Oatly And Yeo's Sign $30 Million Partnership To Manufacture Oatly in Asia For The First Time

30 March 2021

Swedish brand Oatly has teamed up with the Singaporean food and beverage company Yeo Hiap Seng to set up manufacturing facilities in Singapore. The companies will together be investing $30 million for equipment and Oatly's TetraPak will be produced in Yeo's Senoko Way factory. This is the first time Oatly, which uses a patented enzyme-treatment technology to create oat milk, will be produced outside of the U.S. and Europe.

This long-term partnership initially aims to sell Oatly in Chinese markets, and slowly expand it to cover more regions in Asia.  Yeo's will be overseeing manufacturing operations in Singapore and the production will begin in the middle of the year.

Yeo is a household name in Indonesia known for its traditional beverages and food products, and teaming up with a globally-known plant-based brand shows a positive attitude towards plant-based alternatives among Asian consumers.

Asia is the largest market in the world and Oatly has seized the opportunity to make its mark in the region. It also recently filed for an IPO and was one of the highest funded plant-based companies in 2020. Apart from this deal, it has partnered with Starbucks in several Asian countries to offer oat milk as a plant-based alternative. In India, Oatly recently launched oat milk through Starbucks along with some other baristas.