If you’re looking for an Oatly stock IPO, you’re in luck. They went public around May of 2021 and trade under the ticker $OTLY. Non dairy milks are becoming quite the thing lately. So being able to invest in the company of Oatly will be very tempting.
What Is Oatly?
Oatly is a Swedish-based company that is one of the leading names in the alternative milk industry; which is quickly becoming a staple at most grocery stores and restaurants. This particular brand specializes in oat milk and oat-based dairy alternatives.
They have some big celebrity name-brand appeal behind it. We continue to learn more about the environmental consequences of dairy farming, as well as gaining access to healthier options. Therefore, the alternative dairy sector should continue to grow into the future.
An estimated 68% of the world’s population suffers from one type of lactose intolerance or lactose malabsorption. Which illustrates just how much of a need for non-dairy milks there truly is. From oat to almond, cashew, coconut, and rice, the options for alternative milks continue to diversify as the global demand increases. Therefore, we could be seeing an Oatly stock IPO coming sooner rather than later.
Can I Buy Oatly Stock?
Companies are continuing to try and take advantage of a frothy market that’s filled with euphoria in the current environment of low interest rates and stimulus packages being injected into the economy. Could we see an opportunity to buy Oatly stock at some point this year?
The most recent round of capital raising with investors has reported that Oatly is seeking a $10 billion valuation for its U.S. IPO. Which could come as early as May.
Oatly is also exploring the option of a debut on the Hong Kong stock exchange as well. But for now it seems as though the U.S. markets are what they’re targeting. The new valuation is a little surprising given a previous round in June of 2020, valued Oatly at only $2 billion.
Plus, it’s always encouraging when a company has some serious name power behind it. And Oatly has just that with celebrities like rapper Jay-Z, Oprah Winfrey, and vegan activist Natalie Portman.
Celebrities don’t sway you? How about a massive stake from investment heavyweights the Blackstone Group; which currently has 10% ownership of Oatly.
Did we mention a key member of that Blackstone Group committee includes none other than ex-Starbucks CEO Howard Schulz? Needless to say, Oatly is being guided by some titans of the beverage industry.
Is There Any Competition for Oatly Stock IPO?
The great thing about an Oatly stock IPO would be that there isn’t much competition on the market. Investors who want to invest in the alternative milk industry may have no other choice right now but Oatly stock. Let’s take a look at some companies that may have an impact on Oatly in the market.
Beyond Meat (NASDAQ:BYND): A pioneer in the vegan/plant-based industry, Beyond Meat quickly rose to fame as the hottest and best-performing IPO stock from 2019. Beyond Meat has rapidly spread its usage in the restaurant industry. Signing deals with well-known chains like A&W, Carl’s Jr., Dunkin Donuts, and Taco Bell. Beyond’s stock currently trades at around $165 per share. The company has a market cap of just over $10 billion.
Impossible Foods: The chief rival to Beyond Meat, Impossible isn’t a publicly traded company. Although there have been whispers that it’d be seeking an IPO at some point in 2021. The Redwood, California based brand has an impressive lineup of high profile clients; including celebrity chef David Chang’s Momofuku, Burger King, Little Caesars, Disneyland Resorts, White Castle, and The Cheesecake Factory.
Starbucks (NASDAQ:SBUX): Perhaps Oatly’s biggest client is global coffee and beverage brand Starbucks. The Seattle based company already serves Oatly at all of its European stores as well as some in Asia. Announced that in 2021, Oatly would be served at every store in the United States as well. The brand is so committed to Oatly that it created specific menu items including the Oatly honey latte. Starbucks continues to push its meat and dairy alternatives in its crucial market of China. And serves Oatly specific drinks like the Oatly latte, Oatly Matcha Latte, and Berries Oatly Black Tea Macchiato. Starbucks also serves several food items that include Omnipork and Beyond Beef in China.
But Why Oat Milk?
