Oat Haus Moves Production to Cleveland
Five years after launching its signature oat-based granola butter, Oat Haus has opened a new growth phase by leaving its 11,000 sq. ft. manufacturing facility in Philadelphia and moving into a 45,000 sq. ft. manufacturing and fulfillment facility in Cleveland.
“We were limited on space, but more so we were limited on electrical power and capacity. Essentially, we could only run a few machines at a time,” founder and CEO Ali Bonar told NOSH. “Because we bake and blend, a lot of the equipment takes a toll on power and it was really slowing us down.”
Although Bonar doesn’t have any ties to Cleveland, she said Oat Haus landed on leasing this specific plant (the brand owns the equipment inside) due to its affordability and electrical capabilities. In its new home, Oat Haus has the capacity to reach more than $50 million in revenue and hopes to do so over the next seven years, according to Bonar. A facility in Hudson Valley, New York, was also considered, but the timeline didn’t work out.
Oat Haus will operate out of the Cleveland facility until the founders exit or the brand gets acquired, which Bonar hopes will happen in the next three to five years. Upon the move’s completion, Oat Haus is looking to hire a full-time plant manager, five fulfillment team members and 15 production employees.
On Monday, the brand reopened its TikTok Shop storefront and resumed shipping orders through its website after pausing both retail platforms while moving to Cleveland.
After struggling to find a nut-based spread she could digest, Bonar launched Oat Haus in 2018. The brand’s flagship Granola Butter line – available in Original, Cookie Dough, Vanilla, Strawberry Shortcake, Birthday Cake, Brownie Batter, Cinnamon Roll and Chocolate Birthday Cake flavors – is top eight allergen-free and crafted with ingredients like oats, maple syrup and ginger.
The brand’s granola butter is currently available in approximately 3,000 retail doors across the U.S., such as Erewhon, Fresh Thyme and Sprouts, among others.
Actress and social activist Jameela Jamil, founder of mental health and body neutrality platform I Weigh, joined Oat Haus as an investor and social impact advisor in 2021.
“It has always been I Weigh’s mission to help people around the world reclaim all the wasted energy that comes along with disordered eating,” said Jamil in a press release. “I love the product, Ali’s story and Oat Haus’ mission, so getting involved with the company in a more meaningful way made a lot of sense.”
The market for allergen-free food is projected to grow at an 8.6% CAGR between 2020 and 2030, according to a report from Future Market Insights. In a comprehensive research report from FMI – The Food Industry Association’s The Food Retailing Industry Speaks 2022, more than 38% of retailers said they are increasing the space they allocate to allergen-free products.
Correction: A previous version of this story incorrectly stated Oat Haus’ products are available in 1,200 retail doors. The products are actually available in 3,000 doors. Additionally, the brand’s granola butters no longer contain flax.
