Danone to drop Provamel in Germany

Danone is to stop selling its organic alt-milk brand Provamel in Germany. The French group is pulling the brand from shelves in the country from August.

In a brief statement, Danone said it was preparing to launch a range of organic plant-based products under the Alpro brand in Germany.

“We have taken the decision to discontinue Provamel in the German market from August in order to focus on the Alpro brand, which will be launching a new Alpro Bio range in Germany,” Danone told Just Food.

The company declined to provide any further details on its decision.

Danone acquired the Alpro and Provamel brands when it snapped up US business WhiteWave Foods in 2016.

Earlier this month, the Activia maker announced plans to shut a dairy plant in Germany, pointing to production costs and the facility not using its full capacity.

Danone is lining up the closure of the site in Ochsenfurt by the final quarter of next year.

In a statement, Danone explained the decision was necessary as the “only way to remain competitive and successful in the long term in German-speaking countries”. Around 230 jobs will be affected.

The group said production costs at the site were “well above the average of other European Danone plants”. It also cited “years of inefficiency caused by declining capacity utilisation”.

The company said its “remains committed” to Germany as a manufacturing base and plans “significant investments” at its site in Fulda, which is focused on producing specialised products such as baby formula and medical nutrition.