Dive Brief:
- Danone plans to invest millions of dollars to expand and upgrade its Minster, Ohio, facility amid “explosive growth” in yogurt.
- The investment includes a 48,000-square-foot facility expansion, as well as a new production line and other upgrades. Danone said 30 full-time jobs will be created.
- Danone has been expanding its product lines this year as yogurt benefits from rising consumer interest in nutrient-dense, high-protein foods. The company launched an Oikos drink targeted at GLP-1 users and brought the popular brand into the $7 billion protein shake market.
Dive Insight:
As consumers pay more attention to what they eat and drink, yogurt makers such as Danone have been among the biggest beneficiaries. Oikos sales, for example, surged 40% during 2024, according to Circana data previously provided by Danone.
Danone has responded to surging demand by investing in its U.S. plants, including Minster, which manufactures Oikos, Activia, Dannon and Danimals, among other offerings.
Other yogurt makers have also moved to capitalize on rising demand. Chobani announced earlier this year that it plans to spend $1.2 billion on a New York dairy processing plant and $500 million to expand production by 50% at its Twin Falls, Idaho, facility.
The expansion at Minster means Danone will need to increase its milk purchases for the yogurt facility by 60% during the next few years. This company plans to work with existing producers to increase their output and onboard new local farms.
“Fulfilling our Mission to bring health through food to as many people as possible, means producing nutrient-rich foods with U.S. ingredients in American factories that are benefiting local communities,” Dan Magliocco, president of Danone North America, said in a statement.
Danone purchases 90% of its ingredients and packaging in the U.S., Magliocco said. Danone currently employs approximately 5,000 American workers across 13 U.S. manufacturing facilities in 10 states.
