The Swedish oat milk maker has debuted on the US stock exchange with a market value near $10 billion. The IPO's success highlights a growing mainstream market for alternatives to animal products.
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Oatly shares opened its first day of trading on Thursday at $22.12 — a 30% jump from the $17 set for the initial public offering (IPO) — giving the company a stock market valuation of $13 billion. The Swedish vegan food and drink makerraised a total of $1.4 billion (€1.2 billion) from the listing, as it sold over 84 million American depositary shares at $17 (€14) a piece, the top of its marketed range.
The IPO highlights growing investor interest in plant-based products, as more and more restaurants and food retailers respond to a demand for sustainable alternatives to dairy products.
Founded in 1994 by brothers Rickard and Bjorn Oste, today Oatly sells dairy alternatives in over 20 markets across Europe, the US and China. The company uses a technology developed at Sweden's Lund University to create oat-based milk, yogurt, and ice cream products.
Celebrity backing
Last year, Oatly raised $200 million in an investment round that attracted buy-ins from the actress Natalie Portman, American TV personality Oprah Winfrey, rapper Jay Z and former head of Starbucks Howard Schultz. At the time, the deal valued the company at $2 billion.
In March, Starbucks began offering Oatly oat milk in all of its US stores, and unveiled several new oat milk-based drinks, including the Honey Oatmilk Latte and the Brown Sugar Oatmilk Iced Shaken Espresso. Shortly after, fans were dismayed when many Starbucks ran out of the product. The temporary shortage was due to an increased demand for oat milk coinciding with supply chain difficulties caused by the pandemic, according to a report by Bloomberg.
10 food choices that help the planet
With everything from meat contamination scandals to concern about climate change, more and more people are turning to a vegan diet. But, here are 10 other ways to eat in an environmentally-friendly way.
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Eating naturally
With everything from meat contamination scandals to concerns about agriculture's climate change impact in the news these days, more and more people are turning to a vegan diet. But, there are other ways to eat in an environmentally-friendly way too. Free-range meat products are now commonplace. Rarely, though, are cows raised in such a paradise as this alpine meadow.
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Vegan cuisine
In the 1970s and 80s, eating vegetarian, and especially vegan — abstaining from animal products completely, like milk and eggs — was not part of the mainstream. Nowadays, things are changing. Jonathan Safran Foer's book "Eating Animals" sparked thought about the meat people eat. More vegan restaurants are sprouting up all over the place; here are some dishes from 'Pêle-Mêle' in Berlin.
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Carbon and water impact
Eating vegan can reduce carbon footprints and water usage worldwide. The UN's Food and Agriculture Organization (FAO) estimates that the meat industry generates nearly one-fifth of human-made greenhouse gas emissions contributing to climate change. Scientists also say that 13,000 to 15,000 liters of water are needed to produce just one kilogram of beef.
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Pork with a smile
With the recent scandal surrounding Dutch horsemeat being sold as beef, more Europeans are now simply choosing to eat meat less. But, for those that can't do without, the "Meine kleine Farm" (My little farm) concept tries to achieve transparency with consumers. It aims to give each animal it sells as meat a proper identity.
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Knowing what you're getting
The Potsdam-based farm has a website showing the living conditions of the animals and giving customers a chance to vote online about which animal they want slaughtered next. Since they mainly sell to customers in the nearby region, the 'Meine kleine Farm' project also helps to keep transportation routes — and thus greenhouse gases — to a minimum.
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Local food at farmers' markets
Eating locally and in season also helps reduce greenhouse gases because it cuts out long transportation routes. Canadians Alisa Smith and J.B. MacKinnon argued for local cuisine in their book, "100-mile diet: A year of local eating." The couple spent one year eating foods from within one hundred miles of their home. Self-preserved foods got them through the winter.
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Large-scale monocultures are vulnerable
The modern industrial agriculture practice of cultivating monocultures, such as corn and soy, can make the crops more susceptible to pests and diseases. This, in turn, promotes the widespread use of pesticides. Small-scale farmers, on the other hand, often promote crop diversity which makes plants naturally more robust, even in periods of drought.
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Berlin's Princess Garden
Cultivating one's own crops is possible even in big cities, as shown by the "Princess Garden" project right in the middle of Germany's capital, Berlin. Crops are grown and consumed locally, with food dishes offered as business lunches at an on-site café. The urban farmers here say gardening raises awareness about the environment and, since the garden is shared, they make friends along the way too.
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Reduce food waste, save resources
With Germans throwing away an estimated 20 million tons of food a year, food-sharing has become one of the latest environmentally-friendly trends. Restaurants or grocery stores donate still-edible food that they can no longer use to charity organizations. Foodsharing.de is an internet portal where people can swap food they won't be able to eat.
Image: Dietmar Gust
Healthy benefits
Many dietary experts argue that a vegetarian or vegan diet can be good for your health too. Various studies show that a decrease in daily meat consumption may reduce the risk of cancer, cardiovascular disease, diabetes and obesity.
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Plant-based goes mainstream
The demand for plant-based food and drink products is being pushed by younger consumers, who take greater consideration for health, sustainability and animal welfare in their choice of food and drink. Using the tagline "It's like milk, but for humans," Oatly markets itself as good for animals and good for the planet.