FRANCE – French dairy giant, Danone has announced a substantial €70 million (US$76 million) investment in a new production line dedicated to tube-feeding products at its Steenvoorde site in northern France.
This move is part of Danone’s broader strategy to enhance its medical nutrition offerings and meet the growing healthcare demands worldwide.
The investment includes €60 million earmarked for the production of around 30 recipes of Danone’s oral nutritional supplement under its Nutricia brand.
The Steenvoorde site, which has a long-standing history of 110 years, will now produce approximately 20 million litres of medical nutrition annually, catering to individuals with specific medical needs.
Antoine de Saint-Affrique, CEO of Danone, emphasized the company’s commitment to addressing the evolving nutritional needs of various populations.
“Nutritional needs change as people grow, age, and face health challenges, and at Danone, we believe that we have a responsibility to help generations live as healthily as possible,” he said.
“This investment is also in line with our Renew Danone strategy and shows our commitment to accelerating our adult medical nutrition product offering to meet healthcare demands and serve more patients.”
Danone’s medical nutrition business, part of its specialized nutrition division, represents about 40% of the division’s sales. This division also includes products for infants such as baby food and formula. T
he specialized nutrition segment reported a €8.5 billion (US$9.1 billion) revenue in 2023, marking a 3.3% increase from the previous year.
In addition to the new production line, Danone is investing €10 million in new infrastructure at the Steenvoorde site, which will include a biomass boiler aimed at reducing the site’s carbon footprint by nearly 70%.
The site currently employs around 430 people and produces Danone’s specialized nutrition products for early life, including the Gallia and Blédina brands.
This investment follows Danone’s recent strategic moves to expand its medical nutrition segment. Earlier this month, the company acquired Functional Formularies, a US-based whole foods tube-feeding business, and last year, it expanded its medical nutrition production in Poland and Turkey.
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