Daily Newsletter

15 January 2024

Daily Newsletter

15 January 2024

Danone to close yogurt factory in Spain

The Alpro producer said the decision was made to boost “the competitiveness of brands” and improve “industrial efficiency”.

Fiona Holland January 12 2024

French dairy giant Danone has confirmed it intends to shut its dairy and plant-based yogurts facility in Parets del Vallès, located north of Barcelona, Spain.

In a statement published today (12 January), the Activia maker said it had begun a process of negotiations “regarding the possible cessation of activity of the plant” with "the legal representation of the workers."

Spanish news agency Europa Press has suggested some 157 workers will be impacted by the closure.

Just Food has asked Danone to confirm the exact number of employees at the site, as well as when it expects the facility to shut.

Catalonian trade union Comissió Obrera Nacional de Catalunya (CCOO CAT) confirmed that the company had shared its decision to close the facility with the CCOO CAT works council.

Speaking in a statement, the group said it “flatly rejects the closure announcement and urges the company to reverse its intentions”.

It added that it expected to see the company develop “an industrial plan that guarantees the continuity of activity and jobs at the Vallès plant”.

Danone said the decision was made as “part of a local rationalisation process with the aim of strengthening the competitiveness of brands and gaining industrial efficiency.”

It added that it would “work together with the legal representation of the workers to offer the best possible solutions, and minimise the impact on the employees of the plant.

“Likewise, Danone Spain will try to reach and agreement that satisfies the interests of all parties and will make every effort to mitigate the consequences of this announcement.”

The company also said it would also strive to boost “reindustrialisation” with the goal of “facilitating industrial continuity in the area and minimising labour impact”.

According to Europa Press, Danone has already begun its search for a new buyer for the plant.

In 2021, the group invested around €12m ($13m) in the installation of a new plant-based production line at the Catalonian site to manufacture the Alpro coconut and oat-based yogurt brand.

At the time, Danone said Parets del Vallès was its first European facility to produce dairy and dairy-alternative products in the same space.

Complex processes and high production costs could limit market growth for vegan cheese

The global vegan cheese market is expected to grow at a CAGR of 16.7% by 2030, primarily driven by the rise in the vegan and vegetarian population. However, its production often involves complex processes and expensive ingredients like nuts or plant-based proteins, leading to higher production costs, which are then passed on to consumers, making vegan cheese more expensive per unit compared to dairy cheese.

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