Danone to Close New Jersey Dairy Alternatives Plant Amid Strategic Shift

Danone has announced the closure of its dairy-alternatives facility located in Bridgeton, New Jersey, which will take effect on August 4. This decision impacts around 114 employees as the company plans to consolidate production of Silk and So Delicious Dairy Free brands at other locations in Mt. Crawford, Virginia, Dallas, Texas, and Jacksonville, Florida.

The closure is part of Danone's strategy to optimize its manufacturing operations within the U.S., focusing on investing in critical capabilities across its core footprint. Despite the closure, Danone is expanding elsewhere, recently declaring a €20 million investment to enhance skyr production in France and a significant expansion of its Boucherville, Canada facility, which will increase yogurt output and raw milk processing capacities.

Sales data from the Good Food Institute highlighted that plant-based milk, while still the largest category in the U.S. with $2.7 billion in sales, experienced a 2% decrease in 2025. However, specific segments such as soy and coconut milk saw growth, with increases of 4% and 27% respectively.

This strategic shift comes as Danone endeavors to improve the performance of its plant-based business in North America, which was described as unsatisfactory in the company's 2025 financial results released earlier this year.