Core Viewpoint - Danone is investing $4 million to expand its yogurt production facility in Texas to meet the increasing demand for high-protein dairy products driven by the use of GLP-1 weight loss drugs, with the capacity upgrade expected to be completed by September this year [1]. Group 1: Investment and Expansion - The expansion will enhance production capacity for core brands such as Danimals, Activia, and YoCrunch in the North American market [3]. - The Texas facility currently employs approximately 210 staff, but the company has not disclosed the number of new jobs that will be created post-expansion [3]. Group 2: Market Demand and Growth Potential - Danone's North America yogurt business president, Rafael Acevedo, highlighted the significant growth potential in the yogurt category under the current market conditions, with the existing product portfolio being adaptable to changing consumer demands [4]. - The company's comparable sales in the North American market grew by 1.5% in the third quarter of last year, indicating both volume and product mix improvements [4]. - This marks the second expansion by Danone in the past six months, following an upgrade of the Minster facility in Ohio last August, which added production space and introduced a new production line [4]. Group 3: Response to Market Trends - The recent surge in popularity of high-protein yogurt has put pressure on the supply side, affecting the pace of new product development [4]. - The Texas facility expansion aims to alleviate capacity constraints and create room for future product innovation [4].

Core Insights - Danone plans to invest $4 million to expand its Fort Worth, Texas facility to meet the growing demand for protein-rich yogurts [1][2] - The expansion aims to enhance production capabilities for brands like Danimals, Activia, and YoCrunch, with completion expected by September 1 [1][2] - The company is facing challenges in keeping up with high demand for high-protein yogurts, which has affected its innovation capacity [3] Company Performance - Danone's yogurts have benefited from the increasing popularity of GLP-1 medications, as consumers seek nutrient-dense options while managing their weight [4] - In the third quarter, Danone reported a 1.5% like-for-like sales increase in North America, with a 0.3% rise in volume/product mix [4] - The company believes it is well-positioned to leverage its yogurt portfolio to meet evolving consumer needs [5] Recent Investments - The Texas expansion is part of a broader strategy, following a previous announcement of an upgrade to the Minster, Ohio yogurt facility, which will include additional space and a new production line [5]