Swedish oat milk brand Oatly Group AB is undergoing a significant strategic shift. According to informed sources, the senior management team responsible for Oatly's Greater China operations is considering a buyout of the business, with substantive discussions already underway, aiming for completion as soon as within 2026.
This development follows the strategic review of the Greater China business initiated by the company starting in 2025. At that time, the company engaged JPMorgan as a sell-side advisor to evaluate options including a spin-off, sale, or bringing in strategic investors. It is disclosed that Zhang Chun, President of Oatly Greater China, is one of the leaders of this potential acquisition. Zhang Chun joined the company in 2017 as its first employee in Asia, building the team from scratch and pioneering the "coffee channel breakthrough" model, successfully establishing Oatly oat milk as a standard offering for chain coffee brands like Starbucks and Luckin.
Financially, Oatly Greater China's recent performance has been mixed. For the full year 2025, the region achieved revenue of $130 million, a 13.1% year-on-year increase, making it the company's fastest-growing region; retail channel revenue for the full year grew significantly by 150%. However, in the first quarter of 2026, Greater China revenue declined 2.1% year-on-year to $29.3 million, primarily dragged down by a drop in foodservice channel sales; adjusted EBITDA also swung from a profit of $1.6 million in the same period last year to a loss of $0.8 million.
Simultaneously, financial pressure on the Oatly Group as a whole is intensifying. The company achieved its first positive adjusted EBITDA in 2025, but still recorded a net loss of $153 million for the full year. In Q1 2026, the net loss widened further to $12 million. Over the past 12 months, Oatly's stock price has fallen by more than 35%, with its market capitalization shrinking to approximately $257 million.
If this management buyout is ultimately completed, Oatly China would transition from a wholly-owned subsidiary of the headquarters to an independent enterprise controlled by the local management team, achieving fully localized operations. Analysts note this model could help maintain business continuity, avoid talent drain, and potentially open new avenues for the brand's long-term development in the Chinese market. However, the relevant discussions are still ongoing, and whether a transaction will be finalized remains uncertain.
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