In a strategic move to meet the increasing demand for coffee and creamer brands, Danone has invested $65 million in expanding its Jacksonville, Florida plant. The 77-year-old facility, which opened on Tuesday, will now support the production of popular brands like International Delight and STōK Cold Brew.
Additionally, Danone is also focusing on improving its distribution network by investing in a new regional distribution center in the Jacksonville area. This enhancement will enable the company to deliver its products at peak freshness across the Southeastern U.S., catering to a wider consumer base.
The expansion of the manufacturing plant and the establishment of the distribution center are expected to create nearly 200 direct and indirect jobs in the Jacksonville community, contributing to economic growth and development in the region.
Amidst a challenging business environment, Danone’s strategic investments demonstrate its commitment to future growth and innovation. The company’s decision to add a production line for International Delight and STōK reflects its anticipation of market trends and consumer preferences.
The cold brew coffee segment, in particular, is projected to witness significant growth, with estimates indicating a rise from under $500 million in 2022 to $3.11 billion by 2030. Danone’s expansion into seasonal flavors and a cold-brew energy drink line aligns with the evolving preferences of consumers, providing them with a diverse range of options.
Danone’s new production line in Jacksonville features cutting-edge technology, including a bottle-molding process that enhances production capacity while promoting efficiency and sustainability. The company’s focus on recyclable bottles and reduced water usage underscores its commitment to environmental responsibility.
As Dan Magliocco, president of Danone North America, emphasized, the company remains dedicated to serving consumers, driving innovation, and contributing to economic growth through strategic investments. In a year marked by changing production networks, food and beverage companies like Danone are adapting to meet evolving consumer demands and market dynamics.
With other industry players like JBS USA, Kraft Heinz, PepsiCo, Conagra Brands, and J.M. Smucker also making strategic moves to optimize their production capabilities, the food and beverage sector is witnessing a transformation aimed at aligning supply with consumer demand. Danone’s investments in expansion and innovation position the company for future success and sustainability in a competitive market landscape.
