New $ 30 million vegan factory bringing oats to Asia
Swedish vegan brand oats has partnered with Singaporean beverage maker Yeo Hiap Seng to bring Oatly’s oat milk products to Asia. The two companies will jointly invest $ 30 million to build a manufacturing facility in Singapore, managed by Yeo, to manufacture Oatly products for markets across Asia. Production is expected to begin this year.
The partnership complements Yeo’s leading position in the region’s soy milk market and will help drive growth across the plant-based milk segment. “This strategic partnership enables both companies to meet the growing demand in this region for plant-based dairy. Yeo has a long history of product innovation and we are already a major player in the dairy alternative segment through our soy portfolio, ”said Samuel Koh, CEO of the Yeo Group, to Media Outlet FoodIngredientsFirst. “We believe this segment will continue to grow exponentially as consumers become more aware of the impact their food and drink choices have on their health and the environment.”
In 2023, Oatly will also open its first UK non-dairy milk factory for product distribution in the region. The facility will be able to produce 300 million liters of oat milk per year and increase its production to 450 million liters per year. This makes it one of the largest vegetable milk factories in the world.
Oat milk for everyone
Oatly was founded in the 1990s by brothers Rickard and Björn Öste based on research from Lunde University. Their products are made using patented enzyme technology to convert high fiber oats into food products like oat milk, yogurt and ice cream. Oatly is now sold in more than 50,000 locations in 20 countries in Europe, the US and Asia. It was launched in Singapore last year and sold in supermarkets and online retailers.
Oatly has invested in stock giant Blackstone and celebrities like media mogul Oprah Winfrey, vegan actress Natalie Portman and former Starbucks CEO Howard Shulz. Earlier this year, the company filed plans to go public with the Securities and Exchange Commission to take the first step into a publicly traded company.