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Vegan food and drink maker Havre Global AB, perhaps best known for its oat milk product Oatly, has reached a deal with coffee chain Starbucks Corporation (NASDAQ: SBUX) just days after confirming initial public offering plans.
What Happened: Sweden-based Havre Global said Feb. 24 that it will list its stock. Investors waiting on the sidelines for further IPO details and confirmation of the true market size for milk substitutes may have had their questions answered.
Starbucks confirmed Monday that all of its stores nationwide will offer guests the option of adding Oatly's non-dairy milk substitute product as of Tuesday. The oat-based milk can be included in all of Starbucks' spring menu options.
Why It's Important: Oatly's ultimate growth prospects may hinge on its ability to attract new customers to its products at coffee shops like Starbucks, according to CNBC.
Potential customers who are interested in trying Oatly may be unwilling to pay for an entire carton at the grocery store, but would pay a small upcharge at Starbucks to try it in a coffee.
Regardless of its potential to attract new clients to fuel further growth, sales of oat milk rose more than 170% for the 52-week period ended Feb. 13, 2020 compared to the prior year, according to CNBC.
What's Next: Oatly's IPO details will likely be presented to the public in the coming weeks. The company could be seeking a $10-billion valuation in an eventual listing.
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