oatly blackstone criticism

Now Oatly’s honeymoon seems to have ended outside of Sweden as well. Dean Best, Key executive at Bakkavor to step down from role, Ex-PepsiCo boss Indra Nooyi in plant-based plea, NPD – Bolthouse Farms, Kroger, Mondelez, Bel, Ferrero to up capacity of Nutella Biscuits plant, Sustainability - The Most Important Theme for 2020 - Thematic research, Targeting Consumers at Home - Coronavirus (COVID-19) Case Study, Cookies (Sweet Biscuits) (Bakery and Cereals) Market in Egypt - Outlook to 2024; Market Size, Growth and Forecast Analytics (updated with COVID-19 Impact), Herbs, Spices & Seasonings (Seasonings, Dressings & Sauces) Market in the United States of America - Outlook to 2023: Market Size, Growth and Forecast Analytics, Pre-Packed Sandwiches (Savory and Deli Foods) Market in Australia - Outlook to 2024; Market Size, Growth and Forecast Analytics (updated with COVID-19 Impact). According to CNBC, Schwarzman recently donated $3 million to the pro-Trump super PAC America First Action, which supports Trump's reelection. PREVIOUS, UK food industry concerned by Brexit labelling rules delay A critical way of doing so will be the creation and development of brands that have a chance of becoming household names. The American company has funded hundreds of companies and was recently in trouble for funding the Brazilian company, Hidrovias, that was accused of being actively pushing deforestation of the Amazon. “One of the reasons [for Chinese owners] was to enter the Chinese market. To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on There are a growing number of funds focused squarely on ethical investments but hardly any would be likely – yet – to have the firepower and connections of someone like Blackstone. ", "We believe that to see real change everyone needs to be involved - including private equity. Oatly Blackstone investment: If you need a new milk alternative, try these instead. But such strongly-held views are only held by a small cohort of consumers. "We chose to partner with Blackstone Growth because of their tremendous resources and unique reach," Toni Petersson, Oatly's CEO, said at the time. Twitter and Instagram posts by @LessWasteLaura  (climate activist Laura Young) sparked a social-media firestorm. Blackstone has denied Hidrovia’s involvement in this. The Sweden-based dairy-free business, which has seen its oat beverage become one of the largest brands in the milk-alternative market, said it would use the capital to fund expansion in its current territories (which number around 20), as well as in new production plants in Europe, the US and Asia. The Chinese shareholders made Oatly’s Swedish customers less inclined to swallow the company’s visions and in 2019, the company’s daring advertisement campaign backfired. Toll Free from US: 1-866-545-5878. Adding to the pressure on Oatly’s brand is the growing criticism from the healthy eating community that the milk is remarkably high in sugar for a product that is branded as “healthy”. A recent piece by writer Nat Eliason called Oatly “The New Coke”. The company had $200m in sales in 2019, double what it reported in 2018. “It’s always sad to part ways with consumers. But today a number of loyal customers are now turning their backs on the company. They chose to invest their money in a sustainability company, instead of stopping them elsewhere,” he continued. Previous Oatly devotees – consumers who say they were attracted to its products due to the touted sustainability benefits of oats – said they would boycott the brand, insisting they could no longer support a business that accepted financial backing from an investor associated with the destruction of the rainforest (accusations Blackstone denies) and with a boss that supported the controversial US President. Commerce Policy | Discovered that @oatly has partnered with Blackstone - an investment company who part own companies who are responsible for Amazon deforestation. Referring to all the investors in the round, which included Oprah Winfrey, actress Natalie Portman and Howard Schultz, the former CEO of Starbucks, Petersson added: "Our new partners' commitment to supporting us and furthering of our mission is a clear indication of where the world is heading, which is in a new, more sustainable direction.". "Getting a company like Blackstone to invest in us is something we have been working on to create maximum change to benefit the planet. Fax: +44 (0)1527 577423. The frustration and even anger some have felt at Oatly's decision is understandable. Read More: A top strategist explains why Warren Buffett's latest bets could be a 'true turning point' for Japanese stocks, Registration on or use of this site constitutes acceptance of our, Visit Business Insider's homepage for more stories, 'You can make 5, 10, 50x your money': Here's an inside look at the 7-part strategy small-stock expert Ian Cassel is using to unearth the market's most overlooked gems, A top strategist explains why Warren Buffett's latest bets could be a 'true turning point' for Japanese stocks, The stock market's near-term fate could be decided by the tight Senate race as stimulus remains in limbo, Morgan Stanley says », Pret A Manger's coffee subscription was inspired by fellow JAB Holding chain Panera ». Get the daily food news as it happens, Weekly News Summary: NEXT, Themes: Corporate responsibility, M&A and joint ventures, BetterBody Foods and Nutrition in trademark dispute with Sweden's Oatly, Oatly eyes expansion after Blackstone-led funding round. The investment by Blackstone into Oatly was reported in mid-July and apart from some Swedish environmentalists like the movie producer Fredrik Gertten, known for Bananas! For the entrepreneur looking to take a business to the next level of sales and to continue its mission, the perfect investor or owner would be one with values that align exactly with their own and with business interests that don't cut across that purpose. Aside