Organic grocery products supplier Compagnie Léa Nature is investing €10m ($10.3m) to expand a factory in its home market of France.
The cash is being channelled into the company’s facility in Damazan, located in the Lot-et-Garonne region in south-west France, which manufactures the Bioviver organic food brand.
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Périgny-La Rochelle-headquartered Compagnie Léa Nature said in a statement it will add 3,000 square feet of extra space at the site to accommodate a third production line for organic fruit, jam, cooked vegetables and desserts.
Of the €10m total investment, the European Agricultural Fund for Rural Development (EAFRD) and French organic foods promoter Agence Bio are providing €1.9m in subsidies.
Annual capacity at the Damazan plant will increase by about 70%, or an additional 20 million jars of product, Compagnie Léa Nature said. Some five to ten jobs will be created with the addition of the new production line in the next three years from the current employee count of 62.
The Bioviver brand started out in 1969 and consists of around 270 SKUs. As well as the Damazan site, Compagnie Léa Nature also produces the product line at another facility in Bazens in the same Lot-et-Garonne region.
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By GlobalDataNicolas Le Foll, the operations director overseeing the two Bioviver factories, said: “This extension is an ambitious project on the scale of Bioviver but nevertheless essential to modernise our tools and bring maximum quality to our products.
“This project, in the heart of the Lot-et-Garonne, underlines the desire for a territorial anchoring for the development of local sectors and the maintenance of jobs in our department.”
Compagnie Léa Nature has expanded its business in recent years through M&A and now operates 22 production facilities in France employing 2,000 people. The company generated a turnover in 2023 of €488m.
Just Food has asked Compagnie Léa Nature for an update on revenue expectations for 2024 and on the rationale for the investment in Damazan.
Last year saw the company snap up fellow organic foods producer Biothentic, which supplies chocolate-covered nuts, seeds, popcorn, legumes, rice and other grains.
The deal added to Compagnie Léa Nature’s diverse food portfolio, which also includes ready meals, biscuits, cooking sauces and other cooking aids, fruit juices and smoothies.
A minority 40% stake was also taken in 2023 in the Jarnoux group, which makes crêpes, pancakes and blinis.
The previous year, a majority interest was acquired in Bio Organica Italia, a supplier of antipasti and olive oils. Also in 2022, Compagnie Léa Nature purchased 40% in snacks, biscuits and pastry products maker Alpes Biscuits.
