Swedish oat milk producer Oatly and the Asian heritage beverage giant Yeo Hiap Seng (Yeo’s) have entered into a USD 30 million-worth long-term partnership to produce oat milk in Singapore.
The partnership will see Yeo’s managing, operating, and maintaining the new facilities producing Oatly’s TetraPak packaged products to supply markets across Asia. This will be the first time Oatly’s products will be produced outside Europe and North America.
The Singapore factory will produce 60 million liters of enzyme-treated oat milk a year by mid-2021, with the first batch heading to the Chinese market. The factory also has the option to scale up further with additional investment, as the oat milk market leader looks towards further expansion into China and the rest of Asia.
Currently, Oatly is sold in more than 50,000 locations in 20 countries. The brand was launched in Singapore last year and is being sold in supermarkets and online retailers.
Executive director for food, healthcare, and biomedical at Enterprise Singapore, Johnny Teo, said, “This collaboration between Yeo’s and Oatly is an example of a strategic cross-border partnership that capitalizes on complementary capabilities among different players in the food ecosystem, which we hope to see more in Singapore.”
(Sources: The Business Times; Green Queen; Vegconomist)