Global food and beverage giant Danone has announced a $65 million investment to expand its manufacturing and distribution operations, aimed at meeting surging demand for its coffee and creamer brands, including International Delight and STōK Cold Brew.
The investment includes the expansion of Danone’s 77-year-old Jacksonville production facility, which officially reopened this week with enhanced capabilities. The upgrade features state-of-the-art technology, including an advanced bottle-molding process that increases production efficiency, reduces bottle loss by 30%, and uses less water, enabling the production of more sustainable, recyclable bottles.
In addition to expanding the manufacturing plant, Danone is also developing a new distribution center to strengthen its supply chain and ensure peak product freshness across the Southeastern United States. Together, these projects are expected to generate nearly 200 direct and indirect jobs in the local community.
The company’s move comes amid a broader industry trend where major players are reconfiguring their production networks to adapt to evolving market conditions. While some food manufacturers like PepsiCo and Conagra Brands are scaling back due to weakened demand in certain segments, Danone is doubling down on high-growth categories.
The expansion aligns with Danone’s 2023 strategy to ramp up production for high-performing brands such as International Delight and STōK. Cold brew coffee, in particular, has emerged as a standout growth segment. According to data from SkyQuest, the cold brew coffee market is projected to surge from under $500 million in 2022 to $3.11 billion by 2030.
Capitalizing on this trend, Danone has diversified its STōK portfolio with seasonal flavors and a cold-brew energy drink line, targeting wider usage occasions and new consumer segments.
Danone’s strategic bet on coffee and creamer underscores its focus on innovation, sustainability, and regional supply chain optimization, signaling strong confidence in the long-term potential of the U.S. ready-to-drink coffee market.