Oatly Stock Surges Following Partnership Announcement with Insomnia Cookies

Oatly Group AB (Nasdaq: OTLY), the “world’s largest oat drink company has announced a new collaboration in the US with Insomnia Cookies – present at all 250+ locations across North America, Oatly’s 11oz Original and Chocolate Oatmilks are now featured alongside Insomnia Cookies’ assortment of signature warm cookies, desserts, and ice creams.

STOCK SURGE FOLLOWS ANNOUNCEMENT

Following a steady decline since mid 2021, Oatly’s stock surged by well over 30% after the announcement of the new partnership and has since levelled out.

The company has been shifting toward an “asset-light supply chain strategy” in an effort to boost profitability and has stated that it is on track to post profits this year. Part of this strategy has included transferring plant management and manufacturing facets to entities like Ys Ya in the US. Simultaneously, Oatly has cancelled plant construction plans, aiming to enhance operational focus, reduce complexity, and minimize capital expenditure.

Insomnia Cookies, a swiftly expanding late-night bakery, operates over 245 locations in the US. Mike Messersmith, the president of Oatly North America, emphasized the alignment of the new partnership, stating, “Among the most quintessential of food combinations has to be milk and cookies.” Insomnia Cookies has built an amazing brand and reputation for providing fantastic cookies and more whenever people are craving them, and we know that our Oatly oat milks will be a perfect complement to any order. “We’re delighted to continue building our foodservice footprint in the US with such a sweet partner.”

BUSY YEAR FOR OATLY

Amidst a busy year, Oatly has launched various products and foodservice initiatives:

  • soft-serve ice cream in Deutsche Bahn lounges across Germany and for UK food service;
  • opened a pop-up soft-serve shop in Amsterdam;
  • introduced Philadelphia-style cream cheese in the US;
  • expanded its oat drink range in the UK; and,
  • initiated product sales on Amazon in Europe.