Oatly recordsdata for IPO | Meals Dive

Dive Transient:

  • Oatly confidentially filed for an preliminary public providing with the U.S. Securities and Trade Fee, the corporate introduced Tuesday morning. 
  • No info was out there Tuesday on the corporate’s complete valuation, the variety of shares it proposes to have, its share worth or its potential ticker image, although Bloomberg reported earlier this month the corporate was contemplating looking for a price of $10 billion. The IPO will happen after the SEC completes its overview of Oatly’s submitting.
  • Hypothesis has been operating excessive for greater than a yr about Sweden-based Oatly’s potential IPO. Oatly, which created oat milk within the Nineteen Nineties, has been a red-hot enterprise story in the US and worldwide up to now few years, particularly in the course of the pandemic. Oatly is following within the footsteps of different fashionable plant-based manufacturers which have gone public, together with Past Meat, which had its IPO in 2019, and Laird Superfood, which listed final yr.

Dive Perception:

Opposite to the “wow, no cow” lyrics of Oatly CEO Toni Petersson’s tune within the model’s first Tremendous Bowl business, it might be about time for traders to have a cow.

Oatly has been one of many hottest manufacturers in meals within the latest previous. Ever because the firm’s oat milk first appeared in U.S. espresso outlets in 2016, it has been the must-have dairy substitute. Its creamy texture, comparatively impartial style, sustainable farming credentials and plant-based elements have made it standard with shoppers.

As individuals have spent the previous yr largely of their houses due to the COVID-19 pandemic, that recognition has skyrocketed. By means of Oct. 3, 2020, greenback gross sales of oat milk have been up 212%, posting the most important enhance of any meals merchandise in comparison with 2019, based on Nielsen. Oat milk is now the second hottest plant-based milk in the US, based on SPINS.

Oatly has been in entrance of that progress. In 2019 it produced 165 million liters of oat milk for patrons worldwide — 93% greater than in 2018, based on the corporate’s sustainability report. Oatly’s gross sales grew 88% worldwide in 2019, and it had a turnover of $206 million, the report says. Apart from its signature plant-based milk, in the US the corporate additionally sells Oatly frozen desserts and non-dairy Oatgurt.

In July, Oatly offered a $200 million stake — roughly 10% of the corporate — to a bunch of traders together with Blackstone Development, Oprah Winfrey, Natalie Portman, Jay-Z’s leisure firm Roc Nation and former Starbucks CEO Howard Schultz. Oatly mentioned this funding would assist develop the corporate’s manufacturing capability and enhance distribution in Asia, Europe and the US. On the time of this funding, The Wall Avenue Journal reported Oatly had as soon as been worthwhile however misplaced cash in recent times because it invested in its enterprise.

The rumors that Oatly would go public have been rampant, and traders have been excited in regards to the probability to place cash into the plant-based firm. Till this morning, Oatly by no means immediately commented on whether or not it might pursue an IPO.

“The expansion that we’re seeing throughout markets — Europe, United States, China — is constant,” Oatly North America President Mike Messersmith mentioned in an interview with Meals Dive in November. “…The aim of the corporate, the crucial, from a local weather and sustainability standpoint to proceed to develop and scale is on the entrance of our minds, and current even because the starting.”

Whereas Oatly is a really completely different firm from Past Meat, that firm’s inventory charts reveals a doubtlessly worthwhile path ahead. Past Meat initially went public at $25 per share in Might 2019. In its first yr, its share worth went as excessive as $138.95. Even by means of the tough patches final spring, as foodservice shutdowns associated to the coronavirus pandemic reduce into Past Meat’s gross sales, its share worth did not dip beneath $50. As traders await Past Meat’s subsequent quarterly outcomes this week, it is buying and selling at greater than $140.

Even because the coronavirus pandemic is starting to abate, the recognition of oat milk is predicted to continue to grow. Oatly’s big gross sales progress, its sustainability commitments, and continued innovation will preserve the model standard. And if the corporate remains to be falling quick on income, an IPO is prone to enhance it again into the black. In line with a reality sheet from legislation agency Orrick, it usually takes the SEC 90 to 150 days to overview filings for an IPO, so Oatly might be the most well liked factor each within the dairy case and the inventory alternate this summer season.

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