Danone to Spend $49 Million to Convert Factory from Dairy to Plant-Based

EAT

Nov 25

The food giant aims to increase its global plant-based sales to US$6.1 billion by 2025.

The world’s largest yogurt maker is set to transform one of its French dairy factories into a plant-based production site as demand for dairy-free products continues to soar.

Danone will invest US$49 million by fall 2022 to convert its Villecomtal-sur-Arros dairy plant into an oat milk factory for its Alpro brand. Its first Alpro-branded drinks will be available from the second quarter of 2023.

The move comes just months after a US$19.4 million injection into its Alpro plant in Issenheim, eastern France.

"We observe consumers' interest in plant-based recipes, which are a simple solution for those who want a more varied and diversified diet," Danone France's François Eyraud said.

Danone said the French market for plant-based foods has tripled in seven years and should grow another 50% by 2025. The company is anticipating this upward tract in demand for dairy-free products by increasing its production capacity and diversifying its plant-based portfolio.

Danone began its journey into the plant-based sphere in 2017 with the US$12.5 billion acquisition of U.S. organic food producer WhiteWave - parent company of vegan companies Alpro, Silk, So Delicious, and Vega. The deal led to a $760 million profit spike for the food giant by its third quarter in 2017, encouraging the company to continue capitalizing on increased demand for plant-based offerings.

As part of its target to increase global plant-based sales to US$6.1 billion by 2025, Danone bought U.S. plant-based foods specialist Earth Island. The company is also developing its “plant-based 2.0” product line and will introduceSilk NextMilk and So Delicious Wondermilk in the United States, and Alpro Not Milk in Europe.

Share on facebook

Share on Twitter

More stories:

Featured

Global outrage as Japan’s new whaling ‘mother ship’ ready to set sail

The whaling industry hopes that the new $47M vessel will help create more consumer demand for whale meat.

Tyson Foods dumps millions of pounds of toxic slaughterhouse pollutants into US rivers and lakes, report finds

Tyson released 87 billion gallons of wastewater, containing contaminants including blood, bacteria, and animal feces, directly affecting water sources relied upon for drinking, fishing, and recreation.