Oatly, a plant-based dairy company whose celebrity supporters include Oprah Winfrey and Natalie Portman, saw its stocks rise during the launch on the stock market.
The Swedish company has set its original share price to $ 17 each, but that went beyond $ 22 during debut open trade, which valued Oatly at more than $ 13bn (£ 9.2bn).
Demand For Vegan Products On The Rise
US listing is an indication of the increase in non-dairy products.
This is followed by other food brands following plant based products that have gone public, such as the vegan burger maker Beyond Meat.
Oatly is raising $ 1.43bn from the initial public offering, that the chief executive Toni Petersson said will be used to expand the production capacity.
“That’s why the time is right now… it is perfect for us from a business perspective,” he said.
“We are bringing new capacity on board every single quarter this year. Our growth completely relies on our supply and our ability to do that.”
About The Non-Dairy Company
Oatly, founded in the 1990s and producing a substitute dairy made of oats, has grown rapidly over the years.
Its oat milk is now sold in 60,000 stores and more than 32,000 coffee shops in 20 countries. Its product range has been expanded to include yogurt and ice cream.
Other celebrity investors in the company include Jay-Z and Natalie Portman, and received investment from state-owned company China Resources and Verlinvest, a Belgian investment company.
When it was launched in the US in 2016, the product was very popular and saw a shortage. It now has partnerships with major companies such as Starbucks and has recently agreed to partner with major commerce company Alibaba in China.
Expansion Plans
Oatly is also expected to open its first UK factory in Peterborough in 2023, creating at least 200 “job” opportunities.
The unit will be able to produce up to 300 million liters of oat milk per year at its launch.
“It is one of the largest markets in Europe for us and it is growing really strong – that is where we put our plans first, said a top executive.
“It’s a great place to reach out to people and where the consumer is – and that’s what’s important to us.”
Researchers have predicted that the market for alternative dairy products is likely to double in the next five years, as growing allergies to milk and concerns about the environmental impact of milk prompt consumers to look at plant-based options.
And while Oatly sales are increasing, its losses have increased due to spending money on marketing campaigns, researching new products and opening new firms.
Its total loss by 2020 reached $ 60.4m, up from $ 35m last year, while sales doubled to $ 421m, according to regulatory inclusion.
