Milk it

$10 billion Swedish oat milk brand Oatly takes a stance on ESG

By AnsaradaWed Oct 20 2021IPO, Advisors, Industry news and trends

Oat milk

Interviewer: “So, tell me what your biggest weakness is.”
Oatly: “There are constant shortages because my oat milk is in such high demand.”

Earlier this year, the company that made milking oats sexy secured a valuation of nearly $10B. The Swedish food and beverage company founded before most WallStreetBets’ users were born (read: the 90’s) has struggled after its initial IPO pop - but in the words of RoaringKitty, analysts ‘like the stock’.

And for good reason. There’s a lot to like. Especially if you could secure a stake at the IPO price.

We can all agree that this was probably one deal toy every banker wished they had earned. Shares of the stock sold out more quickly than buy one, get one at Whole Foods… even if the roadshow was lactose-free.

The underwriters hawking Oatly shares had more than a few angles to lean into, like…


ESG (read: Environmental, Social and Governance) is the only three-letter investing theme hotter than ‘NFT’ right now. And Oatly’s vision for a more sustainable future of food stands at the forefront of the trend.

Here’s what Oatly had to say in its sustainability report: “At Oatly, our vision is to meet the climate emergency head on by driving a plant-based revolution and shifting toward a sustainable food system.” Although, for the record, it does not ask readers to ‘please consider the environment before printing the PDF’.

For a second, just think about the juicy PowerPoint headings JP Morgan and Morgan Stanley were able to share with investors (over Zoom, of course)...

  • ESG fund inclusion - the number of dollars managed by ESG funds jumped more than 20% in 2020
  • Progressive management - not only does management have a soul, but they have a long term vision

Name drop

You can’t read an article about Oatly without hearing about the who’s who that have poured money into the company. Oprah, Natalie Portman, and Jay-Z have all written Oatly Publisher’s Clearing House sized checks. 

But it’s the big swingin’ backers that had the underwriters assigned to OTLY’s roadshow name-dropping. Blackstone (perhaps you’ve heard of them?) invested $200M into the company pre-IPO. 

Of course, if we’re playing the name game, you can’t mention Oatly without discussing Starbucks. In early 2021, $SBUX announced a collab with Oatly to bring oat milk to the masses. 

The numbers don’t lie…

Sure, Oprah gets the people going (“you get a box of Oatly, and you get a box of Oatly!”), but the smart money that was set to hoover up shares cares about one thing: growth.

And Oatly is a grower and a show-er. In 2020 alone it doubled revenue, topping $420M. Keep in mind that’s prior to every basic guy and girl mainlining the oat drink via their Starbucks order. 

If investors were betting on growth, they were right…

During its first ever earnings report, Oatly reported even more impressive top line growth (53%)... despite crippling plant closures due to ‘rona boi. Looking forward, OTLY expects ~66% annual growth.

"At Ansarada, we help advisors and companies achieve sustainable growth through impact investing.

Now you can make more informed impact investing decisions with a centralized platform that enables Boards and the C-suite to access real-time information and insights that will drive their strategies, help them maintain compliance, and mitigate ESG risks." Sam Riley, Ansarada CEO.

Some might say sex sells, but investment bankers would argue that it’s actually a growth story that sells...

We're big fans of Investment Bankers

Our mission is to make your life easier by building technology to reduce risk, boost efficiency and improve decision making so you can rest easy.

Since 2005, modern dealmakers have trusted Ansarada's Virtual Data Room on over 24,000 transactions and $1 trillion worth of deals, including M&A, divestments, capital raising, IPOs, and restructures.

With Ansarada’s new online quoting process, it takes 3 clicks and approximately 15 seconds to magically open your data room. 

You may also be interested in