An oat campus: Oatly invests $16 million in its Swedish production plant to support growing global demand
MWN-AI** Summary
Oatly Group AB (Nasdaq: OTLY), the pioneering oat drink manufacturer, has announced a significant $16 million investment in its Landskrona production facility in Sweden. This strategic expansion aims to address the increasing global demand for its plant-based beverages, enhancing the facility's production capacity by over 33%, raising it from 150 to 200 million liters annually. The upgrade, which is scheduled for completion by March 2027, will be realized without increasing the plant’s physical footprint.
The Landskrona site not only exemplifies Oatly's commitment to sustainability—operating on 100% renewable energy—but also aims to reduce the company's overall climate impact in the coming years through better energy procurement, ingredient sourcing, and distribution efficiencies. Currently employing over 300 people, the facility is a critical part of Oatly's operations, serving as an end-to-end production hub that supports various core functions.
Simon Broadbent, Oatly's SVP of Sustainable Operations, highlighted the strong and stable performance of the Landskrona site, positioning it as an essential asset as the company expands its product offerings. European demand for plant-based beverages has rebounded, with Oatly achieving double-digit growth, particularly within out-of-home and food service markets. The company attributes this momentum to innovative product launches, including Barista Edition flavors and the Oatly Baristamatic coffee machine.
With this investment, Oatly anticipates sourcing more oats from local Swedish farmers and increasing exports, currently accounting for 70% of production volume, to meet growing demands in markets like Germany, the UK, France, and Spain. The investment underscores Oatly's strong financial performance and commitment to sustainable, scalable growth.
MWN-AI** Analysis
Oatly Group AB's recent $16 million investment in its Landskrona production plant reflects a proactive strategy to capitalize on the burgeoning global demand for plant-based beverages. With a production capacity boost of over 33%, from 150 to 200 million liters per year, Oatly aims to enhance efficiency while reducing its climate impact. This commitment to sustainability is likely to resonate with a growing segment of environmentally conscious consumers, positioning the company favorably in a competitive market.
European demand for plant-based drinks has experienced a resurgence, with growth rates hitting 6% in the past year, driven in part by Oatly's impressive double-digit growth in the region. The surge in Out-of-Home and food service channels, which saw a 20% increase, indicates an evolving consumer landscape where plant-based options are gaining traction. Oatly's innovations, such as new Barista Edition flavors and automated solutions for high-traffic coffee environments, demonstrate an agile response to market demands, potentially bolstering brand loyalty and customer engagement.
From an investment perspective, the timing of Oatly’s upgrade coincides with favorable market conditions, as consumer preferences shift toward plant-based alternatives. The strategic sourcing of oats from Swedish farmers and the anticipated increase in exports—primarily to established markets like Germany and the UK, as well as newer ones like France and Spain—further positions Oatly to tap into diverse revenue streams.
While cautious investors should note potential risks such as supply chain constraints and competitive pressure, Oatly's sound financial growth and commitment to sustainability provide a robust foundation for investors looking for long-term growth opportunities in the food and beverage sector. As such, Oatly presents a compelling case for those seeking to align their portfolios with the increasing global trend toward sustainable consumption.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
MALMÖ, Sweden, March 05, 2026 (GLOBE NEWSWIRE) -- Oatly Group AB (Nasdaq: OTLY) (“Oatly” or the “Company”), the world’s first and largest oat drink company, has announced a multi-year investment in its Landskrona production facility in Sweden to meet accelerating global demand for its plant-based drinks. The expanded infrastructure will boost the site’s production capacity by more than 33 percent while further reducing the climate impact of operations across three key areas.
Active since 2006, the Landskrona plant currently employs over 300 people. Following the refurbishment, the facility will boost its production capacity from 150 to 200 million liters per year, all within the same physical footprint. As a result of existing energy procurement (the Landskrona factory sources 100% renewable energy), alongside efficiencies in ingredient sourcing and distribution network, this project is expected to reduce the company´s total corporate climate impact in 2026 and 2027.
Simon Broadbent, SVP Sustainable Operations at Oatly, said:
“We’re seeing growing demand for our products, so the time is right to upgrade our Landskrona site which has performed fantastically well in recent years, both in stability of output and outstanding cost management. The Landskrona factory is a key site for us, not only because of our roots in Sweden, but also because it’s a fully owned, end?to?end production hub and home to many of our core functions. You can think of it as one big oat campus.”
