Ingka Investments – the investment arm of Ikea – has acquired a majority stake in Sweden-based plant-based food manufacturer The Green Dairy for US$8.6 million.

Established in 1989, the company supplies a range of products to F&B businesses, including barista-style oat milks, cooking creams, ice creams and hybrid dairy solutions.

“This majority stake will provide The Green Dairy with greater stability, which is needed for sustainable long-term growth,” Ingka Investments told Impact Loop.

“At the same time, we continue to support the company’s mission to develop affordable, plant-based alternatives to dairy products.”

Beyond dairy alternatives, The Green Dairy upcycles oat residues from its production process into a protein- and fibre-rich ingredient known as reOat.

The neutral-flavoured ingredient can be used in products such as baked goods, snacks, and meat alternatives, including burgers and meatballs.

Ingka Investments said it is also backing improvements at The Green Dairy’s manufacturing facilities, including energy-reuse initiatives to reduce the production’s climate impact.

“This reflects our approach to investing with impact by supporting companies that offer practical solutions to environmental challenges,” added the company.

• Further reading: Ikea’s Ingka Group invests in Chinese plastics recycler Re-mall.