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The world’s largest manufacturer of oat milk has a market value of $10 billion this week, which is the latest sign that the ongoing plant-based dietary trend has not faded.
Oatly, headquartered in Sweden, conducted an initial public offering on Nasdaq this week, raising $1.4 billion in funds and selling shares to the public at a price of $17 per share.
By Friday, these stocks changed hands at a price of more than $21 per share, enough to make the company worth more than $10 billion.
This is not bad for a company that sold about $400 million worth of milk, ice cream, yogurt and butter substitutes last year, and is expected to double that number in 2021.
Although they seem to be new entrants in the field, Oatly has actually existed for nearly 30 years. The company was founded in Malmö, Sweden in 1994 and has quietly accumulated an impressive list of financial backers over the years, including Oprah Winfrey, actor Natalie Portman ( Natalie Portman), rapper Jay-Z and Starbucks founder Howard Schultz (Howard Schultz).
The company’s recent success is an example of how the food industry reflects the growing demand for environmentally friendly products.
Oatly CEO Toni Petersson told investors before the IPO this week: “We are here to improve the world.” “I know it sounds stupid, but it’s true.”
Watch | How can diet reduce carbon footprint:
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Meat substitution company Beyond Meat pushes plant-based diet to climax Its 2019 IPO. At the time, the company’s $1.5 billion valuation seemed unbearable, but within six months, its market value inflated by nearly 10 times. Today, the company’s stock has changed hands at a price of just over $100 per share-still four times the issue price of $25.
More and more money is pouring in. Just this week, Toronto rapper Drake Bitten chicken substitute producer Daring Foods Inc., As part of the US$40 million financing activity.
Drake said in the press release: “The bold team immediately changed our way of eating, which fascinated me, and I am very happy to invest in and support the products I love.”
Canada is no exception. Small startups include Vancouver’s vegetarian grocery store PlantX with Edmonton-based packaged food manufacturer Nabati Foods Both parties have announced plans to expand and expand production capacity in recent weeks.
First meat, then dairy products
Although meat substitutes are the number one taste of the month, the dairy aisle is quickly becoming the latest frontier in the struggle to meet the growing demand for plant-based diets.
Currently, plant-based milk substitutes account for approximately 12% of the global market, but in some places, this proportion is larger than in others.
Emma Letheren, a capital markets analyst at Royal Bank of Canada, said in a recent report: “Due to the high tolerance of Asians to lactose, milk substitutes have become far more important in the Asian diet. Far more than anywhere else.” She pointed out that Asian countries/regions have consumed nearly US$10 billion worth of beverages made from soybeans, nuts and oats each year.
Letheren said that the North American market is worth slightly more than $3 billion, but is growing rapidly. Although nut-based milk dominates, rice and oat-based products have surpassed soybeans and are growing rapidly.
Robert Carter, managing partner of the consulting firm StratonHunter Group, said that this is why oatmeal has quickly become the largest player in the field, and he has been paying close attention to the food business.
In an interview with CBC News, he said: “They can perform well in front of consumers without much marketing.”
“This does show sudden growth, but there is still a lot of room for growth.”
Only two days after listing, Oatly is actually more valuable than Beyond Meat. Carter said this is mainly because it has become the latest hot name in a broad investment trend driven mainly by millennials and Generation Z, who invest their money in products with a lighter environmental footprint.
Oat milk consumes less land and energy than milk, and emits fewer greenhouse gases. But according to a scientist, it also beats other plant-based milk substitutes in terms of environmental impact. 2018 Oxford University Study. For example, rice cultivation causes more fertilizer loss than oat milk, while almond milk requires more water, because almond trees mainly grow in drought-prone California.
Carter said: “They are very active in promoting the reduction of greenhouse gas emissions and reducing land use.” “All these things that the dairy industry will not actually be able to do. [claim.]”
Bloomberg Intelligence analyst Jennifer Bartashus said that “rapid, fast-growing categories” such as milk substitutes are now dominating the plant-based food sector, but Investors are keen on the same reasons as “beyond meat”.
“[They’re] Driven by health and sustainability issues, take advantage of consumer trends away from dairy products. “
Martin Pelletier, the portfolio manager of Wellington-Altes private lawyers, said that enthusiasm for electric vehicles and the like was a major investment trend a few years ago, and now the food industry is eager to save the world.
“People are paying attention to climate change, [saying] He said in an interview: “How do we find more environmentally friendly food alternatives. Maybe it’s oat milk.”
Pelletier said it is difficult to accept the idea that oats will convert enough dairy drinkers into plant drinkers to justify its long-term high valuation, but at least in the short term, the company There must be enough motivation to make money-this is no different from other companies. The asset class is popular with young investors.
He quipped: “Oatmeal milk: the new cryptocurrency.”
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