Bel Group is investing $200m to expand the production of Babybel cheese in the US.
The move will double the annual output of its factory in Brookings in South Dakota to 20,000 tonnes.
In a statement yesterday (11 March), the French dairy major called the project one of its largest manufacturing investments in the US.
The country is Bel’s biggest market, accounting for a third of its revenue. The company said it generates around $1.2bn in retail sales in the US.
Bel is planning to "double its US business again in the years ahead", with the country "the driver of more than half" of its projected growth.
Cécile Béliot, the CEO of Bel Group, said: "The decision to double capacity of this [Brookings] facility positions us for enhanced long-term growth in the US."
The company's US food manufacturing facilities are located in Idaho, Michigan, Wisconsin and South Dakota. It also has a plant in Quebec in Canada.
In addition to Babybel, Bel North America's portfolio features cheese brands including The Laughing Cow and Boursin. It also includes fruit-based snack brands like Pom’Potes and GoGo squeeZ.
Peter McGuinness, the former Impossible Foods chief who became CEO of Bel North America in February, said: "Babybel continues to see strong demand in the US, driven by consumers seeking convenient, portion-sized dairy snacks made with a few ingredients and delivering complete protein."
In its latest financial results for the six months ending June, Bel Group reported a 3.2% rise in revenue on an organic basis to €1.87bn ($2.1bn). Net profit declined to €46.4m from €52.7m in the prior year.
