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Insightful Analysis:
With a growing focus on healthy eating habits, yogurt producers like Danone have experienced significant growth. In 2024, Oikos sales saw a remarkable 40% increase, as reported by Circana data sourced from Danone. Danone has responded to this surge in demand by investing in their U.S. facilities, such as the Minster plant, which produces a variety of popular yogurt brands like Oikos, Activia, Dannon, and Danimals.
Other players in the yogurt industry are also capitalizing on the increased consumer interest. For instance, Chobani recently announced plans to invest $1.2 billion in a new dairy processing plant in New York and allocate $500 million towards expanding production by 50% at their Twin Falls, Idaho facility.
The expansion at the Minster plant will require Danone to ramp up their milk purchases by 60% in the coming years. To meet this demand, the company is working with existing suppliers to boost their production and welcoming new local farms into their supply chain.
“Our commitment to promoting health through food for as many people as possible involves creating nutrient-rich products using U.S.-sourced ingredients in American factories that benefit local communities,” stated Dan Magliocco, President of Danone North America.
Magliocco highlighted that Danone currently sources 90% of its ingredients and packaging locally in the U.S. The company employs around 5,000 workers across 13 manufacturing facilities in 10 states.