Bel Group is investing $200 million to expand its Babybel cheese production plant in Brookings, South Dakota.
This expansion is the largest U.S. investment in the company's history and will double the plant's production to 20,000 tons annually, according to a statement from the company.
The project is expected to add 150 jobs and enable the company to meet future growth for snacking, protein, and portion-controlled foods, as reported by PR Newswire.
Industry Context
Dairy has been one of the biggest beneficiaries of the protein craze, prompting companies to expand their operations to keep up, with companies like Danone investing millions to expand facilities in Texas and Ohio.
Company Outlook
Bel Group's CEO, McGuinness, stated that the company is handling current demand but without the South Dakota expansion, could find itself in trouble as early as next year, citing strong demand for convenient, portion-controlled, and high-protein foods.
McGuinness said, "We're not struggling. We're fine in 2026 but we would not be okay in 2027," adding that the expansion is perfectly timed given the company's growth rate and trends in the market.
Product Expansion
The expansion also comes as Babybel begins to lean more into high-protein trends, with the launch of Babybel Pro, which offers 5 grams of protein and 1 billion live probiotics for gut health.
Bel Group is posting "healthy" revenue and profits in the U.S. and North America, with sales of Babybel growing in the low-double digits, driven by the U.S. market, which accounts for a third of global business with over $1.2 billion in annual retail sales.
