Danone to expand Oikos Greek yoghurt production in Canada

French dairy firm Danone is set to expand production of Oikos Greek yoghurt at its facility in Boucherville, Québec, with an investment of C$40m (US$38.5m).

The project, which will be supported by Investissement Québec through a $5m ($4.81m) interest-free loan, is expected to create 25 direct jobs and hundreds of indirect jobs.

The investment builds on the success of the Oikos brand, which has gained significant popularity with Québec consumers.

As part of the expansion, Danone has acquired precision equipment which provides it with versatility in manufacturing and packaging of the yoghurt product.

President and CEO of Danone in Canada, Nick Krzyzaniak said, "This investment not only confirms Danone’s role as a major agent of economic development in Québec, but reasserts its leadership as the country’s largest yogurt producer."

Danone executive committee member, human resources general manager and Danone Ecosystem Fund board chairperson Muriel Pénicaud said the announcement demonstrates that Danone is firmly established in the community and plays an active part in the economic benefits of the region and of Québec.

"Beyond our business activities, we firmly believe that eating a yogurt a day is healthy for everyone," Pénicaud added.

Danone stated that Oikos is inspired by Greek tradition and its manufacturing process involves a separation technique that produces a yoghurt with a thick, creamy texture which requires approximately three times more milk compared with regular yoghurt.

The protein content of Oikos yoghurt is twice that of a regular yoghurt, making it as satisfying as it is delicious, the company said.

In recent years, Danone has been investing significantly in the yoghurt segment – in August, the company acquired YoCrunch, a US-company which produces yoghurt packaged with crunchy mix-in toppings such as M&Ms and Oreo, to increase its presence in the US yoghurt market.

In May, it entered into an agreement with China Mengniu Dairy to invest €325m to take advantage of increasing demand for internationally-branded milk and yoghurt.

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Image: Danone has purchased precision equipment that provides versatility in the manufacturing and packaging of its product. Photo courtesy of CNW Group/DANONE CANADA.