Oat milk is rapidly becoming the alternative milk of choice for baristas around the world. The consistency and taste most accurately replicate dairy milk.
And it provides one of the best textures when steamed. As a coffee lover, I can tell you how important that is! Especially if you make your own drinks from home! It’s naturally sweetened ever so slightly. This helps to offset some of the bitter after tones of coffee.
In fact, it goes just as well when blended with tea or hot cocoa as well. If baristas in Europe are using it, you can probably bet that it’s good as that is one continent that takes its coffee and tea very seriously!
Which makes it promising for An Oatly stock IPO. You can invest or trade in a stock that makes coffee taste better. And you have think that that’ll make traders and investors excited!
How Do I Get Oatly IPO?
Good news for an Oatly stock IPO. As of mid-2021, Oatly went be on the market. Then you can drink your Oatly milk latte’s while you trade their stock. Sounds fun right? Hopefully, for us, it works out that way. Remember that IPOs can start off a little differently than we realize or think they’ll go.
It’s Not Just Tasty Though!
There are other reasons why people have gravitated towards oat milk, not the least of which is that its production has the smallest carbon footprint of all milks, dairy included. It isn’t something people often think about, but the environmental impact of food production has been a hot topic in recent years, so it’s nice to see that oat milk actually has the lowest greenhouse emissions of any of the alternative milks.
Firstly, oat milk is created from, you guessed it, oats. Oats are actually quite simple to grow and require about one-sixth of the amount of water to grow, than resource intensive nuts like almonds. Oats also use far less land to grow. When compared to a standard dairy farm, an oat farm requires roughly 80% less land. Oatly also uses 60% less energy which seems obvious as cows need to be tended to, as well as the machinery which milks them.
Oat milk is also quite healthy and nutrient rich, although this does always depend on which brand you choose. While dairy milk does have some nutrients that cannot be replicated in alternative milks, for the most part, protein content is comparable. At the same time, milks like oat milk come chalk full of extra vitamins and minerals that dairy milk simply does not contain, as well as a good source of dietary fiber.
Oatly in the Headlines
It’s not all rainbows and lollipops for the Swedish oat milk maker though. Oatly’s partnership with investment firm Blackstone raised some eyebrows as the group has been tied to things like the deforestation of the Amazon rainforest as well as being notoriously pro-Trump.
While political decisions should not be enough to boycott a brand, there is a fairly large overlap between Oatly drinkers and the anti-Trump community.
Oatly also made some waves with its controversial Super Bowl ad that cost them about $5.5 million for a 15 second spot. The commercial depicts colorful CEO Toni Petersson playing the piano in a field of oats. It wasn’t controversial in a bad way, but was rated the worst Super Bowl commercial by most media outlets. But hey, any publicity is good publicity right? The commercial got social media talking about Oatly, and that is exactly what the company wants as it prepares for a potential IPO later this year.
Oatly Stock IPO Conclusion
Whether you like the product or not, Oatly is here to stay as the dominant oat milk maker in the global market. With extremely valuable partnerships in the United States already established with Starbucks, Peet’s Coffee, and Dunkin Donuts, Oatly is well on its way to being the brand that becomes synonymous with oat milk.
But it’s not just milk they serve! Oatly has a full line of products that are available in grocery store chains across the country including Oatly on the go drinks, Oatgurt, oat milk ice cream, and even cooking products made of oat milk like whip oat cream and oat milk creamy spreads.
The company did several rounds of capital raising, and has joined forces with some very powerful names from both Hollywood and the financial industry. A $10 billion valuation would put them at about the same valuation as Beyond Meat, which also has a $10 billion market cap.
Should you buy the Oatly stock IPO? If you believe in a food industry disruptor that is already putting a serious dent into the big dairy sector. Combine that with a global brand presence and a production and processing model that is environmentally friendly and relatively low-cost, and you have all the makings of a company that could be a very well performing stock.