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Plant-Based Dairy Company Raises $28 Million

Specialty Food Association

Oddlygood Global, a spinoff of Valio, a Finland-based food company, closed its first round of funding with an investment of $28 million from the private equity division of Helsinki-based Mandatum Asset Management.

Oddlygood develops and markets plant-based products, including oat drinks for coffee, oat yogurts, cheeses and dairy alternatives used in cooking and baking. Known for its Finlandia brand of cheeses and butter in the U.S., Valio spun off the plant-based division's business earlier this year and will continue as Oddlygood's majority shareholder.

Mandatum's investment will fuel Oddlygood's goal of becoming a global leader in plant-based products.

"Interest in plant-based products is growing exponentially worldwide, which we see in a significant increase in our sales. However, consumers will only change their day-to-day consumption habits if they find dairy alternatives that both taste good and fit their lifestyle," says Oddlygood Global's CEO Niko Vuorenmaa, in a statement. "Consumer taste tests and sales results confirm we're on the right path."

Sales of Oddlygood products have doubled every year since the brand's debut in 2018. In Sweden, Oddlygood has grown 131 percent, while the market share of oat-based dairy alternatives has only grown by 12 percent. In October this year, the company had the second largest market share in oat-based beverages in Sweden, according to NielsenIQ ScanTrack.

Currently, Oddlygood products are sold in Finland and Sweden, as well as in the U.K., Russia, and the Baltic countries. U.S. sales are slated to begin in early 2022 as production begins of Oddlygood Oat Yogurt in Northern California.

Earlier this year, Oddlygood started marketing its cheeses to the U.S. foodservice sector with a focus on pizza operators. Oddlygood Global plans to grow sales and distribution in existing markets and enter new ones.

"We will use Mandatum's financing to accelerate the implementation of our growth strategy and to deepen our business development expertise," said Vuorenmaa, in a statement.

Related: New Product Roundup: Oat-based Innovations; Shapa Teams Up With Freshly.