Singapore Yeo’s Drinks To Oatly’s IPO Debut

From soy milk to grass jelly to chrysanthemum tea, no Southeast Asian fridge is fully stocked without a Yeo Hiap Seng (Yeo’s) drink. For generations, Yeo’s has been a household brand in Asia’s beverage market and is popular among grandmothers and grandchildren alike. 

Yeo’s is now on the oat milk trend as it continues to evolve over the years to accommodate Gen Z’s, millennials, and health-conscious consumers.

As Sweden’s vegan milk producer Oatly quickly shot to USD 22 per share from its US IPO debut of USD 17 on Thursday, Yeo’s stock price reacted with a 2.82% increase to SGD 0.91 each on slightly higher trading volume in Singapore.

In March 2021, Yeo’s formed a SGD 30 million partnership with Oatly to produce the namesake drink in Singapore. This is Oatly’s first production facility outside of Europe and North America for consumers in Asia.

The facility, capable of producing 60 million litres of oat milk a year at launch, was slated to start production in 2Q2021.

Yeo’s said the partnership with Oatly is “another growth driver” and complements its soymilk segment.

Although founded in the 1990s, Oatly has risen in popularity in recent times, with help from the backing of celebrities such as Jay-Z, Oprah, and Natalie Portman. The Swedish-based firm professes to be a sustainable plant-based nutrition dairy alternative company that creates products solely from oats.

Its oat milk is sold in over 60,000 shops and over 32,000 coffee shops across 20 countries and is also offering products including dairy-free yoghurt and ice cream.

As well as being a leading Southeast Asian drinks company, Yeo’s also operates as an investment holding company, with offices and market presence in Asia, the US and Europe.