Reports: Oatly Exploring Potential $1B IPO

Brad Avery

Plant-based milk maker Oatly is expected to launch an initial public offering this year that could raise as much as $1 billion, according to media reports this week.

On Tuesday, CNBC reported that Oatly has hired Morgan Stanley, JPMorgan Chase and Credit Suisse to manage the offering.

The Swedish plant-based dairy alternatives maker launched in the U.S. in 2017 and is often credited with establishing the oat milk trend after it gained traction in the on premise channel, helping propel oat to one of the leading milk alternative formats.

Reached by BevNET, the company declined to comment.

According to market research firm IRI, Oatly reported $42 million in retail dollar sales in the U.S. for the 52-week period ending October 4, 2020, up 290.5% year-over-year. A 2020 report by Mergermarket said the global company generated over $200 million in revenue in 2019 and was expected to have doubled that last year.

Although Oatly has established itself as one of the most talked about and fastest growing oat milk brands in the market, the company has also faced tight competition in the cold case as brands such as HP Hood’s Planet Oat (which reported $62 million in dollar sales, up 308.9% per IRI) and Silk’s Oat Yeah ($29 million in dollar sales, up 184.8%) have gained market share.

In July, the company raised $200 million in a funding round led by Blackstone Growth and featuring a group of celebrity investors including Oprah Winfrey, Natalie Portman and former Starbucks CEO Howard Schultz. At the time, Oatly CEO Toni Petersson told BevNET that the company saw itself as a market leader but said the brand had a long runway to grow, noting it only had 19% ACV in the U.S.

Last summer, Oatly opened two new U.S. production facilities including a 30,000 sq. ft. plant in Millville, New Jersey and a 125,000 sq. ft. plant in Ogden, Utah. Petersson also said Oatly plans to expand its presence in the international market in North America, Europe and Asia.