oat milk, ice cream, cold coffee, yogurt substitutes, cooking cream, spread and custard.
It was founded in 1990 from Lund University research. The company’s patented enzyme technology turns fiber-rich oats into a highly nutritious beverage.
The company is located in the southern region of Sweden, with its headquarters in Malmö and the Production and Development Center in Landskrona.
Starbucks tie-up
Following a regional US trial, which saw Oatly milk being used across 1,300 stores in Illinois, Indiana, and Wisconsin, last year, Starbucks is preparing to launch Oatly vegan oat milk in all US stores this spring.
Last September, Starbucks targeted eco-conscious consumers by rolling out more plant-based offerings in selected stores across Asia.
The plant-based range includes products from alternative meat giants Impossible Foods and Beyond Meat, as well as Oatly.
Oatly’s process
In the first phase of the process, Oatly mixes the oats with water and gently grinds the mixture in the grinding room. The natural enzymes convert oat starch into small components, especially maltose (also called malt sugar), which naturally sweetens the products.
During the separation, Oatly removes the bran, that is, the oats’ small shells, leaving loose fibers and betaglucans. Here is an oat base which is a good source of nutrition.
Different ingredients (rapeseed oil, calcium or vitamins) are then added depending on the product. The
products are heat-treated before packaging, with ultra-high temperature (UHT) or pasteurization, to increase their durability.
After the product has undergone heat treatment, the fat droplets are broken down into smaller droplets to ensure that the liquids are properly mixed.
