Oatly Jumps on Production Deal to Fix Persistent Shortages (1)

Oatly Group AB surged after announcing it will transfer leases and production capacity at two US facilities to Canadian manufacturer Ya YA Foods Corp. — a bid to fix product shortages that have plagued the Swedish oat milk maker.

The $98.1 million co-packing agreement, expected to close in the first quarter, will last 10 years and is part of a shift to an “asset-light” supply-chain strategy, Oatly and Ya YA Foods said in a joint statement on Tuesday. Ya YA Foods will assume the leases and acquire certain assets for Oatly’s Ogden, Utah, facility and its planned production site in ...