March 9, 2021
The first UK factory is expected to produce 300 million litres of oat drink per year at launch
Oatly, the original Swedish oat drink company, has announced plans for its first UK factory, located in Peterborough. The new factory will provide an end-to-end solution for Oatly and is expected to supply the local area with at least 200 new jobs.
Anticipated to launch in Q1 2023, sustainability is at the heart of the planning process. Oatly is working to ensure the new factory brings value to people and the planet without recklessly taxing the planet’s resources. The new factory will continue Oatly’s drive to create a systemic shift in society and the food system towards plant-based.
The UK factory is part of the wider initiative from Oatly to build factories fit for the future, with efficient use of resources and minimal negative impact on the planet. With an ambition of continuous improvement in all areas, Oatly is aiming to use 100% renewable energy, and decrease its energy consumption, water consumption and waste by 75% each at the factory, by 2029 compared to Oatly’s environmental footprint in 2019.
The new factory will be able to produce 300 million litres of oat drink per year at launch, with the capacity to grow to 450 million litres – making it one of the largest plant-based dairy factories in the world. This means plant-based dairy will be more accessible for people to switch to, helping them to reduce their climate impact. For example, according to climate footprint data, Oatly Barista Edition sold in the UK generates about 70% less CO2e than British cow’s milk*.
Oats will be sourced locally across the UK and the factory will supply the UK market. Health and safety of workers will also be placed at the forefront. All policies will adhere to Oatly’s global standards to ensure people feel safe, valued and empowered whilst working to help protect the planet.
Ishen Paran, General Manager at Oatly UK said, “Questions about a potential UK factory have been circulating for a while, and we’re really excited to finally announce the news of its arrival in 2023. The UK is a really important driver of the global plant-based movement, with growing demand for Oatly across the country, and we’re excited to supply this increased demand.”
Johan Rabe, Chief Supply Chain Officer added, “We look forward to supplying the UK with more oat drink – we’re even more excited to do it in a sustainable way. Like everything we do at Oatly, we’ve ensured that sustainability is core to our factory planning. Everything, from the sourcing of our oats, to the production of our product range specifically designed for humans, has sustainability at the heart of it. Even as we strive to grow one of the biggest plant-based dairy factories to its full capacity, this will still be our top priority.”
Tom Hennessy, chief executive of Opportunity Peterborough added, “Oatly‘s move to Peterborough is fantastic news and a welcome addition to the city’s outstanding food manufacturing sector. We’re pleased to have worked alongside the Department for International Trade to support the team as they selected a site and ensured they could swiftly put the right infrastructure in place.
“Opportunity Peterborough will provide ongoing support to the Oatly team through our collaboration with Gateway Peterborough employers to improve sustainable performance, encourage innovation, and support recruitment and workforce development.”