Yeo’s Singapore manufacturing facility will supply Oatly’s plant-based milk to China and rest of Asia in H2 2021.
Yeo’s, a Singapore-based food and beverage company, and Oatly, have sealed a partnership agreement whereby the latter’s enzyme-treated oat milk will be produced at the former’s Singapore manufacturing site. Both companies have jointly invested S$30 million (US$22.3 million) in the equipment and facility.
This marks the first time Oatly’s products will be produced outside Europe and North America.
Johnny Teo, executive director for food, healthcare and biomedical, Enterprise Singapore, said: “This collaboration between Yeo’s and Oatly is an example of a strategic cross-border partnership that capitalise on complementary capabilities among different players in the food ecosystem, which we hope to see more in Singapore. We are also heartened by Yeo’s efforts to constantly innovate and sharpen its competitive edge as a Singapore beverage manufacturer, and are glad to have been part of its journey in attaining this significant milestone.”
Yeo’s will manage, run and maintain the new facilities, which will see both parties undertaking end-to-end manufacturing for Oatly products destined for markets across Asia. Production will begin in H2 2021 with the oat milk earmarked for China and subsequently for the rest of Asia.
Yeo’s will deploy Tetra Pak’s packaging technology incorporating high-speed aseptic filling, flexible packaging and stringent food safety standards, which are in line with the US Food and Drug Administration (FDA) standards. Working with Tetra Pak will cement Yeo’s position as a high-tech and sustainable food and beverage manufacturer in the years to come, the company said.
The partnership with Oatly is in line with Yeo’s purpose of nourishing every home with natural goodness across generations. Furthermore, the partnership will provide Yeo’s with another growth driver in the plant-based milk segment, and complements its position in the soymilk segment in the region.
Samuel Koh, CEO of Yeo’s Group, added: “We are delighted that Oatly has chosen Yeo’s as its first Asia strategic partner, and Singapore as its manufacturing location after strict due diligence. This strategic partnership positions both companies to tap the surging demand in this region for plant-based dairy.”
Oatly is sold in more than 50,000 locations in 20 countries in Europe, US and Asia. It was launched in Singapore last year, and sold in supermarkets and online retailers.