Oatly: $200 Million And $2 Billion Valuation

By Dan Anderson ● July 16, 2020
  • Swedish out-milk company Oatly has raised $200 million in funding led by Blackstone Growth

Swedish out-milk company Oatly has raised $200 million in funding led by Blackstone Growth. Additional investors in the round include Oprah Winfrey, Roc Nation, Natalie Portman, former Starbucks Chairman and CEO Howard Schultz, Orkila Capital, and Rabo Corporate Investments (the investment arm of Rabobank). 

Oatly’s patented original oatmilk had created the rapidly growing oatmilk category and the company is a leader in the plant-based food space. And its products available in over 50,000 locations in 20 countries. 

The new investors are joining the company’s existing partners including Verlinvest-CR JV and the company’s founders on the company’s journey. And as part of this transaction, Oatly’s founders will also reinvest in the company’s growth by providing additional capital.

The $200 million was in exchange for 10% of the company in a funding round that values Oatly at $2 billion according to a report by The Wall Street Journal. And with this round of funding, Oatly plans to expand its supplier network and offer a wider range of oat-based products. By bringing its facilities closer to consumers, the company will make the Oatly product range more readily available to the growing community of health and environmentally conscious consumers worldwide.

Last year, Oatly approximately doubled its sales to $200 million. And the company is expected to see a similar growth rate. But the company reported losses for the past few years due to investments in growth.

Key Quotes:

 “Leaders in asset management like Blackstone play an essential role in order to create real sustainable change. It is my belief that capital has to turn green and do so for the right reasons. Since we re-launched our brand in 2013, our focus has been to positively impact society by enabling people to change their lives with better, more environmentally responsible food choices, and in so doing, re-shape the food system to better contribute to the future of the planet. We chose to partner with Blackstone Growth because of their tremendous resources and unique reach. Our new partners’ commitment to supporting us and furthering of our mission is a clear indication of where the world is heading, which is in a new, more sustainable direction.”

— Oatly’s CEO Toni Petersson

“Oatly is a premier global brand whose product is committed to healthy and sustainable living with significant runway for continued growth to meet rising consumer demand. We are privileged to partner with Toni and the broader Oatly team to help the company extend its global leadership position in the years to come.”

— Jon Korngold, Global Head of Blackstone Growth

 “I am delighted to welcome to the Oatly family our new partners who share our commitment to supporting category-creating brands and sustainability. Since our initial investment in 2016, we have supported Oatly in its successful transformation from a Nordic brand into a global movement by delivering unique, high-quality engaging products, based on proprietary, patented oat-technology to the new emerging generation of conscious consumers in a transparent manner. We are thrilled as this new investment will accelerate the Oatly brand expansion in North America, Asia and Europe and allow for the emergence of a global leader in food sustainability.”

— Eric Melloul, Chairman of Oatly and Managing Director at Verlinvest

“Oatly has a creative and talented team, an incredible brand, and a strong set of values. We’re excited to invest in what they have built and to join forces with the Verlinvest-CR JV to ensure its continued success moving forward.”

— Ann Chung, Managing Director at Blackstone Growth