European demand for plant-based drinks is back, rising 6%* in the last 12 months. A rebound fuelled by Oatly’s strong performance, as the Company delivered double-digit growth in the region over the same time period, with Out-of-Home and food service channels surging more than 20%. This momentum follows Oatly’s push into new consumption and shopping occasions, from new and exciting Barista Edition flavours to breakthrough out-of-home launches like the Oatly Baristamatic for high-traffic automated coffee machines. These innovations have been developed at Oatly’s facilities in Sweden.
Increased production at the Landskrona facility will also see the Company source more oats from Swedish farmers. Following the refurbishment, exports - which currently account for 70% of volume produced at the facility - are expected to rise further to meet the increasing demand for Oatly products in places like Germany and the UK, as well as expansion markets like France and Spain where the category is taking off.
The announcement follows the publication of Oatly’s full year 2025 financial results last month, where this investment was first communicated as part of Oatly’s expected capital expenditures during 2026. The Company announced profitable growth in both the fourth quarter and full year.
Jean-Christophe Flatin, Oatly’s CEO, commented at the time: “Achieving this milestone reflects the disciplined, strategic actions we have taken over the past three years to strengthen the foundation of our entire business. We have right-sized our supply chain and overhead structure while simultaneously reinvesting behind our refreshed growth strategy. As we look forward, we see significant potential ahead, and we are confident that we are taking the right steps to drive durable, scalable, and profitable growth as we execute on our mission.”
After a preparatory period, construction work in Landskrona will begin in March 2026 and is expected to be completed by March 2027.
About Oatly
We are the world’s original and largest oat drink company. For over 30 years, we have exclusively focused on developing expertise around oats: a global power crop with inherent properties. Our commitment to oats has resulted in core technical advancements that enabled us to unlock the breadth of the dairy portfolio, including alternatives to milks, ice cream, yogurt, cooking creams, spreads and on-the-go drinks. Headquartered in Malmö, Sweden, the Oatly brand is available in more than 60 countries globally.
* Source: Nielsen custom aggregate of Germany, UK, Sweden, Netherlands, Austria, Switzerland, Norway, Denmark, Poland, Spain, France, and Belgium for the 12-month periods ending December 28 through January 25 (specific dates differ by country based on data availabilty).
Forward-Looking Statements
This press release contains forward-looking statements regarding our future business expectations and objectives and our environmental, social and governance goals. All statements in this press release that do not relate exclusively to matters of historical fact should be considered forward-looking statements and such forward-looking statements involve risks, uncertainties, subjective judgment, and analysis that reflects our expectations. Actual results may differ materially from the results anticipated depending on a variety of important factors, including without limitation the risks detailed in our filings with the U.S. Securities and Exchange Commission. Relatedly, there is no guarantee that we will achieve our environmental, social and governance goals nor that such goals, whether or not those goals are met, will ultimately have a positive impact, either on particular environmental, social and governance matters or as a whole.
In relation to the information and data contained in this press release, we are (wholly or in part) reliant on public sources of information and information provided by our suppliers and business partners. Further, our ability to verify such information (whether now, in the past, or in the future) may be limited by the integrity of the underlying data available at the relevant point in time and the status and evolution of global, supranational and national laws, guidelines, methodologies, best practices and regulations in relation to the tracking and provision of such data, and we may not update historical information for changes in our practices, approaches or methodology. Therefore, such information is provided on a reasonable efforts basis and is subject to change. Any forward-looking statements contained in this press release speak only as of the date hereof and accordingly undue reliance should not be placed on such statements. Oatly disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release, whether as a result of new information, future events or otherwise, other than to the extent required by applicable law.
Further, this press release may contain information that is not necessarily “material” under federal securities law for U.S. Securities and Exchange Commission reporting purposes, but it is informed by various environmental, social and governance standards and frameworks and the interest of various stakeholders.
Photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/8df1ca90-493b-4580-8098-f68ebc97f386
https://www.globenewswire.com/NewsRoom/AttachmentNg/9ef073d9-d776-4b32-ab0e-af0ddcf96889
Contact personLu Hopkins-Parkinson, Vice President CommunicationsE-mail: investors@oatly.com, press@oatly.com
FAQ**
How does Oatly Group AB OTLY plan to finance the multi-year investment in its Landskrona production facility, and what impact might this have on its overall financial stability and capital expenditures in 2026 and beyond?
What specific innovations has Oatly Group AB OTLY implemented at the Landskrona facility that contribute to its increased production capacity and sustainability goals?
With the rise in European demand for plant-based drinks, how does Oatly Group AB OTLY intend to navigate competitive pressures in markets like Germany, the UK, France, and Spain?
What are the anticipated climate impact benefits of the refurbishment at the Landskrona facility, and how does Oatly Group AB OTLY plan to measure and report on its environmental goals moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about Oatly Group AB (NASDAQ: OTLY).
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