USA – Danone, a global dairy giant has announced a US$109.06 million investment in Mexico in a bid to fortify its presence in the Mexican market.

The announcement was made by Emilio Aguilar, Vice President of Public Affairs for Danone, during a press conference held to mark the company’s 50th anniversary in Mexico.

According to the Vice president, the substantial capital injection underscored Danone’s commitment to its Mexican operations, with a primary focus on sustaining production lines and driving innovation.

“To grow our legacy, we are going to continue innovating, continue growing, and continue investing in our business,” Aguilar stated highlighting the company’s dedication to growth.

“The investment is a testament to Danone’s confidence in the Mexican market and its enduring presence in the region.”

He added that Danone’s strategic approach to the Mexican market includes recent ventures into the plant milk sector with “Bye Bye Muu” and sustainable initiatives for its Bonafont brand.

While specific details about upcoming products were not disclosed, Danone remains committed to adapting to consumer trends and fostering innovation.

Aguilar highlighted the company’s positive performance in 2023, navigating the post-pandemic landscape with sustained growth.

While specific sales figures were not revealed, Danone’s flexibility in product formats, catering to on-the-go preferences, contributed to its success as schools and workplaces resumed operations.

Looking ahead to 2024, Aguilar expressed confidence in maintaining sustained growth despite potential challenges posed by upcoming elections.

“The company remains dedicated to its core functions of production, job creation, and ensuring product availability on shelves for consumers.”

Meanwhile, in a related development, UK-based dairy company, Arla Foods has announced a strategic review of its historic Melton Mowbray Creamery, known as Tuxford & Tebbutt, raising concerns about potential job losses.

The creamery, in operation since 1780, faces an uncertain future as Arla explores options, including finding a buyer for the site.

While Arla assures that the creamery will remain operational during the review period, it acknowledges the potential impact on the 60 employees currently working at the facility.

Fran Ball, VP of production at Arla Foods, attributed the review to the declining speciality cheese market in the UK, emphasizing the cooperative’s commitment to supporting its workforce and maintaining business sustainability.

Arla Foods, owned by around 8,492 dairy farmers globally, plans to provide an update on the strategic review by April 2024.

The cooperative, known for its brands such as Arla, Lurpak, and Castello, aims to navigate industry challenges while supporting its farmer-owners and ensuring a fair return to its 2,000 UK farmer-owners.

Subscribe to our food and agriculture industry email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE