Danone to Spend $49 Million to Convert Factory from Dairy to Plant-Based
The food giant aims to increase its global plant-based sales to US$6.1 billion by 2025.
Credit: Alpro
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.
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