Danone has announced plans to shut down its Blédina infant-cereal production facility located in Villefranche-sur-Saône, France, impacting 117 employees. This site primarily produces Blédine baby cereals and the Phosphatine line, as confirmed in a statement to Just Food.
The closure comes as part of a broader trend affecting the food and beverage industry. Over the past decade, the site has experienced a steady decline in activity, attributed to a shrinking market in Europe and increased complexities in the African market. Danone emphasized that “this project comes as the site has been facing a slow decline in activity for more than a decade in a structurally declining market in Europe and a complex market environment in Africa.”
Despite significant investments in modernization and support for the site, its economic viability is in question. The production of Blédine and Phosphatine is expected to shift to Danone’s facility in Opole, Poland, as the company continues to focus on the infant cereal segment.
Employees impacted by this decision should expect opportunities for alternative positions both within France and, when feasible, in proximity to the Blédina plant in the Auvergne-Rhône-Alpes region. Danone’s management aims to prioritize personalized solutions for affected workers, as stated in the company’s announcement.
Additionally, Danone plans to offer “social support” and training programs through the establishment of a career transition campus. Discussions regarding these opportunities will involve employee representatives to ensure a supportive transition.
The company reassured stakeholders that it remains committed to investing in its industrial facilities and boosting employment within France, emphasizing that the Auvergne-Rhône-Alpes region remains a strategic priority.
Earlier this year, Danone also revealed intentions to close another facility in Germany, which affects the production of dairy products and high-protein puddings, eliminating 230 jobs. These strategic changes are reflective of ongoing shifts in the food and drink business, responding to evolving consumer trends and market conditions.
Recently, Danone reported its third-quarter financial performance, showing a 4.8% increase in like-for-like sales, totaling €6.88 billion ($8 billion). Europe contributed to this growth, achieving a 2.6% increase in sales with a 2.1% uptick in volume/mix.
