Danone Reshapes German Operations with Closure of Rosenheim Dairy Facility
Danone has announced plans to shut down its Rosenheim milk production plant in Germany by mid-2025, signaling a strategic shift in its dairy operations across the European market. The move is part of the company’s broader portfolio optimization efforts aimed at enhancing competitiveness and long-term growth.
The Rosenheim facility, located in Bavaria, has specialized in fresh dairy products and currently employs around 160 people. Danone cited the site’s limited growth potential and structural cost pressures as key factors behind the decision. Production volumes from Rosenheim will be gradually transferred to other existing Danone sites in Europe to ensure supply continuity and efficiency.
This restructuring aligns with Danone’s Renew Danone strategy, which focuses on simplifying the company’s footprint while investing in priority segments and markets. As part of the planned transition, Danone is set to engage in discussions with employee representatives to explore socially responsible solutions for the affected workforce. The company has also committed to supporting employees throughout the process.
Danone’s latest move reflects broader trends across the FMCG sector, where leading manufacturers are consolidating operations and optimizing manufacturing networks to respond to shifting consumer demands and cost pressures. Germany remains a key market for Danone, and the company has affirmed its intention to continue operating in the country with a more focused production strategy.
The closure follows other recent moves by FMCG firms across Europe to streamline production and sharpen market focus amid persistent inflation and increased competition from both local and global players. With dairy consumption patterns evolving and pressures mounting on production margins, efficiency-driven restructurings like this may become increasingly common across the sector.
Danone’s dairy division remains one of the company’s core businesses, and despite the closure, the group has reiterated its commitment to maintaining strong relationships with German consumers and retail partners. Ongoing investments in innovation and strategic manufacturing hubs across Europe are expected to play a central role in supporting this objective.