Oatly unveils plans for its first UK factory

Oatly unveils plans for its first UK factory

Both images used in this article courtesy of Oatly

Food and drink capital investment expert Integrated­ Food Projects (IFP) is supporting Oatly, the original Swedish oat drink company, to deliver its first UK factory.

Located in Peterborough and creating over 200 jobs, the factory is set to launch in Q1 2023.

The delivery of this transformative factory will form part of a new end-to-end integrated supply chain in the UK, which IFP is helping to develop. As a purpose-led project, it is critical to Oatly that the company’s ethos is supported throughout the supply chain – reducing road miles, the carbon footprint and ultimately, its impact on the environment.

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*.

Oatly unveils plans for its first UK factory

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.

Sustainability is at the heart of the planning process, and IFP and Oatly are 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.

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.

Matt Carr, joint-managing director at Integrated Food Projects, said: “There is a huge demand for Oatly products in the UK, and we are delighted to be working with them to deliver their vision of what a factory of the future can achieve. Sustainability is at the heart of Oatly’s business and helping to create a new factory and UK supply chain, in line with the ethos of the Oatly brand, is vital for the successful delivery of the project.

“Working with the world’s best purpose led businesses, which are not only focused on producing great products, but are also driven to have a beneficial impact on society and place the environment at the centre of their thinking, is exactly in line with IFP’s vision for the food and drink manufacturing sector.”

Johan Rabe, chief supply chain officer, at Oatly 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.”

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