Bel Group Invests $200 Million to Double U.S. Babybel Production Capacity

Bel Group has officially broken ground on a $200 million expansion of its Babybel production facility in Brookings, South Dakota. This project represents one of the company's most significant capital investments in the United States to date, aimed at doubling the plant's annual production capacity from 10,000 to 20,000 tons.

The expansion is a critical component of Bel Group’s long-term strategy to solidify its presence in the U.S., which currently serves as the group’s largest market. The investment is expected to create 150 new jobs and significantly increase milk sourcing from regional American dairy farms.

Driving Growth in the U.S. Market

The U.S. market currently accounts for 33% of Bel Group’s global sales, with annual retail sales exceeding $1.2 billion. Between 2018 and 2024, the company’s domestic business doubled, and leadership now aims to repeat this growth trajectory.

Cécile Béliot, CEO of Bel Group, noted that the United States is a "strategic market and a key engine of growth." The decision to double capacity in Brookings is intended to strengthen domestic production and support the sustained demand for portion-sized dairy snacks across the country.

Responding to Dietary and Market Trends

The expansion directly addresses shifts in American dietary habits, specifically the rising popularity of high-protein products and the increasing prevalence of GLP-1 diets. As consumers seek nutrient-dense, portion-controlled snacks, the Babybel brand—a 100% real cheese product made with four ingredients—has seen a surge in relevance.

Key Impacts of the Expansion:

Supply Chain Strengthening: The facility will double its daily milk intake, deepening partnerships with dairy farmers in South Dakota and neighbouring states.

Operational Efficiency: The new infrastructure is designed to boost production capabilities while fostering product innovation and greater manufacturing efficiency.

Public Health Alignment: The investment supports the brand's goal of improving access to convenient dairy and fruit snacks, addressing the fact that 80% of Americans currently fall short of the recommended daily intake for these food groups.

Regional Economic Commitment

Peter McGuinness, CEO of Bel North America, emphasised that the project is not only a response to consumer demand but also a commitment to American manufacturing. "Expanding our Brookings facility allows us to meet continued demand while investing in local jobs and the Brookings community," McGuinness stated.

This South Dakota project follows a recent $10 million expansion of Bel’s Little Chute, Wisconsin, facility, further demonstrating a consistent pattern of domestic infrastructure investment to future-proof the company’s U.S. supply chain.