Danone has announced plans to enhance its Minster yogurt factory in Ohio, known for producing influential brands such as Oikos, Activia, Dannon, and Danimals.
In an official statement, the global food and beverage leader revealed a “multi-million-dollar investment,” which includes a 48,000 square-foot expansion, the installation of a new production line, and significant upgrades to current lines.
This expansion will create 30 new full-time jobs in the region.
According to Danone, the expanded capacity at the Minster facility aims to meet rising consumer demand, particularly as the yogurt sector experiences “explosive growth.” This increase is driven by consumers seeking “more nutrient-dense foods that are high in protein” and “rich in nutrients and probiotic benefits.”
In response to rising demand, Danone plans to source 60% more milk for the Minster facility over the next two years. This strategy involves collaborating with existing producer partners while onboarding new local farms.
Dan Magliocco, president of Danone’s North America business, commented: “Our commitment to American manufacturing runs deep, with 90% of our ingredients and packaging materials bought here.”
He further emphasized, “Fulfilling our mission to bring health through food to as many people as possible means producing nutrient-rich foods with US ingredients in American factories that are benefiting local communities.”
In the second quarter, Danone reported a sales increase of 2.3% on a like-for-like basis, totaling €1.6bn. Additionally, sales rose by 3% to €3.3bn in the first half of its fiscal year.
During a results call at the end of July, CFO Juergen Esser highlighted that high-protein yogurt “continued to lead the growth” in its Essential Dairy and Plant-Based (EDP) division in North America.
When analysts questioned Danone’s management—specifically a UBS analyst—about their satisfaction with market share development in yogurt for the region, CEO Antoine de Saint-Affrique responded. He noted that within Danone’s EDP division, “Protein is going from strength to strength. The growth of the market is indeed impressive, surpassing everyone’s expectations.”
He added that the group was also observing “early signs of progress of Activia” and is considering “reviving” the Danimals yogurt brand in the latter half of the year.
“So we are heading in the right direction, but it’s not fixed yet. We still need to enhance our share performance. Our US portfolio offers a unique range, currently, only Protein drives our growth. We must better utilize the full potential of our portfolio.”
