SWEDEN'S Oatly and Singapore's food and beverage (F&B) manufacturer Yeo Hiap Seng (Yeo's) will jointly invest S$30 million in equipment and facility to produce the vegan milk producer's popular oat drink in Singapore, in what is seen as a coup for the Singapore heritage brand and the nation as a high-tech manufacturing hub.
$Oatly Group AB(OTLY)$- which raised US$200 million in July 2020 from celebrities including Oprah Winfrey, Jay Z, Natalie Portman as well as high profile investors like former Starbucks chairman and CEO Howard Schultz and private equity firm Blackstone - has chosen Yeo's as its first Asia supplier and its Senoko Way factory in Singapore as its manufacturing location after strict due diligence.
This will be the first time the Swedish company will be producing its popular oat milk brand, Oatly, outside Europe and North America.
What’s the case for buying?
If you think oats are the future. Oat milk, which was essentially nonexistent in the U.S. before Oatly’s entrance, saw a 151% jump in sales in dollar terms at retail outlets during the 52-week period ended March 13, according to NielsenIQ. SunOpta Inc., an organic food maker, jumped on news that Oatly was set to open above its IPO price, indicating that investors have an appetite for more environmentally friendly stocks.
If you believe in inflation. Dairy-based milk is still cheaper than alternative products. Inflation could change things: The price of milk and butter has remained largely flat, but as lockdowns end and consumer demand for dairy increases, costs could rise, making alternatives like Oatly more attractive
How many shares of oatly do you own?
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