Danone Lines Up Yogurt Facility Expansion Amid “explosive Growth” In Us

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Danone has revealed plans to grow its Minster yogurt mill successful Ohio, which produces brands specified arsenic Oikos, Activia, Dannon and Danimals.

In a statement, nan world nutrient and beverage awesome said it had made a “multi-million-dollar investment”, which includes a 48,000 square-foot installation description , a caller accumulation statement and upgrades to existing lines.

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It will bring 30 caller full-time jobs to nan region.

The expanded capacity astatine Minster intendeds to reside user demand, Danone said, noting that nan yogurt class was seeing “explosive growth”, driven by consumers looking for “more nutrient-dense foods that are precocious successful protein” and “rich successful nutrients and probiotic benefits”.

To meet expanding demand, Danone added that it plans to bargain 60% much beverage for nan Minster installation complete nan adjacent 2 years, by moving pinch existing shaper partners to summation their accumulation and onboarding caller section farms.

Commenting connected nan news, president of Danone’s North America business Dan Magliocco, said: “Our committedness to American manufacturing runs deep, pinch 90% of our ingredients and packaging materials bought here.”

He added: “Fulfilling our ngo to bring wellness done nutrient to arsenic galore group arsenic possible, intends producing nutrient-rich foods pinch US ingredients successful American factories that are benefiting section communities.”

In its 2nd 4th ended, Danone saw income turn 2.3% connected a like-for-like ground to €1.6bn. Sales were besides up 3% to €3.3bn successful nan first half of its fiscal year.

Speaking to analysts successful a results telephone astatine nan extremity of July, CFO Juergen Esser noted that high-protein yogurt “continued to lead nan growth” successful its Essential Dairy and Plant-Based (EDP) section successful North America.

On nan call, Danone guidance was asked by a UBS expert whether Danone’s guidance was “satisfied” pinch its “market stock improvement successful yogurt for nan region”.

In response, CEO Antoine de Saint-Affrique said that wrong Danone’s EDP division, “Protein is going from spot to strength. Actually, nan maturation of nan marketplace is really impressive. It’s really beating nan expectations of everyone.”

He added nan group was besides seeing “early signs of advancement of Activia” and that it was looking astatine “reviving” nan Danimals yogurt marque successful nan 2nd half of nan year.

“So going successful nan correct direction, not fixed yet. I mean, we still request to do amended from a stock standpoint. We person a unsocial portfolio successful nan US that covers each offering and for nan moment, only Protein is driving. We are not leveraging nan afloat mightiness of our portfolio.”