Oatly Snaps Up $425 Million In Fresh Funds and European McDonald’s Deal
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Following a string of quarterly losses, Sweden-based Oatly has raised $425 million in new funds to continue its expansion, that now includes a deal with McDonald’s.
In a statement last week, Oatly Group AB said the $425 million comes in a deal with hedge fund Silver Point Capital LP for $125 million in a guaranteed term loan B credit agreement along with the sale of $300 million in convertible notes.
Advancing Oatly’s mission
“We’re pleased with the confidence demonstrated by our anchor shareholders and new investors in advancing Oatly’s mission and fueling the tremendous global opportunity ahead for our organization,” Oatly Chief Executive Toni Petersson said in a statement last week.
“With our operations better stabilized and business plan now fully funded, we are well-positioned to capitalize on the strong underlying global demand for our products and create significant, long-term value for our shareholders,” he said.
The news sent Oatly shares up 17 percent to $2.43, Marketwatch reported.
Oatly x McCafé Austria
Earlier this week, Oatly announced it had struck a deal with McDonald’s Austria to bring its Oatly Barista Edition to all 800-plus McDonald’s McCafés across the country.
“We have noticed an increased demand for oat-based dairy alternatives among our guests and responded to that. With addition of Oatly Barista, we can now cater a delicious alternative to the growing number of our guests who prefer oat-based drinks at our McCafé, and at the same time we offer our guests a maximum taste experience,” Tanja Wallner, Marketing Professional McCafé & Breakfast at McDonald’s Austria, said in a statement.
The move marks the first oat drink in McCafés in Austria and builds on Oatly’s relationship with the fast-food giant. In 2021 it announced a partnership with McDonald’s in mainland China.
“We’re excited to partner with McDonald’s Austria and commend their commitment to providing their guests with great-tasting drink options that are better for the planet,” says Roland Griesebner, Country Manager Austria at Oatly. “For Oatly, our partnership with McDonald’s Austria allows us to introduce our best-selling product to a wider audience.”
McDonald’s Austria was one of the first countries to debut the plant-based McPlant burger. Last summer, McDonald’s rival Burger King made plant-based meat the default at its Austrian location.
“Meat is one option, but it is not the only one,” Jan-Christoph Küster, marketing director of the TQSR Group, Austrian master franchisee of Burger King, said when the campaign launched last year. “We leave it open to our guests what is normal for them: everyone should have the same taste.”