Ultima Foods is investing US$14.4 million to install a new drinkable yogurt production line and optimize operations at its Granby, Canadian plant.
The yogurt maker is providing US$10.8 million, while Investissement Québec is contributing a US$3.6 million interest-free loan.
The investment will create 35 to 40 jobs.
Ultima Foods produces 30% of the yogurt consumed in Canada.
Since the 2012 iögo brand launch, the company has added new formats, such as pouches, and trendy products like smoothies to its yogurt product line.
The success of these products encouraged the investment as the company had reached the limit of its drinkable yogurt production capacity.
With new equipment and procedural fine-tuning made possible by the $14.4 million investment, weekly production at the Granby factory will go from 2.7 million units to 4.8 million.
Optimization of its operating costs will allow the company to reinvest even more in the development of new yogurt products.
In 2016, Ultima Foods invested US$12 million in innovation, behind research and development, and marketing.
“Apart from the considerable sums spent on innovation, the strength of Ultima Foods is in its ability to turn new ideas into commercial products that satisfy consumers and meet their needs,” says explains Guy Belletête, co-founder of Institut de développement des produits, which supports innovation and the entrepreneurial spirit in Québec businesses and organizations as development vectors.
“We are not talking about innovation as a distinct activity conducted in a silo, but truly as a guiding principle within the company.”