Danone Enhances Medical Nutrition Production with €70 Million Investment in French Facility
Source: The DairyNews
Danone, a leading name in the global dairy industry, has announced a strategic investment of €70 million ($76 million) to enhance its medical nutrition production capabilities in France. This investment will focus on a new production line at the Steenvoorde site in northern France, which is set to produce approximately 20 million liters of medical nutrition annually.
This substantial financial commitment includes €60 million dedicated to producing around 30 recipes of Danone’s oral nutritional supplements under the Nutricia brand, part of Danone’s specialized nutrition range. The Steenvoorde site, with a legacy spanning 110 years, will significantly expand its output to meet the increasing demand for tube-feeding products and oral nutritional supplements.
Antoine de Saint-Affrique, CEO of Danone, emphasized the company’s commitment to adapting its product offerings to the evolving nutritional needs of individuals at different stages of life, particularly those facing specific health challenges. He highlighted this investment as a pivotal part of Danone’s "Renew Danone" strategy, aiming to accelerate the growth of its adult medical nutrition portfolio to better serve an expanding patient base.
Additionally, Danone plans to invest an extra €10 million in infrastructure enhancements at the same site, including the installation of a biomass boiler expected to cut the site’s carbon emissions by nearly 70%.
Danone’s specialized nutrition division, which includes infant formulas and medical nutrition products, is a significant contributor to the company's financial health, with medical nutrition products comprising about 40% of the division’s sales. In its 2023 full-year results, the specialized nutrition segment reported €8.5 billion ($9.1 billion) in revenue, marking a 3.3% increase from the previous year.
This announcement follows Danone’s recent acquisition of Functional Formularies, a U.S.-based whole foods tube-feeding company, further expanding its presence in the medical nutrition field. The company also invested €50 million last September to expand a factory in Poland, underscoring its ongoing commitment to enhancing its medical nutrition production globally.
Antoine de Saint-Affrique, CEO of Danone, emphasized the company’s commitment to adapting its product offerings to the evolving nutritional needs of individuals at different stages of life, particularly those facing specific health challenges. He highlighted this investment as a pivotal part of Danone’s "Renew Danone" strategy, aiming to accelerate the growth of its adult medical nutrition portfolio to better serve an expanding patient base.
Additionally, Danone plans to invest an extra €10 million in infrastructure enhancements at the same site, including the installation of a biomass boiler expected to cut the site’s carbon emissions by nearly 70%.
Danone’s specialized nutrition division, which includes infant formulas and medical nutrition products, is a significant contributor to the company's financial health, with medical nutrition products comprising about 40% of the division’s sales. In its 2023 full-year results, the specialized nutrition segment reported €8.5 billion ($9.1 billion) in revenue, marking a 3.3% increase from the previous year.
This announcement follows Danone’s recent acquisition of Functional Formularies, a U.S.-based whole foods tube-feeding company, further expanding its presence in the medical nutrition field. The company also invested €50 million last September to expand a factory in Poland, underscoring its ongoing commitment to enhancing its medical nutrition production globally.
