Oatly to scrap its UK vegan drink factory plans

Oatly, the world’s largest oat-based drink company, has pulled out of plans to build a major factory in the UK.

The Sweden-based drink manufacturer had previously announced it intended to open a huge production facility in Peterborough, Cambridgeshire.

The site was expected to create up to 200 jobs in the area and produce 300m litres of the oat-based drink a year, supplied by British oats, with potential to expand output to 450m litres a year.

See also: Farmers who beat Oatly in court cause stir with new advert

Bryan Carroll, Oatly UK general manager confirmed the firm would no longer move forward on the completion of the Peterborough facility and that it would instead better utilise existing facilities in Europe.

Company accounts

Oatly increased total global revenue by 1.8% in value and 3.15% in volume during the first three months of 2024 compared to year earlier levels, with a first quarter revenue of $199.2m (£156.1m).

However, the company made a loss before tax of $45.8m (£35.89m) during the quarter.

Oatly has also announced plans to move to a global supply chain which uses regenerative farming practices.

Julie Kunen, director of sustainability for Oatly North America said: “We’re moving from a zero-sum sustainability concept to the concept of regenerative agriculture, which builds it back better.

“Improve soil health, improve agriculture, improve farmer livelihoods.”