Danone is set to invest $4 million in expanding its Fort Worth facility in Texas to meet the growing demand for protein-rich yogurts. The project, scheduled to be completed by September 1, will enhance production capabilities for popular products like Danimals, Activia, and YoCrunch, with the plant currently employing around 210 people.
The expansion comes as Juergen Esser, Danone’s deputy CEO, and chief financial, technology, and data officer, highlighted the company’s struggle to keep up with the high demand for high-protein yogurts, which are selling rapidly. This demand has also impacted Danone’s ability to innovate.
Danone’s yogurts have seen a surge in popularity due to the GLP-1 boom, as more consumers are turning to these products while taking medications to lose weight. The nutrient-dense yogurts not only offer a protein boost but also provide essential nutrients in controlled portions.
Last October, Danone reported a like-for-like sales increase in North America, with a rise in both volume and product mix. Rafael Acevedo, president of yogurt at Danone North America, expressed confidence in the company’s ability to meet consumer needs and capitalize on market opportunities.
The significant investment in the Texas facility is part of Danone’s strategy to expand production capacity. In a similar move, the company had announced an expansion and upgrade to its Minster, Ohio, yogurt facility, which included additional space and a new production line.