Oatly Becomes The First Vegan Milk Company To File For An IPO

26 February 2021

With sustainable trends at an all-time high, the plant-based milk market is growing at a never-before-seen rate. Amidst this trend, the Swedish oat milk company Oatly has made an Initial Public Offer which is rumoured to seek valuation at 10$ Billion in a U.S. listing.

Oatly filed for the IPO confidentially some time after it gained investors such as musician Jay-Z, philanthropist Oprah Winfrey and actor Natalie Portman in July 2020. Oatly is currently holding discussions with advisors, and according to reports, the company might enter a New York listing in May, although the timing and size of the IPO are tentative. 

Oatly CEO Toni Petersson (L) and Investor Oprah Winfrey (R)

Oatly has taken the plant-based market by storm since 2017 with its Barista Edition oat drink which was launched in cafes in the U.S. Since then, the brand has expanded its portfolio and launched plant-based ice cream and yoghurt in selected locations.

Oatly is popular for its witty advertisements and its campaign against the EU ruling called Amendment 171. This bans vegan brands from using words such as ‘milk’, ‘yoghurt’ or any other dairy-related terms on their labels, including phrases such as ‘does not contain milk.’

Image Courtesy: Oatly

The brand was hit with controversy in 2020 when it signed an investment deal with Blackstone, a firm linked with deforestation in the Amazon. Oatly commented that the investment was a necessary step for the company to “boost the global sustainability movement to new heights.”

In 2019, the Los Angeles-based brand Beyond Meat became the first plant-based meat company to make an IPO, which increased its shares by 163% on the very first day.

In India, brands like Goodmylk, So Good, Sofit, Borges and Urban Platter constitute a chunk of the plant-based milk market. The rise in demand for plant-based products has also led Indian alternative protein companies like Gooddot to expand internationally.