Alternative dairy products are becoming increasingly popular. The growth rates are high. Now the market leader wants to raise up to 10 billion dollars with its shares. His previous investors include well-known names.
EOne of the most highly regarded IPOs this year seems to be on the home stretch: The Swedish oat milk company Oatly has now applied to the American Securities and Exchange Commission for a listing on the local stock exchanges. The application seems to be formal for the time being, as the volume for the Initial Public Offering (IPO) is only given as 100 million dollars. But the company, which also produces other vegan foods in addition to oat milk, was valued at $ 2 billion in the latest financing round in July.
At that time, Oatly had secured new equity of $ 200 million. Investors included the American financial investor Blackstone and celebrities such as the American television presenter Oprah Winfrey, the rap musician Jay-Z and the Starbucks founder Howard Schultz. The market for vegan food is showing high growth rates. This is especially true for oat milk, which is gaining importance as an alternative to cow’s milk due to the widespread lactose intolerance, especially in Asia.
According to media reports, Oatly is aiming for a market value of up to 10 billion dollars. The market for plant-based milk is larger than that for vegan meat substitutes. In Germany, milk products based on soy, oats or almonds account for 10 percent. ING Bank analysts expect sales of alternative dairy products in the EU and Great Britain to increase by almost 50 percent to 5 billion euros by 2025. All over the world, sales could increase fivefold by 2035, according to a forecast by the management consultancy BCG.
Exclusive Starbucks supplier
As the leader in oat milk, Oatly is in a good position to capitalize on the growth. So it doesn’t bother when established milk producers like the French group Danone position themselves with takeovers. In the United States, Oatly has been supplying more than 15,000 Starbucks branches with oat milk exclusively since March.
But as the SEC filing shows, Oatly is not yet making a profit. Last year there was a loss of $ 60 million after a deficit in 2019 of $ 36 million. However, sales more than doubled to 421 million during this period. In the documents, the oat milk manufacturer also refers to the sustainability of its product. Compared to cow’s milk, one liter of oat milk causes 80 percent less greenhouse gas emissions, 79 percent less land use and 60 percent less energy consumption.
In the United States, before oatly entered the market, oat milk was virtually unknown. According to figures from the market research institute Nielsen IQ, sales of oat milk in the American retail sector have jumped 150 percent in the past twelve months.