Danone Closes Baby Food Factory in France: Reasons and Next Steps
The French company Danone has announced the closure of its factory producing Blédine baby cereals and the food supplement phosphatin in France. Employees of the facility were officially notified about the upcoming closure on November 4, the company reported.
This is reported by AgroReview
Reasons for Closure and Future of Production
According to Danone, the decision to close was made due to a prolonged decline in demand for the relevant products in the European and African markets. This particularly concerns phosphatin — an iron-enriched supplement used to combat anemia in children, primarily in African countries. Despite significant investments in modernizing the facility in recent years, the company concluded that the economic viability of continuing operations at the factory can no longer be guaranteed.
“This decision was made against the backdrop of a slow decline in sales over more than ten years in the European and African markets,” Danone explained. “Despite significant investments in recent years to support, transform, and modernize the facility, its economic future is no longer guaranteed.”
Relocation of Production and Support for Employees
The production equipment for baby cereals is planned to be relocated to another Danone factory located in Opole, Poland. The company also noted that employees who will lose their jobs due to the closure of the facility will be offered alternative positions at other Danone sites in France.
The Danone Group is one of the world’s leaders in dairy production. It operates in over 150 countries, focusing its activities in three main segments: fresh dairy products and baby food, biscuits, and mineral water. Danone is also present in the Ukrainian market, offering brands such as “Actimel,” “Activia,” “Rastishka,” “Danissimo,” “Zhyvinka,” “Vesely Pastushok,” “BioBalance,” “Tema,” “Prostokvashino,” “Galakton,” “Smeshariki,” and “Kremez.” The total number of employees in the company exceeds 86,000 people.