Oat, the world’s largest oat milk company, will raise $ 1.4 billion in an initial public offering on the Nasdaq Stock Exchange to take advantage of the surge in global demand for its products.
Oatly set a price of $ 17 per share prior to the IPO and the company’s valuation was close to $ 10 billion. It is traded with the ticker symbol “OTLY”.
This is the latest milestone in the rapid rise of oat milk, attracting consumers and well-known investors like Oprah Winfrey, with the message that it is healthier and more environmentally sustainable than milk. doing. Once a niche product designed for lactose intolerant people, oat milk is now on the Starbucks menu, in the aisle of the target grocery store, and is sold online by Alibaba in China. ..
Oats, based in Malmö, Sweden, also believe that oat milk is growing much faster. Global sales of plant-based dairy substitutes reached $ 18 billion in 2020, according to Euromonitor. That’s just 3% of the $ 600 billion dairy industry.
“The runway is huge,” Autory CEO Toni Petersson said in a conference call with the media Thursday.
Like the flexitarians who boosted the rise of plant-based meat substitutes, and like the success of Beyond Meat’s 2019 IPO, oats are becoming more and more consumers with oat-based drinks, yogurt, and ice cream. Say to try. In the last three months, 35% to 40% of adults in the United States, United Kingdom, Germany, China and Sweden have purchased plant-based alternative milk, Autoley said.
Sale of fast-growing oat milk
Oat milk growth outperforms other plant-based beverages. According to Nielsen, sales of oat milk in the United States increased 131% from last year to $ 304 million. Sales of soy milk, rice milk and coconut milk in the United States were lower than last year, and sales of almond milk increased by 9%.
Competitors are watching carefully. Chobani, a Greek yogurt maker, started selling oat-based yogurt and oat milk last year. Silk, which started as a soymilk maker in 1977, announced oat milk in 2018.
Companies are also experimenting with other varieties. Nestlé recently launched milk made from peas, but Israeli and Singapore startups make cow milk from cells.
But Peterson said he was confident that oat milk still had power.
“We’ve been scanning the world’s crops for 30 years and there’s no better premium. We know that oats offer,” says Peterson.
It goes well with coffee
Cara Rasch, an analyst at market research firm Packaged Facts, said one of the reasons for her success was the mild and pleasant flavor of oat milk, which goes well with coffee.
According to Rush, many consumers see this as a healthier alternative to dairy products. One cup of Autry whole milk has lower calories, fat, sodium and cholesterol than comparable whole milk. However, milk is high in protein, low in carbohydrates, and rich in naturally occurring vitamins and minerals.
Oat milk requires less land and energy to produce and emits less greenhouse gases than dairy milk. However, according to a 2018 Oxford University study, it outperforms other plant-based alternative milks in terms of environmental impact. For example, almond milk requires more water because rice farming has more fertilizer spills than oat milk and almond trees are grown primarily in drought-prone California.
“We are here to make the world a better place. I know it sounds stupid, but it’s true,” Peterson said.
The roots of oats date back to 1995, when a group of scientists at Lund University developed the world’s first oat milk. The group began selling milk under the name Oatly in 2001 and gradually added other products such as ice cream and yogurt.
The company grew slowly until 2012, when it appointed a new management team led by Peterson, an outsider who has led several startups. Oatly entered the US market in 2017 and entered China in 2018.
In 2020, Oatly’s revenue more than doubled to $ 421.4 million. According to Petersson, Oatly was hit by the coronavirus closing its coffee shop, but it was offset by a surge in grocery and e-commerce sales.
Oatly’s full-year net loss increased from $ 35.6 million in 2019 to $ 60.4 million due to heavy marketing and increased production costs. Oatly currently has four manufacturing plants around the world, three more under planning or under construction. Petersson said the revenue from the IPO will be used to increase production capacity.
A total of 84.4 million shares of Autory were offered at the IPO on Thursday. Oatly provided over 64 million shares, while some of the company’s shareholders provided the rest.
Last July, Oatly sold a 10% stake in the company to a group of investors led by The Blackstone Group for $ 200 million. Among those investors are Winfrey, actress Natalie Portman, former Starbucks CEO Howard Schultz, and Jay-Z’s entertainment company Roc Nation.
The world’s largest oat milk company, oats is released
Source link The world’s largest oat milk company, oats is released