Oatly Files for IPO

Plant-based dairy alternative products maker Oatly submitted plans for an initial public offering (IPO) to U.S. regulators, the company confirmed today.

“We’ve taken the first official step towards pursuing a potential IPO by submitting a confidential F-1 registration statement with the Securities and Exchange Commission in the United States,” said Oatly spokesperson Sara Fletcher in a statement to BevNET. “However due to the confidentiality of the process we have no further comments.”

The announcement follows reports last month that the Sweden-based company was exploring a potential $1 billion IPO. Oatly is reported by Reuters to have hired Morgan Stanley, JPMorgan and Credit Suisse as underwriters on the offering.

Reuters reported that the brand could be valued as high as $2 billion.

Oatly reported $51.2 million in retail dollar sales in the U.S. for the 52-week period ending December 27, 2020, according to market research firm IRI, up 241.7% 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.

Though Oatly has been broadly recognized for bringing the oat milk trend to the U.S., exemplified by its on-premise launch strategy in 2017 that focused on placing the brand in premium chain cafes, the company’s oat milk business has faced stiff competition in retail. According to IRI, HP Hood-owned Planet Oat currently leads the category in MULO, up 203.6% year-over-year to $77.7 million.

In 2019, Oatly expanded its U.S. business outside of beverage with the launch of a line of oat-based ice creams. The company has since added a line of non-dairy yogurts.

Last year, the company announced a partnership with Starbucks to place its oat milk in select stores around the country. Oatly has also partnered with coffee makers including Stumptown, Red Hat Coffee and most recently Intelligentsia to launch RTD oat milk latte lines in retail.

Last July, Oatly raised $200 million in an equity funding round led by Blackstone Growth, which also included investments from Oprah Winfrey, actress Natalie Portman and former Starbucks CEO Howard Schultz. Oatly CEO Toni Petersson told BevNET at the time that the company had a long growth runway with just 19% ACV in the U.S.

In addition to Blackstone, Roc Nation (owned by rapper Jay-Z), Orkila Capital and Rabobank’s Rabo Corporate Investments have also invested in the brand. A joint venture between Verlinvest and China Resources holds a controlling interest.