The Colorado based food and beverage group says the investment will increase production of its International Delight, Silk and SToK ready-to-drink coffee brands across the US
The funding will increase production of several of Danone's RTD coffee brands in the US | Photo credit: SToK
Danone North America, a subsidiary of French food and beverage giant Danone, is to invest up to $65m over the next two years to increase ready-to-drink (RTD) coffee and creamer and oatmilk production in the US.
The investment will cover several of Danone's coffee brands including coffee creamer International Delight, oatmilk brand Silk and cold brew range SToK.
In a press release, Danone North America said the investment in its Florida-based factory will enable the company to capitalise on growing consumer demand for RTD coffee and deliver cost savings, efficiencies and quality improvements.
“We are delighted to announce this investment in our North American business, which will allow us to capitalise on consumer demand in key beverage categories, including coffee creamers, plant-based creamers, and ready-to-drink coffee, while also supporting our long-term growth agenda. This investment will help us keep our products on our customers' shelves and give more American consumers the Danone products they love,” said Shane Grant, Group Deputy CEO, CEO Americas.
Danone North America operates 16 production sites across the US and Canada, employing 6,000 staff.
Highlighting growing consumer demand for RTD coffee in the US, Westrock Coffee is currently upgrading its coffee roasting and RTD facility in Arkansas, which when operational in 2024 will be the largest operation of its kind in the country.
The US coffee roaster is also developing a new distribution centre to support its RTD manufacturing facility, which is expected to be completed by the end of 2023.