Ceba Foods invests in new production facility for Oatly

By Dominique Patton

- Last updated on GMT

Related tags: Milk

Sweden's Ceba Foods is building a new production facility to meet
growing demand from health-conscious consumers for its oat drink,

The company has previously contracted out its production to a Skane dairy plant but after facing some bottleknecks, it has decided to invest $13 million in construction of its own facility.

While Oatly is sold in almost every European market, Ceba has concentrated its marketing efforts on its domestic market with current turnover at about €10 million. However given current demand for oat-based products, additional capacity will allow the firm to expand internationally in the future.

The move will also increase the integration between production, sales and product development.

"There is increased demand for dairy-free products in almost every country,"​ said managing director Mats-Ola Kindstedt.

"We have about 20-30 per cent growth yearly,"​ he told "Most of this is coming from the health benefit point of view, even if there is also some demand from people with allergies or religious requirements."

While soy dominates the dairy alternatives market, oat products have some clear advantages, particularly in taste, added Kindstedt.

The Oatly brand also includes ice cream, vegetable oil cream, vanilla custard and readymade pancake batter.

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