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December 18, 2020

Danone invests in plant-based production in Sweden

Danone is to invest in expanding production at one of its factories making plant-based dairy products in Europe.

By Dean Best

Danone is to expand production at one of its factories making plant-based dairy products in Europe.

The French group is spending SEK140m (US$16.9m) at the site in Lunnarp in south-eastern Sweden, where the company makes products sold under brands including ProViva and Alpro.

Alongside the increase in production of plant-based products, Danone expects the investment to see the site up its staff by 10%. Around 100 employees work at the plant. The expansion project is due to be completed by May.

Danone said the investment was responding “to local demand for plant-based products, and also allow production for other countries in Europe”. The company refused to be drawn on which countries the Lunnarp site could be used for supplies.

Earlier this week, Danone announced it was setting up a group “strategy and transformation committee” to support the company’s new initiative to promote what it has called a “local first” culture focused on individual markets and teams.

The new locally-focused corporate structure was unveiled last month when the Activia maker set out plans to adapt to how it sees the post-Covid trading environment taking shape. Danone is also targeting EUR1bn (US$1.23bn) in cost savings, including removing up to 2,000 jobs.

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