Lactalis to close down Canada facility citing decline in plant-based beverage segment

Lactalis is set to close its plant-based beverage facility in Sudbury, Canada, just over a year after it officially reopened. The decision has drawn criticism from worker unions, who deem the move “surprising and a letdown.”

The dairy multinational will fully exit the category once it shuts down the site on December 12, 2025.

Lactalis Canada confirms in a statement sent to Food Ingredients First that the decision is based on “a shift in market dynamics and the challenges associated with the broader economic climate, all of which have led to a sustained decline in the plant-based beverage category’s performance.”

“Unfortunately, continuing operations is no longer financially viable,” notes the company, adding that the business is also not sustainable.

Lactalis Canada started turning its Sudbury milk plant into an entirely plant-based facility in 2022. The site officially reopened in June 2024 to formulate high-protein, unsweetened dairy-free drinks under the company’s Enjoy brand.

The dairy giant’s decision reflects volatility in the plant-based beverage sector. The category’s slowdown is pushing ingredient companies to adjust their strategies in response to weaker-than-expected demand and market turbulence.

Union reacts

Ceasing the Sudbury site will impact 26 unionized employees who are members of Canada’s United Food and Commercial Workers (UFCW) Local 17.

“Given the significant investment Lactalis made recently in refurbishing its facility, this announcement is a surprise and a letdown,” says president Kelly Tosato. 

“We are focused on supporting our members through this difficult transition, and we will continue to meet with the company to discuss the closure and its impact on the workers and community.”

UFCW notes that it is “actively engaged” with Lactalis Canada to ensure affected employees receive support in transition, employment assistance programs, and potential transfer opportunities.

Meanwhile, Lactalis Canada acknowledges its Sudbury employees’ dedication and the city of Sudbury's “long-standing partnership” in the statement.