The food and beverage industry is constantly evolving, and companies are continuously looking for new opportunities to cater to consumer trends. One such company is Danone, a French giant in the food and drink business. In addition to their popular baby food, yogurt, and bottled water products, Danone is expanding their factory in Poland to manufacture “medical nutrition” products.
The €50m ($53.6m) investment will add a production line at Danone’s plant in Opole, Poland. Currently, the factory manufactures infant formula and baby food, and this expansion will now enable the production of enteral nutrition products. These products are specifically designed for patients who are unable to swallow or drink normally and rely on feeding tubes.
With an ageing population and a rising incidence of chronic diseases, the demand for “medical nutrition” is expected to grow. According to Danone, only one in three patients who could benefit from these products currently receive them. Therefore, this expansion will allow Danone to address the increasing need for these specialized nutritional items.
Danone CEO Antoine de Saint-Affrique expressed his optimism about the expansion, stating that it will not only improve supply chain agility and serve more patients locally but also align with their mission of bringing health through food to as many people as possible. However, it remains unknown when the new production line will be operational and which geographic markets it will cater to.
Within Danone, the medical nutrition business falls under the wider “specialized nutrition” division, which also includes products for infants such as baby food and formula. Medical nutrition products currently account for approximately 40% of the division’s sales. Overall, the specialized nutrition division contributes to 30% of Danone’s total revenues, and in 2022, the division’s sales grew by 10% on a like-for-like basis.
In the first half of 2023, Danone’s specialized nutrition sales amounted to €4.25bn ($4.56bn), showing a year-on-year growth of 5.5%, or an 8.3% increase on a like-for-like basis. The company also highlighted a 1.7% increase in the “volume/mix” of their specialized nutrition products.
It is important to note that other players in the industry are also investing in their facilities to meet market demands. For instance, Unilever recently announced their investment in their factory in the Polish city of Poznań to boost the production of their ramen noodles brands.
