ADVERTORIAL
In 2015, Sweden’s dairy lobby – LRF Mjölk – sued oat milk producer Oatly for suggesting that milk is harmful in its advertising1.
LRF Mjölk won the lawsuit, and Oatly was forced to pay the group £100,000 and stop using the slogan, “Milk, but made for humans”, in Sweden.
It was one of the most spectacular backfires in business history.
Oatly seized this as a marketing advantage, publishing the text of the lawsuit and even using the banned slogan in a large-scale advertising campaign in the UK2.
You may already know how the rest of the story goes.
In July 2020, Oatly raised $200 million from a consortium of investors led by Blackstone Group, which included celebrities like Oprah Winfrey, Jay-Z, Natalie Portman, and Starbucks founder Howard Schultz.3
Oatly’s valuation? An impressive $2 billion.
But that was just the beginning.
As the plant-based food megatrend accelerated and investor interest turned to frenzy, Oatly decided to go public just 10 months later, on May 19, 2021.
Its IPO was a resounding success, raising $1.4 billion at a $10 billion valuation4.
Less than a month after its IPO, Oatly’s market cap broke $17 billion on June 11, 20215.
Oatly’s story is no doubt incredible.
But with an IPO valuation of $10 billion, it’s clear who the real winners were – the wealthy and connected private investors who could buy their way in before the public ever had a chance – and reap gains of 850% in 11 months.
But what if:
Oatly’s growth story has eerie parallels with a company that is disrupting the infant nutrition market with its globally patented formula for the world’s first 100% plant-based dairy and soy-free infant formula alternative.
A market that Fortune Business Insights expects to surge from $50.5 billion in 2019 to $109.1 billion in 20276.
They both hold patents78 that grant them powerful competitive advantages (although you’ll soon see why the company, we are discussing patents could be even more valuable).
They both had to expand US distribution to meet increasing demand.
And they’re both perfectly positioned to benefit from the plant-based food revolution that is sweeping the world.
Of course, there are differences.
The new company in which we are discussing is just at the beginning of its growth story.
And because it went public early, regular investors still have the chance to get in before the company’s valuation potentially goes parabolic.
As of June 11, 2021, its valuation is still under C$250 million9, with most of its potential still ahead.
Plus, unlike Oatly, this company has no true competition.
Why? Because there are no other plant-based infant formula alternatives that don’t use soy and are nutritionally equivalent to breast milk.
Which is why the company could permanently disrupt the $109.1 billion infant formula market – and become the next plant juggernaut in the process.
Over 11% of US parents already think their children have food allergies. And 40% of baby formulas sold in the country are specialty cow’s milk formulas catering for allergies and intolerances10.
On top of this, an estimated 50% of children with food allergies are allergic to cow’s milk.
This is why Grandview Research expects the market for lactose-free infant formula to hit $24 billion by 202411.
Especially when you consider that there are many reasons parents may prefer lactose-free or dairy free formula even when their child isn’t allergic to milk.
The problem? The main alternative being used is soy, which in many ways, could be even worse.
This puts the many parents who have no choice but to formula feed their children in an almost unconscionable dilemma – choosing between dairy and soy.
And with awareness of the multiple benefits of plant-based foods quickly spreading, the infant formula market is crying out for a safe and authentic plant-based solution.
This company has taken an entirely different – and better – route.
The company’s proprietary formula is made with a combination of almond, buckwheat, and tapioca – bypassing the allergen issues present with dairy and soy while also being 100% vegan-friendly.
It has also overcome the primary challenge for all infant formula alternatives – meeting the human-milk nutritional gold standard – on top of ensuring a breakthrough “clean label” manufacturing process with no chemicals or solvents involved.
This company is already a recipient of The Clean Label Project Purity Award12, which requires testing for over 400 contaminants and heavy metals.
And by protecting its proprietary formula with global patents, this company has ensured that it could be the only legitimate soy-free and plant-based infant formula alternative on the market based on its proprietary composition for years to come.
The foundations of a global nutrition powerhouse are already there.
This company already has a highly valuable patent portfolio for a one-of-a-kind product that the $109.1 billion infant formula market is crying out for.
Its clean-label proprietary manufacturing process – its technological foundation – is also patent pending21, which will further enhance the value of its patent portfolio.
Add this company’s accelerating growth, proven support from strategic investors, and C$19.6 million in the bank (with zero debt)22 – and you could be looking at the next plant-based juggernaut.
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