“Oatly will likely never make money in a notoriously fickle and deflationary food industry,’ claims activist short seller; Oatly ‘rejects all these false claims’


In the report​ Spruce alleges that Oatly omitted and manipulated facts in its prospectus​ and in an investor presentation last month​ and “will never achieve profitability​.”

It added: “While investors are enamored with its sales growth in the plant-based food fad, and its commitment to ESG practices, we believe they should be focused on its loss of market share in Sweden and the US, minimal barriers to entry, lack of competitive advantages, rising commodity input costs, and supply challenges created partly through poorly planned production facilities. As such, we believe Oatly will sorely disappoint investors and will never achieve profitability.”

Oatly: Spruce is a short seller that stands to gain from a drop in Oatly’s share price

Oatly, in turn, did not address each individual allegation in the report, but told FoodNavigator-USA that it was “aware that a short seller is making false and misleading claims regarding the company,” ​pointing out that Spruce “stands to financially benefit from a decline in Oatly’s stock price caused by these false reports.”

It added: “Oatly rejects all these false claims by the short seller and stands behind all activities and financial reporting.”

In the 124-page report, Spruce calls for Oatly’s Board to hire an independent forensic accountant to open an investigation to evaluate its claims relating to Oatly’s accounting practices. It also alleged that:



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