from the Brazil connection, protesters have noted Blackstone billionaire chairman Stephen Schwarzman is a prominent supporter of President Donald Trump. In the last week, Blackstone's investment in Oatly has moved from the business pages to fill mainstream column inches, sparked, it appears, by criticism on social media. Vegan milk brand Oatly is facing activist pressure after private equity firm Blackstone, headed by Trump-supporting billionaire Stephen Schwarzman, acquired a stake in the company. The drop in Oatly’s popularity can in part be explained by the fact that Oatly no longer is perceived as a small company that needs protection from the big corporations — it has lost its David vs Goliath advantage, according to Ingela Stenson, long-term communication expert in the milk industry, now at the analytics company United Minds. Stock quotes by finanzen.net. But those who’s been with us for a while know that it has always been in our DNA to challenge the status quo and do what we believe is right to change the world to the better, rather than what is easy or comfortable,” says Linda Nordgren, communication manager at Oatly, in a written statement to Sifted. This has not been rebutted. This investment will help us push the plant-based movement even further, while also steering global capital into sustainability instead of something else.". As food brands built on ethical or sustainability credentials grow, their ambitions are likely to mean they need investment, or their success may attract suitors. Some argue that for Blackstone the investment in Oatly is merely a way of greenwashing. Considered the original oat milk manufacturer and one of the most popular, Swedish company Oatly is facing criticism after it was revealed that it sold a stake to a consortium including Blackstone, headed by Trump donor Stephen Schwarzman. "The reality is that almost none of Oatly's current or future customers will hear about this, and even if they did, most would not care. Some former Oatly consumers will indeed boycott the brand due to the allegations over the Amazon or over the financial support for Trump – or both. Can vertical farming ever become mainstream? But for Oatly, the large investment may be used as adding an extra sugar-coating ahead of a coming IPO. According to Oatly, accepting Blackstone as new owners will have an overall positive effect on the environment. And the views and opinions of those that are now lost to Oatly should be respected. When the $200 million deal was signed, the agreement highlighted the growing popularity of oat-milk consumption. The private equity group said in a statement: "The erroneous claims and mischaracterizations were blatantly wrong and irresponsible.". “Only through the deal itself have we managed to influence Blackstone. Absolutely, they do, because those concerns are actively shifting consumers' buying decisions. Delivered 3 times per week. Oatly has faced opprobrium for principally two reasons linked to Blackstone: one, that the private-equity firm has invested in a Brazilian firm with alleged links to Amazon deforestation; and, two, that the chairman of the buy-out house, Stephen Schwarzman, is a donor to President Trump. Managing editor, Backing Marcus Rashford's food poverty campaign must be about more than catching stardust © 2020 Insider Inc. and finanzen.net GmbH (Imprint). Oatly's social-media operatives appear to have spent much of this week responding to the criticism and, yesterday, the company posted a lengthy statement on its website. But perhaps it is better to view these situations more pragmatically. Members of the Sifted community get deeper insights and introductions. You can opt out of individual newsletters or contact methods at any time in the 'Your Account' area. That the food industry must reduce its impact on the environment is no longer a subject of debate. Well for starters, one of the new owners following a $200m investment deal last month is Blackstone, one of the largest private equity firms in the world seen by many as out of kilter with Oatly’s ethical brand. This road has been operated by the Brazilian government since 1976. However, it added: "Our thinking in working with Blackstone was quite the opposite of black and white; it was an intense thought process that was nuanced and in line with how we've often thought about change.". Blackstone denies this. Ambitious, ethically-minded firms may, at times, accept backing from – or agree to be sold to – bigger businesses with a less than spotless record on areas like the environment. Clicking above tells us that you're OK with both this and with our privacy policy, terms and conditions and cookie policy. In response to recent criticism, a representative of Blackstone Group shared a blog post it published last year with Refinery29. Receive our latest content delivered right to your inbox. Discover the latest food research, I want to hear about food industry webinars and relevant offers. This is a first step on that path,” Petersson told Swedish newspaper Expressen. Investment comes at a cost to the environment that means 'conscious consumers' can't shop their values even when they try.". The investment was part of a $400 million funding package - half was secured through a green-deal bank loan which commits Oatly to ensure that all of its investments are in sustainable solutions. +44 (0)1527 573 736 or complete this form.. ©2020 All content copyright just-food.com Oatly announced a new funding round, led by Blackstone, back in July. The growing sales enjoyed by plant-based companies are mostly driven by flexitarians, who, in the main, don't make the same kinds of demands of the brands they buy as Oatly's critics. Oatly's backing from Blackstone has angered some and likely left more feeling a little uncomfortable but it is the kind of investment the plant-based movement – and, by extension, the broader food industry – needs.

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