Bel Group is making a significant move by investing $200 million to enhance the production capabilities of its Babybel cheese line in the United States. This strategic expansion will enable the Brookings, South Dakota factory to double its annual output to an impressive 20,000 tonnes.
Recently, Bel announced this initiative as one of its largest manufacturing investments in the U.S. By capitalizing on the growing demand for convenient and portion-sized dairy snacks, the company aims to solidify its position in the food and beverage industry. The U.S. market is crucial for Bel, representing a substantial one-third of its revenue. Currently, the company generates approximately $1.2 billion in retail sales within the country.
Looking ahead, Bel has ambitious plans to “double its US business again in the years ahead,” leveraging the United States as a key driver for over half of its anticipated growth. Cécile Béliot, CEO of Bel Group, remarked, “The decision to double capacity of this [Brookings] facility positions us for enhanced long-term growth in the US.”
Bel’s U.S. manufacturing presence extends across Idaho, Michigan, Wisconsin, and South Dakota, with an additional plant located in Quebec, Canada. Alongside Babybel, the North America portfolio features popular cheese brands like The Laughing Cow and Boursin, as well as fruit-based snacks such as Pom’Potes and GoGo squeeZ.
Peter McGuinness, who transitioned from Impossible Foods to become the CEO of Bel North America in February, highlighted the strong demand for Babybel in the U.S. He noted that this demand is driven by consumers seeking convenient dairy options made with minimal ingredients that provide complete protein.
In its latest financial report for the six months ending in June, Bel Group reported a 3.2% rise in organic revenue to €1.87 billion ($2.1 billion). However, net profits saw a decline, decreasing to €46.4 million from €52.7 million in the previous year.