Oatly IPO Picture

Oatly’s public debut has started promisingly: The shares opened at $ 22.12 on Nasdaq Thursday. These are 30% above the planned market price start of 17 US dollars per share. This seems to be a good sign not only for the 27-year-old Swedish company, which sells versions of milk, ice cream and yogurt based on oats, but also for the booming industry of vegan Alternatives to dairy and meat products.

These alternatives will increasingly produced by multinational companies and old dairy brands – and as Oatly acknowledged in its IPO filing, the fact that such companies have “substantially greater resources and operations than we do” could pose a risk to their business.

In addition to established milk alternatives such as the Silk Line by Danone shall Nestlé, with a pea-based milk called Wunda active, and Unilever also plans to increase sales of its vegan and dairy-free products. The American milk titanium HP Hood also brought its Planet Oat-Milk on the market.

But Toni Petersson, CEO of Oatly, made up his mind during a call with reporters on Thursday no worries about competition. He relies on the ability of consumers to distinguish between companies that simply bet on the latest food trends and companies that really try, develop environmentally friendly products.

“The way I see it, we’re here to try to make the world a better place. We are not trying to put a product on the shelves just because it is a healthy growing category and a business opportunity. These two things are two different ways of thinking about running the business, and that’s what consumers can see and feel.”- Toni Petersson

Translated by Coincierge

Oatlys sustainable Branding

Oatly Oat DrinkIt is true that Environmental awareness is the core of Oatlys Branding. One of the main selling points of the company is that Oat milk has a lower carbon footprint and less water and Land consumed than cow’s milk. Oatly’s products in Europe are, for example, with Information about their carbon impacts marked. In addition, the company switched from diesel vans to a fleet of electric vehicles last year.

It is also true that the Public “Wokewashing” hates. A phenomenon in which big brands take a stand on environmental or social issues, but their actions contradict the positions. Ethical consumption is a growing force in shaping people’s shopping habits, especially for younger generations.

However, it remains to be seen whether consumers will like Be able to identify Wunda necessarily as a Nestlé product and Oatly has also come under criticism for selling a $ 200 million stake to a group of investors in the private equity firm Blackstone. Some consumers have argued that Blackstone (which has been accused of contributing to deforestation in the Amazon) is at odds with Oatlys declared sustainability values.

What is the definition of “milk”?

Oat Milk from OatlyAnother notable moment during Thursday’s conversation was when Petersson posted a proposed a new definition of” milk”. This is a common problem for Oatly, as the company is not allowed to refer to its products as “milk” in Sweden, and in Litigation involving the dairy industry over the use of the word and the use of packagingwhich are usually associated with dairy products.

According to Petersson, what constitutes milk is not whether it comes from a cow or another animal. Rather, Oatly defines milk as „liquid food that serves human nutritional needs“. However, this does not mean that an old drink can lay a claim to the milk coat in the supermarket’s cooling aisle. “Some are just drinks,” he said.

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