Danone to Shut Down Germany Dairy Plant Amidst Strategic Refocus
Danone has announced plans to shutter its dairy production site in Ochsenfurt, Germany, by mid-2025, as the company realigns its operations to concentrate on product categories with higher growth potential. The closure affects approximately 160 employees and forms part of a broader transformation strategy aimed at optimizing the group’s manufacturing footprint.
The Ochsenfurt facility, which primarily produces fresh dairy products under brands such as Activia, Actimel, and FruchtZwerge, has operated for over a century. Danone emphasized that while demand remains solid, evolving consumer preferences and increasing market pressures have necessitated a shift in focus toward more profitable and scalable production capabilities across Europe.
In a statement, Thomas Schmidt, General Manager of Danone Germany, Austria, and Switzerland, noted, “We are evolving towards a more competitive and flexible supply chain. Unfortunately, that means some difficult decisions as we adapt to future growth areas.”
The company plans to reallocate production to other facilities within its European network to ensure continued supply of its dairy portfolio. Danone also expressed its commitment to working closely with labor representatives to support impacted employees through the transition.
This move in Germany follows a string of plant closures and divestments globally, reflecting Danone’s wider goal to sharpen its portfolio and improve margins amid cost pressures and shifting consumption patterns. For the dairy sector, in particular, rising input costs and increasing demand for plant-based alternatives have prompted several multinationals to reevaluate their legacy operations.
As competition intensifies in core FMCG categories, manufacturers are increasingly turning to streamlined production models and regional consolidation to enhance efficiency. Danone’s latest action signals the company’s determination to stay agile in a challenging operating environment while reallocating resources toward growth-driving categories, including plant-based products and medical nutrition.