Oatly plant in China - food tech news in Asia

Oatly, whose growth in China has been hampered by the short supply of products, can finally “lift the seal” on its production capacity. On November 18th, the global oat drinks giant announced the official opening of Oatly’s first factory in China, the Ouli Ma’anshan production base. This is the brand’s second plant in Asia. Prior to this, in July this year, the company launched its first Asian factory in Singapore.

As a part of the global layout of Oatly, the new production base will minimize the impact on the environment through effective use of resources and create a sustainable production base. The new plant will effectively promote the upgrading and improvement of the existing products and lead the innovative development of oat-based products. As one of Oatly’s six global production bases, China factory will practice Oatly’s global mission, promote the transformation of plant-based diet concept, contribute to human physical and mental health and to sustainability.

“This plant in Ma’anshan City, Anhui Province, is also the largest plant planned by Oatly in Asia so far”, said Mr. David Zhang, President of Oatly Asia; the plant is built in two phases, and this currently operational plant is the first phase.

This means that more than three years after entering the Chinese market, the oat drinks giant has officially entered a new stage of localized production. At the same time, with the improvement of supply capacity and the rapid linkage between the local supply chain and local R&D innovation, it is expected that Oatly’s growth potential in China will be ‘unleashed’.

David Zhang added that in the past three years, the main product sold in China was “Barista” (mainly for catering and coffee drinks). Some other small-packaged products will also be sold, but due to the restrictions of the supply chain, only a small supply volume can be provided. After opening the first local factory, Oatly China is able to launch more diversified oat-based products.

When studying these new consumer brands, we all want to dig out the core advantage of the brand; is it the product, the marketing, or the channels? In fact, as the segment is becoming more and more crowded, the brands will compete on the overall business strength. Part of this strength is the supply chain layout, and Oatly can gradually make up for its shortcomings when building a strong end-to-end supply chain.

Nowadays, Oatly has taken a place in the minds of many consumers. In the future, it is worth looking forward to whether Oatly can create more reasons for consumers to purchase its products.

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