Oatly’s Business Partnership With Starbucks
Starting on March 2 of this year, Oatly will be launched at Starbucks locations across the US through a variety of oat milk products along with as a dairy substitute in other products. The new products include the Iced Brown Sugar Oatmilk Shaken Espresso and Honey Oatmilk Latte, both of which will be available nationwide. This is a major step for the company as coffee shops have remained a big part of their business expansion, giving consumers an easier way to try oat milk before committing to a purchase of a larger container at a grocery store.
The relationship between both businesses is one of mutual benefit. For Starbucks, the massive popularity of oat milk along with the environmental sustainability of it plays well into the efforts being made by the company to cut down on carbon emissions while also giving the consumer a product that is seeing higher overall demand.
Oat milk as a whole has grown significantly in popularity over the last year, with US sales for the product rising by 170% over the last 52 weeks. Adding to this is the plethora of major companies such as Silk and Chobani, who have recently created oat milk products of their own in attempts to compete with smaller, but more established businesses like Oatly.
Oatly’s IPO and Possible Valuation
Earlier this week, Oatly filed confidentially for an IPO as the business looks to go public, capitalizing on the ongoing growth and popularity of their product. Before any announcement with Starbucks had been made, speculation on the value of the business already stood around $5 billion, with some experts even predicting the value to reach $10 billion.
Morgan Stanley, JPMorgan, and Credit Suisse will be the global coordinators for the IPO, and the company could go public as early as this summer. Given the expansion of the plant-based food and beverage business as well as the new product line at Starbucks, Oatly has been growing incredibly fast in the last few months. Oatley’s IPO this year feels well-timed both for the company and possibly for investors as well.
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.