Management of Oatly’s China Business Is Said to Consider Buyout

June 9, 2026 - 12:59

Executives in charge of Oatly Group AB's business in China are weighing a potential buyout of the local operations, according to people familiar with the matter. The move would separate the Swedish oat milk company's Chinese unit from its parent, which has struggled with slowing sales and shifting consumer tastes in the world's second-largest economy.

The discussions are still early and may not lead to a deal, the sources said, asking not to be identified because the talks are private. A buyout would allow local management to take full control of the brand's distribution and marketing in China, where Oatly once enjoyed rapid growth after positioning itself as a trendy dairy alternative for coffee shops and health-conscious consumers.

Oatly entered China in 2018 and quickly became a staple in cafes like Starbucks and Luckin. But the company has faced headwinds recently, including increased competition from local plant-based milk brands and a broader slowdown in consumer spending. Oatly's global shares have fallen sharply from their 2021 highs, and the company has been cutting costs to improve profitability.

If a buyout proceeds, it would mark a significant shift for the company's international strategy. Oatly has not commented on the speculation. The potential deal highlights how foreign food and beverage brands are reassessing their China operations amid a challenging economic environment.