Canadian yogurt firm Ultima Foods has announced plans to invest CAD14.4m (US$10.7m) to expand drinkable yogurt production capacity at its plant in the eastern city of Granby.
Ultima said yesterday (6 June) it will install a new production line and “optimise operations” at the site. The yogurt maker said it is providing CAD10.8m for the project, in addition to a CAD3.6m interest-free loan from regional economical development agency Investissement Quebec.
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Thanks to the new equipment and “procedural fine-tuning made possible by the investment”, Ultima said weekly production at Granby will increase from 2.7m units to 4.8m.
“Optimisation of operating costs will allow the company to reinvest even more in the development of new yogurt products,” Ultima said. The investment will also create “35 to 40 jobs”.
Ultima said it produces 30% of yogurt consumed in Canada and has “not stopped innovating” since the launch of its Iögo brand in 2012.
“The success of these products is the main reason behind the investment… because the company had reached the limit of its drinkable yogurt production capacity,” Ultima said. “The new production line will boost growth at Ultima Foods, while enabling the company to meet the strong demand for drinkable products.”
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By GlobalDataIn October 2012, Ultima announced it was earmarking CAD22m to up capacity at Granby on the back of the launch of Iögo. The company said it invested a further CAD12m last year in innovation behind R&D and marketing.
