Danone doubles infant formula production in New Zealand with US$18m investment

26 Feb 2018

26 Feb 2018 --- French multinational food products corporation Danone has unveiled a US$18.3 million investment at its Auckland, New Zealand infant formula plant, which will double production capacity there. The upgrade and expansion of the Auckland infant formula blending processing and packaging plant is part of the food group’s strategy to supply key markets and offer the capacity to increase infant formula quantities to other regions such as China and Australia.

This is the latest expansion in New Zealand for Danone which first started an investment program in the country several years ago through the 2014 acquisition of Balclutha spray dryer and the Airport Oaks blending, packing and canning facilities.

“New Zealand has a strong reputation for high-quality milk and efficient production,” says Cyril Marniquet, New Zealand operations director for Danone Early Life Nutrition. “We’re proud to be a growing part of the New Zealand dairy story through our high-quality international brands and expertise in early life nutrition.”

“Australia continues to be our number one export destination, but we’re seeing growing demand for our international products in other markets, including China. By doubling production capacity, we’re better placed than ever before to meet ongoing demand in key markets.”

Marniquet added how Danone has an end-to-end processing capability, with 450 people working in its New Zealand processing operations, which has increased from 300 in 2014.

“We have been granted approval by the Certification and Accreditation Administration of the People’s Republic of China to manufacture and export directly to China from the Auckland plant,” he continued. “We’ve also been granted a Halal License from the New Zealand Islamic Development Trust.”

“Both certifications are recognition of the stringent processes we undertake for food safety, quality, hygiene and manufacturing. Importantly, they open up exciting future trade opportunities.”

Earlier this month, Danone announced plans to offload part of its 21.29 percent stake in Japan’s Yakult as part of its capital allocation strategy, at the same time as bolstering its collaboration in probiotics by signing a Memorandum of Understanding with the Japanese company.

The dairy giant is entering “a new phase in its strategic partnership with Yakult” and is intensifying its partnership to promote and develop probiotics activities that build on the collaboration with Yakult which first began in 2004.