Ground has barely been broken on a new production facility for SunOpta's line of plant-based milks in Texas, and already the Edina-based company is talking about expanding further to meet fast-growing consumer thirst for oat milk.
"It is highly likely we will soon begin construction on another oat extraction facility in the very near future," SunOpta CEO Joe Ennen told investors Wednesday morning. "Oat revenue tripled versus the prior year."
The company is working to double its plant-based sales over the next several years after selling its organic commodities business in late 2020 and making a major pivot into non-dairy milks.
SunOpta makes and packages plant- and nut-based milks for some of the nation's best-known retail brands. Starbucks is also one of its largest customers.
Ennen said the extra oat milk production space would be in addition to the recently announced 400,000-square-foot "mega" facility under construction in Midlothian, Texas, outside of Dallas. The new capacity would likely be tacked on there or at its Modesto, Calif. plant.
SunOpta also has plant-based milk facilities in Alexandria, Minn. and Allentown, Pa. The company will also be moving into a new $20-million headquarters and R&D center in Eden Prairie by the end of the year.
Despite 16% growth in its plant-based business, SunOpta reported a $3.8 million loss for its third quarter on $198.5 million in revenue, missing Wall Street estimates. Company leaders pointed to the decline in its fruit-based business plus labor and raw material shortages disrupting supply chains worldwide.
"We're delivering growth, we're producing at a high level, we're just hitting a few speed bumps here and there," Ennen said.
The company's stock price reached an all-time high of $17.07 in February and has been consistently slipping since, closing at $7.74 on Tuesday. Shares were down more than 7% in early morning trading Wednesday.
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November 10, 2021 at 10:35PM
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SunOpta eyes more expansion to keep up with oat milk demand - Minneapolis Star Tribune
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