Lactalis has decided to close its plant-based drinks site in Canada.
The closure of the facility in Sudbury in Ontario will take effect on 12 December, marking the French dairy giant’s “full exit” from the plant-based drinks market in Canada.
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Lactalis said maintaining the plant-based operations is not “financially viable” and does not represent a “sustainable business”.
The company had been selling plant-based drinks in Canada under the brand Enjoy. Lactalis only launched the brand last year, rolling out a six-strong line of plant-based “high protein” drinks.
However, Lactalis cited a “shift” in market dynamics and the “challenges” posed by the current economic environment as the reasons behind the closure of the Sudbury site.
These factors have contributed to a “sustained decline” in the performance of the plant-based beverage category in Canada, it said.
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By GlobalData“We are incredibly grateful to our employees in Sudbury for their dedication and contributions over the years. We also extend our sincere thanks to the city of Sudbury for its longstanding partnership and support throughout our time in the community.”
However, the company said it would still market plant-based cheese under the Enjoy brand in Canada.
Lactalis also markets a variety of cheese and milk products under several brands in the country. The brands it sells in the country include P’tit Québec, Beatrice and Lactantia.
Just Food asked Lactalis how many jobs would be affected by the closure but the company had not commented at the time of publication.
