Dive Brief:
- Danone is facing challenges meeting the high demand for its high-protein yogurts in the U.S. due to limited manufacturing capacity.
- The company is struggling to keep up with the popularity of its high-protein yogurts, such as Activia and Oikos, which are selling rapidly.
- Supply constraints have hindered Danone’s ability to introduce new innovations in its yogurt portfolio due to lack of available capacity.
Dive Insight:
Protein has become a key ingredient in the U.S. food industry, with companies incorporating it into a wide range of products. The increasing focus on health and weight loss medications has fueled consumer demand for convenient and tasty protein options.
Yogurt manufacturers, including Danone, have seen a surge in sales driven by the high demand for protein-rich products. To meet this demand, Danone has introduced high-protein shakes and other innovations.
However, the company is facing challenges in scaling up production to meet the growing demand for high-protein yogurts. Despite a tense supply situation, Danone expects to increase capacity in the coming months.
In the U.S., Danone’s Greek yogurt portfolio, which includes high-protein options, is popular among consumers. The company recently launched a high-protein Oikos yogurt shake aimed at consumers using weight-loss medications.
While Danone’s focus on high-protein products has driven growth, it has also impacted other areas of its yogurt portfolio. The company is investing in expanding production capacity to address these challenges.
Capacity constraints have affected Danone’s growth in North America, with the region reporting slower sales growth compared to other regions. The protein market in the U.S. is valued at $114.4 billion and is expected to continue growing in the coming years.