Danone invests in production capacity to meet global demand for medical nutrition

23 May 2024 --- Danone has invested €70 million (US$76 million) in its Steenvoorde production facility in France to bolster its specialized nutrition category through capacity optimization of its oral nutrition supplements. The upgraded facility will produce 20 million liters of nutrition products by 2026 for patients with severe health conditions like cancer.

Most of the investment — €60 million (US$65 million) — will produce about 30 oral nutritional supplement recipes for patients under Danone’s specialized nutrition range, Nutricia. A portion of the investment will be used to install a biomass boiler which aligns with the company’s sustainability commitments like reducing Scope 1 and 2 emissions by at least 42% by 2030.

“Nutritional needs change as people grow, age and face health challenges, and at Danone, we believe that we have a responsibility to help generations live as healthily as possible. We are continually innovating, investing and utilizing our 125 years of expertise to develop products adapted to the growing nutritional needs of millions of patients worldwide,” says Antoine de Saint-Affrique, CEO of Danone.

Danone’s specialized nutrition business represents 30% of its turnover. Seven of its 27 production sites dedicated to specialized nutrition produce medical nutrition.

Growth trajectory
The Steenvoorde upgrade is part of a series of investments by the company to meet the demand for medical nutrition products, an anticipated pivotal growth driver for Danone. The investment aligns with the Renew Danone strategy, emphasizing the company’s commitment to expanding its adult medical nutrition portfolio.

In 2023, Danone strengthened its industrial capacities in medical nutrition through new production lines for its Lüleburgaz, Turkey and Opole, Poland, sites. In May 2024, the company’s acquisition of Functional Formularies in the US boosted its medical nutrition portfolio and expanded its food-based tube feeding ranges. 

In addition to the production line, Danone will invest €10 million (US$11 million) in new infrastructure at the Steenvoorde site, including a biomass boiler. The new boiler will reduce the site’s carbon footprint by roughly 70% as part of the Danone Impact Journey commitments and will be enabled by its Re-Fuel energy excellence program. 

Biomass boilers at Danone’s global Specialized Nutrition network in Balclutha, New Zealand; Prambanan, Indonesia and Wexford, Ireland generate renewable thermal power from local, natural resources.

The Steenvoorde site, which has produced Danone products for 110 years, currently focuses on creating specialized nutrition ranges for early life under the Gallia and Blédina brands, among others. 

Meanwhile, Nutricia launched Fortimel PlantBased Energy, Danone’s first plant-based oral nutritional supplement. Made from pea and soy protein, the new offering is meant to meet the dietary needs of malnourished patients and those at risk of becoming malnourished.

Combating nutritional deficienciesThe upgraded Steenvoorde facility will be able to produce 20 million liters of medical nutrition supplements.
Medical nutrition addresses nutritional insufficiencies when patients cannot meet their daily dietary requirements with everyday foods. It is used under medical supervision and is often a crucial part of treatment besides medication, surgery, diet and lifestyle. 

For example, disease-related malnutrition, caused by conditions such as cancer and stroke or due to aging, affects one in four patients admitted to the hospital, but only one in three who need medical nutrition receive it. According to Danone, the need for medical nutrition is expected to increase because the rate of chronic diseases and aging is on the rise.

Danone continues to undertake significant research and innovation projects in medical nutrition, building on its 125 years of experience in the field. The company, among the first to pioneer medical nutrition, invests in research of the specific nutritional needs associated with health conditions.

Danone makes considerable investments in research of the nutritional needs associated with health conditions and diseases, and develops evidence-based products that meet these patient needs. It recently launched its first product in China’s adult Foods For Special Medical Purposes category, designed to meet the nutritional needs of patients recovering after surgery or diseases like cancer and stroke.

In addition, Danone combined the L. salivarius PS2 probiotic strain with fructooligosaccharides nutrifibers in its latest synbiotic supplement, Almimama, to reduce the incidence of mastitis — a painful inflammation of the breast tissue — in nursing mothers.

By Inga de Jong