Oatly vegan milk faces activist anger after Trump-supporting billionaire Schwarzmans Blackstone acquired a stake

Hollis Johnson/INSIDER

Summary List Placement

• Oatly is facing outrage from activists after signing a deal with Trump-linked private equity firm Blackstone.
• Climate and political activists have called out Oatly’s decision to partner with Blackstone, which partially owns two Brazilian firms accused of contributions to deforestation in the Amazon.
• Activists also object to Blackstone chairman Stephen Schwarzman being a prominent supporter of President Donald Trump.
• Schwarzman recently donated $3 million to the pro-Trump super PAC America First Action, which supports Trump’s reelection.
• Visit Business Insider’s homepage for more stories.

Vegan milk brand Oatly is facing activist pressure after private equity firm Blackstone, headed by Trump-supporting billionaire Stephen Schwarzman, acquired a stake in the company.

The Swedish oat-milk maker sold a $200 million stake in July to a consortium including Blackstone, Oprah Winfrey, Natalie Portman, former Starbucks CEO Howard Schultz, and Jay-Z’s entertainment company Roc Nation. 

The deal, in which Oatly was valued at nearly $2 billion, has come under the scanner by climate and political activists who say companies linked to Blackstone are contributing to deforestation in the Amazon rainforest.

A Twitter thread over the weekend drew attention to Blackstone’s part-ownership of two Brazilian infrastructure firms that have previously been blamed for contributions to deforestation: Hidrovias do Brazil and Pátria Investimento. 

Hidrovias has been accused of having a marked effect on deforestation by building hundreds of miles of an industrial roadway in the Amazon called the BR-163. 

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Blackstone denied the accusation against Hidrovias, and said in a statement: “The erroneous claims and mischaracterizations were blatantly wrong and irresponsible.”

“Hidrovias does not own, control or have any interest – direct or indirect – in the road in question (BR-163). This road has been operated by the Brazilian government since 1976. The company did not build this highway, nor are they paving it.”

Aside from the Brazil connection, protesters have noted Blackstone billionaire chairman Stephen Schwarzman is a prominent supporter of President Donald Trump.

According to CNBC, Schwarzman recently donated $3 million to the pro-Trump super PAC America First Action, which supports Trump’s reelection.

Oatly said on Twitter that partnering with Blackstone may be an “unexpected choice,” but would help “expand our sustainable mission and create more plant-based products.”

“We believe that to see real change everyone needs to be involved – including private equity. This investment will help us push the plant-based movement even further, while also steering global capital into sustainability instead of something else.”

When the $200 million deal was signed, the agreement highlighted the growing popularity of oat-milk consumption. Oat-milk sales in the US grew over 470% year on year to mid-March, making it the fastest-growing drink sector in that time, according to data analytics firm Nielsen. 

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