SunOpta, a manufacturer of plant-based foods and beverages, has completed a $26 million expansion of its production facility in Modesto, California.
The expansion, the second-largest capital project in the company's history, will allow SunOpta to increase its annual oat milk production capacity by more than 60%.
The move comes as demand for plant-based milk alternatives continues to grow, with the global plant-based milk market expected to reach over $45 billion by 2034, up from an estimated $20 billion in 2024, according to industry data.
"Through this significant investment in Modesto to produce more oatbase, we're well positioned to meet the increasing market demand for plant-based milk and other oat-based products," said Brian Kocher, CEO of SunOpta.
The Modesto facility uses proprietary enzymatic processes to produce liquid oatbase, which is then used to manufacture oat milk as well as other plant-based dairy products like yogurt, cheese, spreads and ice cream.
The expansion has created 17 new jobs, bringing the total employment at the site to 208.
SunOpta's Modesto plant is part of the company's broader strategy to establish a national network of regional production facilities to reduce freight miles and carbon emissions.
The company's four aseptic manufacturing plants are located across the US, creating a "diamond-shaped" distribution network.
"SunOpta loves the Central Valley, and the Central Valley loves SunOpta," added Joe Gerhardt, senior plant manager at the Modesto facility. "We are proud to be a leader and partner in the local community for the long term, fueling the future of food."
To commemorate the expansion, SunOpta plans to install a pollinator habitat at the Modesto site, demonstrating the company's commitment to sustainability and the local community.
