Dive Brief:

• Bel Group is spending $200 million to expand a Babybel cheese production plant in Brookings, South Dakota, the largest U.S. investment in the company’s history.

• The project will double the plant’s production to 20,000 tons annually and enable the company to meet future growth for snacking, protein and portion-controlled foods. The expansion is expected to add 150 jobs.

• The announcement comes a month after Bel named former Impossible Foods CEO Peter McGuinness CEO of its North America operations. Bel, which also makes Laughing Cow and GoGo Squeez, aims to double its U.S. business in the coming years.

   

Dive Insight:

Dairy has been one of the biggest beneficiaries of the protein craze, prompting companies in the space to expand their operations to keep up. Yogurt behemoth Danone, for example, has said it was having difficulties meeting demand for its high-protein yogurts and invested millions to expand facilities in Texas and Ohio. 

Bel isn’t seeing supply constraints just yet. In an interview, McGuinness said the company is handling current demand but without the South Dakota expansion, could find itself in trouble as early as next year. He said Babybel is seeing strong demand as consumers seek out foods that are convenient, portion-controlled, have protein and are made with a few ingredients.

“We’re not struggling. We’re fine in 2026 but we would not be okay in 2027,” the former Chobani executive said of Babybel. “Given our growth rate and given what we know already in terms of the back half of 2026 and the front half of 2027, this is perfectly timed.”

The expansion also comes as Babybel begins to lean more into high-protein trends. The brand launched Babybel Pro earlier this month, which offers 5 grams of protein and 1 billion live probiotics for gut health.

McGuinness said Bel is posting “healthy” revenue and profits in the U.S. and North America, with sales of Babybel growing in the low-double digits. The U.S. is Bel’s largest market, driving a third of global business with more than $1.2 billion in annual retail sales.

The Brookings project follows Bel’s recent $10 million expansion of its Little Chute, Wisconsin, facility, which added 50 jobs and increased production capacity for Laughing Cow. The company also announced a $140 million expansion of its Nampa, Idaho, facility, doubling capacity of production for GoGo Squeez.