Swedish plant-based milk maker Oatly and Singaporean beverage firm Yeo’s are jointly investing USD 22.3 million in equipment and facility to produce oat milk in Singapore.
Yeo’s produces a number of well-known drinks brands that are sold across Asia, including soy milk, ice teas, and coconut waters, as well as a range of ready-made curry pastes, instant noodles, and other convenience foods. It formed a partnership with Oatly last year, becoming the Swedish startup’s first Asia-based supplier. Yeo’s Singapore factory will be refurbished and fitted with the necessary equipment to become Oatly’s first production facility outside of Europe and North America.
The Singapore facility will produce 60 million liters of oat milk a year at launch and has the option to scale up further with additional investment. The oats will be sourced from Sweden. Yeo’s will deploy state-of-the-art Tetra Pak packaging technology incorporating high-speed aseptic filling, flexible packaging and stringent food safety standards that are in line with the US Food and Drug Administration (FDA) standards.
Demand for dairy milk alternatives has been gaining traction in Singapore, and oat milk is the latest trendy plant-based milk joining the ranks of almond, rice, and soy to take over supermarket shelves, cafés, and coffee shops, as consumers seek healthier beverages with environmental credentials.
(Sources: The Business Times; AgFunder News)